Riyadh turns to investment as it seeks bigger role in Libya

TRIPOLI – Saudi Arabia is looking to deepen economic ties with Libya and encourage major Saudi companies to enter the Libyan market, giving a fresh investment focus to a relationship long overshadowed by Libya’s political and military divisions.

Prime Minister Abdulhamid Dbeibah discussed expanding bilateral economic cooperation with Saudi Chargé d’Affaires Abdullah bin Dakheel Allah Al-Sulami in Tripoli on Wednesday.

Dbeibah called for stronger economic ties and better conditions for Saudi companies seeking opportunities in Libya, according to the Libyan government’s media office.

Sulami said several major Saudi companies were interested in entering the market. The two sides are working on meetings between Saudi and Libyan businesses and relevant authorities to explore investment opportunities and potential partnerships.

The discussions come as Libya seeks to attract foreign capital for infrastructure and development after years of conflict, political division and institutional fragmentation.

Libya has substantial investment needs beyond its oil and gas industry, including roads, airports, housing, healthcare, telecommunications, electricity and renewable energy. Those needs could offer opportunities for Saudi companies seeking to expand abroad.

The talks also give Riyadh a way to build influence in Libya through commercial ties rather than direct involvement in the country’s political rivalries.

Libya remains divided between competing political and institutional centres, despite repeated international efforts to push the country towards elections and a unified government. The prolonged division has complicated economic policymaking and created uncertainty for foreign investors.

Saudi Arabia can potentially engage with both western and eastern Libyan actors while presenting its role primarily around investment and commercial cooperation.

That approach could give Riyadh broader access to Libya’s market at a time when the country is seeking to move towards greater political stability and economic reconstruction.

The Saudi interest also reflects a wider push by the kingdom to expand its economic footprint beyond its borders. Saudi companies have been pursuing opportunities in new markets as Riyadh seeks to diversify the kingdom’s economy and increase international investment.

For Libya, attracting major foreign companies would provide access to capital and expertise needed for large infrastructure projects. But investors are likely to require greater regulatory clarity, institutional coordination and security guarantees before committing significant long-term funds.

The two governments are therefore focusing first on creating direct links between companies and government agencies to identify viable projects and establish potential partnerships.

The proposed meetings are expected to bring Saudi companies together with Libyan counterparts and relevant authorities to assess opportunities across several sectors.

The economic push comes as Libya remains engaged in efforts to overcome its political divisions, with competing institutions and unresolved disputes over the rules and timing of national elections continuing to shape the country’s political environment.