Group Bank ABC (Arab Banking Corporation B.S.C.) – traded on the Bahrain Bourse under the name “ABC” today announced its financial results for the first quarter of 2023.
The group started the year on a strong basis, with a revenue growth of 21% compared to the same period of the previous year, driven by broad-based growth in core businesses and benefiting from higher interest rates. The overall budget remained sound with strong capital and liquidity ratios.
Bank ABC Group Chairman, Seddiq Omar Al-Kabeer, commented: “We are pleased with the strong start to the year, as we continued to build on the momentum of the core business from last year benefiting from the acceleration of performance, which contributed to increasing our net profit for shareholders in the first quarter by 94% compared to the same period of the previous year, despite the pressures faced by the banking sector globally and the economic challenges in a number of our markets. The diversity of the group’s business portfolio and the strong management of the overall budget place Bank ABC in a position to continue its strong growth and improve profitability during the remaining period of 2023.”
Below is a brief explanation of the financial results:
Financial results during the first quarter of 2023
– Consolidated net profit attributable to the shareholders of the parent company for the three months of the first quarter of 2023 amounted to $60 million, an increase of 94%, compared to $31 million reported for the same period last year.
– Earnings per share for the period was $0.02, a growth of 94% compared to $0.01 for the same period last year.
– Total comprehensive income attributable to the shareholders of the parent company amounted to a loss of $1 million, compared to total comprehensive income of $8 million recorded during the year 2022. This is mainly due to the depreciation of the Egyptian pound against the US dollar, which was offset to some extent by the strengthening of the Brazilian Real.
– Total operating income increased year-on-year by 21% reflecting growth in all core markets benefiting from the higher interest rate situation.
– Operating expenses increased compared to the same period in the previous year by 10% due to expenses supporting business growth, strategic transformation and higher inflation. Thus, the Group has a positive income due to an increase in the income growth ratio to the cost growth ratio by 11%, as a result of the improvement in the cost to income ratio. The Group remains focused on cost control while continuing to invest in digital transformation and strategic initiatives to build the “Fututre Bank”.
General budget
– Equity attributable to shareholders of the parent company and holders of perpetual bonds at the end of the period amounted to US$ 4,043 million, compared to US$ 4,095 million recorded at the end of 2022, after absorbing the impact of dividends and foreign currency translation on equity in subsidiaries.
– Total assets were $34.6 billion at the end of the period compared to $36.6 billion at the end of 2022, down by 7%, primarily reflecting short-term ALM measures. Loans and advances amounted to $17.9 billion, slightly lower than the $18.2 billion recorded at the end of 2022, and deal volumes are expected to pick up over the remainder of 2023.
– Liquidity levels remained strong with liquidity coverage reaching 200% and net stable liquidity ratio at 125%, and the liquid assets to deposits ratio improved to 46%.
– Capital adequacy levels remained strong: Tier 1 major equity at 15.4%, Tier 1 ratio at 13.7%, and overall capital adequacy ratio at 16.4%.
Bank ABC is a leading bank in the region, with presence in 15 countries spread across five continents, offering clients an innovative range of financial products and services that include corporate wholesale banking, trade finance, project finance, structured finance, syndicated loan arrangement, treasury products and Islamic banking products. The Bank also provides retail banking services through its network of affiliated banks in Jordan, Egypt, Tunisia and Algeria, and through “Ila” Bank in Bahrain and Jordan.
Bank ABC Group notes to its shareholders that the financial statements and press releases are available on the Bahrain Bourse and Bank ABC websites. More details are provided in the results presentation posted on the Bank ABC website.
Sudanese diplomatic relations advisor Abdel Moneim Abdullah Bashir Hamed told our source today, Tuesday, that the bilateral relations between the two countries, Libya and Sudan, are considered stable to this day, especially the current crisis that does not affect the economic relations between the two countries. Rather, there is talk from the government of the Darfur region, which has borders with Libya, that cooperation agreements will be signed quickly in order to facilitate the process of the flow of commodities and food products to the Darfur region in light of the difficult conditions in Sudan and the exorbitant rise in the remaining foodstuffs and medicines.
Hamed added that this agreement, if signed, will contribute and revive the economy between the two countries. It also enhances the strength of relations between the two countries, and “we hope that Libya will open an air bridge with Khartoum in light of the deterioration of the humanitarian situation in Sudan.”
Our source exclusively obtained statistics on the quantity of unloaded and shipped goods and the delivery movement during the month of March at Al-Khums sea port, where the number of animals entering the port reached 709, and the number of imported vehicles reached 4726.
