Foreword Richard Dalton, British Aınbassador in Libya Foreword Bashir Zenbil, Director, Libyan Foreign Investınent Board Editors' Preface Jonathan Wallace and Marat Terteroo List of Contributors Map 1: Libya and its Neighbours Map 2: Infrastructure of Libya Xlll XV xvii xıx xxııı xxıv Part 1: Background to the Market 1.1 Libya Reconsidered: Towards a Closer Relationship between Libya and the Foreign Business Comnıunity 3 Oliver Miles, Former UKAınbassador to Libya, and Chairınan ofMEC lnternational 1.2 The Libyan Janıahiriya: Country, People, Social and Political Developnıent 7 Mustafa O. Attir, Professor ofSociology and Khalifa Al-Azzabi, Assistant Professor ofEnglislı Literature, Arab Developınent Institute 1.3 The Regulatory Franıework 17 Eversheds and Mukhtar, Kelbash & Elgharabli 1.4 The Libyan Econonıy and International Trade Relations 22 Marat Terterov 1.5 Banking and Insurance 31 Marat Terterov and tlıe Libyan Insurance Coınpany 1.6 The Foreign Investnıent Environment: Economy, Banking, and Priority Sectors 38 GeoffDuncanson, British Arab Commercial Bank 1.7 Current Status of Sanctions 44 Everslıeds 1.8 Practical Reasons for Investing in Libya: Incentives and Guarantees 49 Eversheds and Muhhtar; Kelbash & Elgharabli x Contents Part 2: Business Development: Establishing and Operating an Enterprise in Libya 2.1 Establishing a Presence 57 Bill Wilkinson, Managing Director, Consultancy Support Ltd 2.2 Incorporating a Company 61 Ernst and Wlıinney 2.3 Arbitration and Dispute Resolution 66 Everslıeds and Muklıtar, Kelbaslı & Elgharabli 2.4 Employment Law for Libyan and Foreign Employees 71 Everslıeds and Mukhtar, Kelbash & Elgharabli 2.5 Taxation System 76 Ernst and Whinney 2.6 Accounting and Audit 85 Ernst and Whinney 2.7 Business Culture 89 Dr Hakim Nageh, Sahara International Consulting 2.8 Business Experience of Foreign Companies in Libya 95 Marat Terterov Part 3: Specific Opportunities by the Sector 3.1 Libya's Hydrocarbons and Mineral Resources: An Historical Overview 103 Marat Terterov 3.2 Oil Industry 110 Marat Terterov 3.3 Ongoing Negotiations for Production and Exploration Agreements with NOC 118 IHS Energy Group 3.4 Regulatory Framework of the Oil and Gas Industry 126 Eversheds and Muklıtar, Kelbaslı & Elglıarabli 3.5 Natural Gas 133 MEC International 3.6 The Power Sector 137 MEC lnternational 3.7 Great Man-made River Project 140 Great Man-Made River Water Utilisation Authority 3.8 Agriculture 146 Tlıe General Authority ofAgriculture, Aninıal and Marine Wealtlı, and MEC International 3.9 Water Resource Managenıent and Irrigation Development 152 Marat Terterov 3. 10 Libya's Potential as a Tourism Destination 157 Libyan Tourisnı Investnıent Pronıotion Board -Ga»ıents xi ----~ 3. 11 Telecommunications 162 MEC International 3.12 Transport Infrastructure 166 MEC International and the Libyan General Authority for Transport and Communications Part 4: Appendices 1 2 3 4 5 Contributor Contact Details Some Useful Addresses Some Useful Websites Libyan Public Sector Business Entities Construction: The Value of Effective Cost and Project Management in the Libyan Market Index Index ofAdvertisers and Sponsors 175 178 181 184 187 195 200