This paper focuses on and evaluates the efforts which have been taken by the public sector in Libya to create an industrial base for development. The study will cover the period since 1952, that is to say, since the independence from the direct control of the British administration. For the purpose of the study, the covered period will be divided into three sub-periods. The first phase covers the period from 1952 to 1962, the second phase covers the period from 1963 to 1972, and the third phase is the post-1972 period. The reason for this division stems from the differences in each period regarding its political and economic features which affect the overall role and performance of the public industrialization policy. The first period, 1952 to 1962, witnessed the first national policies that aimed to accelerate the growth of the economy in the private sector and foreign investment, and the public sector played the major role in the development process. The role of the state was mainly to encourage and assist the private and foreign enterprises in their economic activities.The second period, 1963 to 1972, witnessed the first and the second five-year plans for economic and social development and for the first time the public sector acted directly by entering the sphere of industry.The third period will deal with the post-1972 period. It is worth mentioning that the political changes brought basic changes in the economic character and organization of the public sector in general.Since 1970 the public sector was enlarged as a result of the nationalization and confiscation measures which had been taken. The last period has passed by three economic and social development plans. The first plan was from 1973 to 1975, the second plan was from 1976 to 1980, and the last plan is from 1981 to 1985.The last part of the study will provide an overall evaluation of the economic performance of the state-owned industries and point out the main obstacles that faced the success and the expansion of the state-owned industrial process.