Libyan Investment Authority
What is the Libyan Investment Authority?
The Libyan Investment Authority (LIA) is a government-controlled entity that deals with the sovereign wealth fund of the nation of Libya. The sovereign wealth fund has assets in excess of $67 billion, basically from oil incomes, making it Africa's biggest sovereign wealth fund.
Civil war, political turmoil, and economic sanctions prompted a period of suspension of the Authority and the freezing of a portion of its assets. As of August 2020, the Libyan Investment Authority was squeezing the United Nations to allow it to invest billions of dollars that have been sitting idle in its accounts.
Job of the Libyan Investment Authority
The Libyan Investment Authority was laid out by government decree in August 2006 after the lifting of international economic sanctions that had blocked foreign investment in Libya.
The LIA is a holding company that oversees government investments from the oil and gas industry. Its primary job is to deal with the assets derived from Libya's oil output and differentiate the nation's economy.
The LIA directs the assets of the Libyan Arab Foreign Investment Company (LAFICO) and oversees government investment in different industries including real estate, agriculture, stock and bond shares, and infrastructure development.
The Authority is Africa's biggest sovereign wealth fund and a member of the International Forum of Sovereign Wealth Funds.
Libyan Investment Authority Structure
As a government entity, the Libyan Investment Authority at last solutions to the Libyan prime pastor and is managed under governance processes. The LIA is represented by a board of trustees that comprises of a mix of government authorities and Libyan banking specialists.
By far most of LIA assets are managed outside of Libya, albeit a portion is held for domestic investment through its Internal Investment Development Fund. The stated objectives of the LIA is to secure the future success of Libya by upgrading its financial and economic stability and making long-term investment possibilities.
The LIA additionally deals with the Economic and Social Development Fund (ESDF), which is intended to benefit Libya's low-income residents.
Effects of the Political Upheaval on the Libyan Investment Authority
Libya has gotten through a tiring period of war and disturbance beginning in the NATO-and U.S.- upheld Libyan Revolution of 2011, which finished with the capture and torment murder of its long-dominant totalitarian leader, Muammar Gaddafi. Gaddafi's removal and death therefore prompted chaos and continuous civil war. Starting around 2014, the nation has been wracked by clashes among several rival groups seeking control of Libya.
The LIA went through a period of suspension due to the contentions emerging from the Libyan Civil War, and large numbers of its assets stayed frozen by international sanctions for quite a long time. At a certain point, two rival management groups guaranteed ownership of the Libyan Investment Authority. In 2016, a five-member caretaker committee that included delegates from two of the groups had control of the Authority.
Features
- The Libyan Investment Authority is Libya's sovereign wealth fund, which controls and invests the nation's oil incomes.
- It means to enhance the Libyan economy and invest in the nation's future.
- The Authority has been thwarted in its points by long periods of war, political turmoil, and international sanctions.
