As we step into January 2024, it’s crucial to understand the strategic shift towards digital bidding and licencing rounds undertaken by countries like Jordan and Libya.
While Libya introduced its digital platform in November 2023, Jordan’s recent launch marks a continued trend in the region. This move towards digitisation reflects a broader strategy aimed at modernising investment and bidding processes in the energy and mineral sectors.
Libya’s pioneering move in November 2023
Libya’s National Oil Corporation (NOC) took a bold step in November 2023 by launching a digital platform specifically designed for global investors in its energy sector. This initiative was not just about modernising the investment process but also about opening up the Libyan energy market to a broader, more diverse international audience. The digital platform aimed to streamline the bidding process, making it more transparent and accessible. By doing so, Libya sought to attract new investments and partnerships, crucial for the country’s economic recovery and growth post-political instability.
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Libya unveils first licencing round in two decades
Jordan’s recent digital foray
Following Libya’s footsteps, Jordan’s Ministry of Energy and Mineral Resources has now embraced a similar digital approach. The rationale behind this move is multifaceted. First, it aligns with Jordan’s broader economic modernisation vision, aiming to position the country as a regional industrial hub. By digitising the bidding and licensing process, Jordan is not only simplifying the investment procedure but also signalling its commitment to transparency and efficiency. This approach is particularly important for attracting high-value industries in the mineral sector, which are central to Jordan’s economic strategy.
Why the shift to digital bidding and licencing?
There are multiple reasons why countries look towards digital solutions and in the energy industry and these include:
- Increased transparency and efficiency: Digital platforms allow for a more transparent bidding process, reducing the risks of corruption and increasing efficiency in handling applications and bids.
- Global reach and accessibility: By going digital, these countries can reach a wider array of potential investors worldwide, overcoming geographical barriers.
- Economic modernisation and diversification: Both Libya and Jordan are looking to diversify their economies. By leveraging technology, they can attract new forms of investment and tap into industries beyond their traditional sectors.
- Alignment with global trends: The world is rapidly moving towards digital solutions in all sectors. By adopting digital bidding and licensing, these countries position themselves as modern, forward-looking economies.
The move towards digital bidding and licencing rounds by countries like Libya and Jordan is a strategic decision aimed at fostering economic growth, ensuring transparency, and aligning with global digital trends. This shift not only benefits the countries in terms of attracting global investments but also resonates with the international community’s expectations for modern, efficient, and transparent investment processes.
