According to legal practitiners, foreign investment in Libya is permitted either via the Libyan Investment Law No. 9 of 2010 and its implementing regulation (Decision No. 499/2010), or the Commercial Law No. 23 of 2010 regarding economic activity and the relevant implementing regulations. Under the Investment Law (No. 9/2010), foreign investors are allowed to constitute wholly-owned specific investment vehicles in Libya in order to carry out investing operations in specified areas of business (industry, heath care, tourism, services, and agriculture, with the exception of oil and gas business) provided a minimum capital of LYD 5 million is invested, or LYD 2 million in case the company is 50% or more owned by Libyan Nationals, and subject to approval by the relevant authority.
Otherwise, via the Commercial Law (No. 23/2010), foreign investment is only permitted, subject to ministerial approval, through joint-ventures with Libyan investors with foreign shareholding limited to up to 49% (exceptionally with Ministerial permission this may be raised to up to 60%) and through branches in specified sectors. For the purposes of the OECD FDIRRI, it is considered that the above-cited regulatory framework: 
1) allows the establishment of wholly foreign-owned special purpose entities subject to discriminatory minimum capital requirements and government approval in all sectors covered by the OECD FDIRRI, except in Oil & Gas upstram activities and in those sectors specifically reserved to Libyan nationals/enterprises as per Decree 207/2012;
2) allows the establishment of a local branch in the specified sectors (incl. Oil&Gas) subject to discriminatory minimum capital requirements and government approval;
3) precludes majority foreign investment in local companies outside the Investment Law route in all openned sectors, requiring the establishment of joint-venture with minority foreign shareholding subject to discriminatory minimum capital requirements and government approval (assuming this is most relevant for foreign acquisitions; greenfield investments would be carried out via the Investment Law).
On October 13, 2022, Libya's Ministry of Economy and Commerce introduced Decree 944/2022 on the Participation of Foreigners, Branches and Representative Offices of Foreign Companies in Libya. This decree increases the maximum foreign ownership in Libyan companies to 75%, with the potential to reach 89% with Ministry approval. Previously, foreign ownership was restricted to 49%.
"Article 1 -The following expressions mean the following: [...]
5. Branch:the branch of a foreign company in Libya.
6. The Parent Company:a foreign company whose headquartersis outside Libya and has the will to establish an entity in Libya. 
7. Joint venture: a national company jointly owned bya foreign person, whether a natural or legal entity, with a national person, whether legal or natural, according to the ownership ratios stipulated in these regulations.
[...]
Chapter Three - Joint Ventures [...]
Article 18 - Property Distribution
Foreigners' contribution to the joint venture for its duration may not exceed 75% seventy-five per cent. However, this ownership may extend to 89% eighty-nine percent by a decision from the Minister after providing the reasons in the application submitted to the Minister.
Article 19 - Conversion into a Joint Venture 
The national company must be converted into a joint venture under the following conditions: 1. When the National Company sells some of its shares to a foreign natural or legal person after obtaining permission from the Minister, taking into account the provisions of the previous article. 2. When shares or stocks in a national company are transferred by inheritance to a foreign natural person, this transfer must occur within six months from the date of the decedent’s death, taking into account the provisions of the previous article. In all cases, the participation percentages stipulated in Article 18 of these regulations must not be exceeded.
[...]
Chapter Four - Foreign Affiliates 
Article 20 - Incorporation
For foreign companies, after obtaining permission from the Minister to establish a branch in Libya, provided that the parent company is not a shareholder in a joint venture operating in the same field or activity; the branch's working period is from two to five years, subject to renewal, and the branch must request an extension of the permission for the period necessary to complete the work contracted.  The branch may also convert into a joint venture after meeting the requirements for establishing a joint venture. 
Article 21 Allowed Branch Areas It is authorized to establish a branch of a foreign company in one of the fields listed below. The branch may combine only two of the specified fields after the approval of the Minister, provided that the payment is made.
[...]
Article 25 Branch Prohibitions 
- The branch may not buy shares of national or foreign companies operating in Libya. 
- Working in areas and activities that are not in line with the parent company’s activities and purposes. 
- Working outside the scope of the fields authorized for the branch mentioned in Article 21.
