The study aimed to examine the mechanisms of economic diversification and its role in achieving stability and sustainable growth , with a particular focus on how Libya can benefit from international experiences in this field . The research adopts a descriptive-analytical approach based on reviewing relevant academic literature , economic reports , and successful diversification models such as those of the UAE, Norway , and Malaysia. The findings indicate that effective diversification requires a stable institutional framework , improved infrastructure ,efficient investment of resource revenues in non-oil sectors , enhancement of human capital , and the attraction of foreign investment . Based on these insight, the study provides a set of recommendations that can support Libya in advancing toward a more diversified, resilient , and sustainable.......... Keywords:.........Economic Diversification, Sustainable Development, Oil-Based Arab Economies, Libya, UAE, Norway, Malaysia, Dependency Theory, Dutch Disease, HHI (Herfindahl -Hirschman Index), Shannon Index.