Benghazi, December 29, 2025 – Economic experts believe that diversifying income sources in Libya cannot be achieved through taxes and local levies, but rather by expanding the production base and boosting exports, given the near-total reliance on oil as the primary source of foreign currency.
It was explained that the concept of diversification is often misunderstood, with confusion between diversifying public financing sources and diversifying real income, which has led to reinforcing structural imbalances instead of addressing them. Current policies focus on redistributing local revenues in Libyan dinars to finance massive public expenditures exceeding 220 billion dinars, without contributing to creating new national income or reducing dependence on oil.
It was pointed out that tax collection does not create income; real income is linked to productive economic activities capable of competing in foreign markets. The importance of mining and renewable energy, especially solar power, was emphasized as promising fields for diversifying foreign currency sources in the medium and long term, provided a suitable legislative and institutional framework is in place.
It was clarified that rentier economies only emerge from their crises by expanding the production base and enhancing export capacity. Focusing on diversifying revenues in Libyan dinars remains merely a partial response to the financing crisis and does not address the deep structural imbalance.
Some paths for real diversification were highlighted, such as manufacturing industries linked to the oil sector like petrochemicals, fertilizers, and high-value derivatives, alongside export-oriented agriculture that provides food security, job opportunities, and opens foreign markets. Additionally, exportable services like transport, logistics, ports, and maritime and air services were mentioned, which could support the balance of payments if properly regulated.
The statement concluded with a warning that any strategy not based on diversifying foreign currency sources and expanding the production base will remain a superficial treatment of a financial crisis. It was stressed that achieving real diversification requires clear political will, coherent economic policies, and a state capable of directing resources towards production rather than consumption.
