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Itkan Law Firm, a law firm specialised in Libyan affairs, reported that this week saw significant good news for the foreign investment regime in Libya.
First, a Ministry of Justice legal opinion confirmed that foreign investors may own up to 100 percent of projects in Libya (except in the oil and gas sector).
Secondly, the Privatization and Investment Board (PIB) resumed its normal operations.
According to Itkan Law Firm, on 23 January, the Legal Department of the Ministry of Justice issued a legal opinion clarifying the scope of Law No. 9 of 2010 on the Promotion of Investment on permitted investment structures for foreign investors in Libya. This legal opinion, Itkan Law explained, is highly significant for two reasons:
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- It confirms that foreign investors in Libya may operate through a Libyan branch or through any other legal form; and
- It confirms that foreign investors are permitted to invest in Libya on a 100 percent ownership basis – that is, without the participation of Libyan shareholders – except in the oil and gas sector (Law No. 9 does not apply to oil and gas projects).
PIB resumes operations
With regards to the PIB, according to Itkan Law Firm, on 24th January the PIB held its first meeting since the arrest of the its Chairman last November for allegedly ‘‘facilitating foreign investment applications’’.
