An Overview of the Current Foreign Investment Laws and Regulations in Libya
Type
E-journal
Date
18 Feb 2013
Jurisdiction
Libya
Taxonomy
General Commercial Law, Companies & Corporate Bodies
Copyright
LexisNexis
Relevant company
Clyde & Co
Analysis
As Libya celebrates the two year mark of the February 2011 revolution, the momentum for economic reform has largely stalled. This is the result of the introduction of new rules that have significant implications for foreign investors.
The old Libyan regime had been taking steps to improve the investment climate in the country since the early 1990s. In 1997, the Law for Encouragement of Foreign Investment, (commonly known as Law No.5) was introduced. Under the circumstances, this was a reasonable law and certainly encouraging of foreign direct investment (FDI). The legislation detailed the investment procedures, new duties and incentives including income, import, and capital gains tax concessions. It also allowed foreign investors to own 100% of the company.