Article 46 
The Minister of Economy’s Decree No. 207 of 2012 on Foreign Participation in Companies, Branches and Offices that Represent Foreign Companies in Libya and its amendments are repealed. [...]." (Decree No. 944 on the Foreigners’ Participation and Foreign Companies’ Branches and Representative Offices in Libya, 13 October 2022 [Translation provided by Libya's Ministry of Economy])
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"Section One - Joint-Venture Companies
Article 1
Subject to the unity of object and specialization, formation of joint-venture companies shall be between the Libyan national and body corporate persons and the foreign national and body corporate persons according to their specialties as registered with the official departments in the country of abode of their main domicile, after obtaining permission from the Minister of Economy, provided the joint-venture shall not be a holding company.
The chairman of board of directors of the joint-venture (joint-sock) company or the manager of joint-venture (limited liability) company should be of Libyan nationality.
Article 2
The joint-venture companies shall take the legal form and status of a joint-stock company under the provisions of commercial activity law No. (23) of the year 2010 provided that its paid up capital upon incorporation shall not be less than one million dinars or three tenths (3/10) of the cash capital subscribed, whichever is the greater.
Such forms of companies may carry on economic activities in all fields in Libya under the effective legislations except the fields specified under article (6) hereof.
The joint-venture company may also take the form of limited liability company formed by natural body persons (Libyans and foreigners) and the capital in such case shall not be less than fifty thousand Libyan dinars in the fields stated in the List appended with this decision.
Article 3
The participation of foreigners in the capital of the joint-venture company, throughout its existence, shall not exceed (49%) forty-nine percent.
However, for certain considerations concerning the nature of activity, its location, technical or technological requirements and under justifiable decision from the Minister of Economy, the foreigner's participation may exceed the portion stipulated but by no means shall surpass (60%) sixty percent.
[...]
Article 6
Establishment of joint companies to undertake the activities in the following items is restricted; and these activities to be performed by Libyans only:
1. Retail and wholesale trade
2. Importation
3. Supplying services
4. All types and fields of commercial agencies
5. Road transport services
6. Inspection activity of all imported and exported commodities and goods
7. Activity of stevedoring, loading and discharging in airports
8. Accountancy and auditing duties as well as financial, legal and economical consultancies
9. Crushing of stones (Crushers)
10. To bring ordinary and trained laborers as well as medium and high cadres according the conditions and controls which are set by ministry of labour and habitation
11. Contracting and civil works including activity of building and construction in respect of contracts less than 30 million dinars
12. Any other fields which are restricted to Libyans according the effective regulations
[...]
Section Two - Branches of Foreign Companies
Article (7)
Foreign companies, after taking out permission from the Minister of Economy, shall have the right to open branches thereof in the fields specified under article (9) of this decision, provided they shall not be participating in a joint-venture company operating in the same field or activity. The duration of the branch shall be five (5) years subject to renewal.
Article (8)
Application for obtaining permission, provided for in the preceding article, should be appended with the following documents:
1) Decision of Company's Board of Directors, approving the opening a branch for the Company in Libya that includes the following:
a) Define the activity of the Branch provided it should be falling within the activities permitted for foreign company branches to carry on in Libya.
b) Amount allocated for opening and running the branch, should not be less than (LYD 250,000) two hundred and fifty thousand Libyan dinars.
c) Nominate the branch's manager and his deputy, provided either of them should be Libyan.[...]
Article (9)
Fields and activities permitted for foreign companies to open branches and practice them in Libya are specified as follows:
I. Contracting and Civil Works
1- Building and construction./ 2- Construction of roads, bridges, viaducts and dams./ 3- Naval structures such as marine quays, breakwaters, ship building and maintenance docks and dredging in ports./ 4- Construction of airports and airfields./ 5- Construction of railways and their stations./6- Construction of gas conveyance and distribution networks using carbonsteel and polyethylene pipes of all types and sizes./ 7- Installation and maintenance of household gas networks and calibration of gas meters of all types.
As a condition for carrying on the fields referred to in the items from (1 to 5), the contract value shall not be less than (LYD 50,000,000) fifty million Libyan dinars.
II. Electricity Works
1- Construction and maintenance of power stations including those depending on renewable energies as well as transformer sub-stations of all types./ 2- Construction and maintenance of cable networks for transmission of electric power./ 3- Construction of desalination plants depending on thermal methods, membranes and renewable energies.
