'Libyan-made' originates from the adjective 'Libyan' (relating to Libya) combined with the past participle 'made' of the verb 'make'. 'Libyan' ultimately comes from the place name 'Libya', itself from Latin 'Libya' and Greek 'Λιβύη' ('Libúē'), and 'made' is the past participle of 'make'.

'Libyan' was formed in English from the place-name 'Libya' plus the adjectival suffix '-an'; 'Libya' comes from Greek 'Λιβύη' and Latin 'Libya'. 'Made' developed from Old English verbs such as 'macian'/'mǣċan' (to make) and through Middle English forms like 'maken', yielding the past form 'made'.

The compound originally simply combined the place-name-based adjective and the past participle to indicate origin of manufacture; its meaning has remained essentially 'produced in Libya' in modern usage.