Dr. MAHMUD ALFTISE, presented at Kick-off meeting Phase II, Tunis, 08 December 2016

1. Dr. MAHMUD ALFTISE

2. Historical Remarks
• Liberal economy1951-1977.
• Socialism and total government control of the
economy1977-1997.
• Mixed economy1997-2011.
• Undefined economy2011-2016.

3. • Economic Development Board.
• Social and Economic Fund.
• National Industrial Promotion Board.
• Development Bank.
• Agriculture Bank.
• Refey Bank (microfinance) .
• Other institutions.

4. There is no unified definition for SMEs. In Libya, the
definition of small enterprises, in 2006, as the ones
whose invested capital does not exceed LD 2.5
million and the number of employees does not
exceed 25, while the medium enterprises have an
invested capital of no more than LD 5 million and
the number of employees does not exceed 50. Now
a days after the devaluation of the LD we should
redefine the amount of invested capital.

5. The importance of SMEs to Libya comes with the fact
that the Libyan economy suffers from non-
diversification of economic activities; mostly
concentrated in construction and oil & gas sectors – oil
and gas sector constitutes about 70% of the Libyan GDP,
over 90% of government revenues, and almost all the
country exports except for very few other products.

6. Thus, building a strong SMEs environment will
provide Libya with a more diversified economy,
supporting both oil and non-oil industries.
1- In order to achieve our goal, we need to work
hard in changing the mind set :
- - work culture.
- - Work environment.
- - Dealing with grants and loans.
-

7. 2- Review and update all legislative that effect the
SMES program directly or indirectly.
3- Find a way to deal with the an informal
economy ‘shadow economy”.