OECD Review of Foreign Direct Investment Statistics of Libya

The goal of this review is to evaluate Libya’s FDI statistics to assess the institutional setting for compiling the statistics, the data sources and estimation methods used, and their compatibility with the current international guidelines (BPM6 and BD4). Through the use of a questionnaire, a workshop in January 2024, and follow-up email exchanges with the Libyan authorities, the OECD makes five principal recommendations, including eight specific actions, to improve the compilation of FDI statistics in Libya. Table ‎3.1 summarises all of the recommendations, including the priority that the OECD places on them.

These recommendations are designed to strengthen the institutional setting for the compilation of FDI statistics in Libya by formalising data sharing arrangements between agencies (Recommendation 1); to enhance the alignment with the international standards in the natural resource exploration sector (Recommendation 3); expand the FDI statistics available for Libya (Recommendations 2 and 4); and address the informality of a large share of the Libyan economy, which raises challenges for statistical compilation (Recommendation 5).

The OECD has offered a prioritisation of these recommendations based on our knowledge and understanding of the costs and benefits of implementing the recommendations; however, the Libyan authorities have deeper understanding and knowledge of the costs and the needs of policymakers and, thus, may have different priorities.

In addition to the recommendations made above, the Central Bank of Libya should continue to invest in its human and information technology resources to enhance its FDI statistical compilation. This means ensuring that staff are trained in the concepts underlying external sector statistics as well as aspects of financial accounting. This can be done through attendance at regional training seminars and taking advantage of the opportunity for technical assistance. This will be especially important with the updating of the international standards for which international organisations intend to support countries in implementing the new standards.