The total number of shipped containers was 2,354, and the number of incoming containers was 2,218. The weight of shipped goods amounted to 9,325 tons, the total weight of unloaded goods was 33,812 tons, the weight of unloaded grain was 33,812, and the number of incoming commercial ships reached 14.
The total uses of foreign exchange by banks during the period (1/1 – until 04/30/2023) amounted to about $6,558,056,183, compared to $5,918,227,641 during the same period last year 2022, which shows an increase of about $639,828,542, and a growth rate of 10.8%, according to the report, that our source obtained from the Central Bank, which discloses all foreign exchange sales at the level of the country, countries, companies, and commodities.
The National Commercial Bank also ranked first as the most used bank for foreign exchange during the period (1/1 – until 04/30/2023), recording a market share of 14.6%, with the total amounts amounting to about $959,628,959, while Wahda Bank came in second place with a value of 795,210,720 dollars.
The number of companies, factories, public entities, and other entities reached (1,195) beneficiaries, whose requests were approved during the period (1/1 – to 04/30/2023) to obtain foreign exchange, with a number of requests amounting to about 5,012 requests, most of these requests were to cover letters of credit. .
The United Arab Emirates obtained about 41.7% of bank transfers to cover letters of credit or other transfers, taking the first place as the most beneficiary country, then the State of Turkey came in second place.
As for the goods or services of Turkish origin, they came in the first place, then the imports of goods or services of Chinese origin came in the second place, and the goods or services of Egyptian origin came in the third place.
Whereas, the Thel Ateen Company for the manufacture of dairy and its derivatives, and Al Naseem Food Industries, topped the private sector companies as the most companies that used foreign exchange, while Libyana Mobile Phone Company came in the first place among the public sector companies.
The report of the Central Bank of Libya revealed the value of the spending of the Council of Ministers of the Government of National Unity and its affiliates from January 1 to April 30, where the value of the expenses of the Cabinet Office amounted to 37.754 million dinars, and the value of the expenses of the Information and Documentation Center headed by the Ministers amounted to 469 thousand dinars, and the value of expenses amounted to the General Secretariat for Libyan-Sudanese Integration amounted to 53 thousand dinars, and the value of expenses in the executive body for renewable energies amounted to 1.016 million, and the value of expenses in the executive body for private aviation amounted to 12.368 million dinars, and the value of expenses in the Higher Committee for Childhood amounted to 409 thousand dinars, and the expenses of the National Center for Economic Development amounted to 1.871 thousand dinars
The expenses of the National Center for Decision Support amounted to 1.720 million dinars, the expenses of the Public Corporation for Radio and Television amounted to 2.497 million dinars, the value of the expenses of the General Information Authority amounted to 2.864 million dinars, the value of expenses for the security authorities amounted to 352.723 million dinars, and the value of the expenses of the Authority for the Development and Development of Administrative Centers amounted to 19.525 million Dinars, and the value of expenses in the Libya Fund for Aid and Development amounted to 875 thousand dinars.
The value of expenses in the official Libya channel amounted to 3.215 million dinars, the value of expenses in the national Libya channel amounted to 40.215 million dinars, the value of expenses in the Center for Strategic and Security Studies and Research amounted to 33.333 million dinars, the value of expenses in the Urban Planning Department amounted to 8.712 million dinars, and the value of expenses in the Tajourni Institute of Malta amounted to 19.712 million dinars. The value of expenses in the Civil Society Commission amounted to 645 thousand, and the value of expenses in the Public Projects Authority amounted to 4 million dinars.
The report indicated that the expenses of the Press Support and Encouragement Authority amounted to 7.555 million dinars, the value of the expenses of the Libyan News Agency amounted to 2.912 million, and the value of the expenses of the Old Civil Administration, Tripoli, amounted to 4.484 million dinars, and the value of the expenses of the National Center for Crisis Management amounted to 500 thousand dinars, and the value of the expenses of the General Authority for Media Content Monitoring amounted to 656 One thousand dinars, and the value of the expenditures of the South Development Agency amounted to 825 thousand dinars, and the value of the expenditures of the Central Region Development Agency amounted to 788 thousand dinars.
The value of the expenditures of the Medical Services Support and Development Device amounted to 65.755 million dinars, the value of the expenditures of the Murzuq City Reconstruction Fund amounted to 725 thousand dinars, the value of the expenditures of the Holy Quran Complex amounted to 1.259 million dinars, and the value of the expenditures of the Electronic Aviation Device amounted to 4 million dinars, and the value of the expenditures of the Fund for the Reconstruction of South Tripoli and Sahar Al-Jafara 500 thousand dinars, and the value of the expenditures of the Benghazi and Derna Cities Reconstruction Fund amounted to 500 thousand dinars, and the value of the expenses of the Sirte Civil Reconstruction Fund amounted to 500 thousand dinars.
