Guided by our mandate as Libya’s sovereign wealth fund, the LIA is dedicated to secure a sustainable economy and a prosperous future for generations to come. It is also actively committed to aligning our approaches and activities to be more compatible with the United Nations’ 2030 Sustainable Development Goals (SDGs), in which the LIA supports the achievement of these goals, striving to translate them into tangible realties and impactful outcomes. our dedication is evident in the LIA’s 2024 Annual Report, which involved a specific section highlighting our initiatives and contributions to the SDGs.
Moreover, the LIA aims to publish sustainability reports in accordance with the internationally recognized GRI (Global Reporting Initiative) standards.
The Libyan Investment Authority was established on August 28, 2006 to manage, preserve, and develop the surplus of Libyan oil revenues for the long-term benefit of the Libyan people and future generations. LIA has been reorganized by virtue of Law No. (13) of 2010, which has defined the Libyan Investment Authority as an investment Authority with a legal personality and an independent financial liability.
The Libyan Investment Authority works to protect and maximize the value of Libyan oil revenue reserves. Our focus is on achieving our long-term strategic vision of managing Libya’s wealth in a more efficient manner for the benefit of future generations, and actively contributing to sustainable development efforts and diversifying sources of national income.
Our investments are mainly concentrated in foreign assets through reputable international companies specializing in investment management. Our investment portfolio includes a variety of valuable and significant global investments to help ensure the prosperity and stability of the Libyan economy, and to avoid excessive dependence on oil and gas production.
Our initial source XXX portfolio comes from surplus Libyan oil revenues. Subsequently, the portfolio has been diversified to include different sectors, including agriculture, real estate and hotels.
Dr. Ali Mahmoud Hassan Mohamed is the current Chairman of the Board of Directors of the Libyan Investment Authority. He has assumed his duties since 2017.
LIA is an investment Authority with a legal personality and an independent financial liability. As an independent governmental entity, LIA is legally separate from the government. This means that while we report to the Libyan government, we have complete operational independence. The assets of LIA belong to the Libyan people, not the state.
Driven by a clear investment strategy that emphasizes diversifying income streams and mitigating reliance on the oil sector, the LIA possesses a solid financial and administrative foundation. We uphold the highest standards of governance and financial transparency, supported by an integrated framework for managing financial and operational risks. Our rigorously assessed performance evaluation approach utilizes global benchmarks, ensuring the LIA’s stability and our ability to generate sustainable returns over the long term.
(Investment Policy Statement – Risk Policy)
LIA is currently working with Deloitte Firm to conduct a valuation of its assets. According to its latest valuation, the investment portfolio amounted to $67 billion, more than 70 percent of which is in financial investments in the form of deposits and equities.
Yes, we understand the importance of providing a comprehensive overview of our investment portfolio, and we are committed to applying the highest standards of disclosure. We also prepare our financial statements annually by applying accounting principles that follow the best practices that are commensurate with our unique status, in line with International Financial Reporting Standards.
In order to improve transparency and accountability in the Libyan Investment Authority, we work with our international advisors to prepare regular management and investment reports.
The Libyan Investment Authority works towards investing and contributing to Libya’s long-term recovery efforts. We are endeavoring to rebuild the country for the benefit of Libyans and future generations, by investing in assets generated from Libyan resources, preserving and developing them wisely.
Our mission is to achieve stable, attractive and competitive business returns over the long term, by investing in a variety of sectors and geographical locations. We will continue to play an active role in improving the resilience of the Libyan economy and enhancing the well-being of the Libyan people for many years to come.
All of our international assets are currently frozen under sanctions to protect them, and they constitute X percent of our investment portfolio.
We have made great progress in this area, and we’ve recently begun to see success with the international community. Now, we have a clear and practical strategy and measures in place to ensure continued progress.
Much remains to be done. It is important that we continue our efforts, and continue to build on the momentum we have gained. Our primary focus is on protecting Libya’s assets, implementing our transformation strategy, and harmonizing LIA with the best sovereign wealth funds.
The LIA continuously supports the ambitious afforestation project in Libya through its subsidiary “Oilinvest”.
This project guides the LIA into achieving net-zero emissions by 2050
LIA respects the sanctions regime, which is primarily intended to provide protection for it, and is not asking for the lifting of sanctions or the unfreezing of our assets at this stage. However, we call for amendment to the resolutions.
The LIA implement defined initiatives to addresses climate change and ESG risks
Environmental Climate Risk initiatives:
Emission Mitigation:
1- Afforestation project of planting 100 million tree in Libya : it is expected to annually absorb 20 million kg of CO2
2- Conversing oil refineries in Italy and Switzerland into sustainable energy complexes
3- clean energy investments including solar power station , green Hydrogen
Climate change adaptation :
1- Drought-resistant agriculture projects such as Wadi El-Malaak project in Egypt.
2- Supporting food security in Sub-Saharan Africa .
Social risk management initiatives
Job creation :
1- The LIA’s diversified investment portfolio across over 80 countries supports global economy and generates jobs.
2- Tamkeen initiative that aims to recruit national best-in-class talents
Healthcare investment
1- allocating $ 1.7 billion to the healthcare sector including epidemic control.
