Home Capital Raising & Corporate Finance Gulf Investors Look to Libya and Algeria
Author: Chloe Domat | Photos: Shutterstock
Energy market disruptions and regional uncertainty are pushing GCC countries to boost North Africa investments.
This article appears in the October issue of Global Finance Magazine.
In July, Qatar’s UCC Holding signed a $1 billion deal with Libya’s National Oil Corp. and the Libyan Investment Authority to increase output at the Ghadames Basin from 33,000 to 80,000 barrels a day.
A few weeks earlier, Oman’s OQEP signed a similar contract to explore investment opportunities in Libya, “so our production will not rely only on exports from the Strait [of Hormuz],” OQEP Board Chairman Ashraf Al Mamari told Arabian Gulf Business Insight in July. That same month, Libyan Prime Minister Abdul Hamid Dbeibah visited the United Arab Emirates and Qatar to encourage new partnerships.
Disruptions in energy markets at home are pushing Gulf countries to scale overseas investments and increase involvement in riskier destinations. With its large oil reserves , Libya is an attractive opportunity; but for years, it has been a headache for foreign investors. After Muammar Gaddafi’s fall in 2011, the country split between rival governments and became a playground for militias. Yet, despite instability, Gulf states—led by the UAE, and to a lesser extent Qatar—developed relationships with both capitals: Tripoli and Benghazi.
“Gulf states have been navigating this landscape for some time,” said Mohamed Dorda, head of business intelligence at Libya Desk, a consulting firm that advises businesses looking to enter Libya. “It’s really a matter of, first, having a foot in the door; and then, knowing where to put your feet. In Libya, they’ve been investing in the necessary political capital for quite some time now.”
Today, the situation is showing signs of improvement. Both sides have taken steps toward greater stability, including the reunification of the central bank in 2023 and the approval of a common state budget in April of this year. Libyan authorities are now looking to reopen the energy sector to foreign investors. In February, the country resumed licensing for the first time since 2007, attracting oil majors like Italy’s Eni SpA, France’s TotalEnergies SE, Spain’s Repsol SA, and U.S.-based Chevron Corp.
The renewed interest extends beyond Libya. In recent months, the U.S. administration has stepped up engagement with North Africa, with Middle East adviser Massad Boulos visiting several countries. European nations, including Turkey, as well as China, are also moving to secure market shares.
“North Africa is becoming increasingly important in global trade because of its proximity to Europe and its capacity to help fill supply gaps created by the wars in Ukraine and the Middle East,” Dorda said. “People see that Libya and Algeria are among the strongest candidates to help meet global energy needs, and that creates opportunities.”
Algeria has drawn around $9 billion in Gulf-backed projects over the past 18 months, led by Saudi Arabia’s Midad Energy’s $5.4 billion oil and gas deal in October 2025 and by Qatar’s $3.5 billion Baladna dairy venture, now in its second phase.
Algerian state-owned hydrocarbon company Sonatrach plans to increase production and drill 1,450 wells by 2030 , but it needs foreign know-how and capital to modernize infrastructure. In April, Algiers opened a new licensing round for seven oil and gas blocks. Bid…