The Legal Framework for Partnership Contracts Between Local and Foreign Investors in Libya: An Analytical Reading of Decision No. 507 of 2025

Abstract

This research explores the practical challenges facing the implementation of Decision No. 507 of 2025, which regulates partnership contracts between local and foreign investors in Libya. Using both analytical and applied approaches, the study begins by outlining the theoretical framework of partnership contracts, then analyzes Decision 507 in terms of its objectives, provisions, and scope. It further examines post-decision challenges through real-life case studies in infrastructure, ports, and water projects.

The study concludes that while Decision 507 marks a significant legislative step, its effectiveness remains limited without broader institutional and legal activation. This includes issuing detailed executive regulations, expanding the scope to cover private partnerships, establishing an independent supervisory body, and activating commercial arbitration mechanisms. The research also emphasizes the need to foster a participatory legal culture that transforms legal texts into effective practices, thereby enhancing investment and contractual trust.