What are the Natural Resources in Libya?
Libya could be called North Africa’s best-kept secret, as it possesses vast natural resources: 80% of its land is desert (primarily Sahara), but since it is located next to two of the world’s largest bodies of water and contains one of the world’s largest oil reserves, Libya is anything but secret. The country is also rich in iron ore, manganese, chromium ore, asbestos and gypsum. It has an estimated $200 billion worth of untapped mineral wealth! Natural gas deposits are plentiful, too. In fact, Libya boasts more than 35 trillion cubic feet of proven gas reserves—the eighth highest total in the world. As if that weren’t enough, there are large quantities of copper and gold beneath Libyan soil. And according to U.S. Geological Survey estimates, up to 200 million barrels of crude oil can be found off Libya’s Mediterranean coast alone! With all these natural resources at their disposal, Libyans should have no problem making money for years to come. If you want your business idea to succeed in Libya, think about how you can capitalize on these valuable commodities. Perhaps your business will focus on extracting minerals or processing petroleum products? Maybe it will involve shipping goods across international waters? Or maybe it will provide some kind of service related to agriculture? Regardless of what your company does, you can bet that Libya’s abundant natural resources will play a major role in your success.
What are the Business Opportunities in Libya?
Libya was once praised for having the highest Human Development Index in Africa. The gas and oil discoveries in the 1950s turned the country into one the richest in the region and essentially made them the third richest country in Africa. With the discovery of hydrocarbon wealth, Libya has continued to progress in our health The answer is varied, and depends on how much risk you’re willing to take. If you’re interested in trading – investing in or importing/exporting goods from/to Libya – there are several new laws that have been passed since 2011 which have simplified trade licenses and import/export rules. As of 2014, foreign companies can now own 100% of their Libyan subsidiaries (previously 60%), but they must still be majority-owned by Libyan citizens. As of 2015, foreign companies can also open wholly owned subsidiaries in Libya with a minimum capitalization of $50,000. In terms of local business opportunities, there are plenty for investors looking to capitalize on Libya’s rebuilding effort:
Reasons for starting a business in Libya
The Libyan economy is a market economy. It produces and exports petroleum, petroleum products, natural gas, and petrochemicals. The labor force is approximately 5 million people—52% of whom are women—and unemployment is at 20%. If you’re looking to start a business in Libya but don’t know where to begin,
The Libyan economy depends mainly on oil revenues, which accounted for 80% of export earnings, 45% of GDP and 90% of government revenues. The expansion of oil production helped accelerate economic growth from 1.4% per year between 1969 and 1999 to 4.1% annually during 2000–08. Reasons why starting
Business-Friendly Policies and Government Initiatives;
Business in Libya can be an excellent choice—and more and more people are discovering that as a new entrepreneur, you may be wondering if your country is good for business; As of 2016, companies that are at least 51% Libyan-owned, employ at least 100 people and have over $1 million in paid-up capital may apply for an operating license. A company that meets these criteria will be licensed for five years; a company with fewer than 100 employees can apply for a four-year license. Additionally, companies with annual revenue of less than $10 million can operate without applying for licensing but must submit income tax returns annually. Currently, as per Law No. 10/2012 on Investment Promotion, all foreign investors who wish to establish or acquire a shareholding exceeding 20% in any business entity must seek prior approval from The General People’s Committee (GPC) on Foreign Investment. This is known as prior notification and is granted based on a list of general criteria set out by The GPC.
Libya Industrial Infrastructure;
Libya is rich with industrial facilities. It has well-established infrastructure within its country, which makes it an ideal environment for business people who are interested in entering into Libya competitive manufacturing sector. Before choosing to do business within Libya, however, there are several factors you should consider before making your final decision. This will help you ensure that your company will have every opportunity to succeed and make money while doing so. Here are some of those things:
The economy of Libya is dominated by oil production and exports (80% of GDP), which accounts for most of its foreign exchange earnings. After oil, there are three major sectors: agriculture, industry, and services. Agriculture used to be an important part of Libya's economy but declined after WWII as land was converted to other uses. Today, it contributes only about 3% of GDP while employing 12% of the labor force. Fishing also provides food for local consumption; Libyans consume more fish per capita than any other people on Earth—about 140 pounds per year! Industry contributed 40% of GDP in 2010 and employed 16% of workers. It is best known for petroleum products, textiles, clothing, refined petroleum products, chemicals, construction materials, plastics goods and processed foods. Although not rich in natural resources like many countries around it, Libya has proven reserves of high-grade crude oil that make up approximately 97 percent of export revenues.
What are the steps for Starting a Business in Libya?
Seek advice and plan carefully.
-Apply for necessary permits, licenses, or other authorizations.
-Choose your business structure.
-Choose an appropriate location for your business.
-Identify sources of funding, as well as capital requirements, such as property and equipment purchases or leasing costs.
-Draft a start-up plan (including timeline) with cash flow projections.
-Determine how you will obtain goods and services needed for your business.
-Decide on what type of accounting system will be used.
-Finalize contracts with vendors, contractors, employees, landlords, etc., if applicable.
-Obtain insurance coverage for both general liability and workers’ compensation coverage.
Market Size of Libya
The market size is estimated at more than $30 billion, equivalent to more than half of Tunisia’s Gross Domestic Product (GDP). To put it in perspective, that is bigger than Morocco’s GDP and twice as big as Egypt’s. This figure includes consumer spending on health care, education, food and beverage, tourism and travel, telecom equipment and services, automotive sales and construction materials. The Libyan economy has been growing rapidly since 2003 and is expected to expand by 8% for 2011. In fact, according to U.S.-based research firm Global Insight, Libya will be among Africa’s fastest-growing economies over the next five years with growth averaging 7% annually.
Industrial growth
In 2011, Libya’s GDP was estimated at $69.75 billion; approximately 1.7% of global gross domestic product (GDP). The 2012 GDP estimate is around US$39 billion. It has been forecasted that by 2017, Libya will have reached a nominal GDP of over $100 billion and will be one of Africa's top ten economies. In addition to oil production and export, other natural resources include gypsum, limestone, and sulfur, marble and salt. Libyans are among the highest consumers of water capita in Africa; with each Libyan consuming an average of 230 liters daily. In 2011, Libya’s GDP was estimated at $69.75 billion; approximately 1.7% of global gross domestic product (GDP). The 2012 GDP estimate is around US$39 billion. It has been forecasted that, Libya will have reached a nominal GDP of over $100 billion and will be one of Africa's top ten economies. In addition to oil production and export, other natural resources include gypsum, limestone, and sulfur, marble and salt.