The US and Libya have engaged in negotiations about sharing billions of dollars in frozen state assets of Libya, if the US tries to release the funding, sources claim, Middle East Eye reported on May 8th.
The Tripoli government, led by Prime Minister Abdul Hamid Dbeibeh, presented the proposal during a US visit in early 2025. The Trump administration has shown interest in the plan, and follow-up talks reportedly occurred.
The US government would assist in unlocking roughly $30 billion, which were frozen since the ex-leader of Libya, Muammar Gaddafi fell from power due to a Nato-endorsed insurrection, according to a Western official and an Arab source.
The US in return would receive roughly $10 billion to invest in the North African country, with energy and infrastructure projects being on the radar, according to anonymous sources.
Gaddafi founded Libya’s sovereign wealth fund in 2006 to oversee the country’s vast oil wealth. Experts estimate its worth at $70bn, with most assets in Europe and some in the US. In 2011, the Obama administration froze about $30bn of funds under US control. The UN Security Council soon imposed a global freeze that remains today.
Jalal Harchaoui, a Libya expert at the Royal United Services Institute, told the media “I sense that within the Trump administration, this is something they would want to do, but in general, there is a global momentum to unfreeze the funds.”
In January 2025, the UN Security Council adjusted sanctions, letting the sovereign wealth fund reinvest frozen returns with “appropriate financial institutions.” The US is still reviewing Libya’s plan, which aligns with the Trump administration’s business-driven foreign policy strategy.
Meanwhile, US economic measures in the region continue to ripple outward, prompting concern among businesses and regional governments.
On April 3rd, The National reported that Middle Eastern businesses were preparing for rising costs despite analysts predicting limited tariff impact. Tariff rates applied to the region fluctuated significantly. Authorities classified Algeria, Israel, Jordan, Libya, and Tunisia as high-tariff states, assigning 30%, 17%, 20%, 31%, and 28% rates.
Middle East Eye, The National
+ There are no comments
Add yours