Libya
After a two-decade absence from Libya, U.S. companies are anxious to explore business opportunities there. The first U.S. companies to re-establish a presence in that North African nation, not surprisingly, have been energy firms. Libya, as the second largest oil producer in Africa after Nigeria, has proven petroleum reserves of 36 billion barrels – almost three percent of the known global total. But now that Libya has returned to the international marketplace, the people of Libya are anxious to enjoy goods and services from around the world. No country is in greater demand, in many respects, than the United States.
According to the Country Commercial Guide produced by the U.S. and Foreign Commercial Service and U.S. Department of State, Libya is an import-driven society with limited local production and manufacturing capabilities. The non-oil manufacturing and construction sectors, which account for about 20 percent of GDP, have expanded from processing mostly agricultural products to include the production of small amounts of petrochemicals, iron, steel, and aluminum – sectors that are ripe for privatization.
Developments in Libya’s economy present significant opportunities for U.S. companies as the Libyan business community looks for partnerships, capital investments, technology transfers, training and capacity building.
The new Libyan Investment Corporation (LIC), formed in 2006, has access to tens of billions of dollars for investments and is actively seeking international partners. The LIC, according to B&K International, hopes to model itself on such successful GCC investment entities as Dubai Holding and the Abu Dhabi Investment Authority.
In 2005 and 2006, the U.S. Department of Commerce approved around $5 billion worth of export licenses to Libya. With recent regulatory changes, many items no longer require export licenses. This will decrease costs to U.S. companies and facilitate trade with Libya.
U.S. companies are only now being reintroduced to the Libyan market, so longer term trends for individual export categories are not yet available. However, one-year annual growth rates in triple and quadruple digits suggest that U.S. industrial and commercial goods are poised for sustained growth.
| Metric | 2005 | 2006 | 2007f |
| Forecast Real GDP Growth Rate | 3.5% | 5.0% | 4.6% |
| Total Merchandise Imports | $10.8 billion | $12.6 billion | $14.1 billion |
| Merchandise Imports from the U.S. | $0.1 billion | $0.4 billion | $0.7 billion |
| Imports from USA (Annual Growth) | 113.9% | 418.8% | 59.6% |
| U.S. Share of Import Market | 9.3% | 3.2% | 5.0% |
| Sectors to Watch |
Export | 1 Year Annual Growth Rate |
2007 U.S. Export Opportunity |
| Food | Nuts | 140% | $11.0 billion |
| Machinery | Excavating machinery | 1280% | $9.2 billion |
| Machinery | Generators, accessories | 6111% | $3.5 billion |
| Engines | Engines and engine parts | 665% | $2.7 billion |
National U.S.- Arab Chamber of Commerce 2007 Outlook: U.S. Exports on Track to reach $45 Billion.
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For U.S. companies looking to enter the Libyan market, NUSACC has identified the following
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