The Head of the Accounting Department at the Libyan Academy, Abubakr Abu Al-Qasim, commented to our source on the open letter issued by several individuals concerned with financial matters. The meeting, organized by the Humanitarian Dialogue Center, led to the creation of a document that focused on returning to the legal foundations for approving the 2025 budget. The document also addressed short-term measures and tackled some of the distortions in financial policies adopted, particularly in recent years, rather than offering long-term strategies.
He added that the document did not address broader economic issues and instead focused on setting mechanisms for rationalizing government spending and enhancing revenues. It also highlighted legal violations related to spending, revenues, and the irresponsible use of public funds. The discussions were constructive, involving Libyan experts with knowledge and experience in this field, and should be considered in the context in which they were presented.
He also noted that this open letter was directed to all stakeholders involved in Libyan affairs, both domestic and international, at a critical time, especially as the country is actively working to reshape the Libyan landscape.
The World Bank reported today, Wednesday, that Libya’s economy is expected to stabilize following an agreement to resolve the country’s Central Bank crisis, which led to a significant rebound in oil production. However, despite recent progress, Libya’s GDP is expected to shrink by 2.7% by the end of 2024.
According to the latest World Bank report on Libya’s economy, economic expectations remain dependent on sustained political stability and strategic efforts to diversify the economy beyond hydrocarbons.
The Bank noted that, during the first ten months of 2024, oil production shrank by 8.5% due to the crisis at the Central Bank of Libya, dropping from 1.17 million barrels per day to 0.54 million barrels per day in September. After the crisis, production rebounded to 1.3 million barrels per day by the end of October, while oil prices remained around $80 per barrel, at the same level as 2023, amidst reduced global demand, particularly from China, and increasing regional geopolitical risks.
The report also discusses the economic trends in Libya over the past decade, highlighting the severe impacts of ongoing instability. The losses are estimated at about $600 billion over ten years, based on the 2015 fixed dollar rate. Had it not been for the conflict, Libya’s GDP in 2023 would have been 74% higher. In addition to instability, key challenges include heavy reliance on oil, lack of diversification, low productivity, and the deterioration of health and education quality.
Ahmad Mustafa, Director of the Maghreb and Malta Region at the World Bank, said Libya faces the challenge of diversifying its economy and reducing its dependence on hydrocarbons. Stability and improved governance will be key to Libya’s economic recovery, as evidenced by the significant economic losses caused by instability in recent years.
Furthermore, by addressing the risks posed by climate events, Libya can protect its infrastructure, ensure the delivery of services, and maintain financial stability, paving the way for a resilient and prosperous future.
The World Bank emphasized that Libya’s economic outlook is heavily reliant on the oil and gas sector, which dominates GDP, government revenues, and exports. Oil production is expected to recover to 1.2 million barrels per day in 2025 and 1.3 million barrels per day in 2026, boosting GDP growth to 9.6% in 2025 and 8.4% in 2026. Non-oil GDP growth is expected to be 1.8% by the end of 2024, driven by consumption, averaging around 9% during 2025-2026. Despite lower oil revenues in 2024, fiscal and external balances are expected to show surpluses of 1.7% and 4.1% of GDP, respectively, due to reduced spending and imports.
The Bank further noted that the country’s priorities include strengthening security, governance, and stability. With GDP per capita reaching $7,570 in 2023, Libya is considered a high-middle-income country. By prioritizing non-oil sectors and encouraging private-sector-led growth, Libya can unlock high-value employment opportunities and enhance development indicators, thus improving the lives of citizens and aligning with the global shift toward clean energy, according to the World Bank.
Libyan businessman Husni Bey stated exclusively to our source: “What is being circulated about the Central Bank’s request to the Audit Bureau is nothing more than a ‘storm in a teacup.'”
He continued: “The Federal Reserve has not suspended any transactions related to Libya, nor has it threatened any immediate or urgent suspension. All it requires is an independent auditing office to conduct post-transaction reviews and monitor the use of Libya’s dollars by Libyan banks and the Central Bank in terms of transparency and combating money laundering and illicit activities.”
