Geographical location and diversification of income sources in the Libyan economy

This study examines the strategic geographical location of Libya and its potential role in supporting the diversification of national income sources. Employing a descriptiveanalytical methodology, the research is structured around four main axes. The first explores the concept of economic diversification and its key indicators. The second analyzes the economic characteristics of neighboring landlocked African countries. The third investigates the opportunities presented by Libya’s geographic position in fostering economic diversification. The final axis presents the study’s conclusions and recommendations. The findings highlight that Libya's geographical location represents a significant strategic asset that, if effectively utilized, could contribute substantially to the diversification of the national economy. In particular, the establishment and activation of free economic zones along the northern coast and southern borders offer promising avenues for development. However, the actual performance of these zones remains constrained by critical infrastructure deficits, including a deteriorating road network, an underdeveloped banking system, and inadequate telecommunications infrastructure.