Benghazi – In a move that transcends the boundaries of sports, the city of Benghazi is hosting a global football event featuring Spain’s Atlético Madrid and Italy’s Inter Milan. This match is seen not merely as an entertainment event, but as a powerful message and an indicator of Libya’s recovery and its desire to regain its standing on the international stage.
In this context, economist Dr. Moncef Al-Shalwi emphasizes that organizing the match is neither a luxury nor a “waste of time and money,” but rather a “strategic investment in Libya’s image and its economic future.” Al-Shalwi explained that “hosting international events of this scale only happens with a minimum level of security, logistical, and organizational stability, which represents a ‘signal of stability’ that investors read when assessing risks.”
Al-Shalwi explained that the average flow of foreign direct investment before 2011 was around $2.3 billion annually, with a political and security risk assessment of approximately 46/100. After 2011 (2012–2020), the average dropped to less than $800 million annually, and the risk indicator fell to about 35/100. During 2023–2024, a gradual improvement began, with oil production rising to 1.2–1.3 million barrels per day and the indicator improving to nearly 42/100. He believes that with regular international events, foreign investment could increase by 50–100% within three years, and the risk indicator could climb to 50/100, “which is a regionally acceptable level.”
According to Al-Shalwi, every point of improvement in the risk rating helps attract investment contracts worth hundreds of millions of dollars, as companies lower their “risk premium.” In the oil and gas sector, for example, investors currently place a risk margin of 25–30% on project costs in Libya compared to more stable countries. With an improved security and institutional image, this margin could drop to just 15%, saving billions of dollars over the lifetime of the investments.
Al-Shalwi believes that a single match of this magnitude stimulates the security, transport, hospitality, media, and technology sectors. It injects millions of dollars in direct spending into the local market, revitalizes tourism services, and builds a new international reputation that Libya is “capable of organizing, safe for investment, and ready to return.”
Al-Shalwi stresses that investors and investment funds do not rely solely on financial figures, but also on the country’s general image. “A successful international event redraws this image in the global media,” transitioning Libya from a “conflict zone” to a “possible business destination.”
Al-Shalwi summarized that Libya received nearly two billion dollars annually before 2011, and then investment fell by more than 70%. With the continued organization of successful international events, the risk classification can be lowered from “very high” to “moderately high,” foreign investment can be raised to $1.5–2 billion annually within three years, and expansion in the oil and energy sectors can be stimulated. He concluded by emphasizing that “every successful international event is an investment in confidence… and confidence is the most important currency in the modern economy.”