How would you explain the current situation of the Libyan reform agenda and what are the priorities that you are currently targeting?
Trying to reform an economy is not an easy task, but we have been trying to do that for the past few months and I feel that so far the results are good. We have achieved a lot. In the last few years, we have been able to abolish the black market currency, and we have removed all the license and trade barriers. These two steps led to a decrease in prices, which consequently led to the improvement of the populations' standard of living. We are opening up to the private sector so that it may participate in the economic process, and the response has been good. We are privatising almost 360 different plants, factories and other entities. Some of them will be owned by those who are already employed there, others will be open for foreign investment and investment from the public sector. We have opened our doors for foreign investment and the reception has been good towards all sectors. In the Oil sector we have 138 blocks open for oil companies to bid on, which has generated a lot of interest. In general, the process is going well. The main objective is to improve the standard of living of the Libyan people but of course this cannot be achieved without some problems. Occasionally, we are faced with some resistance as we try to implement the new changes, which is normal. However, we are moving in the right direction.

You mentioned the achievements but you are also working on the implementation of the banking system and the revival of the private sector for foreign investment. How do you think these changes will impact the standard of living in the country?
By removing the unnecessary bureaucratic rules, you are cutting costs, whether it is in the trade sector or elsewhere; opening up to the private sector will improve and enhance competition and efficiency. All these factors will lead to a decrease in prices, thus the improvement of living standards. It has also created a lot of jobs, which is one of our main concerns because we recently started facing a rise in unemployment, which is very strange in an economy like the Libyan economy. We attract a lot of foreign workers; there are two million foreigners working in our economy, while Libyans are losing their jobs. This is a kind of anomaly that needs to be addressed, which is exactly what we are doing.

Is your background and experience in the Oil sector, in some way, lessons that you are trying to apply in the Libyan Reform Agenda?
Of course. I was associated with the Oil industry long before my work with OPEC. I was present during the establishment of the Libyan National Oil Company (NOC) and was part of its Board of Directors. This developed my ideas of change that I felt needed to be applied in the Oil industry in Libya. Among the first changes that were implemented was the process of open bidding. In the past, we were going into oil ventures by holding discussions with individual oil companies, which is far from transparency and far from achieving what is best for the country. We are now adopting the policy of open bidding; there will be basic conditions that everyone has to meet. There will also be other factors that will be taken into consideration, for example, if a certain company pledges to give extra bonuses or build an university etc. Firstly, the company has to be qualified to apply. Secondly, they have to meet certain conditions in general and then companies will be judges of what they can offer as a bonus. We are issuing a new petroleum law. Our old law was the best in the Middle East at the time it was issued, which was in 1955, but things have changed in time and we need a law that encompasses the Oil and Gas and the petro-chemicals industry, as well as the new realities of the market. Libya has been in the Oil business for nearly 50 years, and its progress has been rapid and impressive. Oil was discovered in 1959 and started production in 1961; in less than eight years we were producing 3 million barrels a day, a figure that decreased significantly because of the embargo that was imposed on the country and other technical problems, and lack of foreign investment etc. Now that things are moving ahead, oil companies are coming in and hopefully this will lead to an increase in our production.

Do you see the oil and gas sector as a solution to economic recovery, or do you feel that other sectors should be pushed forward to sustain the economy's development?
The Oil and Gas sector is currently the most important one because it is the cash product as they say. Developing this sector will lead to improvement that will spill over to the other sectors in our economy. Naturally we want to diversify because Oil is a non-renewable resource and we are developing other sectors that have a lot of potential. Libya has potential in agriculture and energy sectors. Additionally, there is the country's geographical setting; its proximity to Europe works as a gateway to Africa and as a centre for industries and trade between North, South, East, and West. That is one of the reasons why we are developing Misrata (coastal town, 200kms east of Tripoli) into a free port, which will serve as a place where trade can be enhanced between far-east Europe and Africa. Therefore, we are diversifying in an effort to be less dependant on Oil.

To what extent do you think the tourism sector will change the perception that people have of Libya?
Very few people know about Libya's history and the fact that there are ancient Roman cities that are well preserved. Developing tourism is very important, but we should also be very careful because we may not want this mass tourism that could spoil these historical sites. We would like to have selective tourism, perhaps on an educational level but of course leisure as well - we have places for that. We want to take it step by step. We have invited foreign investors to capitalize on this sector and in the future, tourism will be one of Libya's main sources of income, but this will take time; the infrastructure needs to be built; more hotels and locations to attract tourists.

With all the recent diplomatic progress between Libya and the international community, do you feel that you are on the right track to achieve the harmony that you are looking for with the West?
I believe that we are on the right track. We are establishing diplomatic ties and normalizing relations with different countries. Doing this will lead to more cooperation rather than conflict and misunderstanding with these countries. We are opening the way for transfer of technology. Our students will now have a chance to study abroad and get the proper training and education. Trade relations will be improving as well. All the recent political developments are a sign that we are normalizing relations with the international community and hopefully this will work for the benefit of all the parties involved; it is a win-win situation. We need the West and the West needs us for numerous reasons; geographically, strategically and of course also for our hydrocarbons resources. The ensuing relationship is mutually beneficial.

Would you say that this improvement in relations could be translated as a benefit for the Libyan economy?
Yes. This leads to an increase in trade. The embargo that was imposed on Libya prevented the country from importing high-tech materials that can develop the oil industry. Things like desalination machinery or other sophisticated equipment had to be smuggled or brought in through a third party. The quality was not always good, but now we can import such things freely, which will improve the industry.

Can you tell us about some of Libya's major success stories that have contributed to the country's self-sufficiency?
The Man-Made River Project would have to be one of them. Water was found in wells that were buried deep underground in the desert and the amount is estimated at astronomical figures. It was built because after careful consideration and analysis, we figured that in the long run, it would be more cost-effective to invest in this project than it would be to desalinate seawater.

What is your message to those who want to come and invest in Libya?
We can tell them that Libya has great potential, particularly due to its proximity to Europe. Some companies are thinking of generating electricity in Libya and exporting it to Europe due to the environmental limitations in the continent. The foreign investor has a lot of incentives to invest here, first and foremost is the tax cuts. Libya has a good relationship with Africa; it can be a centre for tourism, agriculture and all other industries. British businessmen should not only think of trade and quick business deals but should also consider long-term projects like agriculture and industrial types of work. They should also bear in mind that not all the barriers have been dissolved, they might face some bureaucracy sometimes; we are aware of this and we are trying to solve it one step at a time. Therefore, the first obstacle they meet should not discourage them; the board of foreign investment will be there to help whenever they encounter a problem.

How do you see Libya five years from now?
The whole world is changing and Libya is trying to change as well. I think that because it has great potential, Libya will be the kind of country where the standard of living will increase rapidly. There is a lot of room to expand in all the sectors of our economy; therefore we will be attracting a greater number of tourists and businesspeople alike. The future looks very promising.

Thank you very much for your comments