Bey added: “The requested measure is merely formal, natural, and objective—especially in a country like Libya, where the parallel market, speculation, and trade outside the banking system through personal cards and cash account for approximately 50% of the economic activity.”
He explained: “The U.S. Federal Reserve’s concerns stem from institutional division, deficit spending, the absence of an approved budget, and the lack of consensus on financial arrangements. This is compounded by allegations of undisclosed public funding sources, oil-for-fuel barter agreements, fuel smuggling, and other irregularities highlighted in the Audit Bureau’s reports. Fuel smuggling, which has become a contentious activity due to price disparities exceeding 3,000%, exacerbates these issues.”
Bey concluded: “We must admit that the fault lies with us. We need to work on unifying the budget or agreeing on financial arrangements, while also taking decisions to limit cash transactions—even criminalizing cash dealings above a certain amount, such as 50,000 dinars.”
He wrapped up his remarks by reiterating: “It is a storm in a teacup, and the Central Bank, through its correspondence with the Audit Bureau, is trying to comply with the request and reduce concerns and risks.”
Mrajaa Ghaith, former board member of the Central Bank of Libya, clarified in his statement to our source regarding the open letter signed by several experts about the financial challenges facing the Libyan state. He stated that the paper is mainly related to the preparation and implementation of the 2025 budget. Its purpose is to encourage the parties involved to agree on a budget that will serve as the basis for spending in the coming year, along with measures to reduce waste, unnecessary spending, and to encourage the collection of the state’s rightful revenues. However, it does not address the overall issues of the Libyan economy, but rather focuses on the 2025 budget with some additional proposals.
Ghaith also stated: “The success of the recommendations depends on the seriousness of the parties in control of the state, and whether they have the will to combat waste and excessive spending without adhering to laws and spending through an approved budget, or whether spending will continue based on personal interests and desires.”
Our source from the Central Bank of Libya revealed in an exclusive statement: “We reassure citizens and traders regarding the correspondence directed to the Audit Bureau about the Federal Reserve. There is no cause for concern, as these are routine administrative procedures that can be managed.”
The source continued: “The correspondence does not pose a significant risk as long as the Central Bank’s management is collaborating with the Audit Bureau to select a review company if necessary, as a precautionary policy.”
He added: “The correspondence includes routine procedures, and the Central Bank continues its foreign exchange sales as usual. We also caution against speculative trading.”
The source concluded: “The issue is temporary and will not affect the availability of foreign exchange in the coming months, as much as it focuses on maintaining relationships with international correspondents.”
Our source has exclusively obtained a correspondence from the Governor of the Central Bank of Libya to the President of the Audit Bureau. In this letter, the Governor indicated that the Central Bank of Libya executes foreign exchange transactions and all transfers in US dollars through the Federal Reserve Bank in New York, which is the mandatory intermediary for all dollar-denominated transactions.
The Governor stated that the Federal Reserve Bank of New York has informed the Central Bank of Libya that it will suspend its dealings with the Central Bank of Libya (and the Libyan Foreign Bank) concerning the execution of commercial operations unless a mechanism for reviewing such transactions through an independent specialized company, referred to as a Third-Party Monitor, is established and approved by the Federal Reserve Bank.
He further explained that severing ties with the Federal Reserve would mean the suspension of all dollar transactions, as the Federal Reserve is the clearinghouse for dollar transactions with all international correspondents. Such suspension would lead to significant financial losses and expose the Bank to risks regarding transactions in other currencies, as well as reputational damage with international financial institutions.
The Governor emphasized that every effort had been made to dissuade the Federal Reserve from taking this action, most recently during a meeting in Tunis on December 13, 2024. The meeting was attended by the Governor, his deputy, and several board members, along with the Federal Reserve team and a representative from the U.S. Treasury Department. During the meeting, it was made clear that the U.S. Treasury supported the Federal Reserve’s demand. The best outcome achieved was a delay in implementing the suspension until the Libyan authorities approved the required review mechanism.