The report of the Central Bank of Libya revealed the expenses of the Presidential Council and its affiliated agencies 204 million, as the expenses of the Council’s office from January 1 to April 30 amounted to 16.88 million dinars, and the expenses of the security agencies affiliated to it amounted to 186.706 million dinars
The expenses of the Public Policy Support Office of the Council amounted to 200 thousand dinars, and the expenses of the Fact-Finding and National Reconciliation Commission amounted to 295,660 thousand dinars, with total expenses amounting to 204.080 million dinars.
In a statement, the Central Bank of Libya revealed the total expenses of the House of Representatives and its affiliates, which exceeded 374 million dinars, as the expenses of the Council’s office amounted to about 47.348 million dinars, the Supreme Judicial Council 4.500 million dinars, the Libyan Dar Al-Iftaa 3.374 million dinars, and the Supreme Court 13.916 million, the Supreme National Authority for Elections was more than 4 million, the High Commission for the Implementation of Standards for Assuming Public Office is about 138 thousand, and the National Planning Council has 1.990 million dinars.
The expenses of the General Culture Council amounted to 921 thousand, the Food and Drug Control Center about more than 132 million, the Administrative Control Center 79.424 million dinars, the Administrative Control Authority – the eastern region about 12.362 million dinars, the Audit Bureau 35.969 million dinars, and the Audit Bureau of the eastern region more than 15.125 one million dinars, and the Constitution Drafting Authority 1.125 million Dinars.
The expenses of the Libyan Media Center for Studies and Consultations Cairo (external) amounted to 4.238 million, the Libyan Media Center for Studies and Consultations Cairo (domestic) 1343 thousand, the National Council for Public Liberties and Human Rights 2.343 million dinars, the National Security Council 14.080 million, and the Faculty of Sharia Sciences and Ifta about 41 thousand dinars. The total expenses of .the Council and its affiliates amounted to 374.634 million dinars
The statement of the Central Bank of Libya until April 30 revealed that the total revenues amounted to 31.9 billion, and the expenditures amounted to 24.9 billion, represented in revenues from oil sales 19.1 billion, oil royalties 1.7 billion, previous oil royalties 10.3 billion, taxes 297 million, customs 59 million, communications 150 million, selling fuel in the local market 90 million, other revenues 229 million.
However, the total expenses amounted to 24.9 billion, and it is represented in the first chapter: salaries were 18.3 billion, operating expenses were 1.7 billion, development were 915 million, subsidies were 4 billion, and emergency was zero.
The Minister of Economy and Trade in the Government of National Unity, Mohamed Al-Huwaij, spoke in an exclusive interview with our source regarding the decision that was issued a year ago regarding the regulation of foreign labor, where he said: “Its aim was to regulate the presence of foreign labor, not to prevent it, but to regulate their presence, because the inbound labor to Libya without a system, and some of them are illegal immigration by sea, and others have many diseases, and some may be in criminal organizations and some of them controlled the distribution of goods and services without regulation and benefit from electricity, water and public places services without paying for it.”
He added by saying: “When we issued a decision to reorganize foreign workers, and this requires that the job holder bring them to Libya, whether in factories or investment, we also guarantee this labor with contracts and a medical examination, and it must not have precedents, just as we guarantee the right of labor with contracts as well it has controls according to Law (6) 1987 to regulate the entry of foreign workers, whether for employment in factories, farms or investment projects, because lack of regulation threatens national security and price manipulation.”
He continued: “He must be registered within a certain period and has a contract with the job holder. We need foreign labor in agriculture, industry and services, and it must be organized, whether technical or ordinary, as well as reminding of this law and we issue decisions and executive bodies such as the Ministry of Labor and Rehabilitation implement this decision and also the law enforcement agencies, because this threatens national security, price manipulation and hygiene as well, and assistance must be provided by every municipality to organize this employment.”
He said: “Every municipality is considered a security economic square, and the mayors of the municipalities and the municipal guard and other auxiliary agencies must organize the employment within each municipality. They have contracts, regulations and health treatment, so that food and drug security is not tampered with.”
As for the government’s plan regarding the settlement of treatment at home, he said: “Treatment has become a big problem for Libyans, and the health system has unfortunately collapsed, and there are also several stages of health treatment, including: the first stage of treatment such as vaccinations and others, and treatment in specialized hospitals in the private sector, and we encourage treatment in the private sector in the first place because In hospitals, the patient’s cost is higher than in the private sector, and prices are still working on setting a price, and we have worked on a classification of clinics with a maximum price limit.
