Competitive Advantage of Libyan Business Environment

The economic development needs of developing countries require capital accumulation, which is no longer an easy task, even for industrialized countries. Although borrowing remains an important alternative, it has proved to be an expensive method in the long run. Consequently, to attract foreign direct investment (FDI), developing countries have been liberalizing their economies, which is expected to contribute to job creation and income generation. Libya declared its intention to liberalize its economy and to integrate into the global economy in order to achieve comprehensive development. This study investigates and explores the condition of the Libyan business environment in relation to foreign and joint companies, particularly in the non-oil sectors. This paper aims to investigate whether or not the Libyan business environment is appropriate to attract foreign companies, particularly in the non-hydrocarbon sectors. The method used in this paper is based on creating Porter model of competitive advantage of in relation to attract FDI. The paper reveals clearly that apart from substantial oil reserves, Libya is rich in other resources. Despite these positive advantages, there are numerous obstacles and shortcomings associated with the Libyan business environment. It discovered that the general structure and policies in relation to the Libyan business environment still require considerable attention to bring about the political and administrative stability, as well as the stability of laws and regulations. Furthermore, intensive media campaigns need to be launched with all the necessary legal and political guarantees for attracting FDI into the country.