Summary:

On 8 May 2025, the Middle East Eye reported that Libya’s Tripoli-based government held discussions with the United States regarding a potential agreement to share billions of dollars in frozen Libyan state assets, contingent on assistance from the Trump administration in unblocking the funds. 

The funds have remained inaccessible since the NATO-backed ousting of former Libyan leader Colonel Muammar Gaddafi. The assets, estimated at over $60 billion, belong primarily to the Libyan Investment Authority (LIA), the country’s sovereign wealth fund. They were frozen by the US and the UN Security Council amid concerns that they could be misused by the Gaddafi regime during the country’s civil conflict in 2011. 

According to Middle East Eye, the Trump administration would assist in unfreezing approximately $30 billion in Libyan assets, in return for securing $10 billion worth of investment opportunities in Libya, particularly in infrastructure and energy sectors. 

The same source mentioned that Massad Boulos, Trump’s senior adviser for Africa and the Middle East, discussed the plan with Libya’s national security advisor Ibrahim Dbeibah in Doha at the end of April. 

Outlook: 

US involvement to unblock Libya’s frozen funds could be a step towards revitalizing the country’s economy, enabling much-needed investment in infrastructure and the energy sector.  

Access to these billions could help stabilize Libya’s political and economic landscape and attract broader international interest in reconstruction. 

However, figures involved in this deal could raise concerns over political agendas, lack of transparency, and potential misuse of these funds. Legal hurdles also pose significant challenges. Without clear oversight and accountability, the move could deepen mistrust and further complicate Libya’s fragile political landscape. 

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