We also seek, with the policy of the Government of National Unity, in this direction to localize treatment at home, so leaders in the health sector must be encouraged in many areas, and the goal later is health insurance for all Libyans. When providing insurance, we purchase the service from the private sector, when If you are treated in a sanatorium, you will have a certain cost and health insurance so that the state will cover you. Doctors must be encouraged at home, and we say to all doctors abroad that they come to clinics in Libya, and they are exempted from taxes and fees, and an environment is also provided for them.”
As for the International Monetary Fund’s decision to replace subsidies in Libya, he said:
“Commodity subsidy was lifted from 2016, and was replaced by paying allowances for the family, wife and children, and paid before Ramadan, and we now see stability in prices and it was an alternative, and the amounts are not large and did not exceed one billion dinars, and the problem was only in fuel and it constitutes a large number of subsidies, and the point of view of the Ministry of Economy in This matter is to be exchanged for cash and we give each person his share of the subsidy per month, or we subsidize part and give cash part, and we believe that most of it should be monetary.
There are also technical problems as a result of modifying the construction of stations, and the public opinion is still apprehensive, and we are working on studies in this aspect.”
As for the preparations of the Ministry of Economy on the occasion of determining the prices of sacrificial animals, he said:
“Competition is what achieves the balance in prices, and the Central Bank of Libya is easy to agree with and also easy to open credits in the private sector and will contribute in part of it, and the Ministry of Agriculture is following up on this issue, the most important of which is facilitating the supply of sacrifices, opening new markets from other countries, and large quantities come People import and create competition in order to stabilize prices.
In addition to the establishment of a fodder committee because citizens did not raise livestock, whether in the Green Mountain or the Jafara Plain, as a result of the high price of fodder, and it was agreed with the Council of Ministers to allocate a budget for the year 2023 AD to bring in fodder, and Al Jabal Al Akhdar began to supply a quantity of it, and there is also a committee headed by the Undersecretary for Commercial Affairs so that Fodder is supplied, and it will help raise livestock and reduce its price.”
As for financing the Grain Board, he said:
“The problem is in allocating a budget, and there is still a problem as a result of the political division that has not been approved yet, and the Minister of Finance agreed to allocate an amount under the item of food security.”
As for the decision to control prices, he said: “We will work step by step to encourage large companies, factories and markets that have reduced their prices in Ramadan, so that we give them the medal of the honest merchant and they are encouraged and honored.
As prices are considered low and stable, commodities are available, and there is no demand, and there is a reduction in the price less than its cost as a result of the competition and the large quantities that exist, as well as the Central Bank of Libya helped in opening credits, and another decision was issued for transfers of spare parts, because we have large factories in Libya such as pasta, flour and oil They exist, as we have some problems with bakeries, and we will overcome them, and it is assumed that the law enforcement agencies are the ones who play their role.”
As for the central governor’s decision to keep the exchange rate at 4.48, he said:
“When spending increases, and it is customary in the economy when income is limited from oil only, and you have salaries of up to 50 billion, if the reduction takes place, an imbalance will occur, and when production is diversified from agriculture and industry and conditions stabilize, as well as reserves increase at a certain stage. Certainly the Libyan dinar will be stronger, but most of it comes step by step.”
H.E Seddiq Omar Ali Al-Kabeer, Governor of the Central Bank of Libya (CBL) met with Dr. Khaled Al-Mabrouk, the Minister of Finance in the Government of National Unity (GNU), to discuss the continuations of the joint cooperation and the significant impact on the level of public spending, in addition to increasing the coordination with international and regional institutions.
H.E Seddiq Omar Ali Al-Kabeer, Governor of the Central Bank of Libya (CBL) has met with Mr. Farhat bin Gdara, Chairman of the Board of Directors of the National Oil Corporation (NOC), in order to discuss the possible ways to support the efforts of the NOC to increase and stabilize oil and gas productions, as well as, reviewing the operational and development plan of NOC, which aims to raise the production to approximately 2 million barrels.
Our source has obtained exclusively the report of the Research and Statistics Department of the Central Bank of Libya regarding foreign trade, as this sector is of great importance for both developed and developing economies, and is the best approach to exploit the available economic resources and to provide the operating requirements necessary for the production process and capital flows.
