- Politics & Governance
Libya Political Risk Report (Jan 23, 2026)
This report covers political and security updates in Libya between January 15, 2025 - January 22, 2026. Clients can download the full report at the end of the page.
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Big-Picture Outlook
The Government of National Unity (GNU) has received rare investment interest from Saudi, Qatari, and Italian actors despite growing instability in western Libya. The Government of National Stability (GNS) and the Libyan National Army (LNA) are attempting to respond to infrastructure damage caused by a deadly desert storm in Benghazi.
Libya’s financial situation continues to deteriorate as the Central Bank of Libya (CBL) devalues the dinar for a second time within a year, while the United Nations Support Mission in Libya (UNSMIL) attempts to advance its Structured Dialogue. Amid mounting challenges in western Libya, GNU Prime Minister Abdulhamid Dabaiba continues to engage with eastern political and military actors.
Key Highlights
- The four dialogue teams for the United Nations Support Mission in Libya’s (UNSMIL) new Structured Dialogue have reportedly begun their work, discussing ways to address governance, security, economic, and national reconciliation issues in the country.
- The Central Bank of Libya (CBL) announced a 14.7% devaluation of the Libyan dinar, setting the official rate at 6.3759 dinars per US dollar.
- The CBL released the state’s 2025 budget report, showing that the state received a total of 136.9 billion dinars in revenue and spent a total of 136.8 billion dinars in expenditure.
- Italian Foreign Minister Antonio Tajani and Qatari Prime Minister Mohammed bin Abdulrahman al-Thani signed a $2.7 billion investment agreement to improve and expand the Misrata Free Zone Port.
- A Government of National Unity (GNU) delegation met with officials from the General Secretariat of the Saudi Public Investment Fund (PIF) Board of Directors, the Saudi Ministry of Investment, and the Saudi Ministry of Economy and Planning, and discussed the possibility of Saudi investment in Libya.
- A desert storm was centered on the city of Benghazi, causing massive damage to residential and commercial buildings, as well as to infrastructure such as roads, electricity lines, and fuel lines.
