Once isolated from the realms of international investment due to the 1988 bombing of a PanAm plane above the Scottish town of Lockerbie, oil-rich but still underdeveloped Libya has had United Nations business sanctions lifted in recent years.

And as its relationship with the western world has improved, so the Libyan government, led by Colonel Muammar Gaddafi, has increasingly sought investment from overseas. Over the past year or so, property purchasing laws for overseas nationals in Libya have been greatly relaxed, while increased tourism, especially along the country's Mediterranean coast, is also being targeted.

What's more, over the past month there have been a couple of announcements which could really mark Libya out as a destination with long-term property potential.

Firstly, at the end of August, the north African nation signed a 'friendship agreement' with former rulers Italy, which will lead to the European country investing US$200 million into Libya every year for the next 25 years. This investment  will include a the construction of a highway across Libya from the Tunisian border to Egypt and a general improvement of the country's amenities - one of the key signs property investors hoping to identify new markets usually look for. In return, numerous Italian businesses will open up facilities in Libya, and the country has pledged to tighten border security.

The deal is viewed by Libyans as compensation for Italy's bloodthirsty rule of the country between 1911 and 1943, during which time thousands of Libyans were either killed or driven from their villages.

The second recent development which could prompt more property investors to start casting glances towards Libya is news that new Dubai-based property developers Noble Properties has announced that its first project will be the construction of two iconic towers in Libya's capital, Tripoli. Known as the Tripolis Towers, the US$500 million project will feature two mixed-use 40-storey towers on a 2.5 hectare waterfront plot in the centre of Tripoli. The first tower will have a five-star hotel facility fitted with leisure and business amenities, upmarket serviced property apartments and a shopping centre. The second tower will hold office space.

"We see great potential in the Libyan market and its outstanding level of economic competitiveness, which stems from a unique combination of attractions that cannot be found elsewhere," said Omar Ayesh, the founding chairman of  Nobles, who also founded renowned Dubai developers Tameer.

It is unlikely that this will be the only property development announced in Libya over the coming months. There have been reports that other leading overseas developers have been eyeing Libya's potential for some time now, and given the announcements of the past month more may now be tempted to take a punt on the country.

Interesting times ahead, then, for yet another African country.

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Article first published 23 September 2008