Libya secures $2.7 billion deal to supercharge Misurata free zone

Libya has secured a landmark strategic partnership with international firms to expand and develop the Misurata Free Zone, attracting an estimated $2.7 billion in foreign investment and aiming to transform the port city into a major regional logistics hub.

Prime Minister Abdulhamid Dbeibah announced the agreements on platform X, describing the project as one of the largest maritime infrastructure initiatives in Libya’s history.

The deal involves companies from Qatar, Italy and Switzerland, notably including Mediterranean Shipping Company (MSC) — the world’s largest shipping firm — through its subsidiary Terminal Investment Limited, alongside the Qatari firm Al Maha Capital Partners.

Major boost for capacity and economy

The expansion is set to increase the port terminal’s handling capacity to 4 million containers annually, significantly enhancing Libya’s standing among Mediterranean ports.

Dbeibah said the project would generate around $500 million in annual operating revenues. It is also expected to create 8,400 direct jobs and approximately 60,000 indirect roles, offering vital employment opportunities in a nation still recovering from prolonged instability.

This initiative reflects the government’s push to attract productive external financing, modernise infrastructure and convert state assets into sources of sustainable returns.

Libya’s economy remains heavily reliant on oil, which accounts for more than 95 percent of output and revenues. Diversification efforts have long been challenged by political divisions.

Strategic importance amid instability

Misurata, a bustling port city located about 200 kilometres east of Tripoli, serves as Libya’s primary commercial gateway. The Misurata Free Zone, established in 2000 as the country’s first such area, already handles roughly 60 percent of non-oil trade.

The zone offers tax exemptions, streamlined customs and investor-friendly conditions, making it attractive for logistics, trade and industrial growth.

The signing ceremony drew high-level attendance, including Italy’s Foreign Minister Antonio Tajani, underscoring diplomatic support. The Qatari-Italian-Swiss consortium prevailed over competing bids from Turkey, the United Arab Emirates and France, thanks to its promise of substantial investment and operational expertise.

Path to recovery and diversification

Libya has faced turmoil since the 2011 NATO-backed uprising that ousted Muammar Gaddafi, leading to a 2014 split between rival eastern and western administrations.

Despite ongoing challenges, analysts view the Misurata project as a critical step toward economic stabilisation and reintegration into global trade. By improving access to African markets and supporting regional commerce, the expanded port could become a gateway for broader diversification — spanning logistics, trade and potentially renewable energy sectors.

For a country with vast reconstruction needs and exposure to oil price volatility, Sunday’s agreement represents a rare positive development. If sustained amid fragile stability, it could signal a gradual shift from oil dependence toward a more resilient, trade-oriented economy.