Decision No. 326 of 2022 on Empowering Municipalities in Local Competencies

The Council of Ministers transfers authority over housing, reconstruction, transport, economy, trade, and planning from central government offices to municipal governments. Assets, projects, employees, and budgetary allocations in these sectors are to be transferred to municipalities, with the Ministry of Local Government overseeing the transfer mechanism.

This decision significantly decentralizes permitting, licensing, and regulatory oversight in key commercial sectors. Foreign investors will now engage with municipal authorities rather than central ministries for housing projects, transport infrastructure, trade licenses, and economic development initiatives. This introduces jurisdictional variability—regulatory capacity, interpretation, and efficiency will vary considerably across Libya's 100+ municipalities. Due diligence on specific municipal governance quality becomes critical for site selection and project structuring.