The Libyan Investment
Authority (LIA) is a government entity headquartered in
Tripoli, Libya. It was established on August 28, 2006, by
Decree 208 of the General People's Committee of Libya(GPCO)
with estimated capital of $40 billion.
LIA is a holding
company that oversees and manages government investment
funds in various areas including agriculture, real estate,
infrastructure, oil and gas and in shares and bonds. The
Libyan Investment Authority is considered to be a sovereign
wealth fund.
Although ultimately overseen by the prime minister, the
LIA’s management includes some of Libya’s most established
banking personalities.
The LIA was established in August 2006 to manage Libya’s
vast and mounting oil revenue surplus. The LIA now counts
the assets of the Libyan Foreign Investment Company (LAFICO),
established in 1982, and Oilinvest, founded in 1988, in its
portfolio. Libya has also restructured some of these assets,
notably the sale of a 65% stake in Oilinvest (marketed under
the Tamoil brand) to private equity fund Colony Capital in
May 2007. Colony paid €4 billion for control of Tamoil’s
three refineries and 3,000 petrol stations in Europe. The
LIA now controls an estimated $70 billion infixed assets and
reserves.
Economic and Social Development Fund
The LIA also manages the Economic and Social Development
Fund (ESDF). Established in February 2006, the ESDF manages
substantial assets in Libya across a number of sectors to
benefit Libya’s poor. The LIA’s share in BP’s PSA provides a
direct conduit via which oil wealth can be recycled.
However, some Libya experts believe that the presence of two
state-owned companies in BP’s deal reflects divisions and
tensions at the executive level in Libya, particularly over
who controls the oil wealth.
Libyan-Qatari Fund
During August 2007, LIA agreed to establish a
Libyan-Qatari joint investment fund for $2 billion equally
with the Qatar Investment Corporation (QIC). Also, the
General People's Congress Secretary signed two agreements in
Doha on July 2007 for establishment of a joint investment
fund between QIC and LIA as well as establishment of the
Libyan-Qatari Bank between QIC and the Central Bank of
Libya. Also an agreement was signed concerning establishment
of joint company for real estate development between Al-Diar
real estate investment company (Qatar) and the Libyan Arab
Foreign Investment Company.
Investment in Fortis
In July, 2008, LIA bought a share in the Dutch-Belgian
bank of Fortis, which needed additional funds to maintain
solvability. LIA would not confirm the investment, since
they are not required by Dutch or Belgian law to do so.
However, later that week, the Dutch Minister of
Finance Wouter Bos admitted that the situation 'had his
attention, as well as that of the Dutch Central Bank',
considering previous Libyan involvement in international
terrorism.
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