Libya’s Libyan Iron and Steel Company and the Export Development Authority have signed a memorandum of understanding to establish a factory for fishing trawlers, in a move aimed at strengthening marine industries and boosting domestic manufacturing capacity.
The agreement, signed on Tuesday in Libya, brings together Libyan Iron and Steel Company chairman Mohamed Al-Faqih and Export Development Authority chairman Mohamed Al-Hanqari, according to officials.
The planned facility is intended to support the localisation of fishing vessel production and reduce reliance on imported marine equipment, while also expanding the country’s industrial base beyond hydrocarbons.
Officials said the project is part of broader efforts to develop complementary industries, enhance national production capabilities and contribute to economic diversification in a country where oil remains the dominant source of export revenue and government income.
Libya’s industrial sector has faced years of disruption due to political instability, infrastructure degradation and fluctuating investment flows. Authorities have increasingly sought to revive manufacturing capacity as part of post-conflict economic recovery strategies.
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The new trawler factory initiative is expected to support Libya’s fishing sector, which has long been considered underdeveloped despite the country’s extensive Mediterranean coastline. Analysts say improved vessel production capacity could help expand local fisheries, strengthen food supply chains and create jobs in coastal communities.
The Libyan Iron and Steel Company, one of the country’s largest industrial firms, has traditionally focused on heavy industry and metallurgical production. Its involvement in the project signals a potential shift toward broader industrial partnerships and downstream manufacturing activities.
The Export Development Authority, which promotes non-oil exports and industrial diversification, said the agreement aligns with national efforts to increase domestic production and reduce import dependence.
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Although details of investment size and implementation timelines were not disclosed, officials described the project as a strategic step toward strengthening Libya’s industrial self-sufficiency and developing value-added sectors.
Libya’s economy remains heavily reliant on crude oil exports, which account for the vast majority of foreign exchange earnings. Successive governments have identified diversification as a long-term priority, though progress has been constrained by political fragmentation and security challenges.
The trawler factory project is part of a growing number of initiatives aimed at rebuilding industrial capacity, particularly in manufacturing, agriculture and fisheries.
Experts say such projects could help Libya gradually broaden its economic base if stability improves and consistent investment frameworks are maintained.
However, they caution that sustained implementation will depend on regulatory clarity, infrastructure rehabilitation and improved investor confidence in the country’s economic environment.
