Libya’s New Financial Regulatory Agency’s aim to diversify its economic activity by strengthening its financial sector and encouraging investments may prove a success, as the creation of a new financial regulatory agency may restore investor confidence and increase liquidity on the Libyan Stock Market (LSM).
Libya’s New Financial Regulatory Agency History of the Libyan Stock Market
Created in 2006, the LSM has seen a relative amount of success.1 However, due to the revolution and other factors, the number of companies listed has declined over the years since its creation.2 Concerns have been raised about the illiquidity of the LSM, and investors’ interest in trading securities.
In December 2013, Libya’s Economic Minister Mustafa Abufanas announced the creation of a financial regulatory agency which would regulate Libya’s entire financial sector, excluding the banking industry which is governed by the Bank of Libya.
Dr. Mohamed Karbal 