“The sky is the limit” for what can be achieved in terms of bilateral cooperation between Libya and Türkiye, Mohammed Ali Addarrat, chairman of the Libyan Foreign Bank, said.
His remarks came during an exclusive interview with Anadolu on the sidelines of the Libya Energy and Economy Summit (LEES) 2026 in Tripoli.
“The opportunities for success are tremendous, and we must strive to resolve whatever challenges that may present themselves,” Addarrat said, stressing that credibility and trust are essential to unlocking the full potential of bilateral cooperation.
He said once credibility and trust are established, “the sky is the limit for how much we can achieve within a proper framework of bilateral cooperation between Libya and Türkiye.”
Libya has been working to restore its financial system and international banking relations following years of political fragmentation and sanctions-related constraints, as it prepares for a broader reconstruction and investment phase.
The Libyan Foreign Bank, a state-owned institution, plays a central role in managing the country’s external financial relations, including trade finance and cross-border payments, and has been pursuing reforms to strengthen governance and transparency.
Türkiye remains one of Libya’s most active economic partners, with longstanding cooperation in energy, construction and infrastructure, while the Libya Energy and Economy Summit serves as a platform to promote investment and regional cooperation.
- 'No opportunities come without risk associated with it'
“A strong bilateral economic relationship between Libya and Türkiye has always been at the foundation of both of our countries’ economic success,” Addarrat said, underlining the importance of an efficient trade-finance structure to further strengthen economic ties.
He noted that the Libyan Foreign Bank has historically provided the primary framework for trade finance between the two countries, including letters of credit, letters of guarantee and other trade-finance instruments through its international banking network.
Stressing that addressing existing challenges is key to restoring and expanding these mechanisms, Addarrat said “no opportunities come without risk associated with it.”
“It is imperative upon us to be able to mitigate those risks. Currency fluctuation is an issue that faces a lot of countries, it is not something unique to our own situation. Therefore, we must look at some successful scenarios and build upon them to where we can address the concerns of the stakeholders on both sides,” he added.
- Energy key, but diversification essential
As Libya enters a reconstruction phase, Addarrat said investment opportunities span nearly all sectors, with the primary objective being to improve the quality of life for Libyans after decades of deprivation.
"We are in need of initiatives and projects that deliver an enhanced quality of life for all Libyans," he said. "There are many different industries that offer attractive opportunities. It is a matter of prioritization and the ability to integrate across different sectors and platforms."
While energy remains the cornerstone of Libya's economic transformation, Addarrat stressed that long-term success depends on "diversification."
"It is no doubt that the energy sector is the key industry that will fuel the transformation, but that can only be sustainable and transformational if those resources are used to launch several key lucrative opportunities in agriculture, healthcare, tourism, education, and value-added manufacturing and trade sectors on a regional level," he said.
- 'Hyper-transparent process'
Addressing Libya's efforts to restore confidence with international banks after years of fragmentation and sanctions-related challenges, Addarrat said credibility must be rebuilt through coordinated action by multiple stakeholders and strict adherence to international standards.
"Restoration of confidence and credibility requires a combination of things, and also requires joint efforts from different stakeholders," he said.
"One of the key priorities is ensuring that the legal framework of agreements and payment transactions are conducted within the guidelines and best practices that are enforced by local and international oversight institutions."
Addarrat emphasized that "a hyper-transparent process is key to reestablishing the level of governance and controls that are required," noting that this approach has been central to the Libyan Foreign Bank’s ongoing transformation.
"Will continue to be a focus in our efforts to play our role as the key financial gateway to Libya's economy," he added.
Addarrat said the Libyan Foreign Bank is uniquely positioned to serve as a bridge between foreign investors and Libya's local economy, as well as between Libyan institutions and international capital.
According to Addarrat, the financial services and commercial banking products needed to support successful foreign direct investment are already available within the bank's portfolio and its network of participations and international banking partners.
"In addition, we are able to provide financial solutions that would create a feasible framework for all stakeholders involved, ensuring that mutually beneficial initiatives can be conducted within a disciplined, structured process that provides a level of comfort to all stakeholders involved," he said.
By Sibel Morrow and Firdevs Yuksel in Tripoli
energy@aa.com.tr
Anadolu Agency