The proposed mechanism involves establishing a specific arrangement for post-payment reviews of dollar transactions. This would be entrusted to an independent specialized company with expertise in providing financial monitoring services, particularly in the areas of anti-money laundering and counter-terrorism financing, in accordance with international standards. The terms and details of this review mechanism would be subject to negotiations between the Central Bank of Libya and the selected company. This mechanism would grant the contracted auditing firm access to data related to commercial transactions, including supplier and importer information. It is worth noting that most of this data is already published monthly on the Central Bank’s website.
In conclusion, the Governor stated that, based on the above and in light of Article 25 of the Banking Law, which entrusts the Audit Bureau with auditing the Central Bank’s accounts, and considering that the Bureau had previously approved Deloitte’s auditing of the Central Bank’s accounts in Tripoli and Benghazi, he requested approval to proceed with contracting one of the specialized companies. This would enable the implementation of the required regulatory framework under optimal conditions for the benefit of the Central Bank and Libya as a whole. It would also ensure continued engagement with the Federal Reserve in line with transparency and international compliance requirements. The Governor pledged to update the Audit Bureau on any further developments in this matter.
Esam Hamza, the Director of the General Manager’s Office at Al-Yaqeen Bank, announced that the bank is operating smoothly and at an accelerated pace in the final quarter of 2024.
Mr. Hamza emphasized that all products and services were fully reinstated in October, in line with the directives and circulars from the Central Bank of Libya. He highlighted that the bank continues to offer high-quality electronic services designed to save time and effort for both individual and corporate customers.
Looking ahead, Hamza noted that 2025 will be a landmark year for the bank, as it prepares to roll out a new range of advanced electronic services and self-service machines. These innovations will enable customers to access most services without the need for paperwork or direct assistance from bank staff.
The financial and economic expert, Sameh Al-Kanouni, spoke exclusively to our source about correspondence among experts regarding Libya’s public financial challenges. He stated, “This is entirely accurate and 100% true.”
He added: “I am not pessimistic, but when I see several global oil companies changing their names to energy companies, it raises concerns about the future of oil. These companies are shifting to renewable energy, such as wind and solar power. In 20 years, oil might become marginal, with limited demand confined to industries using heavy oil. Meanwhile, electric cars, phones, and Tesla products, for instance, are powered by renewable energy sources like solar.”
He continued: “We must reduce spending and shift toward investment. I hope recommendations and plans are included when discussing these issues. When addressing a challenge, alternatives should be presented. One key step is encouraging the Investment Authority, reforming the investment law, and transforming it into a Ministry of Promotion and Investment, granting it the authority and strength to attract investors to Libya.”
Al-Kanouni also highlighted the need to revise and update some economic laws to align with the country’s current situation, amend certain Central Bank of Libya regulations, and establish sovereign and investment funds to promote domestic investment. He called for the activation of the stock market and support for local industries in Libya.
He further stated: “Libya’s deteriorating economic conditions are shared by other nations, such as Tunisia, Italy, Turkey, and Egypt.”
He concluded: “I wish these recommendations had been issued years ago. However, it was a courageous step by the meeting participants to convene and provide indicators to decision-makers across all sectors. They proposed measures for spending control and standards. The state must prioritize essential goods for citizens and activate the municipal guard to regulate prices and balance the Libyan market.”
A group of economic and financial experts, including ten members from the Economic Salon organization out of seventeen, consisting of: Dr. Abubakr Abu Al-Aid Abulqasim, Mr. Hamuda Al-Aswad, Mr. Mrajea Gaith, Dr. Abdelghani Al-Fatissi, Dr. Fathi Al-Majbari, Eng. Mohamed Khaled Al-Ghweil, Dr. Mohamed Ben Yousef, Dr. Suleiman Al-Shahoumi, Mr. Mohamed Al-Shukri, and Dr. Ezzeddine Ashour, have issued an important message about the Libyan state’s financial challenges, under the sponsorship of the Human Dialogue Center.
Regarding the current economic situation:
Anyone who cares about the Libyan people must speak the whole truth to them. Therefore, speeches of evasion and aligning with the distortions in the economic situation only serve narrow interests and are a gamble with the country and its future generations.
