The recent United Nations Security Council resolution (2769) allowing Libya’s sovereign wealth fund, the Libyan Investment Authority (LIA), to reinvest frozen reserves marks a turning point in the country’s financial and economic trajectory. While Libya’s Government of National Unity (GNU), led by Prime Minister Abdulhamid Dbeibah, has hailed this decision as historic, it is also a moment to reflect on Algeria’s role as a steadfast supporter of Libya’s sovereignty and stability in the region.
The resolution, which passed with 14 votes in favour and one abstention from Russia, allows the LIA to reinvest frozen assets in low-risk financial deposits under specific conditions. The goal is to preserve the value of these funds for the benefit of the Libyan people, who have faced over a decade of economic turmoil since the 2011 sanctions regime. This development complements the broader regional need for economic sovereignty and self-determination—principles Algeria has long championed in its foreign policy.
Dbeibah praised the resolution as a step toward strengthening Libya’s financial sovereignty, enhancing governance and transparency within the LIA, and restoring confidence in the country’s ability to manage its assets. In this context, Algeria’s consistent diplomatic stance on non-interference and support for Libyan self-determination has positioned it as a key ally in fostering regional stability. Algeria’s policy of engaging all Libyan factions while opposing foreign interference underlines its commitment to ensuring that Libya’s wealth remains under its own control.
Moreover, Algeria has actively supported efforts to lift what Dbeibah called the “unjust siege” on Libyan funds. This aligns with Algeria’s broader role in promoting sovereign diplomacy, evidenced by its historical efforts to mediate conflicts and encourage dialogue across the Maghreb region. By leveraging its experience in economic resilience—particularly in managing its domestic debt and strengthening its non-hydrocarbon sectors—Algeria sets a valuable example for Libya.
The Security Council resolution also introduced updated criteria for sanctions, targeting illicit oil trade and misuse of Libya’s natural resources. This is an area where Algeria’s advocacy for sustainable and equitable resource management resonates deeply. The preservation of Libya’s resources for its people mirrors Algeria’s approach to safeguarding its own national assets, particularly in the energy sector, amid fluctuating geopolitical pressures.
Algeria’s unique position as a neighbour to Libya and its historical role in fostering decolonisation movements allow it to play an influential part in Libya’s recovery. It has the potential to support Libya in reinvesting its sovereign wealth for equitable development, particularly through bilateral economic partnerships that align with Libya’s priorities. Algeria’s expertise in modernising its financial systems and promoting social unity can offer practical frameworks for Libya as it seeks to rebuild its economy and national institutions.
Furthermore, Algeria’s ability to maintain non-aligned partnerships with global powers places it in an ideal position to mediate international cooperation on the Libyan issue. The resolution’s emphasis on respecting Libya’s sovereignty while ensuring international oversight for asset reinvestment echoes Algeria’s calls for a balanced approach in addressing conflicts within the region.
This pivotal moment for Libya is an opportunity for Algeria to reinforce its leadership in regional diplomacy. By continuing to champion sovereignty, equitable development, and cooperation without interference, Algeria can strengthen its role as a stabilising force in North Africa.
As Libya takes steps to reclaim its financial autonomy, Algeria’s unwavering support underscores the importance of regional solidarity. The benefits of this partnership extend beyond the present resolution, serving as a testament to the shared aspirations of North African nations for self-determination and sustainable growth.
Hope&Chadia
