Nick Donaldson/ Reuters
Nick Donaldson/ Reuters
Nick Donaldson/ Reuters
Nick Donaldson/ Reuters


Too many Libyan powerbrokers prefer the broken status quo to elections


Ethan Chorin
Ethan Chorin
  • English
  • Arabic

September 01, 2023

This past week, Israeli Foreign Minister Eli Cohen announced what has since been called a planned, secret meeting in Rome with his Libyan counterpart, the Government of National Unity’s Najla Mangoush. The announcement, which Libyan Prime Minister Abdul Hamid Dbeibeh and Israeli Prime Minister Benjamin Netanyahu have both denied clearing, created a regional diplomatic fracas. It led to public protests in Libya, inter-agency finger-pointing in Israel, and Ms Mangoush’s dismissal and exit from Libya on a private plane.

While some sections of the media have focused on the possible harm this incident may have done to prospects for a Saudi-Israel deal, this is not the most useful question. On the 12th anniversary of the ouster of its leader Muammar Qaddafi, it is important to ask how this incident reflects Libya’s deep political dysfunction, and what can be done to mitigate the damage that its disintegration has caused inside and outside the country.

The story goes back decades. In 2003, the US struck a complex deal with Qaddafi in the shadow of the Iraq War, tied to two linked efforts: the co-opting of Qaddafi to support the War on Terror, and the attempted co-optation of Qaddafi’s Islamist enemies to serve the same end. Without a clear roadmap for the West-Libya relationship, however, the honeymoon slowly dissolved into mutual recriminations. Qaddafi became fond of saying: “I gave up my nuclear weapons [such as they were] – and for what?”

The US-Libya relationship cooled further under the Obama administration. This left the two countries without an open channel of communication, when things went haywire – which they did during the Arab uprisings that began in neighbouring Tunisia in late 2010. Isolated and enraged, Qaddafi became an easy sacrifice to a wave of regional change, when western intervention in Syria, for example, was unpalatable.

In the period between the intervention in March 2011 and Qaddafi’s public lynching months later, better-organised, better-funded and heavily armed Islamists and local militias attempted to sideline the so-called “moderates”, who participated in Qaddafi’s reform process and sold the US on intervention at the 11th hour.

Muammar Qaddafi and Barack Obama in 2009. The US-Libya relationship cooled further under the Obama administration, which wanted little to do with Tripoli. Three years later Qaddafi was overthrown in a chaotic convergence of rebel forces and Nato strikes. Reuters
Muammar Qaddafi and Barack Obama in 2009. The US-Libya relationship cooled further under the Obama administration, which wanted little to do with Tripoli. Three years later Qaddafi was overthrown in a chaotic convergence of rebel forces and Nato strikes. Reuters

Over the following year and a half, Libya’s security situation declined rapidly, even as the interim government managed to pull off two reasonably free and fair national elections – a testament to Libyans’ desire to redeem the revolution. By then, however, Libya’s medium-term fate was sealed.

Then, on September 11, 2012, Al Qaeda proxies attacked the US mission in Benghazi, driving the Americans, and much of the West, out of Libya. This paved the way for militants affiliated with Al Qaeda and ISIS to take over of much of Libya’s east, and contributed to chaos in Syria, the Sahel and elsewhere.

The attack forced the political transition process back in Tripoli into a nosedive, and in 2014 Libya split between east and west, following another round of elections. This was another turning point, as the winners were forced to decamp to Libya’s east, while the international community recognised the self-proclaimed government in the west. In the crucible of “Benghazi” was thus born the outlines of the current political architecture, with the eastern government backed by Field Marshal Khalifa Haftar’s Libyan National Army. Field Marshal Haftar, it is worth noting, previously served in the Libyan army under Qaddafi.

The sad fact is that today, despite their public acrimony, most of Libya’s powerbrokers can tolerate the conflict and status quo

Over the following years, the UN attempted to stitch the two governments together again, beginning with the 2015 Skhirat Agreement that created the so-called Government of National Accord. Obstacles were often overcome by fiat, and without drawing in those with significant influence on the ground – including Field Marshal Haftar. The mixing of elected and unelected bodies, with officials appointed by foreign bodies, effectively severed the thread of political legitimacy accorded by the early elections. Libya’s political scene became a Frankenstein of inconsistent external mandates and local militia rule. Western leaders, meanwhile, focused on the short-term political liabilities associated with ever-growing flow of African migrants entering Europe, and terrorist attacks linked to Al Qaeda training camps in Libya.

