Despite witnessing a significant rebound in economic growth in 2021, Libya has been struggling to cope with a number of crises including the civil conflict, the Covid-19 pandemic and the global consequences of Russia’s invasion of Ukraine. Following the indefinite postponement of elections in December 2021, the political and security situation in Libya deteriorated further in 2022, deepening the stalemate and division in the country. Opposing administrations are the cause of fragility as Prime Minister Abdul Hamid Dbeibah’s authority has been challenged by Khalifa Haftar, a military commander in the country’s east backed by the UAE and Egypt, whose forces were engaged in a civil war which ended with a ceasefire in October 2020.
Political instability in Libya has slowed down the country’s economic recovery, with oil production down by 33% in comparison to figures from the start of 2022. This falls in conjunction with rising unemployment rates which reached 19% and affects the public sector. The legal market is still developing in Libya with local firms dominating the region however there has been an uptake in the adoption of international software. Firms regularly handle a range of international matters covering regulatory, commercial and compliance issues while also being frequently involved in construction and engineering projects for public utilities.