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Libya

State of Libya

Arabic Libyan Dinar (LYD) Mixed: Islamic law, Italian civil law
AU, Arab League, OPEC, AfCFTA

Libya holds Africa's largest proven oil reserves (48.4 billion barrels) and is a major OPEC producer. The economy is almost entirely dependent on hydrocarbons, which account for over 95% of export revenues. The National Oil Corporation (NOC) oversees production through joint ventures with international companies including ENI, TotalEnergies, and Repsol.

Political instability since 2011 has severely impacted economic development, with rival governments and periodic disruptions to oil production. Infrastructure and banking systems remain functional but strained. The country has a high GDP per capita by African standards due to oil wealth and a relatively small population (7 million).

Libya's strategic location on the Mediterranean, massive energy reserves, and infrastructure reconstruction needs represent significant opportunities for companies with appropriate risk appetite. The business environment remains highly challenging due to political uncertainty, security risks, and weak institutional frameworks.

Snapshot

Population~7.5 MWorld Bank, 2025
GDP (current USD)$48.1 BWorld Bank, 2025
GDP per Capita$6,449World Bank, 2025
GDP Growth13.37%World Bank, 2025
Inflation (y/y)~1.84%World Bank, 2025
CBL rate3.00%Central Bank
Unemployment18.76%World Bank, ILO modelled estimate, 2025
Internet Use~81.95%World Bank, 2024
Electrification~70.00%World Bank WDI
CPI Score (Rank)17.0/100 (#170)Transparency Intl
HDI (Rank)0.718 (#104)UNDP HDR

World Bank Indicators Compare with another country

GDP (current USD)$48.1 BWorld Bank, 2025
GDP growth (annual)13.37%World Bank, 2025
GDP per capita (USD)$6,449World Bank, 2025
Population, total7.5 MWorld Bank, 2025
FDI net inflows (USD)$794.7 MWorld Bank, 2023
Inflation (consumer prices)1.84%World Bank, 2025
Unemployment (% labour force)18.76%World Bank, 2025
Internet use (% of people)81.95%World Bank, 2024
Trade (% of GDP)137.66%World Bank, 2025

Climate Readiness Full ranking

63out of 100
Established
Climate adaptation readiness for Libya, from 5 of 5 measured indicators.
Energy access7070.0% · 30% weight
Governance readiness1717 / 100 CPI · 20% weight
Human readiness720.718 HDI · 20% weight
Economic readiness75$6,449, 2025 · 15% weight
Digital readiness8686.0% · 15% weight
This scores climate adaptation readiness (adaptive capacity), following the readiness dimension of the ND-GAIN framework. It is built only from measured values already held on this profile and normalised 0-100. It does not measure emissions or physical climate vulnerability: the platform does not yet hold emissions, hazard-exposure or natural-capital series. Energy access is the single most climate-specific indicator held; the other four are governance, economic, human-development and digital readiness proxies. The economic sub-score is relative to the African countries the platform covers.
How this is computed

Adaptive capacity to absorb climate finance and adapt, following the readiness dimension of the ND-GAIN framework. Built only from measured values already held on each country profile. It is not a measure of emissions or physical climate vulnerability, which the platform does not yet hold.

  • Energy access (30%) World Bank, access to electricity (% of population). The single most climate and energy specific signal held: SDG 7 and the clean-energy transition.
  • Governance readiness (20%) Transparency International, Corruption Perceptions Index (0-100). ND-GAIN governance readiness: the capacity to govern and deploy climate finance. Higher is cleaner.
  • Human readiness (20%) UNDP, Human Development Index (0-1). ND-GAIN social readiness: the adaptive capacity of the population.
  • Economic readiness (15%) World Bank, GDP per capita (current US$), latest measured year. ND-GAIN economic readiness: the capacity to finance adaptation. Scored relative to the covered set.
  • Digital readiness (15%) World Bank, individuals using the Internet (% of population). Information systems for early warning and adaptation.

A country is scored only when at least 4 of the five indicators are held. Sub-scores are weighted and renormalised over the indicators that are present; nothing is estimated for one that is absent.

Country Facts

CapitalTripoli
RegionNorth Africa
CurrencyLibyan Dinar (LYD)
FX RegimePegged to SDR
Investment Promotion AgencyLibya Africa Investment Portfolio (LAP)
Legal SystemMixed: Islamic law, Italian civil law
Time ZoneAfrica/Tripoli

Focus Sectors

Oil & Gas (Africa's largest reserves)
Petrochemicals
Construction
Telecoms
Agriculture
Steel
Cement
Financial Services

Regulations & Taxes

Corporate Income Tax20% standard (oil companies: 65%)
VAT / Sales TaxNo VAT (sales tax applies)