The French Court of Cassation has upheld a ruling that dismisses Kuwaiti conglomerate Al-Kharafi's bid to seize assets of Libya's sovereign wealth fund, the Libyan Investment Authority (LIA). In a statement released on October 1, 2026, the LIA said the court's decision marks a final victory for the Libyan people. This ruling brings an end to a long-standing dispute that began with a 2006 agreement between Al-Kharafi and the Libyan government.
The dispute originated from a 90-year lease agreement for a 24-hectare plot in Tripoli, where Al-Kharafi planned to develop a tourist complex. However, the project stalled, and the Libyan government revoked the agreement in 2010. Al-Kharafi subsequently initiated arbitration proceedings, claiming compensation for losses and missed profits. An arbitral tribunal in Cairo awarded Al-Kharafi approximately $937 million in damages, plus 4% annual interest, in March 2013.
The LIA has stated that it was not informed of the arbitration proceedings and only learned of the award later. The Libyan fund has consistently argued that it was not a party to the arbitration and therefore not bound by the award. Furthermore, the LIA emphasized that French courts have consistently upheld the principle that Libyan assets are immune from seizure due to international sanctions imposed on Libya since 2011.
Despite the setback, Al-Kharafi has continued to pursue its claims against Libyan assets in France. In September 2023, the group obtained approval to attach rights related to assets of the National Oil Corporation (NOC) in France, including interests in the Mabrouk field, operated by TotalEnergies. The LIA has expressed its commitment to protecting Libyan assets and defending the country's interests.
The French Court of Cassation's decision confirms that Al-Kharafi's attempts to enforce the arbitral award against LIA assets in France have been unsuccessful. The court has reaffirmed the immunity of Libyan assets from seizure, citing international sanctions and French law. This ruling provides a significant victory for the Libyan Investment Authority and helps safeguard the country's assets.
The LIA has reiterated its commitment to defending Libyan interests and protecting the country's assets from seizure. The authority has emphasized that it will continue to take all necessary measures to ensure the protection of Libyan assets and interests. This includes pursuing all available legal remedies to prevent the enforcement of unfounded claims.
Al-Kharafi's efforts to seize Libyan assets have been ongoing for several years, with the group seeking compensation of approximately €844 million. However, the Kuwaiti conglomerate's attempts have been consistently thwarted by French courts, which have upheld the immunity of Libyan assets from seizure. The LIA's victory is a significant milestone in the ongoing dispute between Al-Kharafi and the Libyan government.
Key points
- French Court of Cassation upholds ruling dismissing Al-Kharafi's bid to seize Libyan Investment Authority assets.