The sad reality is that today, despite the continued suffering of Libyans, many of the country’s powerbrokers much prefer to tolerate a broken status quo, rather than submit to national elections. This leads us back to the current Libya-Israel fracas.

The US and other countries have been hinting that it would like to see the Government of National Unity give way to yet another interim government that will then lead the country to elections – despite an obvious defect in that logic. There is a widespread belief among Libyans that their leaders are courting Israel to curry favour with the US, so that the latter will not press for elections. In Israel, opponents of Mr Netanyahu have suggested his government decided that taking credit for a high-level political encounter with Libya was more valuable than an actual deal between the two countries. The ground for such an agreement has not been prepared, and it would be tarred by questions of political legitimacy in any case. Libyans’ anger seems to be directed as much towards their politicians, as Israel and its policies towards the Palestinians.

As for other Arab countries’ willingness to join the Abraham Accords, this recent incident doesn’t help, but it probably won’t deter any meaningful future agreements. Where there is something to negotiate, any deal will come at a significant cost to all parties.

Ironically, there are new and old reasons for optimism.

For one, more analysts and policymakers outside of Libya seem to be coming to the inescapable conclusion that trying to sever the Gordian knot of warring militias in Tripoli is hopeless; that 12 years of war have inflicted an unacceptable cost not only on Libya but the region. There are more arguing that stability in Libya – and in the region – lies in bottom-up, not top-down, development, and that productive investment in regional infrastructure, jobs and services is possible without a fully functioning national government. There is also a realisation that there are creative (if expensive) ways for Europe to address the problem of migration and trafficking in people, which don’t involve complicity in the deaths of tens of thousands every year in the desert and on the Mediterranean.

Second, despite daunting problems, Libya remains wealthy in resources, if not peace, with extensive oil and gas reserves. Energy companies such as ENI, Sonatrach and BP have recently lifted force majeure, paving the way for a return to the country. Libya is also blessed with nearly limitless renewable resources, an enviable geography for Southern-Eastern Mediterranean and Africa trans-shipment, and a small population. Absent fighting, the country has all the makings of a major tourist destination, with hundreds of kilometres of pristine coastline and some of the best-preserved Roman and Greek antiquities.

If Israel wants to pave the way for a longer-term relationship with Libya, it would do well to resurrect some of its pioneering technical assistance programmes in Africa from the 1970s – in partnership with its new Arab partners. The UAE, for instance, has made a tremendous difference in Africa through its post-independence agricultural, water and infrastructure investments – and more recently, through building some of the most advanced port and logistics infrastructure on the continent.

What Libyans need are friends who see the country as a potential asset, not a perpetual problem, or a lever to score domestic political points. It needs countries, and companies, who are willing to take measured risks to help unwind the damage done, and who realise that repeating the same mistakes is only going to create more problems for the region.

Will the pound fall to parity with the dollar?

The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.

Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.

New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.

“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.

The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.

The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.

Bloomberg

Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

The smuggler

Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple. 
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.

Khouli conviction

Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.

For sale

A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.

- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico

- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000

- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950

THE BIO

Born: Mukalla, Yemen, 1979

Education: UAE University, Al Ain

Family: Married with two daughters: Asayel, 7, and Sara, 6

Favourite piece of music: Horse Dance by Naseer Shamma

Favourite book: Science and geology

Favourite place to travel to: Washington DC

Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.

About Seez

Company name/date started: Seez, set up in September 2015 and the app was released in August 2017  

Founder/CEO name(s): Tarek Kabrit, co-founder and chief executive, and Andrew Kabrit, co-founder and chief operating officer

Based in: Dubai, with operations also in Kuwait, Saudi Arabia and Lebanon 

Sector:  Search engine for car buying, selling and leasing

Size: (employees/revenue): 11; undisclosed

Stage of funding: $1.8 million in seed funding; followed by another $1.5m bridge round - in the process of closing Series A 

Investors: Wamda Capital, B&Y and Phoenician Funds 

'Worse than a prison sentence'

Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.

“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.

“They were living in perpetual mystery as to how their futures would pan out, and what that would be.

“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.

“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.

“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”

What is a robo-adviser?

Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.

These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.

Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.

Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.

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UAE currency: the story behind the money in your pockets
In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

Updated: September 02, 2023, 4:38 AM