Libya

Libya is situated in North Africa and is the fourth biggest country in the whole African continent. It lies between Egypt to the east, Sudan to the southeast, Algeria and Tunisia to the west, Niger and Chad to the south, and it borders with the Mediterranean Sea to the north.

Libya’s massive economic growth is primarily due to revenues in the oil sector, which constitute practically all export earnings and more the half of the GDP. After the international sanctions were lifted, the country launched many development projects related to the public sector, infrastructure development and housing. Among them is the “Libyan Foreign Investment Board” (LFIB), as its task is to monitor and regulate all foreign investments by introducing new technological solutions, quality project management, restructuring and providing many career opportunities.

Libya shows a low level of both absolute and relative poverty, when compared to its neighbors. In the past several years Libyan officials have carried out economic reforms. These reforms are part of a broader campaign aiming to reintegrate the state into the world capitalist economy.

Today, due to the high oil profits and the small number of inhabitants, Libya has one of the highest GDPs per capita on the continent. Due to that fact the Libyan government has provided an extensive level of social security, especially in the fields of housing and education.

Tourism is on the rise, bringing increased demand for hotel accommodation and capacity at airports such as Tripoli International. A multi-million dollar renovation of Libyan airports has recently been approved by the government to help
meet such demands.

Tips for Doing Business in Libya

• Business in Libya is highly dependent on personal relationships that have a good degree of trust between them. It is very important for foreign businessmen in the country to allow time and put effort into forming solid relationships with Libyan partners.
• Because relationships are so important, the beginning of business meetings is usually reserved for small-talk and general conversation. Do not try and rush into talking about business, but rather take advantage of these conversations. They are a very good way to build the vital relationships you need in order to do business.
• Libyan businessmen place great value on negotiating and see it as a way not only to achieve good financial end results, but also as a way to gain honor, respect and other non-monetary benefits. Therefore, be prepared for a slow and drawn out negotiation process.
• Always shake hands when doing business with Libyan associates. As part of the Islamic religion, the right hand should be used and you should wait for the other person to break the hand-shake first.
• Make sure you have Arabic copies of all the documents you need for business. This will allow for the documents to be made official.
• Wear formal and conservative attire when doing business in Libya. Businesswomen should dress in a way that covers their arms and legs to below the knee.
• Libyan businessmen are known for their generosity and hospitality when welcoming foreigners. When you receive gifts, do not offer any kind of payment for them as this can be offensive.
• Check the calendar for Libyan public holidays and do not schedule any business meetings during those dates, especially during the holy month of Ramadan.

Cost of Living

The following table compares the costs of some basic products in Tripoli, Libya and Sofia, Bulgaria.

Official Holidays in Libya

15 February – Mouloud (Prophet’s Birthday)
2 March – Jamahiriya Day
28 March – British Evacuation Day
11 June – Evacuation Day
28 July – Ascension of the Prophet
30 August – Eid al-Fitr (End of Ramadan)
1 September – National Day
1 September – Revolution Day
7 October – Italian Evacuation Day
6 November – Eid al-Adha (Feast of Sacrifice)
26 November – Islamic New Year
5 December – Ashoura