Libyan Industrial Exports: Current Problems and Future Opportunities

Abstract

The Libyan economy relies primarily on oil and gas, while non-oil industrial exports remain limited. This sector faces numerous challenges, such as poor infrastructure, a lack of supportive policies, and a low level of technology and innovation. Furthermore, political and economic instability negatively impacts the investment and production environment, making it more difficult to boost industrial exports and diversify the economy. The aim of this research was to examine the reality of Libyan industrial exports and the challenges they face, focusing on opportunities for their development. The aim was to provide practical recommendations to strengthen this sector, which would contribute to diversifying sources of national income and reducing dependence on the oil and gas sector. The research found that most Libyan exports are concentrated in the oil and gas sector, while non-oil industries constitute a small percentage of total exports. The industrial sector suffers from weak production capacity and a lack of product diversity. Many challenges limit the growth of the industrial sector and industrial exports, including political instability, weak infrastructure, limited export markets, the absence of supportive policies, and weak innovation and technology. To increase industrial production and, consequently, industrial exports, the research recommended diversifying the industrial base, improving infrastructure, strengthening trade partnerships, and encouraging domestic and foreign investment.