During (2019-2022), the foreign trade sector in Libya witnessed fluctuations due to the political conditions and the state of political division, the frequent suspension of the production and export of crude oil, and due to the conditions that the global economy went through as a result of the COVID-19 pandemic and its adverse effects on the supplies and prices of commodities, which had a direct impact on the volume of trade exchange of Libya with the rest of the world.
The following is an analysis of the most important indicators of foreign trade for the Libyan economy during the period 2019 – 2022:
First:thevolumeof trade exchange:
The volume of trade exchange (exports + imports) between Libya and the outside world during the period (2019-2022) recorded an average increase of about 24.1%. This was due to the exports’ growth, which averaged 48.6%, where the volume of trade exchange for the year 2022 increased by 19.1% compared to the year 2021, which was due to the increase in oil exports because of the stability in production and export of crude oil.
To determine the importance of foreign trade in the local economy, the ratio of the volume of foreign trade (exports + imports) to GDP (the degree of external exposure) showed a continued exposure of the national economy to the outside world, as it recorded an increase in 2019 by 60.6%. While the degree of exposure decreased in 2020 to 43.5%, then increased to 113.3% in 2021, and then decreased to 107.5% in
2022, which indicates that the national economy is greatly affected by changes and external conditions.
Foreign Trade Volume during (2019 – 2022)
“ Millions of USD “
Item
2019
2020
2021
2022
Exports
29,521.6
9,462.5
32,903.9
39,117.7
Imports
15,541.4
12,405.9
16,711.3
19,982.4
TradeBalance
13,980.2
-2,943.4
16,192.6
19,135.3
Foreign Trade Volume
45,063.0
21,868.4
49,615.2
59,100.1
Gross Domestic Product (GDP
74,415.0
50,310.0
43,800.0
55,000.0
Degree of Exposure (%)
60.6
43.5
113.3
107.5
*Source: Trade Statistics for International Business Development (Map Trade).
Second: Exports:
The Libyan economy relies heavily on the hydrocarbon sector as a primary source of income, such source is regarded as a depleted natural resource, this source of income is affected by the conditions of the global oil markets, where oil exports constitute more than 90.0% of the total exports, which made the national economy continuously vulnerable to strong shocks as a result of the sudden and significant changes in the oil sector locally and internationally.
Geographical Distribution of Exports:
The table below shows the geographical distribution of Libyan exports, and it illustrates the high relative importance of Libyan exports to the European Union countries, as they averaged about 64.6% of the total exports during the period from 2019 to 2022. The reason of the high relative importance of national exports to the countries of the European Union (the eurozone) was due to the characteristics of the economies of these countries as industrial countries that depend to a large extent on crude oil. Libyan exports to Asian countries come in second place, as they amounted during the period to an average of about 23.6% of the total Libyan exports abroad.
Distribution of Libyan Exports by Country Groups During (2019 -2022)
” Millions of USD “
Country groups
2019
2020
2021
2022
European Union countries
17,799.7
4,492.2
21,207.9
26,848.1
League of Arab States Countries
1,944.6
1,109.1
1,250.5
1,210.0
Asian Countries
6,770.5
3,131.1
5,880.8
6,433.8
Other European Countries
561.3
317.3
2,006.3
1,975.8
African Countries
1.2
1.9
1.2
16.5
Northern, Central and South American Countries
1,818.3
250.0
2,268.8
2,245.9
Australia and New Zealand
626.1
160.8
288.4
387.6
Total
29,521.6
9,462.5
32,903.9
31,117.6
*Source: Trade Statistics for International Business Development (Map Trade).
Exports According to the Most Important Exporting Countries:
The tables below show the values of exports according to the most important exporting countries, the data indicates that Italy was the most important importer, as the percentage of what was exported to it alone amounted to an average of 22.1% during the period (2019-2022), respectively, of the total value of Libyan exports, as the value of what was exported to it amounted to during the year 2022, it received about $10,468.1 million, while Spain, Germany, China, Greece and France were among the most important importing countries from Libya. It should be noted that most of the Libyan exports to these countries are oil exports.