III. Oil Activities
1- Oil exploration including subsurface strata survey by the various geological, geophysical and geochemical means … etc./ 2- Data processing and analysis and conducting geological and reservoir studies./ 3- Oil wells drilling and workover, installation and maintenance of drilling rigs / equipment, submersible and submerging pumps./ 4- Cementation, mud and drilling fluid services./ 5- Construction tanks, terminals, oil and gas conveyance pipelines and /pumping stations, their maintenance and cathodic protection thereof as necessary./ 6- Construction of floating marine platforms for oil and gas prospecting./ 7- Installation and maintenance of oil refineries and petrochemical plants./ 8- Rendering maritime transport services for materials, equipment and machinery for drilling operation in offshore areas./ 9- Mines clearing from oil fields and other sites.
IV. Communications
1- Installation and maintenance of telecommunication systems and stations./ 2- Construction of stations, towers, antennas for telecommunication and aeronautic stations and maintenance thereof.
V. Industry
1- Electrical, mechanical, electro-mechanical and technological works necessary for installation of factory machines and maintenance thereof./ 2- Mining, exploration and extraction of metals, excluding oil materials./ 3- Construction and maintenance of blast furnaces necessary for the different plants./ 4- Installation and maintenance of safety and industrial security systems.
VI. Surveying & Planning
1- Surveying and mapping work by various means and for different purposes./ 2- Providing engineering consultancy for city planning and urban areas./ 3- Preparation of studies and design for engineering projects.
VII. Environment Protection
1- Construction of stations for environmental sanitation./ 2- Treatment, processing and recycling of wastes./ 3- Environmental pollution remedy of, installation and maintenance of relevant equipment./ 4- Treatment of seawater encroachment with ground water and maintenance of water conveyance and wastewater systems and boosting stations.
VIII. Computer
1- Installation of automatic control systems and development of the relevant programs / software and maintenance thereof.
IX. Consultancy, Technical Studies and Training
1- Training and preparation of studies in the field of information technology, telecommunications and control systems, provision of the necessary consultancy in this respect and construction supervision./ 2- Training, capacity building and skills formation to answer the needs of labour market and without conflict with law No. (18) of the year 2010 regarding education./ 3- Preparation of technical studies and provision of engineering designs necessary of the execution of major industrial and constructional projects./ 4- Construction supervision of engineering projects.
X. Health
1. Installation, maintenance and calibration of medical machines and equipment./ 2. Management of hospitals and medical units.
XI. Air Transport
- According to the rules and conditions specified under the law.
Article (10)
The decision approving opening of a branch shall not involve combination between more than one of the fields and activities provided for under article (9) hereof. A separate permission shall be given for each field.
Article (11)
All national and foreign bodies operating in Libya are barred from engaging with foreign companies to carry out works inside Libya unless they have duly obtained the permission stipulated under article (7) hereof.
[...]
List attached to the Decision of Minister of Economy No. (207) of the year 2012 quoting the Activities permitted for Foreign Companies to practice through Limited Liability Companies in Participation with Foreign Natural Persons
- Design, installation and maintenance of electronic systems and development of software.
- Manufacture and maintenance of communication equipment, audio and video sets and appliances.
- Establishment and running of medical laboratories.
- Manufacture of spare parts.
- Manufacture of medical equipment and requirements.
- Food industry, vegetables and fruits conservation.
- Wood industry, joinery and furniture.
- Paper industry, Fishery, fish conservation and canning.
- Manufacture of building materials and paints.
- Manufacture of cleaning materials and insecticides.
- Clothes and footwear industry.
- Manufacture of pipes of different sizes and for different uses.
- Industries feeding mechanical and electrical industries … etc.
- Any other activities needed by development requirements permitted by the Minister in coordination with the ministries concerned.[...]" (Decision of the Minister of Economy No. 207 of the year 2012 in respect of foreigners participation in foreign companies, branches and representative offices of foreign companies in Libya)
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"Article 2 - Area covered by this Law This law applies to national, foreign, or joint venture capital jointly invested in the areas targeted by this Law.
[...]
Article 8 - Areas of Investment Investment shall be in all production and service areas. The Executive Regulation shall determine the areas of production and services, which are not covered by this Law, or which are restricted to Libyans only, or by way of partnership between Libyans and foreigners ; additionally , to determine the percentage of each side’s contribution in the project, the legal form of the project and the minimum capital that conforms with the nature of the activity.
