Vol. 4, Issue 4, Part F (2018)

Abstract
The Libyan economy is highly dependent on income from the extraction and sale of diminishing natural resources, instead of generating products and services by investing capital and innovating services. For a better understanding of the Libyan, this paper is a review of some macroeconomic factors, related to foreign direct investment since application of the economic opening-up policies, that began immediately after the suspension of international sanctions in 1999 which had hampered the growth of the economy. Also this paper attempts to shed light on the financial development and institutional quality and their reforms as investment climate factors which may have role contributing to a drastic change of FDI in last nineties. Libya government appears and intends to induce FDI by only reforms a part of economy while the rest of economy remains inadequate. Therefore, reforming action should spread to all economic and non-economic sectors in Libya.