The Value of Exports According to the Most Important Exporting Countries During(2019– 2022)
” Millions of USD “
Exporting Countries
2019
2020
2021
2022
Italy
5,278.3
1,970.3
7,470.1
10,468.1
Spain
4,274.4
705.2
3,427.2
3,962.5
Germany
4,386.7
849.5
3,659.9
3,764.8
China
4,816.5
827.1
3,271.5
2,933.4
Greece
671.9
58.3
1,023.2
2,537.5
France
1,595.3
529.2
2,175.8
2,269.4
United States
1,572.5
224.9
2,239.7
2,245.8
Netherland
197.6
121.0
1,692.7
2,103.1
Thailand
483.9
326.8
1,155.9
1,959.9
United Kingdom
253.5
88.9
1,548.3
1,589.5
United Arab Emirates
1,570.4
955.2
956.2
900.0
Turkey
483.5
1,674.3
821.8
767.0
Singapore
379.2
198.0
171.2
200.0
Switzerland
291.6
144.7
302.1
117.1
South Korea
225.7
19.7
12.5
90.9
Malaysia
293.2
0.6
30.3
36.7
Indonesia
0.2
0.7
10.5
0.8
Other Countries
2,747.2
768.1
2,935.0
3,171.2
Total
29,521.6
9,462.5
32,903.9
39,117.7
*Source: Trade Statistics for International Business Development (Map Trade).
The Relative Importance of Libyan Exports according to the Most Important Exporting Countries, during (2019 – 2022)
“Percentage %”
Exporting Countries
2019
2020
2021
2022
Italy
17.9
20.8
22.7
26.8
Spain
14.5
7.5
10.4
10.1
Germany
14.9
9.0
11.1
9.6
China
16.3
8.7
9.9
7.5
Greece
2.3
0.6
3.1
6.5
France
5.4
5.6
6.6
5.8
United States
2.5
2.4
6.8
5.7
Netherland
0.7
1.3
5.1
5.4
Thailand
1.6
3.5
3.5
5.0
United Kingdom
0.9
0.9
4.7
4.1
United Arab Emirates
5.3
10.1
2.9
2.3
Turkey
1.6
17.7
2.5
2.0
Singapore
1.3
2.1
0.5
0.5
Switzerland
0.1
1.5
0.9
0.3
South Korea
0.8
0.2
0.0
0.2
Malaysia
1.0
0.0
0.1
0.1
Indonesia
0.0
0.0
0.0
0.0
Other Countries
9.3
8.1
8.9
8.1
*Source: Trade Statistics for International Business Development (Map Trade).
Commodity Composition of Exports:
The data relating to the commodity composition of national exports presented in the table below showed the extent to which exports of mineral fuels, fuels and related materials acquired the largest share of total exports during the period (2019-2022), constituting 90.0% of total exports, which indicates the undiversified exports of the national economy, this is because of the weak structure of domestic production, which makes the economy vulnerable to fluctuations in oil production and its prices in international markets, while other exports accounted for 10.0% of total exports, most of which are precious metals and their products (gold) and common metals (scrap).
Export Value Classified by Commodities Groups During (2019 – 2022)
“Millions of USD”
Commodity Groups
2019
2020
2021
2022
Mineral products, the most important of whichare crude oil
27,661.4
7,267.5
31,551.6
37,657.7
Ordinary metals and articles thereof
298.9
440.7
835.1
812.8
Natural or cultured pearls, precious or semi-preciousstones,preciousmetals, and articles thereof
1,198.0
1,659.2
237.8
274.8
Products of the chemical and related industries.
45.7
14.8
207.2
226.6
Transportation Equipment
1.8
15.6
4.5
61.6
Live animals – animal products
21.7
16.2
26.3
42.7
Machinery,devices,electricalequipment, recording devices, radio, and sound
*Source: Trade Statistics for International Business Development (Map Trade).
Classification of Libyan exports (oil, other exports) During (2019 – 2022)
” Millions of USD “
Years
Oil Exports
Other Exports*
Total Exports
2019
27,661.4
1,624.5
29,285.9
2020
7,267.5
2,195.0
9,462.5
2021
31,551.6
1,352.3
32,903.9
2022
37,657.7
1,460.0
39,117.7
Other exports are mostly precious metals and common metals.
The Most Important Trading Partners for Other Exports
Other export data showed that Turkey and the United Arab Emirates are the most important importing countries from Libya, which concentrated most of its imports of precious metals and common metals.
Exports – Turkey
” Millions of USD”
Years
Precious metals
Iron
Copper
Aluminum
Other
Total
2019
221.2
106.7
57.2
21.3
77.1
483.5
2020
1319.8
179.2
99.8
35.6
39.9
1674.3
2021
101.0
408.7
141.8
60.4
109.9
821.8
2022
138.0
286.7
150.7
71.0
120.6
767.0
Exports – United Arab Emirates
” Millions of USD “
Years
Precious metals and articles thereof (gold)
Other*
Total
2019
971.6
598.8
1570.4
2020
338.7
616.5
955.2
2021
136.6
819.6
956.2
2022 (preliminary data)
128.6
771.4
900.0
* Most of them are oil exports.
