Why Libya

Transportations, geographical location, commercial and political relations with Europe provide appropriate conditions for efficiency of counter trade. Libya opens its gate to meet its requirements from European and other major exporter countries around the world and it is already substantial for international companies and growing rapidly. The commercial business of Libya is transforming itself for being better and it is going a step further with new developments day by day. Its population is ready and ambitious for making trade. Population prefers to buy all the goods that are produced in high standards and quality conditions and they are open to high consumption. A per capita income is $ 14,381 for a year. Increasing income from export of oil and gas and with its vast investment and tourism potential, Libya provides significant opportunities for every sectors, Libya’s young, fast growing and educated population need a lot of goods from refrigerator to car, from clothes to computer. Food and agricultural products, machinery, all kinds of household items. The major segments of imported products by Libya are machinery, transport equipment, food, and manufactured goods. In 2009 general imports of the country has reached to $26.82 billion The rate of Libya’s economic growth was resulted as 6,3% in 2009 and estimated between 5-7% in 2010.Libya reached 89 billion US in foreign reserves in the same year. Because of fast growing rate and high oil prices in the last five years, Libya’s national reserves have been able to meet total importation value of 42 months. Regarding to Libya’s geographical location, it is likely to say that it helps to reach 150 million population in the region. Libya offers duty free trade to wide geography with SIN – SAD which is the first step of African unity. Also Libya is one of three countries in position very well which serves as a bridge between European and African countries. (Others Mauritius Island, South African Republic) In 2005, customs duties applied to imports was removed. (Except cigarette) It is intended to be a free zone and trade center to Libya. Despite custom tax is reduced, "consumption tax" taken at the rate of 25-30% of imported products, continue to apply due to protect some of domestic productions. Although custom duties have been zero, at the custom ‘service charge’ is taken at the rate of 4%. It is though that new applications will be advantageous to Libya at membership negotiations of the World Trade. Tripoli is the capital of the country with a population over 1million, which means 20% of the whole population in Libya. As the gateway to foreign trade, Tripoli serves the best circumstances in the country with its international seaport and airport. Countrywide trade is managed in Tripoli. All important governmental and private companies, ministries and offices are located in Tripoli, where all decision makers live.