Foreign companies are very sensitive when it comes to shootings, bombs and especially attacks or happenings in relation with their diplomatic representations. The recent events in Benghazi left many in mayhem and fear. As one person on Twitter wrote it
"Embassies are the last safe haven, a last retreat. If they are attacked, foreigners don't feel safe anymore"
As the protests continued in the Arab world, some companies decided to pull the safety strap and take a short leave back to their homebase, or are thinking of taking their staff temporarily out of Libya. No one who has been in Libya over the last year has decided to leave for good. But a temporarily break, or a long, or not so long, scheduled meeting of all their Libya staff in their home base is a solution some are taking. And US american companies: I think most of them have taken their staff out (anyhow, there were not so many who came back so far).
One person pointed out: "It doesn´t matter so much if foreign companies stay or leave, anyhow they did not have any contracts / work to do."
For most companes this applies, but dont forget that some companies are working already in the elctricity sector (without them, there would not be 2 hrs power cut a day, but 24hrs) and not to forget the oil sector.
In the short run: true, no problem - oil keeps flowing. But over the next few months or even years, production will drop sharply if service in the oil fields can not be done and no new fields can be explored. This is actualy the status for most exploring companies since 1 1/2 years.
Then, fewer income will be generated and the country might slip into chaos.
Already, not so many companies are "flocking" into Libya. And each and every incident leads to a darker picture of the security environment.
I keep a diary, and hardly any day passes without some minor or majour happening. For businesses to return, this must change.
New laws, such as the limitation of foreign ownership to 49% do not encourage companies either.
And of course, the Libyan government must be willing to let foreign companies come to Libya, hence awarding them contracts.
Now a new, elected government is in place. Businesses have the hope that they use their legitimacy to give them a basis for a return.