Libya’s economy is based primarily on oil revenues; over 74% of its revenue comes from oil exports. The country has proven reserves of 29.5 billion barrels of oil and a production capacity of 1.4 million barrels per day. In spite of almost half a century of exploration, Libya's vast oil and gas reserves remain largely untapped.

Agriculture is the second largest sector next to oil and gas, but due to poor climatic conditions and infertile soil it has not yet achieved its full potential. Construction and manufacturing sectors like petrochemicals, iron, steel and aluminum account for about 20% of the GDP.

In November 2003, the Libyan government opened up its previously state-run economy by announcing privatization of major industries and scores of government-owned companies. The government decision seeking foreign investment in the oil and gas sector gained momentum with the state-owned National Oil Corporation’s proposal to have production-sharing agreements with prospective foreign bidders for some of its oil exploration blocks.

The government has also relaxed the foreign exchange control law and developed free zones in various locations throughout the country to attract foreign investments and technologies.
Today, Libya is one of the fastest growing economies in Africa.

The country’s real GDP growth rate was 3.2 percent last year while its purchasing power parity during the same period reached $35 billion. The country’s per capita income is potentially as high as any other advanced economy.