Regulatory Alerts2022-06-06
Law No. 5 of 1997 on the Encouragement of Foreign Capital Investment, Amended by Law No. 7 of 2003
The General People’s Conference of Libya issued Law No. 5 of 1997, amended by Law No. 7 of 2003, alongside its Executive Regulations to systematically encourage foreign capital investment by establishing the Investment Promotion Authority and streamlining licensing procedures. The legislation grants licensed projects comprehensive customs and income tax exemptions for five years (extendable by three), permits foreign capital participation across key economic sectors, and guarantees profit repatriation, property ownership rights, and access to local courts or arbitration for dispute resolution. It further mandates the maintenance of systematic accounts, empowers designated officials to monitor compliance, and provides clear mechanisms for license withdrawal, benefit suspension, and investor appeals.