A green narrow strip of land long about 2000 kilometres, packed between two seas, the Mediterranean and the boundless desert: from the satellite the Libyan Coast, historically object of conquer of many civilities of the Mare Nostrum – from Phoenicians to Greeks, from Romans to Byzantines, from Arabs to Ottomans – appears in this way. The LibyanCoast holds the majority of national population: 5 millions and a half inhabitants, on average young people, with a high standard of living and an educational level among the highest of Africa.

It can be said that Tripoli is Italian as far as Palermo is African: they are washed by the same sea, warmed by the same sun, they are lived by men and women that consider parental ties and friendship reasons more important than pre-estabilished rules.

The authentic reason of the preferential economic relationships between Libya and Italy is in part also due to this anthropologic, cultural and geographical closeness, as well as to the history that linked the two Countries.

In 2004 Italy confirmed itself once again the first supplier of the market covering the 25,8% of total importations: Italy sells to Libya first of all machineries and components, followed by furniture and agroindustrial products.

On the other part, Libya satisfies the 30% of our annual oil demand, contributing consequently to its favourable trade balance: an export for 6,2 billions Euros and an import from Italy for 1,5 billions.

These data underline by themselves the importance that this market has in our economy, confirmed by the permanent presence in Libya of more than 45 Italian enterprises, mostly linked to the oil sector, to infrastructures and also to others business sectors of convenience and industrial goods.

Our governmentas well as Italian main economic sectors are interested in the normalization of diplomatic relationships among Libya, UE and occidental community in general. On a part, this normalization implies the opening ofmarket, the start of a process of privatization that is fundamental for the easing of business relationships and the expansion ofcollaboration opportunities; on the other it also means the challenge with international and particularly American competition, which, thanks to recent agreements, will have free access to the market.

From a relationship system nearly of monopoly with State Enterprises, Italian enterprises will have to face foreigncompetitors and will interface with private local enterprises that by means of a series of government measures – as the creation of a special office for the “Property Transfer of enterprises and state economic unities” – which are expanding in all aspects of the local economic reality.

The unchanging reality is that of a big, rich and full of resources – not only underground resources, but also cultural and human – which has still a constant need of convenience and industrial goods, preferably bought from Italy and also, in particular, from Veneto, suggesting an historical tie and bond of trust that are still living and deep.

The more required sectors from a commercial point of view, considering mainly Veneto, are the sector of machineries and materials for building industry, agricultural machineries and machineries for the food transformation, sanitary fixtures and agroindustrial products. The recent increase of demand is explainable with a rise of houses and food products demand due to population increase (in the last 30 years it doubled as effect of high birth rate and migratory flow from African Countries), but also with the progressive opening of Libya to tourist international streams and the consequent need to improve the receptive and infrastructural capability.

Building plans in the touristic field are multiplying, not only near Tripoli, but all along the Coast, scattered with old Phoenician, Greek, Roman vestiges that are best represented in the archaeological sites of Leptis Magna and Sabratha.

The Libyan law nr 5 of 1997 “On the Promotion of Foreign Capitals Investment” boosts this trend: it promotes the use of foreign capitals in investment plans, admitting some important advantages, as transit duty and other tax exemption for machineries, equipments, spare parts and raw materials needed for the working; income tax-exemption for five years from the starting of production or activity, extendable for other three years, excise duty-exemption and relief from customs dutiesfor goods forexportation.

The investor will be authorized to re-export the capital invested (in case of expiration, winding-up of the project, total or partial sell of the project to another investor, the passing of a period not inferior to five years from the investment authorization), to transfer annually to foreign countries the net profit and the accrued interest.

In exchange for this, the law establishes that the investment project, to be allowable, must have the primary aim of producing goods for exportation or “to contribute to the rise of exported goods or, consequently, to avoid the need of importation goods”. Moreover, the investor must create employment for the Libyan workforce, providing to the training and the transference of know how and technical ability.

Foreign employees are admitted only in case of lack of local workers – for the qualified staff required – with the right to transfer in foreign countries a part of wages earned by means of the project.

Besides this one and other government measures orientated towards the country modernization, there is the announced future entering into the WTO and the success obtained with the zeroing of public debt that should induce SACE to diminishthe category of Country Risk, in which now Libya occupies the 7th place.

Considering this economic picture and the objective of giving a support to the development of international economic collaboration also through the diversification of regional presence in foreign markets, the Foreign Centre of the Veneto Chambers of Commerce promoted and coordinated the participation of a regional economic delegation to the International Fair of Tripoli, which took place in the fair-ground of the Libyan capital from the last 2nd to the 12th of April.

The initiative saw the fifth regional participation to the Fair, promoted at national level from the ICE, consequently representing a fair reality of well-established interest for the regional industrial tissue.

The Veneto presence to the event manifested itself through the direct participation of 10 enterprises, of which 4 of Treviso Province (Fage, Comer Engineering, Quadrifoglio Sistemi d’Arredo, Simec) – the largest regional group – with an expositoryspace of 183 square meters, the visit to the Fair of 4 enterprise delegates and a regional catalogue that reunited the catalogues of 46 Veneto enterprises, of which 46 of Treviso Province, belonging to the metal mechanic sector and to convenience and industrial goods sector.

All enterprises of Veneto demonstrated appreciation for the organization of the initiative (in spite of the obstacle of slowness of Libyan authorities in granting the entry visas), expressing satisfaction both for contacts obtained and for the connected prospects of collaboration: Libya by now is an undisputed protagonist into the political and economic scenario of the North Africa. If the path towards the opening and the diplomatic détente will not be stopped, Libya is doomed to acquire in a few years an economic leading role for all the Mediterranean and middle Eastern area.