Q: What is the Sirte Free Zone and what is the purpose of its establishment?
A: Sirte Free Zone is a special economic zone established in the city of Sirte by a decision of the Libyan government in 2024 with the aim of developing economic and commercial activities in the country. This zone aims to provide a unique business environment that encourages local and foreign investment by offering various incentives and facilities. It also seeks to transform the city of Sirte into a regional center for investment and trade, which contributes to the development of the national economy and diversifies sources of income away from traditional dependence on oil. The Free Zone is under the supervision of the Ministry of Economy and Commerce and is managed by a Board of Directors that ensures the implementation of laws and regulations in a way that serves the interests of both investors and the economy.

Q: What are the most prominent incentives and privileges offered by the zone to investors?
A: Sirte Free Zone provides a very attractive incentive package for investors. The most important of these is the full exemption from taxes and customs duties for periods of up to 10 years for investment projects, which means an increase in the net profits of those projects. The region is also characterized by the speed of the licensing process, as it is completed in a short period of time without bureaucratic complications. Investors are free to transfer their profits and capital abroad without restrictions, in order to ensure easy exit and entry into investments. All of these advantages make investing in a free zone a unique opportunity with high financial and operational benefits.

Q: How can I set up a business or company within the Sirte Free Zone?
A: Establishing a project in Sirte Free Zone is a relatively smooth process, as the management of the zone provides a unified window to serve investors and facilitate registration and licensing procedures. The first step is to contact the Zone Administration or visit their website to fill out the available investment application form, you will need to submit an initial feasibility study for your project and a business plan, in addition to the usual legal documents (such as ID or parent company registration, if applicable). After the application is evaluated and approved by the region’s board of directors, an investment license will be issued that will allow you to start establishing your company within the zone. The free zone has the authority to issue project licenses, manage contracts, and lease land and utilities to investors itself, which means you don’t need to move between multiple ministries and agencies like in the rest of Libya. Once you have obtained the license, you can start the process of establishing your company (whether it is a new company or a branch of a foreign company) taking advantage of the exemptions and facilities offered by the region. The National Development Authority (NDA ) also provides project tracking and company registration services through its online platform to assist in this process.

Q: Are foreign investors allowed to own 100% of their projects within the free zone?
A: Yes, foreign investors are allowed to own up to 100% of projects and companies within the Sirte Free Zone without the need for a local partner. Libya’s investment promotion legislation (notably Law No. 9 of 2010) grants significant advantages to foreign investors, including full ownership of the project. This means that foreign companies can establish branches or independent entities in the free zone and retain their full ownership and capital. The foreign investor also enjoys the freedom to transfer his profits and the capital he has entered when his investment is liquidated out of Libya without restrictions, in accordance with the regulations stipulated by law. This flexibility in foreign ownership is a key attraction for international investments, as it provides guarantee and freedom for investors to manage their projects and invest their capital while preserving their full rights.

Q: What are the sectors available for investment in Sirte Free Zone?
A: The free zone targets several promising economic sectors that investors can enter into. The most prominent of these sectors is the industrial sector (such as the establishment of factories in various fields including the petroleum, petrochemical, building materials and other manufacturing industries). The trade sector is also a key area, as companies can set up distribution centers and exhibitions for regional trade from Sirte. The logistics and transportation sector is of particular importance due to the region’s role as a transit hub, as it is possible to invest in warehousing, transportation, and sea and land freight activities. Not to forget the tourism and business sector , which includes hotels and facilities to serve businessmen and tourists coming to the region. These four sectors (industry, trade, logistics, and tourism) are the focus of the free zone to achieve economic diversification, but the field is also open for other investments in the fields of technology, renewable energy, education, and others, as long as they are in line with the region’s goals and add economic value.

Q: Has the Sirte Free Zone actually started its activity, and what are the stages of development of the project?
A: Work on the Sirte Free Zone has started in several phases as part of the comprehensive development plan. Currently, it can be said that the activity has been partially launched with the operation of the existing commercial port after undergoing rehabilitation operations within the first phase of the project. This port currently receives some cargo and essential cargo and serves as the primary nucleus of the free zone. The second phase is under construction and includes the expansion and improvement of the southern and eastern piers of the port, a large part of which has been completed (about two-thirds of the construction works have been completed by mid-2025). Upon completion of this phase, the port’s capacity and capacity to handle more ships and cargo will be significantly increased. The third planned phase aims to deepen the port canal and docks to a depth of about 25 meters, which will allow large container ships and large cargo carriers to receive directly at the port of Sirte. This stage is key to making the port a regional competitor capable of serving global shipping lines. According to the announced plans, the implementation of the three phases is expected to be completed within the next few years, as work is being carried out at an accelerated pace under the supervision of the National Development Agency. In parallel with the development of the port, supporting infrastructure such as storage areas, utility networks and administrative services are being equipped within the scope of the free zone. In short, Sirte Free Zone is currently under construction but is making significant progress, as the port is already partially operational, and with the completion of the subsequent phases, the zone will be integrated and ready to receive all types of investments and commercial and industrial activities on a large scale.