Asharq Al-Awsat Tours Extremist Dens in Libya: The Story of Sidi Khreibish

A man stands next to the rubble of a destroyed building in Sabri, a central Benghazi district, Libya, August 15, 2017. (Reuters)
A man stands next to the rubble of a destroyed building in Sabri, a central Benghazi district, Libya, August 15, 2017. (Reuters)
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Asharq Al-Awsat Tours Extremist Dens in Libya: The Story of Sidi Khreibish

A man stands next to the rubble of a destroyed building in Sabri, a central Benghazi district, Libya, August 15, 2017. (Reuters)
A man stands next to the rubble of a destroyed building in Sabri, a central Benghazi district, Libya, August 15, 2017. (Reuters)

The Libyan army, commanded by Field Marshal Khalifa Haftar, announced last summer the liberation of the city of Benghazi from extremist and terrorist groups. However, dozens of gunmen still remain fortified and besieged in the Sidi Khreibish neighborhood, said sources close to the army.

They estimated their numbers to be 90, but sources close to the besieged said that they were closer to 150.

In the second part of a series of features on the extremist dens in Libya, Asharq Al-Awsat took a closer look at the Sidi Khreibish neighborhood, which has become unrecognizable after years of fighting.

The area, known as Old Benghazi, used to be a cultural and shopping hub. Now its streets are littered with explosives and its empty buildings carry the scars of war.

A military officer accompanied Asharq Al-Awsat on its tour. He said that the gunmen have taken up al-Baladi Hotel as their main headquarters.

“We are monitoring them, but entering the area is difficult at the moment,” he continued.

“There is no doubt that we will eventually get there and regain the position,” he stressed, while explaining that the army will incur great losses in the impending battle because the besieged fighters have booby-trapped “everything” in the area.

The Libyan army has described the gunmen as ISIS members, but a mediator close to the armed groups said that they belong to the so-called “Libya 1 Shield,” which was formed three years ago at the national general conference (former parliament) in order to defend Benghazi.

The military official added that the ISIS terrorists have not only booby-trapped the area, but they have also dug underground tunnels where snipers lie in wait.

“They are surviving on expired food and it would be easy for us to bombard them with airstrikes, but we want them alive,” he declared.

Their capture will be valuable because they will be able to inform authorities about the local terror groups’ ties with international ones that are seeking chaos and destruction in Benghazi.

The mediator meanwhile said that the sides that have embroiled these fighters in the Benghazi war do not want them to leave the Sidi Khreibish battle alive.

“If they do, they will expose their backers, who have involved them in the fighting that has been ongoing throughout Libya since 2014,” he added.

Asked if there were any military personnel among the besieged fighters, he replied there are perhaps two or three, but the rest are civilians from the Libya 1 Shield.

He revealed that there have been previous local and international mediation efforts to end the siege, but they have been thwarted by the Muslim Brotherhood and another group. These two parties have been waging “nonstop” anti-military propaganda, alleging that the army was besieging Sidi Khreibish, he said.

“I think someone is benefiting from the continuation of this problem,” he remarked to Asharq Al-Awsat.

A walk in one of Sidi Khreibish’s neighborhoods reveals colored ribbons along the sidewalks and abandoned buildings.

A red and white ribbon means that areas beyond that point were dangerous. Despite the warning, some families attempted to go back to their homes, away from the military’s protection.

One of these families managed to reach their home, located on the second floor of a residential building on al-Shweikhat street, but they were soon surprised to find that it was in the hands of extremists.

The terrorists eventually withdrew, but not without booby-trapping the house, thereby claiming the life of the entire family.

Majed, one of the family’s neighbors in the four-storey building, said that the family did not heed warnings against entering the area. They ignored the ribbons that the military had placed and mine warnings.

Majed volunteered with the army and become a trained soldier.

He spoke of how ISIS had occupied and later completely destroyed his home.

“On the outside, it looked undamaged, but on the inside it was total destruction,” he recalled.

The building was planted with mines and they are still there.

“Two of my neighbors were killed when they returned to inspect their homes after ISIS’ retreat,” Majed explained.

His brother, Darwish, was also killed in the fighting in Sidi Khreibish.

Despite the destruction, residents and construction workers derive hope from an elderly woman, Hajja Khadija, who remained in Sidi Khreibish throughout the years of the fighting.

With a smile of determination and defiance, one of the workers said: “We ware happy to see residents return to the areas that have been cleared of explosives … We will not forget Hajja Khadija, who remained in her house in spite of the war and death.”

“After the fighting eased, we returned to fix electrical cables and Hajja Khadija used to check up on us to encourage us, bringing with her breakfast and lunch,” he said.



To Get Their Own Cash, People in Gaza Must Pay Middlemen a 40% Cut

A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
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To Get Their Own Cash, People in Gaza Must Pay Middlemen a 40% Cut

A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)

Cash is the lifeblood of the Gaza Strip’s shattered economy, and like all other necessities in this war-torn territory — food, fuel, medicine — it is in extremely short supply.

With nearly every bank branch and ATM inoperable, people have become reliant on an unrestrained network of powerful cash brokers to get money for daily expenses and commissions on those transactions have soared to about 40%.