Third: Imports:
More than 85.0% of the local market needs of all sectors and individuals of consumed and capital goods such as machinery, equipment, raw materials and intermediate goods needed for the production process, are imported from foreign markets.
Geographical distribution of imports:
The European Union countries are the main source of Libya’s imports, as their relative importance amounted to an average of about 34.4% of the total imports during the period (2019-2022), as the value of Libya’s imports from the European Union countries recorded about 4.9, 4.3, 5.1, and 8.0 billion dollars, respectively, during the reported period. This is due to the geographical neighborhood, which plays a major role in increasing the volume of trade exchanges between Libya and the countries of the eurozone, while the Asian countries, Arab League States and other European countries accounted for the remaining proportions, and the data indicates the weakness of trade exchanges between Libya and African countries, Australia, and New Zealand.
Distribution of Libyan Imports by Country Groups During (2019 – 2022)
” Millions of USD “
Country groups
2019
2020
2021
2022
European Union countries
4,946.8
4,319.4
5,135.9
8,041.2
League of Arab States Countries
3,049.6
2,328.9
3,516.3
3,556.0
Asian Countries
5,820.9
4,342.7
5,940.8
6,266.3
Other European Countries
828.7
763.1
1,154.8
1,124.2
African Countries
12.3
18.6
19.0
4.5
Northern, Central and South American Countries
837.6
571.7
879.3
901.9
Australia and New Zealand
45.5
61.5
65.2
88.3
Total
15,541.4
12,405.9
16,711.3
19,982.4
Imports According to the Most Important Importing Countries:
The table below displays the value of imports according to the most important countries from which they are imported, it is obvious that the countries of Turkey, China, Italy, Greece and the UAE still top the list of the most important countries. As the percentage of what was imported from them on average reached about 52.4% during the period (2019-2022) of the total value of Libyan imports.
However, Turkey is regarded as the most important country from which Libya imports and the value of what was imported from Turkey during the year 2022 amounted to about $2.8 billion, accounting for 14.2% of the total, while China ranked second with a value of $2.4 billion, and Italy came in third place with about $2.3 billion.
The following table shows the most important importing countries from during the period (2019 – 2022):
The Value of Imports According to the Most Important Importing Countries During (2019 – 2022)
” Millions of USD “
Countries of Import
2019
2020
2021
2022
Turkey
2,069.7
1,653.1
2,769.4
2,841.1
China
2,451.6
1,880.4
2,129.0
2,373.3
Italy
1,390.9
1,000.6
1,434.2
2,269.3
Greece
451.4
719.4
1,189.8
1,922.7
Unfired Arad Emirates
1,354.8
1,003.4
1,706.5
1,800.0
Egypt
838.9
572.8
796.2
700.0
Germany
484.4
400.8
683.5
559.5
Ukraine
316.9
327.8
425.0
500.0
Spain
468.7
346.8
366.7
440.0
Netherland
595.3
576.9
535.8
371.3
South Korea
632.1
338.0
428.5
366.9
Brazil
279.4
166.4
313.4
320.0
Unites States
412.0
290.0
295.3
291.0
France
210.0
171.3
208.2
229.6
Switzerland
121.1
127.1
216.7
153.7
United Kingdom
201.4
147.7
141.1
144.6
Other Countries
3,262.8
2,683.4
4,072.0
4,699.4
Total
15,541.4
12,405.9
17,711.3
19,982.4
*Source: Trade Statistics for International Business Development (Map Trade).
The Relative Importance of Imports According to the Most Important Importing Countries, During (2019 – 2022)
“Percentage %”
Countries of Import
2019
2020
2021
2022
Turkey
13.3
13.3
15.6
14.2
China
15.8
15.2
12.0
11.9
Italy
8.9
8.1
8.1
11.4
Greece
2.9
5.8
6.7
9.6
Unfired Arad Emirates
8.7
8.1
9.6
9.0
Egypt
5.4
4.6
4.5
3.5
Germany
3.1
3.2
3.9
2.8
Ukraine
2.0
2.6
2.4
2.5
Spain
3.0
2.8
2.1
2.2
Netherland
3.8
4.7
3.0
1.9
South Korea
4.1
2.7
2.4
1.8
Brazil
1.8
1.3
1.8
1.6
Unites States
2.7
2.3
1.7
1.5
France
1.4
1.4
1.2
1.1
Switzerland
0.8
1.0
1.2
0.8
United Kingdom
1.3
1.2
0.8
0.7
Other Countries
21.0
21.6
23.0
23.5
*Source: Trade Statistics for International Business Development (Map Trade).
