GCC continue to support the new Libya; albeit selectively

The closeness of the connections between Libya's rebels and the UAE developed early during the war, and particularly in relation to the supply of weapons to the rebel forces. The assistance came at the very beginning of hostilities when the fate of the coast road on the eastern side of the Gulf of Sirte was under severe pressure from Colonel Mu'ammar Qadhafi forces. The thanks for this assistance from the UAE were conveyed to the retiring UAE ambassador to Libya, Sultan Rashid al-Kaytoub, who was speaking on 11 March during a farewell call on the National Transitional Council (NTC) chairman Mustafa Abdel Jalil.

The Emirates, but mainly Qatar, chose to play an overtly pro- revolutionary role at a time of great need. The immediate delivery of tanks and armoured personnel carriers to strengthen the revolutionary forces was very effective. Since then, Qatar has retained a special position of influence, albeit less publicly than before. The Qatari connection with, and support for, Libya's Islamists has, however, not been universally popular. Some Libyan analysts argue that the Qatari government are well intentioned but that it has been somewhat naïve, and has been unduly influenced by expatriate Libyans who have persuade Doha to support a couple of post-revolutionary political parties to the exclusion of others.

For more news and expert analysis about Libya, please see Libya Focus and Libya Politics & Security.

© 2012 Menas Associates

Libya: Trade and investment news

Chinese crude imports from Libya fell in 2011 as a result of the virtual civil war but now Sinopec's trading subsidiary, Unipec, has signed deals with National Oil Company (NOC) to import approximately 100,000 b/d of crude oil from Libya. Meanwhile PetroChina's trading department, Chinaoil, will lift a further 40,000 b/d. Taken together China's acquisition of Libyan oil will cover the cuts that are being made to liftings of Iranian crude.

Meanwhile BP has reported that it is continuing to evaluate its position in Libya but has made it clear that the security of all staff would be an essential pre-requisite before a return to Libya could be seriously considered.

There is news that Libya will amend its banking laws to attract and protect foreign investment as well as encourage expansion in the Libyan private sector. Reuters has reported that the Libyan leadership is seeking to create a new legal framework and infrastructure. In essence, the 2005 Banking Law, which opened the country for foreign banks, will be at the centre of changes.

The Maltese government has expressed its willingness to back up the operations of the Bank of Valetta which first opened up a representative office in Libya in 2002.

Egyptian workers are trying to retrieve their special role as a supply of cheap labour for the agriculture and construction industries but the Libyans have been slow to assist. A reported 8,000 Egyptian passports are awaiting entry visas. The situation for migrants from West Africa is very different with little hope of a return to Libya and a deep aversion to taking up the immigrant trail to a country like that has treated them so badly since the war.

The recent visit by French Defence Minister,Gerard Longuet, gave opportunity for discussions at the highest level on improving cooperation in defence between the two countries. France is especially aware that continuing instability in North Africa is providing opportunities for al-Qa'ida and its regional affiliates.

For more news and expert analysis about Libya, please see Libya Focus and Libya Politics & Security.

© 2012 Menas Associates