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.
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.
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.
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.
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