"The people are crying blood because of this," said Ayman al-Dahdouh, a school director living in Gaza City. "It’s suffocating us, starving us."

At a time of surging inflation, high unemployment and dwindling savings, the scarcity of cash has magnified the financial squeeze on families — some of whom have begun to sell their possessions to buy essential goods.

The cash that is available has even lost some of its luster. Palestinians use the Israeli currency, the shekel, for most transactions. Yet with Israel no longer resupplying the territory with newly printed bank notes, merchants are increasingly reluctant to accept frayed bills.

Gaza’s punishing cash crunch has several root causes, experts say.

To curtail Hamas’ ability to purchase weapons and pay its fighters, Israel stopped allowing cash to enter Gaza at the start of the war. Around the same time, many wealthy families in Gaza withdrew their money from banks and then fled the territory. And rising fears about Gaza’s financial system prompted foreign businesses selling goods into the territory to demand cash payments.

As Gaza’s money supply dwindled and civilians’ desperation mounted, cash brokers' commissions — around 5% at the start of the war — skyrocketed.

Someone needing cash transfers money electronically to a broker and moments later is handed a fraction of that amount in bills. Many brokers openly advertise their services, while others are more secretive. Some grocers and retailers have also begun exchanging cash for their customers.

"If I need $60, I need to transfer $100," said Mohammed Basheer al-Farra, who lives in southern Gaza after being displaced from Khan Younis. "This is the only way we can buy essentials, like flour and sugar. We lose nearly half of our money just to be able to spend it."

In 2024, inflation in Gaza surged by 230%, according to the World Bank. It dropped slightly during the ceasefire that began in January, only to shoot up again after Israel backed out of the truce in March.

Cash touches every aspect of life in Gaza

About 80% of people in Gaza were unemployed at the end of 2024, according to the World Bank, and the figure is likely higher now. Those with jobs are mostly paid by direct deposits into their bank accounts.

But "when you want to buy vegetables, food, water, medication -- if you want to take transportation, or you need a blanket, or anything — you must use cash," al-Dahdouh said.

Shahid Ajjour’s family has been living off of savings for two years after the pharmacy and another business they owned were ruined by the war.

"We had to sell everything just to get cash," said Ajjour, who sold her gold to buy flour and canned beans. The family of eight spends the equivalent of $12 every two days on flour; before the war, that cost less than $4.

Sugar is very expensive, costing the equivalent of $80-$100 per kilogram (2.2 pounds), multiple people said; before the war, that cost less than $2.

Gasoline is about $25 a liter, or roughly $95 a gallon, when paying the lower, cash price.

Bills are worn and unusable

The bills in Gaza are tattered after 21 months of war.

Money is so fragile, it feels as if it is going to melt in your hands, said Mohammed al-Awini, who lives in a tent camp in southern Gaza.

Small business owners said they were under pressure to ask customers for undamaged cash because their suppliers demand pristine bills from them.

Thaeir Suhwayl, a flour merchant in Deir al-Balah, said his suppliers recently demanded he pay them only with brand new 200-shekel ($60) bank notes, which he said are rare. Most civilians pay him with 20-shekel ($6) notes that are often in poor condition.

On a recent visit to the market, Ajjour transferred the shekel equivalent of around $100 to a cash broker and received around $50 in return. But when she tried to buy some household supplies from a merchant, she was turned away because the bills weren’t in good condition.

"So the worth of your $50 is zero in the end," she said.

This problem has given rise to a new business in Gaza: money repair. It costs between 3 and 10 shekels ($1-$3) to mend old bank notes. But even cash repaired with tape or other means is sometimes rejected.

People are at the mercy of cash brokers

After most of the banks closed in the early days of the war, those with large reserves of cash suddenly had immense power.

"People are at their mercy," said Mahmoud Aqel, who has been displaced from his home in southern Gaza. "No one can stop them."

The war makes it impossible to regulate market prices and exchange rates, said Dalia Alazzeh, an expert in finance and accounting at the University of the West of Scotland. "Nobody can physically monitor what’s happening," Alazzeh said.

A year ago, the Palestine Monetary Authority, the equivalent of a central bank for Gaza and the West Bank, sought to ease the crisis by introducing a digital payment system known as Iburaq. It attracted half a million users, or a quarter of the population, according to the World Bank, but was ultimately undermined by merchants insisting on cash.

Israel sought to ramp up financial pressure on Hamas earlier this year by tightening the distribution of humanitarian aid, which it said was routinely siphoned off by militants and then resold.

Experts said it is unclear if the cash brokers’ activities benefit Hamas, as some Israeli analysts claim.

The war has made it more difficult to determine who is behind all sorts of economic activity in the territory, said Omar Shabaan, director of Palthink for Strategic Studies, a Gaza-based think tank.

"It's a dark place now. You don't know who is bringing cigarettes into Gaza," he said, giving just one example. "It's like a mafia."

These same deep-pocketed traders are likely the ones running cash brokerages, and selling basic foodstuffs, he said. "They benefit by imposing these commissions," he said.

Once families run out of cash, they are forced to turn to humanitarian aid.

Al-Farra said that is what prompted him to begin seeking food at an aid distribution center, where it is common for Palestinians to jostle over one other for sacks of flour and boxes of pasta.

"This is the only way I can feed my family," he said.