[...]
Article 27 - Exceptions within the scope of this Law The provision of this Law shall not apply on national and foreign capitals invested or will be invested in oil and gas projects.
Article 28 - Validity of legislation organizing the economic activity The provisions of legislation organizing the economic activity shall be applicable on those who are subject to the provisions of this Law, this is with regard to matters that are not covered herewith. [...]" (Law No. 9 of 2010 on Promoting Investment)
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"Article (4) - Investment fields
It is allowed to invest capital stated in article (2) of these rules in all productive and service fields with the exception of the fields for exploration, extraction and marketing of oil and gas.
The decision for specifying the fields which are limited for Libyans only or participation with foreigners and percentage of each side in the investment project will be issued by GPC on presentation of proposal from the concerned secretary.
Article (5) - Capital of the investment project
The minimum limit of foreign capital or in case of participation with national capital in the invest project is five million dinars.
The minimum limit of the national capital in the investment project will be two million dinars.
Any project which achieves one of the considerations stated in article (15) of the law by decision from the concerned secretary on presentation from the administration committee.
[...]
Article (8) - The legal forms which exercise the investment
The activity of an investment project is exercised according provisions of these rules and effective legislations through all legal forms stipulated in the commercial law; the investment project is registered in the investment register with the authority according the procedures and regulations stated in these rules with the exception of individual activity, tsharokiat and joint stock companies. [...]" (GPC decision No. 499 for 2010 for issuance of the executive rules of Law No. 9 for 2010 concerning encouragement of investment)
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[Not reproduced here: Ministry of Justice, Legal Opinion No. 11-4-2 on "The right of foreigners to own the entire investment project in the form of a company or branch of a foreign company", 23 January 2023.[google translation]]
Decree No. 944 on the Foreigners’ Participation and Foreign Companies’ Branches and Representative Offices in Libya, 13 October 2022
Decision of the Minister of Economy No. 207 of the year 2012 in respect of foreigners participation in foreign companies, branches and representative offices of foreign companies in Libya
Law No. 9 of 2010 on Promoting Investment
GPC decision No. 499 for 2010 for issuance of the executive rules of Law No. 9 for 2010 concerning encouragement of investment
Ministry of Justice, Legal Opinion No. 11-4-2 on "The right of foreigners to own the entire investment project in the form of a company or branch of a foreign company", 23 January 2023.
[<a href="https://euroly.org/wp-content/uploads/2022/11/Decree-No.-944-on-the-Foreigners-Participation-and-Foreign-Companies-Branches-and-Representative-Offices-in-Libya.pdf">Decree</a>],[<a href="https://www.chambre-de-commerce-franco-libyenne.org/uploads/D%C3%A9cision%20207%20(traduction%20anglaise).pdf">Decision</a>],[<a href="https://euroly.org/wp-content/uploads/2022/06/Law-No.-9-2010-Euro-Libyan-Trade-Center.pdf">Law</a>],[<a href="https://libyaninvestment.com/gpc-decision-no-499-for-2010/">Decision</a>],[<a href="https://lawsociety.ly/fatwas/%d8%a3%d8%ad%d9%82%d9%8a%d8%a9-%d8%a7%d9%84%d8%a3%d8%ac%d8%a7%d9%86%d8%a8-%d8%aa%d9%85%d9%84%d9%83-%d8%a7%d9%84%d9%85%d8%b4%d8%b1%d9%88%d8%b9-%d8%a7%d9%84%d8%a7%d8%b3%d8%aa%d8%ab%d9%85%d8%a7%d8%b1/">Opinion</a>],[<a href="https://www.lexology.com/library/detail.aspx?g=20374709-5734-4d8e-a159-90af5a3394b2">Other</a>],[<a href="https://itkan.ly/the-provisions-of-law-no-9-of-2010-on-promoting-investment/#:~:text=9%20of%202010%20is%20a,stretched%20beyond%20what%20it%20bears.">Other</a>],[<a href="https://libyaherald.com/2023/02/recent-legal-opinion-on-foreign-investment-in-libya-does-not-impose-blanket-ban-in-oil-sector-tumi-law-firm/">Other</a>]