Governance enhancement initiatives
Transparency :
Active membership in international forums; such as IFSWF and ASIF
Aiming to publish sustainability reports in accordance with GRI standards
Risk Management
Integrating robust governance as a main pillar within our 2025-2027 strategy.
Considering a membership in the OPSWF initiative.
We have worked with our international accountants to better understand the impact of sanctions on LIA’s global investment portfolio. The results of a group of these assets indicated: [To be determined – the report on the impact of sanctions]
In light of this report, the LIA Board of Trustees and Board of Directors believe that it is necessary to mitigate these negative effects. We respect the sanctions regime, but we are concerned about the depreciation of LIA’s assets around the world, or their lack of an adequate return in the market. Therefore, we would like to work with our international partners, including the UN, the sanctions committee and the Panel of Experts, to find an appropriate solution.
We have noted that making some minor amendments to the sanctions regime will allow LIA to reinvest certain assets in a wiser way, which would allow us to maintain those assets in line with the objectives of LIA and limit their depreciation.
LIA is committed to implementing real change in its continuous pursuit of excellence in its performance. Our current priority is to move forward with our comprehensive transformation strategy to improve governance, transparency and accountability.
Thus, we work closely with international experts to implement positive reforms, and align LIA with the best sovereign wealth funds. As well as identifying ways to make adjustments to the organization’s investment process. At the same time , we are focusing on building our internal capacities to effectively manage assets.
- Our initiatives and investments are strategically aligned with eleven of the United Nations’ Sustainable Development Goals (SDGs) through (energy projects, agriculture , and healthcare )
- Incorporating the ESG standards
- Consideration the membership of Additional forums such as (OPSWF)
The primary objective of our transformation program is to restore our ability to grow and harmonize our investment activities with those of the world’s leading sovereign wealth funds. We recognize the importance of improving governance, transparency, and accountability across our organization and of adhering to the Santiago Principles outlined by the International Forum of Sovereign Wealth Funds.
Our investment approach is based on a prudent risk management framework.
We are constantly working with investment teams, our affiliates, operating companies and our advisors to assess the impact of internal , external and environmental risk factors, so that we can formulate strategies to alleviate any potential negative impact, subsequently protecting Libya’s assets in the long term.
Investment decisions of LIA are also based on the Authority’s economic objectives as stipulated in Law No. 13, and our obligations under United Nations Security Council Resolution 1970 /2011
In alignment with global best practices, The LIA is considering the gradual adoption of the TCFD framework in the upcoming years,. Currently, it is commited to :
- Practical initiatives to mitigate emissions, such as afforestation and renewable energy
- Considering the OPSWF initiative’s membership.
The LIA’s commitment to governance and transparency in the delegation of asset management is evident through its application of a gradual mechanism, commencing with work teams and concluding with the board of directors’ approval. This approach is outlined in the following paragraph of the LIA’s approved investment Statement AS a temporary solution, the Libyan Investment Authority leverages a group of external investment managers who are used for relevant asset class strategies, especially while internal capabilities within LIA are established and developed. The relevant investment team within LIA is tasked with forming recommendations on managers to the BIC, which advises the BoD accordingly . LIA will aim to select best-in-class external managers across the relevant sub-funds. All external managers are thoroughly reviewed before receiving an allocation and reviewed on an ongoing basis, with regards to their capabilities, track record and legal status. The LIA may seek the support of an Investment Consultant in the selection and due diligence of external managers
The LIA discloses its returns and financial performance through our (it’s) published annual reports
Financial Performance for the year 2024
The LIA evaluates investments from all relevant perspectives and apply ethical restrictions as appropriate. The fund is restricted from investing in assets or companies that derive their revenues from gambling, tobacco, pork products, adult entertainment and alcohol. Further restrictions on investments for each asset sub-fund can be found in the Investment Policy.
Environmental Indicators:
- Guided by the Sustainable Development Goals, the LIA and its subsidiaries are actively embedding environmental considerations into their operations through key initiatives:
- The Afforestation of One Million Tree Project in Libya: This project aims to absorb approximately 20 million kg of carbon dioxide annually.
- Major Agricultural Projects: these projects are primarily located in the Arab Republic of Egypt (Wadi El-Malaak, North El-Tahrir, 6th of October).
- Clean Energy Stations Development: Including green hydrogen and solar energy projects in Aigle, Switzerland, and Northern Italy.
- Transformation of the Oil Refineries (Cremano) in Italy and ( Collombey) in Switzerland into Sustainable Energy Complexes.
Social Indicators :
- Global Investment Portfolio: A diversified portfolio spanning over 80 countries, supporting the global economy and creating direct and indirect employment opportunities.
- Tamkeen Initiative: An initiative that aims to employing best-in-class national talents.
- Supporting Economic Growth : Our subsidiary, Libya Africa Investment Portfolio, strategically invests over 60% of its assets in Sub-Saharan Africa to foster economic growth.
- Healthcare Sector Investment: An investment of $1.7 billion in the healthcare sector.
Governance Indicator
- To ensure transparency and foster sustainable practices, the LIA is dedicated to upholding the highest standards of governance through:
- Main Strategic Pillar: strengthening governance is a fundamental pillar in our 2025-2027 strategy.
- Implementing Comprehensive Governance Policies
- International Forum Membership (ASIF and IFSWF.)
- Considering the OPSWF Membership.
- Targeting GRI Standards for Sustainability Reporting.