The standard of living has declined over the last decade, with poverty rates increasing and the per capita share of GDP shrinking, alongside a significant rise in actual inflation rates, unemployment, and the erosion of citizens’ savings. The large disparity in economic opportunities between citizens threatens political instability due to the accumulation of feelings of marginalization, whether real or imagined. This becomes even more likely when such feelings are combined with regional and social narratives of marginalization.
The overall financial indicators have reached levels that threaten financial sustainability and undermine efforts toward stability. Therefore, it is necessary to begin a comprehensive program for restructuring the Libyan economy.
Institutional divisions, both horizontal and vertical, have increased the confusion in managing the country’s economic and financial affairs. Regardless of the proposed temporary solutions, they cannot replace the need for unifying administrative and financial decisions by bringing all political institutions together and renewing their legitimacy through general elections.
Regarding the general budget:
The general budget of the state is supposed to reflect a strategic vision and be a tool for financing, oversight, and monitoring. Unfortunately, it is currently only used for current expenditures, which undermines its effectiveness and weakens its political and social credibility.
There is a need for a unified budget covering all government expenditure items across all regions of Libya. Despite all possible reservations, a unified budget remains better than any other financial arrangements.
The budget should be realistic, taking into account expected needs and revenues. It should also be based on macroeconomic and sectoral quantitative and qualitative indicators, ensuring the possibility of monitoring and evaluation within the framework of fiscal policy. The absence of economic indicators in general budgets reflects a regrettable approach to public funds with an exploitative mindset.
Regarding revenues:
All public entities tasked with collecting public revenues must do so. No entity should retain or deduct any part of these revenues for any reason or transfer them to other entities without legal authority.
All proceeds from the sale of oil, gas, and petroleum derivatives, as well as all other sovereign revenues, should be deposited, without exception, and on time into the general revenue account of the Ministry of Finance.
In a country that primarily relies on oil revenues, the National Oil Corporation must disclose detailed monthly data about its exports, the quantity of each type of crude oil, the selling price, the foreign partner’s share, and the share of the public treasury.
Regarding expenditure controls and standards:
The government and the National Oil Corporation must urgently end the practice of bartering oil shipments to meet local market fuel needs. These needs should be accurately determined and supplied according to the required quantities. The National Oil Corporation should contract with global refineries through transparent procedures. Both the National Oil Corporation and the General Electricity Company must conduct monthly reconciliations to determine the actual supply of gas, crude oil, and its derivatives to the company.
For economic and security reasons related to stability in Libya, fuel subsidies should be restructured in accordance with a studied and gradual policy that provides a social safety net and enhances citizens’ purchasing power, while first gaining their trust through communication, transparency, and disclosure.
Rationalizing expenditures on salaries and subsidies may be inherently harsh and painful for some social groups. However, the state must adopt a policy of truth with citizens and stop the practice of appeasing public opinion for the benefit of narrow interests.
In terms of rationalizing expenditures, the following measures should be implemented in the 2025 budget:
Cease government appointments and salary increases throughout 2025 to allow for an accurate census of public employees and identification of actual needs.
Issue a unified salary schedule that considers the cost of living and ensures a reasonable balance between higher and lower grades.
Review the inflation of some budget items, such as subsistence, accommodation, and vehicle purchases.
Reduce the number of government agencies funded by the general budget by merging public institutions with similar goals.
Reduce the number of Libyan embassies and diplomatic missions abroad and their staff.
Cease spending large sums of public money on social issues like marriage without proper economic and field studies showing the impact on the targeted groups.
We urge the relevant authorities to activate and support the following institutions for their vital roles in economic development: the Civil Registry Authority, the Real Estate Registry, the Statistics and Census Authority, the Tax Authority, the Urban Planning Authority, the Public Property Authority, and Customs.
Priority in development should be given to energy, electricity, basic social services, and infrastructure projects. In all cases, financial allocations for targeted projects should include their names, geographic distribution, value, and required cash flows over the execution period.
