LIBYA IS FINANCIALLY CHALENGED!

Libyan expenditure in 2022 demonstrated remarkable growth, reaching an impressive LD 127.9 billion, a substantial increase of LD 42 billion compared to the previous year. These figures, published by the Tripoli Central Bank of Libya (CBL), highlight the government’s commitment to investing in various sectors and driving economic development.

THE OIL INDUSTRY IS STRUGGLING!

In terms of revenue, the oil sector showcased positive performance, achieving a slight improvement with revenues amounting to LD 105.5 billion in 2022, compared to LD 103.4 billion the previous year. This encouraging trend can be attributed to the combination of increased world crude oil prices, stable oil production in Libya, and the absence of disruptive events such as political conflicts, industrial strikes, or wars.

The report highlights that total oil revenues accounted for 25 billion dinars, sovereign revenues amounted to 512 million dinars, and remaining account balances from previous years summed up to 117 million dinars.

THE GOVERNMENT IS NOT SPENDING!

In terms of government spending, which exceeded 18 billion dinars, the Ministry of Finance indicated that a significant portion, approximately 73% of the expenditure, was allocated to the salaries section, amounting to 13,223,983,000 dinars.

Furthermore, the Ministry allocated over 3 billion dinars, constituting 18% of the total, for support purposes. Operating expenses were assigned about 904 million dinars, accounting for 5%, and more than 705 million dinars were earmarked for development projects, representing 4% of the expenditure.

The British Libyan business Association continues to support businesses entering Libya and engaging in positive mutually beneficial commercial engagement.  

Contact us for further information on how we can support your ambitions in Libya. https://brit-lib.org/contact/