Outlet: Arab News

Language: English

Abstract: Libya’s political fragility is intensifying as rival factions shift from direct warfare to covert battles over key state institutions, particularly the central bank and National Oil Corporation. This new phase of conflict revolves around controlling Libya’s vital oil resources and financial structures, which are crucial to the country's economy and power dynamics. Both the UN-recognized western government and the eastern parliament led by Khalifa Haftar seek dominance over these institutions, with recent moves to oust central bank governor Sadiq Al-Kabir signaling deeper political machinations. The struggle for control threatens to cripple Libya’s economy and paralyze essential services, while rampant kleptocracy continues unchecked. Although large-scale violence has been avoided since the 2020 ceasefire, the absence of national elections has left power in the hands of corrupt elites, exacerbating Libya’s divisions. Foreign meddling, coupled with domestic greed, has further destabilized the country, with militia deployments and kidnappings becoming increasingly common. As the struggle intensifies, the future of Libya’s political and economic stability remains uncertain, and the potential for renewed conflict poses a significant threat to both Libya and the broader region.

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