We emphasize adherence to the rule of not transferring funds from the third section (development) to other sections in the general budget.
Regarding monitoring and evaluating the budget implementation:
The signatories of this message are aware that the general budget includes structural facts that are sometimes difficult to overcome, such as the inflation of public employee numbers, the reliance of many citizens on subsidies, and the widespread corruption in administration. However, they are also aware that addressing these structural distortions and combating corruption takes time and requires determination, planning, and design to avoid turning good intentions into ill-conceived and poorly studied decisions that fuel conflicts.
All public entities should be subject to monitoring by oversight bodies, which enhances transparency and governance.
We emphasize that all public entities issue monthly reports on revenues and expenses, as well as reports on the progress of development projects, their costs, and any increases or savings in funds and time.
The Audit Bureau and the Administrative Control Authority should issue quarterly reports on the expenditure of development allocations, in addition to the annual report in the first half of the following year to address violations before they worsen.
All state institutions must close their final accounts, which allows for determining their financial position and identifying obligations and debts to the public treasury.
Regarding accompanying reform measures:
We urge the legislative and executive institutions and expert houses to review all legislation related to the state’s financial and economic system. These reviews must be conducted in a systematic and consultative manner to ensure their smooth implementation.
Until that happens, institutions must adhere to current legislation in their financial management according to principles of cooperation and professionalism that should prevail between state institutions.
A population census and basic surveys should be conducted to provide sufficient indicators to guide economic decisions and their appropriate timing.
Economic and financial data should be provided and published, enhancing their inclusiveness and reliability.
Resources should be allocated to municipalities, granting them the authority to spend them on their defined development priorities.
Priority in public procurement and contracts should be given to the Libyan private sector.
The public treasury should not bear any financial obligations that are not included in the general budget. The Ministry of Finance should efficiently manage the state’s assets from public companies and sovereign funds, maximizing their revenues and ensuring they are not diverted outside the general budget.
Procedural steps for adopting the budget:
If the economic situation is exceptional, the upcoming year’s budget should also be dealt with exceptionally to ensure its adoption, compliance, and smooth implementation. This requires wide political agreements among the key parties and active communication between technical bodies and the relevant political institutions.
The Central Bank of Libya must maintain its independence and work within its legally defined responsibilities to ensure its professionalism and neutrality. The relationship with the Ministries of Finance and Economy should be arranged so that each can implement its powers without overlap.
In conclusion, dealing with economic challenges seriously and responsibly requires launching a comprehensive political process that integrates its various paths without delay or postponement from the UN mission. If Libya needs a solid national charter between its political and social components, it also requires a deep dialogue about the desired economic model that should guide the work of all institutions and address the root causes of repeated conflicts.
Our source has obtained a notice referred by the Deputy Director of the Audit Bureau, Atiyat-Allah Abdulkareem, to the Bureau’s Legal Affairs Office. The notice was received by a process server from an unidentified citizen, who claims that Khaled Shakshak is no longer the Head of the Audit Bureau. The citizen bases this claim on rulings issued by the Tripoli Court of Appeals.
In response, the Legal Affairs Office stated that this notice holds no value and has no basis in reality or law, noting that the rulings mentioned had been overturned and annulled by the Supreme Court.
The Bureau’s Legal Affairs Office confirmed that the legitimacy of its head is derived from rulings by the Constitutional and Administrative Divisions of the Supreme Court, as well as decisions from both the House of Representatives and the State Council, which extended his term as head of the Bureau according to the provisions of the Political Agreement.
The Canadian newspaper Toronto Star reported on Sunday that recent clashes in the city of Zawiya have caused fires at the oil refinery as armed groups vied for control. These disturbances highlight the ongoing instability in Libya since the fall of Gaddafi in 2011, leaving residents trapped and roads blocked, with a state of force majeure declared amid the chaos.
The newspaper confirmed that the exact reason behind the clashes for control of the oil refinery remains unclear. However, it underscores the recurrent conflict in western Libya, dominated by armed factions. This region, under the control of the Government of National Unity, remains a hotspot for violence.
