Generally, foreigners can only invest in Libya through establishing joint ventures with Libyan nationals, which takes the form of a joint stock company, according to Arts. 1-3 of Resolution No. 207-2012 on the Foreigners’ Participation and Foreign Companies’ Branches and Representative Offices in Libya. According to Arts. 7 and 9 branches are also permitted for certain activities in the computer and communication sectors. Art. 1 of Resolution No. 823-2013 amended Art. 2 of Resolution No. 207-2012 and abolished Limited Liability Companies as a form of Joint Company between Libyans and foreigners.

Art. 1 of Resolution No. 207 of 2012 stipulates that the Chairman of the Board of Directors of Joint Companies between Libyans and foreigners must be Libyan.

According to Resolution No. 499 of 2010, permission to establish, develop, rehabilitate, manage or operate an investment project is issued by a decision from the Ministry of Economy and Trade (MET) based on the recommendation of the Privatization and Investment Board (PIB), which enjoys exclusive jurisdiction to issue licenses (Art. 6). After obtaining the approval, the investor applies for the investment register (Art. 20). It is reported that the PIB’s screening process for investors and criteria are not published or transparent. It is further reported that the PIB says it evaluates bids or proposals for their compatibility with Libya’s national security, sovereignty, and economic interests.

According to Art. 7 of Resolution No. 207-2012 on the Foreigners’ Participation and Foreign Companies’ Branches and Representative Offices in Libya, for certain areas listed in Art. 9, branches of foreign-owned companies may open in Libya only if the Minister of Economy provides approval. Among activities listed under Art. 9, there are telecommunications-related activities, including installing and maintaining telecommunications systems and stations and establishing and maintaining stations, towers, and antennas for wireless communications and air navigation stations.

According to Art. 5 of Resolution No. 499 of 2010, the minimum value of foreign capital, or in the case of participation with national capital in the investment project, is LYD 5 million (approx. USD 1 Million).

Art. 5 of Resolution No. 207-2012, joint companies between Libyans and foreigners must fulfil all or part of the following listed requirements: (i) the transfer and introduction of expertise and know-how, modern technology, technical expertise or intellectual property rights; (ii) the employment of national workers according to the percentages specified in the legislation in force; (iii) the organisation of annual programs to train and qualify national workers in professions occupied by foreign workers; (iv) the establishment of annual programs to replace national workers with foreign workers and (v) the use of equipment, machines, raw materials and production requirements available in the local market.

Art. 7 of Law No. 9-2010 on the Encouragement of Investment, investment projects involving foreigners must fulfil all or part of the following listed requirements: (i) transferring and localizing knowledge, modern technology, technical expertise, or intellectual property rights; (ii) supporting links and integration between existing economic activities and projects, reducing production costs, or contributing to providing materials and operating requirements for them; (iii) exploiting or assisting in the exploitation of local raw materials; (iv) contributing to the development of remote areas; (v) producing goods for export or contributing to increasing exports, or as a result of which the import of goods is completely or partially dispensed with; (vi) providing a service needed by the national economy or contributing to its improvement, development or rehabilitation and (vii) providing employment opportunities for the Libyan workforce of no less than 30%, and working to train them and provide them with technical skills and expertise.

According to Art. 11 of Resolution No. 207 of 2012, entities operating in Libya are prohibited from contracting foreign companies to carry out work inside Libya unless these companies obtain permission from the Minister of Economy and establish a branch in Libya as stipulated in Art. 7. However, according to Art. 9, branches are only allowed for specific listed sectors and activities. Among the listed sectors is the communication sector (installation of control systems; manufacturing, preparing and maintaining their software).

Art. 30 of Law 6-2022 on electronic transactions requires electronic certification service providers to be Libyan nationals residing in Libya and enjoying political rights, among other conditions, to obtain the needed license. Art. 1.20 defines "certification services provider" as any person accredited by the authority to issue electronic certificates or any related services or tasks or to issue electronic signature tools.

Libya is not a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996 and its 2015 expansion (ITA II). In fact, Libya is not a Member of the WTO.

According to Art. 1355 of Law No. 23-2010, it is not permissible to practice any commercial activity or conduct any business within Libya except after obtaining a license. This process includes obtaining a Commercial Register certificate, registering with the Chamber of Commerce and the tax and labour departments, and then obtaining a working license. It is reported that in May 2019, the government suspended the licenses of 40 foreign firms, including Alcatel-Lucent (owned by Nokia) and Microsoft, asking for their renewal.

Circular 4-2023 requests all public companies and government agencies funded from the general budget to commit to giving priority to supplies from the local market, especially those manufactured and produced locally when contracting for the procurement of materials and supplies they need.

According to Art. 4 of Law No. 8-1959, other than Libyans and public corporations, only foreigners who fit the following conditions may apply for a patent in Libya: natural persons who reside in Libya or have industrial or commercial companies in Libya or who are citizens of a country that treats Libya reciprocally, or who reside in these countries or have a real physical residence there, as well as entities who are established in Libya or countries with reciprocal treatment. Art. 49 stipulates that applicants who have filed to obtain a patent in one of the countries that treat Libya reciprocally and wish to apply for the patent in Libya need a local representative.