Christmas is celebrated there. Not by most Libyans themselves because they are Muslim and there are actual laws against selling Christmas items and celebrations. However coptic Christian Muslims and western ex-patriots living in Libya do celebrate Christmas, though it has to be very quiet and privately done indoors. No lights or decorations outside or anything.
I think it would be safe to assume that most folks in Libya do not celebrate Christmas unless they happen to be Coptic Christians and even those folks will not be sporting electronic Santa's, reindeer and snowmen on their front lawns. I doubt they will even have a string of lights hung up.