Commodity composition of imports:
The imports of the products group (metal products, electrical machinery,equipment, recording, broadcasting and sound equipment, prepared foodstuffs,beverages, vinegar, and tobacco) ranked first in terms of total commodity imports during the period (2019-2022), accounting for 45.6% of total commodity imports, while the imports of the products group (products of the plant kingdom, productsof chemical industries and related items, and transport equipment) ranked second in terms of relative importance, constituting 20.4% of the total merchandise imports, while the imports of products of other groups accounted for the remaining percentage, which represents 34.0% of the total merchandise imports.
This reflects the weakness and inability of the local market to provide many commodities that individuals need, which leads to an increase in the degree of external exposure and an increase in demand for foreign exchange.
The following table illustrates the imports, classified according to commodities, during the period (2019-2022):
The Value of Imports Classified by Commodities DepartmentsDuring (2019 – 2022)
“Millions of USD”
Commodity Groups
2019
2020
2021
2022
Metal Products
2,404.5
1,898.7
3,246.7
5,555.9
Electrical machinery, devices, equipment,recording devices, radio and sound
2,609.8
1,771.5
3,029.8
2,828.6
Preparedfoodstuffs,beverages,vinegar, tobacco
1,591.4
1,642.9
1,825.0
1,841.7
Products of the plant kingdom
918.3
833.0
1,231.0
1,276.1
Products of the chemical and related industries.
1,012.9
957.0
1,353.8
1,205.7
Transportation Equipment
1,485.7
875.5
1,094.1
1,023.9
Ordinary metals and articles thereof
776.9
551.8
849.2
858.6
Textile products and materials
981.0
741.1
828.1
858.3
Plasticsandarticlesthereof,rubber and articlesthereof,
651.5
515.3
763.6
816.9
Live animals – animal products
739.1
734.2
865.0
801.8
Miscellaneous Goods and Products
574.6
533.4
676.6
797.2
Articles of stone, plaster, cement, mica, porcelain,and glass products
482.8
321.4
486.2
484.5
Natural or cultured pearls, precious or semi- precious stones, precious metals, and articlesthereof
297.9
124.4
466.3
449.6
Animal and vegetable fats, fats, oils, andderivativesthereof
The Italian strategic advisor, Daniele Ruffinetti, told our source today, Monday, that Sudan and Libya have forms of interdependence, because of the issue of migration, as Libya acts as an essential element for migration flows. This is considered one of the dynamics that the Sudanese crisis may raise.
Ruffinetti added that all this chaos in Sudan may lead to the emergence of an image of instability that could affect the Libyan economy because the trade links that pass through the south, for example, suffer from a clear slowdown in communication and supply lines, and then there is a need to think about the future .
Last February, the head of the Transitional Sovereignty Council in Sudan, Abdul Fattah Al-Burhan, issued orders to facilitate procedures for Libyan investors to enhance economic cooperation between the two countries. What will happen in the confrontation phase? Especially after that, it is difficult to define the situation in this very turbulent time for Sudan and to some extent Libya.
The Turkish expert in international relations, Mehmet Ozkan, told our source today, Monday, that “the return of all Turkish companies to work in Libya is an important matter, but simply now Turkish companies have turned to alternative trade and investments in many countries, including Africa, so I do not think that it has the same importance as in the past.”
For his part, Ozkan added that with regard to Turkey’s economic interests in Libya, it is more geopolitical than economic. However, if Libya stabilizes, it is likely that there will be a clear economic relationship between the two countries.
Ozkan explained, for his part, that “it is difficult to know whether the new Turkish government, if it wins the presidential elections, will cooperate economically with Libya because we do not know who will win the elections. I think Erdogan will continue, but we will know only on the 14th of May.”
The lawyer and legal expert, Dr. Saleh Al-Zahaf, in an exclusive statement to our source, regarding the decision of the Minister of Economy and Trade regarding the prohibition of all retail or wholesale commercial activities for non-Libyans, as Al-Zahaf commented, saying: “This decision aims to limit direct commercial competition for expatriates, whether they are Arabs or foreigners. This type of activity is commercial and not investment, therefore it does not conflict with the foreign or national investment law, as commercial work is always short-term and investment is fluctuating from three years or more, and therefore there is no conflict between this decision and the foreign investment law.”
He added: “If it is true, it may lead to the transfer of the license to a fictitious license and fictitious work on the part of the Libyan party, and the survival of the activity for the foreign party, and this is also a disease suffered by the peoples who have been afflicted with the public sector and the job in the public sector has dominated the national culture, and therefore the radical solution is to fight the public sector and job laziness which the entire Libyan society suffers from.”
