Libya wealth fund grows assets despite U.N. sanctions

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Posted – 11th May 2021

Libyan Investment Authority, Tripoli, recorded a 2% increase in assets over the seven years to Dec. 31, 2019, to $68.4 billion, despite United Nations sanctions on Africa’s largest sovereign wealth fund.

The latest fund valuation, completed by Deloitte, compared with a $67 billion valuation in 2012, a news release said.

The increase was despite “the significant negative impact of missed opportunities” due to the sanctions, which have been in place since 2011, the release said.

As of Dec. 31, 2019, the fund’s biggest holding was in cash at 48.9%, followed by “investment portfolios” — equities, fixed income and alternatives — at 29.4%, subsidiaries and real estate at 16.7% and other holdings including loans and receivables at 5%.

Its geographical exposure was 37% to Europe, 33% to North America, 23% to Africa, 6% to Asia and 1% to South America.

The LIA will continue to work with experts to identify ways of preventing missed opportunities caused by the asset freeze but also growing assets under the U.N. sanctions.

“The LIA will work with the support of the Libyan government to make proposals to the U.N. Security Council’s Sanctions Committee for amendments to the current regime that serve the intended purpose of the LIA’s assets: to protect and preserve, and not diminish,” the release said. “The LIA does not propose for sanctions to be removed, or for its assets to be unfrozen, and will continue to operate within the parameters of the U.N. Sanctions regime.”

PENSIONS AND INVESTMENTS – Sophie Baker

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