28.07.10 Libya Politics and Security
Security of foreign personnel and assets appears to be improving
Foreign investors appear increasingly to be adversely affected by the recession
in world markets. In Libya, foreign companies face problems of slow payment and
costly over-runs due to the inefficiencies of local financial institutions.
Libya remains one of the most attractive markets world-wide but there is
persistent
suspicion that the country is being overstretched financially at the present
time. Foreign investors are, therefore, tending to pace themselves. According
to
Arab sources, foreign investment in Libya ran at US$4,100 million in 2008 but
fell
sharply to US$844 million in 2009.
The security of foreign assets is claimed to be a priority of the Libyan
government but the promised law on the attraction and protection of foreign
assets has
still not been published. This inevitably leaves scope for manipulation of
contracts, not to mention exposure to illegal pressures for payments to local
concerns. In all, focus of commerce is that comparative security will be
sustained but
those companies whose products are most in demand will fare better.
Political security appears to be improving and the outlook more heartening than
for some time, as General Abdel Fatah Yunis al-Obeidi acquires more staff and better technology in controlling illegal movements of
labour into the country. During his recent visit to London, the General made
considerable progress for the procurement of new weaponry and monitoring
equipment.
The opposition is undermined and feeble so that nothing but isolated and
small-scale incidents of lawlessness against the regime can be expected.
For more news and expert analysis about Libya, please see Libya Focus and Libya Politics & Security.
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