The report noted that the violence has caused significant damage to Zawiya’s oil refinery, with fires threatening gas leaks and the city’s infrastructure.
The Toronto Star further stated that the clashes have led to the closure of main roads and prompted the National Oil Corporation to declare a state of emergency due to the turmoil.
Economic expert Mohamed Sanussi, in an exclusive statement to our source, commented on the letter presented by several experts addressing Libya’s public financial challenges. He stated, “First, we must thank everyone who tries to contribute with their knowledge and expertise to solving Libya’s problems. However, generally speaking, Libya’s problems cannot be solved by presenting proposals and recommendations alone. They can only be addressed by appointing the right person in the right position, free from quotas and favoritism. Officials must be chosen based on competence, not loyalty.”
He added, “Why do we see experts offering advice to solve problems while those in power lack the expertise? There will be no common language between those proposing solutions and those tasked with implementing them. Many officials lack the qualifications necessary to understand and execute the recommendations.”
Sanussi further noted, “As for the letter, there are some weaknesses, the most notable being that some recommendations are unimplementable without fundamental institutional changes, which seem impossible given the current political climate.”
He continued, “Additionally, the letter did not address mechanisms for coordinating the implementation of recommendations between various institutions, nor did it outline priorities or a phased approach to execution.”
Sanussi concluded, “Those in power must hold regular meetings with experts and qualified individuals to develop a clear roadmap with a timeline that sets priorities and execution methods. Corruption must be addressed by improving oversight, starting with combating corruption in regulatory bodies, and appointing qualified individuals rather than those who attained their positions through quotas.”
Former member of the Central Bank of Libya’s Exchange Rate Committee, Misbah Al-Akari, stated: “The liquidity problem will be fully resolved by 2025 provided that all stakeholders (citizens, the private sector, and government entities) commit to using alternative payment tools, which have already become widely available and are expected to grow even further in 2025. This will be supported by additional incentives, such as significantly reducing fees and enabling citizens to use up to 60% of their salaries via these tools when due.“
Al-Akari added: “When everyone commits to adopting this modern approach to transactions, the long queues of humiliation will become a thing of the past. These tools will ensure fairness, eliminate favoritism in cash withdrawals, and curb the financing of currency speculators, which has led to a 35% discrepancy in the Libyan dinar’s exchange rate on the investment side.“
Clarifying the steps for implementing these modern tools, Al-Akari explained: “Activating the unrestricted Mudarabah (Islamic finance product) will allow commercial banks to invest their excess funds with the Central Bank, increasing their revenues and enabling them to further reduce fees for their clients. Additionally, this product will provide commercial banks the opportunity to open investment accounts and restricted Mudarabah products for their customers, creating an investment-friendly environment. Citizens and business owners will be able to utilize such products to grow their funds. These investments will have significant positive effects not only for the investors themselves but also for the Libyan economy as a whole. Moreover, these investments will help absorb a considerable portion of the money supply, the primary driver of foreign currency price increases.“
Al-Akari further noted that by 2025, after mitigating and eventually resolving the liquidity problem and expanding electronic services to reduce congestion at banks, the banks will be well-positioned to return to their fundamental role as financial intermediaries. They will then be able to offer loans and facilities for both small and large-scale projects, contributing to greater diversification of the Libyan economy through these financial tools.
The insistence of the Central Bank of Libya on the shift to electronic transactions, which is supported by all experts and specialists in this field, is due to the following reasons:
Electronic payment tools directly eliminate the need for paper currency except in limited contexts.
This transformation reduces overcrowding at banks.
It enables banking services to be accessed from home or the office without visiting a bank.
It puts an end to corruption associated with cash withdrawal operations.
It provides statistical data that can be used for studies relevant to the national economy.
The international professional services network Deloitte, headquartered in London, released a report titled “The Imperatives of a National Vision for Libya” on Saturday. The report highlighted that Libya’s economy, heavily reliant on its vast oil reserves, experiences significant volatility driven mainly by global oil price fluctuations and recurring political instability.
