The Libyan Investment Authority (LIA), Libya’s sovereign wealth fund, is awaiting a crucial decision from the United Nations Security Council by the end of 2024. Established in 2006 to manage the country’s oil revenue and currently valued at around $70 billion, the fund has had its assets frozen by the United Nations since the 2011 revolution that ousted Muammar Gaddafi.
The freeze has limited the fund’s ability to make new investments or transfer funds, including $23 billion in deposits across Europe and Bahrain, $29 billion in global real estate, and $8 billion in equities.
Ali Mahmoud Mohamed, the CEO of LIA, expressed confidence that the Security Council will approve an investment plan submitted in March, allowing the fund to actively manage its assets for the first time in over a decade. The plan aims to reinvest the accumulated funds during the freeze, such as proceeds from holding bonds. Mohamed, through an interpreter, said, “We believe our investment plan will be accepted… We don’t think they will reject it.”
LIA’s previous efforts to actively manage its funds have been complicated by internal conflicts, leading to two chairmen declaring leadership. However, a 2020 ruling by a UK court resolved the dispute in favor of Mohamed. The fund has also sought to improve transparency, publishing audited financial reports for 2019 in 2021 and planning to soon release the 2020 financial reports, along with subsequent annual reports.
Despite being ranked 98 out of 100 in the 2020 Global SWF sustainability and governance survey, LIA has since climbed to 51. The UN Security Council has not commented, but last year acknowledged the progress made in LIA’s Transformation Strategy and emphasized the importance of safeguarding the frozen funds for the benefit of the Libyan people.
Mohamed also referenced plans to seek approval for additional investment strategies, focusing on LIA’s equity investment portfolio and domestic investment projects, including solar energy initiatives and promoting oil exports. Libya, one of Africa’s leading oil exporters, currently produces around 1.2 million barrels per day.
LIA remains committed to its objectives, with Mohamed stating that if the United Nations does not approve their proposals, “we will continue to try… We will continue to ask and request.”
Reuters contributed to this article.
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