Libya has significant potential if it can leverage its considerable financial resources. That message was conveyed in an interview with the minister for economy and trade in the internationally recognised Government of National Unity – Mohammed Ali Al-Hawij – who spoke exclusively to Al Majalla.
Here is the conversation, which was held in Tripoli.
Did the Derna disaster reveal the depth of Libya's political crisis?
Disasters occur in all countries, especially because of floods. Still, in Libya, we suffer from the negative impact of divisions among state institutions, political instability, the suspension of projects since 2010, the cessation of maintenance programmes for dams and other facilities, and the lack of legislatively approved budgets.
This may have led to the emergence of corruption, which isn't limited to financial corruption. This is a clear indication of the divisions marring Libyan institutions, and this may lead to some damage, such as the lack of maintenance of dams, for example, and the cessation of development projects.
A man dumps mud collected while cleaning his house, which was affected by fatal floods, in Derna, Libya, September 28, 2023.
What do you think of the International Monetary Fund's warning of Libya against complete dependence on oil despite increased production?
We started with a new vision: to diversify a national economy that isn't dependent on oil. We try to see more agricultural activities to boost food security – examples include wheat production, olive oil production, and cereal production or industrial activities, relying on national raw materials. We know that Libya's strategic location helps in this direction, and Libya has many resources. Hopefully, after seven years, the Libyan economy will be one of the best in the new vision.
Are you still facing a challenging investment environment due to the political division, despite the dealings of several large countries with the Government of National Unity?
All fields are open to foreign companies, whether European, American, or Arab.
Now we offer them all facilities, whether 100% foreign or in partnership with Libyans, especially in technology. Libya's geographical location is rich in transit trade, solar energy, and proximity to Europe and Africa. Libya is a rare investment opportunity in the Mediterranean and even the world.
Libyan Economy Minister Mohamed Al-Hawaij.
Now, the opportunity is available to all countries. We have no reservations about any government or any sector, including oil. Oil is also available for foreign companies to invest in exploration and other activities. All sectors are open.
The law is a guarantor, and there are great incentives. Law 109/2010, with its fortified articles, is known among international laws. There's no priority for one over another, and controls and conditions are set by the National Oil Corporation (NOC).
Libya is trying to raise its oil production rates and reach normal levels during the first quarter of next year.
We now produce 1.2m bpd , and OPEC has set our quota at 1.4m bpd. The NOC has set its goal of 2m bpd in the short term; we must now develop our fields to reach that goal; the main target is 3m bpd, but we're talking about the target in the short term.