Summary:

On 6 March 2025, Libyan courts gave Sahara Bank permission to sell the stake of its foreign partner, French bank BNP Paribas, in a transition that will make Sahara Bank 100% Libyan owned.  

The selling operation was previously suspended amid investigations into non-respect of binding agreements. 

The French banking group retained 19% of Sahara Bank shares since 2007 when Sahara Bank started a privatization process. However, BNP Paribas repatriated its employees following the 2011 uprisings. 

In 2024, Sahara Bank announced that it had converted itself from a traditional (interest-charging) bank to an Islamic bank amid efforts to nationalize. In January 2025, the Tripoli Criminal Court convicted two former directors of Sahara Bank’s management of fraud, sentencing them to seven years in prison and a restitution order of 53 million Libyan dinars. 

Outlook: 

The BNP Paribas exit signals the failure of a partnership between a foreign and Libyan bank, as many reports indicate disagreements over management methods. The banking privatization trend that started prior to 2011 was halted following these disagreements which led Libyan bankers to prefer removing foreign partners and reconsidering nationalization.  

Political instability in Libya, including management changes at the Central Bank, is also a major factor pushing away foreign banks.  

Corruption of highly positioned directors is also risk that increases the necessity of due diligence for any foreign financial institution operating in Libya. 

Also, many French firms are still facing negative repercussions from ongoing investigations into the involvement of French banks in deals with the Gaddafi regime

Explore our services or speak with our team of North Africa-based risk experts.