Libyan stock exchange opens its doors foreigners

Libya Stock Exchange

In a move that will hopefully bring rapid development to Libya's capital markets and further expand the nation's economy as a whole the Chairman of Economic Group Libya (MAL), Khalil ElKwafi, has announced it is to open its stock exchange to foreign investors.

Since Decree no. 14 came into force in June, allowing non-resident investors to buy shares in the Libyan Stock Exchange (LSE), four sectors have been listed and ElKwafi voiced his confidence that heightened activity was on the horizon, as reported by Middle-East-Business.com.

He said: "More IPOs are expected to take place, such as Libyana and Al Madar for the telecommunications sector, National Commercial Bank NCB for the financial sector and Libyan Steel for the industry sector, which should boost the capital markets' developments."

Adopt and increase private equity

He also highlighted the LSE's intentions to adopt and increase private equity, venture capital and development funds as they all encourage business and provide private listed companies with the best opportunities to benefit the Libyan economy.

Now, with Decree no. 14, non-residential investors can own 5 percent of a listed company and as the LSE diversifies ElKwafi believes the Libyan stock market can earn a higher profile among foreign investors.

"This development will lead us towards better transparency procedures and governance practices that will elevate the LSE to international standards," he said.

Helping raise awareness

Mal will team up with global publishing group Oxford Business Group to develop comprehensive, credible data to be used by the global business scene. "The Report: Libya 2010" will play a crucial role in helping to raise awareness of the country's investment opportunities among the international business community which he said was key to future success.

The report will be used as a guide to the many facets of investing in Libya including its macroeconomics, infrastructure, political landscape, banking and sectoral developments.

Time will as to whether Libya's decision to open their doors to more foreign wealth will pay off in the long-run, if it does the decision could see Libya becoming a leading light as the Middle East strive to become one of the world's strongest economic regions.

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