According to Deloitte, the discovery of oil in the late 1950s transformed Libya into a resource-rich nation. However, this wealth came at the cost of heavy dependence, making the country vulnerable to market and geopolitical forces. This dependence contrasts sharply with the more diversified economic approaches of regional counterparts, who, despite similar hydrocarbon abundance, have achieved notable strides in sectors like tourism, finance, and technology.
The report emphasized that Libya’s short- and medium-term economic outlook remains dominated by hydrocarbon production dynamics and local political stability. Unlike its regional peers, Libya has not followed steady economic growth or diversification trajectories. Instead, its GDP has fluctuated unpredictably, with the oil and gas sector continuing to overshadow potential growth areas such as agriculture, tourism, transportation, and logistics.
Deloitte further noted that these challenges have hindered adaptability, preventing the economy from stabilizing or leveraging other local advantages amidst global economic shifts. While Libya’s GDP is expected to grow by around 8% by the end of 2024, driven by oil production, achieving a target of 1.5 million barrels per day by 2026 heavily depends on political stability.
In comparison, global counterparts with fewer natural resources, such as Singapore, have flourished through strategic diversification, focusing on human capital development and technology. According to Deloitte, Libya’s potential in non-oil sectors remains largely untapped.
The report also pointed out that neighboring countries have made positive progress in the Logistics Performance Index, while Libya’s ranking has plummeted to the lowest globally.
Deloitte explained that Libya’s limited economic diversity and foreign investment opportunities have been heavily influenced by its poor ranking in the Logistics Performance Index and the state of its infrastructure. The country lags behind its neighbors due to bureaucratic bottlenecks, complex regulatory frameworks, and concerns over political stability, all of which create a restrictive business environment. These challenges are starkly evident in global logistics performance indicators, where Libya ranks lowest worldwide. Such factors deter foreign investment and hinder the development of new sectors, as procedural bureaucracy and operational challenges diminish opportunities for both local entrepreneurs and foreign investors.
The company highlighted that infrastructure quality—including transportation, logistics services, airports, seaports, and road networks—is critical for economic diversification and attracting foreign direct investment (FDI). Libya’s current infrastructure, weakened by years of political conflict, lacks modernization and broad accessibility. In contrast, neighboring countries have invested heavily in these areas, achieving advanced logistical solutions and robust foundational frameworks, thereby enhancing their global economic competitiveness.
Deloitte stated that crafting a national vision for Libya requires a comprehensive strategic approach that addresses critical areas for growth and stability. A key potential goal is economic diversification and reducing oil dependency to build a strong and resilient economy. This shift would involve investing in education to create a workforce prepared for the demands of a diversified economy. Additionally, improving infrastructure is on the agenda to enhance Libya’s connectivity domestically and internationally, which is essential for trade and economic expansion.
Furthermore, prioritizing advancements in technology and healthcare is crucial to improving living standards and streamlining business operations. Once a clear ambition is set, moving from planning to action becomes imperative. At this critical juncture, establishing strong governance structures and a dedicated unit to monitor strategy implementation becomes essential.
According to Deloitte, governance structures would ensure compliance and enhance decision-making protocols. Meanwhile, the tracking unit would monitor progress meticulously and provide real-time insights necessary to maintain strategic flexibility and respond to emerging challenges or opportunities. Together, these frameworks would ensure that initiatives consistently align with overarching goals and facilitate swift adjustments to tactics and strategies as needed. Striking a balance between governance and monitoring is pivotal in guiding Libya’s journey toward its envisioned milestones, ensuring not only progress but also the resilience and integrity of the vision’s execution.
Turkish Airlines announced it will resume flights between Benghazi and Istanbul starting next year.
According to Anadolu Agency, the airline had suspended its flights to Benghazi a decade ago due to internal unrest but will resume operations on January 14, 2025.
The Turkish agency confirmed that Turkish Airlines will operate three flights per week on this route.
Additionally, the agency noted that Turkish Airlines had earlier announced plans to resume flights from Istanbul to the Libyan capital, Tripoli, starting March 2024, following a 10-year hiatus.
