Despite its difficult economic situation at the time, in the 1950s the Libyan government decided to found a university.

The Egyptian government agreed, and promised to pay the salaries of the four borrowed lecturers for four years.

[2] The U.S. nominated Professor Majid Khadduri to be the dean of Faculty of Literature, and committed to pay his salary.

The next step was of course to extend the university and establish new faculties:[5] On 6 October 1968, a celebration was held for the founding of a new campus in Garyounis district of Benghazi.

The celebration was attended by King Idris I, Wanis al-Qaddafi, the Prime Minister, and Abdel Moula Dughman, President of the university.