A Miniscule Exploration of the Libyan Stock Market

Abstract

The formation of the Libyan Stock Market (LSM) has been greatly affected by instability in the country. The stock market has been active, inactive, active and inactive since its inception in 2006. On the other end, there has been a growing concern and existence of constant pressure to activate the stock market for the benefit of the economy. The factional disagreements and a weak security environment that persist pose heavy challenges for developing and re-activating the stock market. The economic outlook for Libya remains uncertain. It remains difficult to forecast economic outcomes with any degree of confidence because of high uncertainty linked to political and security developments. The times when the stock market was active, significant contribution was brought to the economy, and such has been confirmed by many stakeholders. If re-activated the LSM is expected to play vital role in capital supply for investment, which in turn drive economic development in Libya. For effective contribution, LSM should be established on strong and stable foundations.