The Libyan Investment Authority has made significant progress according to the 2021 annual assessment of the “GSR Scoreboard on Governance, Sustainability and Resilience for the efforts of “State-Owned Investment Funds” issued in early July by Global SWF to analyze the governance, sustainability and resilience endeavors exerted by the world’s leading sovereign investors.
LIA was rated with a total score of 52% in the indicators of governance, sustainability and resilience, with an increase of 48% from its evaluation of 4% in 2020, which raises LIA ‘s rating to 62nd place after it was ranked 97th out of a hundred Global sovereign funds.
The report mentioned the Libyan Investment Authority in particular as being one of the only four Funds in the Middle East that managed to exceed 50% and thus, passed the GSR test on governance, sustainability and resilience, having monitored the poor performance of the region’s funds in terms of governance, especially resilience as a result of Covid-19 effects and the drop in oil prices over the past twelve months.
The report also touched upon the Libyan Investment Authority on the positive side as one of the examples of funds that have taken positive steps to solve extremely difficult situations, as LIA works with auditors. It issued a portfolio valuation and made sure that sufficient information was available.
It is noteworthy that the main findings of this report included that progress in governance, sustainability and resilience scores is positively correlated with improving financial performance.
The leadership of the Libyan Investment Authority considers this remarkable progress as one of the results of its transformation strategy. It commends the efforts of the executive team which is tasked with achieving it. LIA intends to move forward in raising the degree of its transparency around the enhancement of governance, sustainability and resilience, and aspires to make another positive leap in the next annual evaluation.
SWF is a financial organization launched in July 2018 to address the perceived lack of accuracy in the coverage of state-owned investors including Sovereign Wealth Funds and Public Pension Funds and to promote better understanding and communication with global investors and amongst them.