FAQs - Libyan Investment Authority - LIA

Why was the Libyan Investment Authority established?
The LIA was established on 28 August 2006 to prudently manage, preserve and grow Libya’s surplus oil revenue for the long-term benefit of the Libyan people and future generations. We were reorganised and regulated by Law No. (13) in 2010, which defined the LIA as a legally and financially independent investment corporation.
What does the Libyan Investment Authority do?

The LIA works to protect and develop the value of Libya’s oil revenue reserves. Our focus is on our long-term strategic vision: to more efficiently manage Libya’s wealth for future generations, and effectively contribute to the sustainable development and diversification of income sources.

We mainly invest in foreign assets through well-regarded international investment managers. We maintain a diverse portfolio of high-quality investments globally to help secure the prosperity and stability of Libya’s economy, and to avoid overdependence on oil and gas production.

Where did the original portfolio of the Libyan Investment Authority come from?
Our initial portfolio came from the surplus of the Libyan oil revenues. The portfolio has since diversified to include industries including agriculture, real estate and the hospitality sector.
Who is the current Chairman of the Libyan Investment Authority?
Dr Ali Mahmoud Hassan Mohamed is the Chairman of the Libyan Investment Authority. He has been the Chairman since 2017.
How is the Libyan Investment Authority linked to the Libyan government?
The LIA is a legally and financially independent investment entity. As an autonomous government entity, the LIA is legally separate from the government – this means that while we are accountable to the Libyan government, we have full operational independence. The LIA’s assets belong to the people of Libya, not the state.
How much is the Libyan Investment Authority’s portfolio worth?
We are currently working with Deloitte to undertake a valuation of our assets. At last valuation, our portfolio was worth US$67 billion, more than 70 per cent of which are financial investments in the form of deposits and shares.
Does the Libyan Investment Authority disclose its financial results?

Yes. We understand the importance of maintaining a comprehensive overview of our portfolio, and we are committed to observing the highest standards of disclosure. We prepare our financial statements on an annual basis using best practice accounting principles that are considered appropriate to our unique situation, and in line with the International Financial Reporting Standards.

To improve our transparency and accountability, we are working with our international advisors to develop a set of regular management and investment reports.

How does the Libyan Investment Authority support Libya?

The LIA is an active investor in Libya’s long-term recovery. We are working to rebuild the country for the benefit of all Libyans and future generations, by creating, preserving and growing the assets generated from Libyan resources wisely.

Our mission is to achieve stable, attractive and competitive commercial returns over the long-term, by investing prudently across a diverse set of industries and geographies. We will continue to play an active role over many years to improve the resilience of the Libyan economy, and enhance the wellbeing of all Libyan people.

How much of the Libyan Investment Authority’s assets are frozen?
All of our internationally held assets are currently frozen under sanctions – which were intended for our protection.
How are discussions progressing with the international community?

We have made considerable progress and are finally starting to make inroads with the international community. We now have a clear and achievable strategy and system in place to ensure this continued progress.

There is still work to be done – it is very important that we continue the good work, and build on the positive momentum we have gained. We are firmly focused on safeguarding Libya’s assets, delivering our transformation strategy, and bringing the LIA in line with best-in-class sovereign wealth funds.

Is the Libyan Investment Authority close to getting the sanctions lifted?
The LIA is not proposing for sanctions to be removed, or for our assets to be unfrozen. We respect the sanctions regime, which was intended for our protection, and fully intend to operate within its parameters. We are however calling for a modification of the resolutions.
Why does the Libyan Investment Authorities want the UN to modify sanctions?

We have been working with our international advisors to better understand the impact of sanctions on the LIA’s global asset portfolio. As a result of the sanctions imposed in 2011, an independent report by Deloitte has assessed that there has been a significant negative impact on the value of the investments held by the LIA and our subsidiaries. For example, if sanctions had not been imposed and our equity assets had performed in line with the market, the total value of the portfolio would have been approximately $4.1 billion higher.

We are therefore working closely with the UN Security Council’s Sanctions Committee to find a solution to prevent further losses to the value of Libya’s frozen assets. This is part of the LIA’s ongoing efforts to protect Libya’s assets and improve the resilience of the Libyan economy, to ultimately enhance the wellbeing of the Libyan people and secure the future of generations to come.

What is the Libyan Investment Authority doing to ensure that you will be ready to manage Libya’s assets when the sanctions are lifted?

The LIA is committed to implementing real change in the continuous pursuit of institutional excellence. Our immediate priority is to drive forward our comprehensive transformation strategy, to improve our governance, transparency and accountability.

We are working closely with international experts to implement positive reforms and bring the LIA in line with best-in-class sovereign wealth funds. Further to developing ways to pilot adjustments to our investment process, we are focused on building up our internal capabilities to effectively manage the assets we have been entrusted with.

What is the goal of the transformation programme?
A primary goal of our transformation programme is to restore the possibility of growth, and align the LIA’s investment activities to that of leading international sovereign wealth funds. We recognise the importance of improving governance, transparency and accountability across our organisation, and ensuring that we are always aligned with the Santiago Principles of the International Forum of Sovereign Wealth Funds.
How does the Libyan Investment Authority mitigate investment risks?

Our investment approach is underpinned by a prudent risk management framework. We are consistently working with our investment teams, subsidiaries, operating companies and consultants to assess the impact of internal, external and environmental risk factors, so that we can develop strategies to mitigate any negative impacts – and ultimately, protect Libya’s assets for the long-term.

The LIA’s investment decisions are based on our economic objectives as set out in Law No. (13) and our obligations under the United Nations Security Council Resolution 1970 of 2011


© 2021 LIA,  ALL RIGHTS RESERVED.

© 2021 LIA,  ALL RIGHTS RESERVED.