For many of the world’s companies, the best investment opportunities aren’t always located within their own domestic borders.
Foreign direct investment (FDI) is a measure of how much business capital is flowing in and out of countries.
In 2017, total FDI was $1.43 trillion globally, and the current map from HowMuch.net breaks down where this money went by country. The data came from a recent report by the United Nations Conference on Trade and Development.
Libya’s FDI outflow amounted to $110 million, but there is no available data on the value of FDI inflow in Libya.
Most money flows out of wealthier countries, and it flows into both developed and developing nations.
FDI is often considered a win-win that brings new capital and jobs to developing nations, while simultaneously creating opportunities for corporations and investors.
At the top of the list were the United States ($275.4 billion) as well as China and Hong Kong ($240.6 billion), which was not surprising to see.
An earlier report by a Swiss economic center revealed that Libya ranks fourth in terms of net wealth for every citizen, recording more than $61,000.
Libya was also ranked 152nd out of 161 countries in the world’s top investment destinations for 2019, according to the US-based Forbes magazine report. Last year, Libya ranked 149th in this world index, with debt ratio dropped to 5% from 7% .
The magazine said the gross domestic products (GDP) in Libya in 2018 amounted to 64%, while inflation rose to more than 28% and the unemployment to 30%.
The index measures state performance according to 15 variables including property rights, taxes, technology, corruption, protecting investors, manpower, infrastructure, and others.
On January 22, the Audit Bureau disclosed in a meeting with the Libyan Investment Authority (LIA) plans to form a higher committee in order to review and evaluate policies and strategies for Libyan FDI outflow.
During the meeting, both sides agreed to assign external auditors follow up the financial statements and investment decisions, according to the Audit Bureau’s information office.
The Audit Bureau also recommended that a strategic vision should be prepared by the LIA in order to raise the efficiency and effectiveness of Libyan investments abroad.
