A new alliance between Egypt and Turkey, aimed at settling longstanding disputes in the Middle East, faces a critical test amid a political crisis in Libya tied to control of the country’s oil wealth. The two countries recently signed memorandums of understanding to boost trade to $15 billion over five years after nearly three years of rapprochement following a fallout post the Arab Spring in 2011.
The main point of contention in Libya is the power struggle between the west supported by Turkey and the east supported by Egypt, the UAE, and Russia. The ongoing crisis was exacerbated by the dismissal of the central bank governor, leading to the closure of many oilfields and frozen foreign exchange transactions by global banks. The central bank, overseer of Africa’s largest oil wealth, plays a crucial role in Libya’s stability.
Western powers have opposed the governor’s removal, seeing him as a source of stability despite flaws. Turkey’s intelligence chief has been sent to Tripoli to mediate the situation, pushing for the governor’s interim return or a consensus board to lead the bank. The international community is concerned about Libya’s economic problems potentially leading to state collapse and increased instability.
Expert Alia Brahimi suggests that the disputes in Libya are primarily about economic resources controlled by elite families, potentially changing Turkey’s involvement. The continued financial partnership between Turkish and Libyan businesses suggests a desire for stability and economic growth in the region. Ultimately, resolving the crisis in Libya will require consensus building and addressing the country’s deep-rooted divisions to prevent further chaos and instability.
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