Libya's economy

Libya is rich in resources, especially natural gas, and is one of the major oil producers and oil exporters in the world. This is one of the key factors for Libya to attract foreign investment.

Oil production accounts for 50-70% of the gross national product. In 2004, Libyan crude oil output reached 6.5438+0.6 million barrels per day, domestic consumption was about 250,000 barrels per day, and net export was about 6.5438+0.2 million barrels per day (2065.438+02) (oil export to the United States resumed in June 2004), and exports accounted for the total output. It also exports iron ore, peanuts, leather and so on. Imported machinery and equipment, vehicles and grain are bulk. Besides oil, there are many natural gas reserves, and other resources include iron, potassium, manganese, phosphate and copper. 1985 proved oil reserves of 29180,000 tons, oil production of more than 50 million tons and proven natural gas reserves of 605.3 billion cubic meters. The main industrial sectors are oil exploration and refining, as well as food processing, petrochemicals, chemicals, building materials, power generation, mining and textiles. Mineral resources such as iron, manganese, copper, tin, bauxite, apatite and potassium salt are still undeveloped. The arable land area accounts for about 2% of the country's total area. Food is not self-sufficient and depends heavily on imports. The main crops are wheat, barley, corn, peanuts, oranges, olives, tobacco, dates and vegetables. Animal husbandry plays an important role in agriculture. Herdsmen and semi-herders account for more than half of the agricultural population. Only 2% of Libya's land is suitable for farming because it can get enough precipitation. However, according to the survey, the desert area in southern Libya is rich in underground fresh water resources, and its water storage capacity is equivalent to the total flow of the Nile in 200 years. In order to develop more arable land, Libya has built many groundwater irrigation systems, and AlKhufrah Oasis is one of the largest agricultural plans in southeastern Libya (near the Egyptian border).

The oasis in Libya adopts the central hub water supply system, which transports groundwater to galvanized steel pipes or aluminum pipes through pressure. The electroplated steel pipe or aluminum pipe is equipped with a nozzle, which rotates around a center with wheels supported on the ground, and the whole sprinkler irrigation area forms a circular "crop circle". This needle-type sprinkler irrigation machine is widely used in the Sahara desert and the United States, and also in some parts of China. The first currency name used in Libya was Libyan pound, which is equivalent to British pound. 1959, the official gold content of the country's currency was 2.48828g, and the official exchange rate was 1 Libyan pound, equivalent to 1 pound, equivalent to $2.80. 1 967165438+1October 18, the pound depreciated 14.3%, and the Libyan pound did not depreciate with it, but changed to 0.857 143 Libyan pound, which was equal to/kloc-.

1 971September1day, the Libyan government issued a new currency dinar and recovered the Libyan pound at the exchange rate of 1: 1. The gold content and the official exchange rate remain unchanged. 65438+February 65438+April Libya withdrew from the pound area. After the depreciation of the US dollar on February 20th, 65438, the official exchange rate of the dinar against the US dollar was changed to 1 dinar, which was equal to US$ 3.04, allowing a fluctuation range of 4.5%. After the US dollar depreciated again on February 20th 1973, the official exchange rate was changed to 1 dinar, which was equal to US$ 3.04. Libya announced that it would still maintain the gold content of the dinar, and the official exchange rate against the US dollar was changed to 1 dinar, which was equivalent to 3.37778 US dollars. Since 1974, the exchange rate between the dinar and the US dollar has been fixed at the level of 1 dinar equal to 3.3778 US dollars.

1 March 986 18 Libyan dinar is linked to SDR at the exchange rate of1dinar equal to 2.80 SDR, and a managed floating effective exchange rate system is implemented. Libya prohibits the free entry and exit of money; Allow investors to remit profits abroad under several circumstances, such as the expiration, liquidation and sale of profit investment projects; Investors can remit the annual net profit and dividends from overseas investment abroad.

Libya is an international investment guarantee institution and promises to protect foreign investment in Libya; Libya has signed bilateral investment protection agreements, double taxation prohibition agreements and other protection agreements with more than 20 countries.

Libyan Investment Promotion Agency is a specialized agency responsible for investment affairs (excluding oil investment). In addition to performing investment-related duties, it also cooperates with Libyan immigration and customs agencies to provide "one-stop" services for investors.