Foreign investment in construction activities involving projects of less than 30 million dinars is prohibited.
Restriction concerning construction activities of less than 30 million dinars was removed from prohibited activities by Decree 944/2022. The legislation now permits joint venture companies with a foreign participation to engage in construction projects of any value. A contract value limitation remains for branches of foreign companies, where the limit set for contracting construction projects is LYD 50 million.
"Article 5 - Prohibitions
Foreigners and entities subject to this regulation are prohibited from practicing the activities mentioned in this article. These activities are limited to national persons only per the following terms:
1. Wholesale and retail trade.
2. Import and export business.
3. Catering services.
4. The work of commercial agencies of all kinds and fields.
5. Inspection activity on all imported and exported merchandise
6. Accounting, auditing, financial advisory, legal advisory, and lawyers' business only with the permission of the Bar Association and in accordance with special legislation.
7. The act of bringing in foreign labor and the act of recruitment.
8. Security work.
9. Non-profit business.
10. Ground transportation.
11. Any field restricted to Libyan persons in accordance with the legislation in force or by a decision from the Minister.
[...]
Article 18 Property Distribution
Foreigners' contribution to the joint venture for its duration may not exceed 75% seventy-five per cent. However, this ownership may extend to 89% eighty-nine percent by a decision from the Minister after providing the reasons in the application submitted to the Minister.
[...]
Article 21 Allowed Branch Areas
It is authorized to establish a branch of a foreign company in one of the fields listed below. The branch may combine only two of the specified fields after the approval of the Minister, provided that the payment is made. [...]
First: civil and contracting acts. This includes the following:
1. Building and construction.
2. Building roads and constructing bridges and dams.
3. Marine construction, such as the construction of sea berths, building docks, ship storage, and deepening of ports.
4. Construction of airfields and airstrips.
5. Extension of railways and the establishment of their stations.
6. Establishment of gas transmission and distribution networks.
7. Install and maintain home gas networks and calibrate all kinds of gas meters.
8. Digging water wells.
To conduct activities in the fields mentioned in items 1 to 5, the contract value shall not be less than 50,000,000 fifty million dinars.[...]" (Decree No. 944 on the Foreigners' Participation and Foreign Companies' Branches and Representative Offices in Libya, 13 October 2022, Articles 5, 18, and 21 [Translation provided by Libya's Ministry of Economy])
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"Section One - Joint-Venture Companies [...]
Article 6
It is prohibited to establish joint-venture companies for carrying out the hereunder activities, whereas such activities shall be confined to Libyans only in exclusion to any others:
1. Retail and wholesale trade
2. Importation
3. Catering services
4. All types and fields of commercial agencies
5. Road transport services
6. Inspection activity of all imported and exported commodities and goods
7. Activity of handling, loading and unloading in sea ports
8. Accountancy and auditing duties as well as financial, legal and economical consultancies
9. Crushing of stones (Crushers)
10. To bring ordinary and trained laborers as well as medium and high cadres according the conditions and controls which are set by ministry of labour and habitation
11. Contracting and civil works including activity of building and construction in respect of contracts less than 30 million dinars
12. Any other fields which are restricted to Libyans according the effective regulations
Part Two - Foreign companies' branches
Article 7
The foreign companies after obtaining permission from the minister of economy will open branches in the specified fields in article 9 of this decision on condition that it does not participate in a joint company working in the same field or activity and the branch's work period will be five years subject to renewal.
[...]
Article 9
The fields and activities of foreign companies which are permitted to open branches in Libya will be specified as follows:
Firstly – field of contracting and civil works:
1. Building and construction
2. Construction of roads, bridges and dams
3. Marine constructions such as marine quays, break waters, dry docks and deepening ports
4. Construction of airports and runways
5. Laying railways and construction of stations
6. Construction of nets for transport and distribution of gas by using types and sizes of carbon steel and polyethylene pipes
7. Installing and maintaining domestic gas network and calibration of gas measuring meters
The value of contracts for resuming the fields in items (1 – 5) should not be less than 50 million dinars. [...]" (Decision of the Minister of Economy No. 207 of the year 2012 in respect of foreigners participation in foreign companies, branches and representative offices of foreign companies in Libya)
Decree No. 944 on the Foreigners' Participation and Foreign Companies' Branches and Representative Offices in Libya, 13 October 2022
Decision of the Minister of Economy No. 207 of the year 2012 in respect of foreigners participation in foreign companies, branches and representative offices of foreign companies in Libya
[<a href="https://euroly.org/wp-content/uploads/2022/11/Decree-No.-944-on-the-Foreigners-Participation-and-Foreign-Companies-Branches-and-Representative-Offices-in-Libya.pdf">Decree</a>],[<a href="https://www.chambre-de-commerce-franco-libyenne.org/uploads/D%C3%A9cision%20207%20(traduction%20anglaise).pdf">Decision</a>],[<a href="https://www.lexology.com/library/detail.aspx?g=20374709-5734-4d8e-a159-90af5a3394b2">Other</a>],[<a href="https://itkan.ly/the-provisions-of-law-no-9-of-2010-on-promoting-investment/#:~:text=9%20of%202010%20is%20a,stretched%20beyond%20what%20it%20bears.">Other</a>],[<a href="https://libyaherald.com/2023/02/recent-legal-opinion-on-foreign-investment-in-libya-does-not-impose-blanket-ban-in-oil-sector-tumi-law-firm/">Other</a>]