Trade has played a significant role in Libya’s economy since the early 2000s, although it faced significant challenges due to economic and trade sanctions imposed by Western governments prior to the revolution. The outbreak of the civil war in 2011 had a detrimental impact on economic growth. However, in recent years there has been a modest resurgence in trade, particularly as stability has improved. Libya is a member of several international organisations, including the Arab Monetary…
Trade, Industry & Automotive
From The Report: Misrata 2024
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Trade has played a significant role in Libya’s economy since the early 2000s, although it faced significant challenges due to economic and trade sanctions imposed by Western governments prior to the revolution. There has been a modest resurgence in trade, particularly as stability has improved with trade partners keen to capitalise on Libya’s strategic location. Misrata’s transit trade endeavours align with Libya’s long-standing objective of diversifying its economy away from hydrocarbons.
Libya’s industrial landscape has undergone a significant evolution starting in the 1990s, resulting in manufacturing’s share of the economy increasing considerably. Today, manufacturing is a key driver of the economy in Misrata, with subsectors such as construction materials, plastics, automotive and food processing contributing significantly. Major industrial sectors in the region include manufacturing, port and maritime activities, and oil and gas. Misrata has sought to diversify by attracting investment and fostering growth in targeted sectors. The establishment of the Misurata Free Zone in 2000 has been a major catalyst for industrial development, offering tax incentives and attracting both local and international companies. As capacity expands, continued development of transport networks and power supply will be important growth enablers, as will ensuring reliable access to finance and skilled labour.
The automotive industry plays a significant role in the local economy, contributing to employment, trade and economic growth. The industry has experienced periodic disruptions in production and supply chains due to political instability and conflict. However, efforts are being made to revive and strengthen the segment, and stability has been gradually returning.
This chapter contains interviews with Abdallah BenNaser, Chairman, Almadina Misurata Paints; Mohamed Al Faqih, Chairman, LISCO and Naohiro Masuda, Managing Director – CEO, Toyota Libya.