International welcome for the signing of Libya's first unified budget in years
The Kingdom of Saudi Arabia, along with nine other brotherly and friendly nations, welcomed the signing of Libya’s first unified budget for 2026, which was approved on April 11. This historic step, the first joint national budget uniting the east and west in over a decade, represents a pivotal turning point towards ending the long-standing financial and institutional division plaguing the country and contributing to the advancement of comprehensive development and economic recovery.
Historical context: How will Libya's first unified budget end decades of division?
Since 2011, Libya has experienced political and security instability, which has directly impacted its sovereign financial and economic institutions. The division between successive governments in the west and east led to parallel budgets and split central banks, weakening the national currency (the Libyan dinar) and causing severe economic hardship for citizens and a decline in basic services. Reaching an agreement on a unified budget for Libya will bring this difficult period to an end, redirecting national resources towards a unified development path that serves all segments of the Libyan people without discrimination and enhances the efficiency of public spending.
Economic gains and anticipated regional and international impacts
This historic agreement is of paramount importance and will have broad positive implications both regionally and internationally. Domestically, the full implementation of the budget will contribute to maintaining the purchasing power of the Libyan dinar and strengthening the financial and institutional stability of vital institutions such as the Central Bank of Libya, the Audit Bureau, and the National Oil Corporation. Internationally and regionally, the budget includes, for the first time in years, dedicated operational funding for the oil sector to increase energy production. This expansion in oil and gas production will not only revitalize the Libyan economy but will also play a pivotal role in supporting regional and global energy security, opening new avenues for foreign investment.
Broad international support for UN efforts and the political process
This step was widely praised by the ten countries that signed the joint statement: the Kingdom of Saudi Arabia, the Arab Republic of Egypt, the French Republic, the Federal Republic of Germany, the Italian Republic, the State of Qatar, the Republic of Turkey, the United Arab Emirates, the United Kingdom, and the United States of America. These countries affirmed their full support for the United Nations Support Mission in Libya (UNSMIL) and the roadmap led by the Special Representative of the Secretary-General, Hanna Tetteh. The international parties called on all Libyan stakeholders to capitalize on this economic momentum to unify military and political institutions and pave the way for comprehensive national elections that will restore Libya's full sovereignty and stability.
