Libya shakes up oil services and construction sectors; passes decree requiring foreign companies to work with Libyan partners
TRIPOLI, Libya – Dec. 12 (SEND2PRESS NEWSWIRE) — According to Phoenicia Group, a decision last month by the General People’s Committee, the Libyan equivalent of Parliament, mandating foreign companies in Libya active in the oil services, construction, industry, electricity, communications, transportation, and agribusiness and marine and animal resources sectors, to form Joint Ventures through Joint-Stock companies with Libyan partners, has some in-country foreign companies wondering how the new law affects them, and non-established companies confused on incorporation options in Libya.
GPC Decision 443/2006, passed on Nov. 14th, on recommendation by the GPC of Economy and Trade, is viewed by analysts as part of a framework of policies designed to boost the nascent Libyan private sector and strengthen private-sector Libyan entrepreneurs and businessmen in generating locally-driven economic growth and job creation.
Ryad Sunusi, a prominent Libyan businessman and consultant, and President & CEO of Phoenicia Group (www.phoenicia-group.net), the U.S.-Libyan diversified business and consultancy firm, which is a joint venture partner to several foreign companies, commented on the new law and the Libyan regulatory environment with businessmen, investors, and analysts in a conference call from Tripoli, stating:
“Foreign companies can enter Libya through establishing branch offices, joint ventures, representative offices, or through Investment Law No.5, and its special provisions.”
“Even before Decision 443/2006, Libyan joint-stock companies, which necessitate the Libyan partner maintain a 51% controlling interest and majority Libyan board and director, were common place in long-term business sectors like construction, only now does this law mandate what is common practice and expanded to include oil services, particularly catering, transport, logistics, and oil well services.”
“This presents the ideal business partnership from a Libyan point of view,” he noted.
The Phoenicia Group, through its 12 wholly owned subsidiaries and affiliates, is the leading private Libyan business group overseeing an estimated 150,000,000 USD portfolio in the oil & gas, construction, tourism, telecommunications, health, services, and agribusiness sectors in Libya, and investments in the U.S., Middle East, and Europe.
About Phoenicia Group Libya, LLC
Phoenicia Group, a U.S.-Libyan consultancy and risk management firm, focuses on providing integrated business solutions to U.S. and international firms wishing to establish a foothold for commerce in Libya.