On rebuilding investor confidence and supporting diversification
What is the outlook for renewed British engagement in Libya’s reconstruction, particularly in energy, infrastructure and education?
PETER MILLETT: The recent launch of a bidding round for 22 new oil and gas concessions – split between onshore and offshore blocks – has reaffirmed Libya’s ambition to reinvigorate its hydrocarbons sector. The promotional campaign for this initiative, held in London earlier this year, reflects a growing confidence in Libya’s potential and the interest it continues to generate among international investors. UK firms in particular are well poised to participate given their historic ties and technical expertise.
The National Oil Corporation (NOC) – as the sole entity overseeing exploration, production and exports – offers a clear entry point for international partners. Its technocratic structure makes it a pragmatic stakeholder, and partnerships with it can unlock both commercial and technological value. The NOC is actively seeking modern, efficient solutions to upgrade infrastructure that has suffered from years of underinvestment and frequent shutdowns. Advanced oilfield services and enhanced recovery technologies are especially in demand, presenting opportunities for firms that can deliver resilient and innovative solutions.
How would political unification affect investor confidence, particularly in infrastructure and public-private partnerships (PPPs)?
MILLETT: The current political landscape poses a challenge to national institutions – particularly the Central Bank of Libya (CBL) – which is caught between competing fiscal demands. Consolidation would not only enhance political stability but also provide the economic clarity necessary for reform. Unified governance would facilitate the rollout of national infrastructure plans and create a clear regulatory environment conducive to PPPs.
In tandem, there is an urgent need for macroeconomic reforms – particularly those that promote private sector development, decentralisation, digitalisation and diversification. International stakeholders with experience in these areas are well positioned to contribute meaningfully to this transition.
Where can international firms contribute most effectively to Libya’s diversification agenda?
MILLETT: There is widespread recognition within Libya that economic diversification is no longer optional. As global demand for hydrocarbons gradually declines, reducing dependency on oil revenue has become a policy imperative. Early signs of diversification are emerging in sectors like education, construction, health care and retail – the last of which is where a new generation of Libyan entrepreneurs is beginning to take root.
The challenge now lies in embedding this momentum into a broader reform framework – fostering a more entrepreneurial culture, improving the regulatory environment and ensuring that private sector development becomes a national priority. Foreign firms can support this shift not just through capital investment but also by helping build institutional capacity and transferring knowledge.
Which steps can improve Libya’s investment climate for foreign firms?
MILLETT: Improving Libya’s investment environment requires a dual approach: structural reform at the institutional level and practical strategies at the operational level. While key economic institutions, such as the CBL, NOC and the Libya Investment Authority, have taken steps to strengthen governance and transparency, regulatory reform and stronger anti-corruption measures remain essential. A streamlined legal framework, greater accountability and enhanced contract enforcement will go a long way in reassuring potential investors.
In parallel, foreign companies must adopt pragmatic strategies to manage logistical and commercial risks, especially as it pertains to activity in areas such as energy and infrastructure. Engaging with stakeholders already active in Libya – such as law firms, financial institutions and risk advisory consultants – can provide critical insights into the local operating environment. These partnerships help entities understand regulatory nuances, manage security concerns and build credible networks. A measured, well-informed approach that combines institutional due diligence with local expertise will enable investors to benefit from Libya’s long-term potential.
What should companies do to develop their business interests in Libya?
MILLETT: For UK companies looking to trade in Libya and Libyan companies wanting contacts in the UK, as with other countries where there are strong bilateral trade associations, the Libyan British Business Council (LBBC) supports many stakeholders across sectors by providing networking opportunities, detailed information, and regular reports and services such as letters to support visa applications. We stand ready to promote deeper and wider commercial contacts between our countries.
This interview serves as a preview of the in-depth analysis coming in The Report: Libya 2025.
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