Exclusive - Turkey, Qatar and the Return of ISIS to Libya

Militias allied to Libya's GNA fight rival groups in Tripoli in September 2018. (Reuters)
Militias allied to Libya's GNA fight rival groups in Tripoli in September 2018. (Reuters)
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Exclusive - Turkey, Qatar and the Return of ISIS to Libya

Militias allied to Libya's GNA fight rival groups in Tripoli in September 2018. (Reuters)
Militias allied to Libya's GNA fight rival groups in Tripoli in September 2018. (Reuters)

Are Turkey and Qatar openly backing terrorists in Libya? And if so, why has the international community remained silent over the issue? Why hasn’t it taken serious action to address the situation and resolve the Libyan crisis once and for all?

As it stands, the Libyan National Army (LNA) is trying to rid the country of terrorism and terrorists. Simultaneously, intense efforts are underway to bring in ISIS members, who have fled Syria and Iraq, into Libyan regions that are controlled by militias. International intelligence agencies have the evidence to prove this.

Turkish meddling

It is no secret that Turkey and Qatar are behind the developments in Libya. Turkish President Recep Tayyip Erdogan, who failed in spreading his Islamist agenda during the so-called Arab Spring, is now attempting to make up for his losses by meddling in Libya. It represents his last hope to revive his illusions. He believes that if extremists succeed in Libya, then their influence may spread to neighboring Tunisia in the west and Egypt in the east. Egypt, he believes, spoiled his plans in recent years when the people revolted in June 2013.

Developments in Libya have exposed Ankara’s supplying of weapons to militias in flagrant violation of the arms embargo imposed on the country since 2011. Intelligence agencies received information in the past two weeks of the arrival of several Ukrainian aircraft to Tripoli from Ankara loaded with weapons for the pro-Government of National Accord (GNA) militias.

The GNA, which has lost its aerial firepower, is in much need of aerial support. It is working tirelessly to bring in drones from Turkey in an attempt to cause as much damage as possible against the LNA. Ankara has so far supplied the GNA with eight attack drones, in violation of the arms embargo.

In addition to weapons, Turkey has sent intelligence agents to support the Tripoli-based militias and terrorist groups, revealed a Libyan military source. The LNA has obtained the names of 19 Turkish officers, whom Ankara has dispatched to Libya to operate the drones.

As for Qatar, militias it supports planted French-made Javelin rockets in LNA weapons storehouses to make it appear as if it was violating the embargo. Doha has also helped the militias purchase advanced weapons from Bulgaria and later smuggled them to Libya.

ISIS return

Are Turkey and Qatar facilitating the return of ISIS to Libya? It is no secret that extremists residing in Qatar, who are affiliated with the Muslim Brotherhood and other groups, are active these days in bringing in terrorists from Iraq and Syria to Libya. While Doha exploits its transportation companies to that end, Erdogan has opened up his airports for these terrorists.

Libyan MP Ali al-Saeedi confirmed Turkey’s involvement in transporting terrorists to his country. He stressed that the extremists seek to fight the LNA during its operation against Tripoli.

Moreover, the ISIS affiliate in Libya recently reemerged in the country. The group released a video of Mahmoud al-Baraasi, known as Abu Musab al-Libi, the founder of the ISIS affiliate in Benghazi, vowing to wage attacks against the LNA. The video, which showed dozens of militants pledging allegiance to ISIS leader Abu Bakr al-Baghdadi, was likely shot in the southern region of Sabha.

In May, ISIS claimed responsibility for an attack on an oilfield in the town of Zillah, some 650 kilometers southeast of the capital Tripoli. The attack was seen as an escalation against LNA-held regions in the South.

Returning to Erdogan, what does he really want from Libya?

He is seeking to make up for his political losses in Turkey and his country’s deteriorating economy. He is set to face even greater challenges should Washington impose sanctions on Ankara over its purchase of the S-400 missile defense system from Russia.

Erdogan is ultimately eyeing Libya’s oil and gas reserves to make up for his losses back home.

During the rule of late leader Moammar al-Gaddafi, Turkish companies operated in Libya and made billions of dollars in profits. This changed with Gaddafi’s ouster. Ankara managed to establish close ties with the GNA, allowing its companies to again regain a foothold and reap interests. This again came to halt, this time when the LNA launched its operation against Tripoli in April. The army therefore, became a major threat to Turkey’s economic and financial ambitions, pushing it firmly to side with Fayez al-Sarraj’s GNA against the advancing forces.

Any end in sight?

It is obvious that the situation in Libya is complicated, compounded even further by ISIS’ threat. The crisis is now an issue of global security and Europe must step up this time and compensate for the losses that led Libya down its destructive path in the first place. The international community must also take a stand and take decisive positions against Turkey and Qatar’s ambitions.

As for the United States, its stance remains vague, but the administration of Donald Trump is definitely opposed to terrorism. As it stands, however, it is currently distracted by the crisis with Iran.

At any rate, a resolution to the Libyan crisis is unlikely in the near future, which is the best environment for radicals and terrorists to thrive. Will the world therefore, sit idly by as ISIS aspires to open a new bloody chapter, this time on the shores of the Mediterranean?



Cash Shortage Squeezes Gaza Residents

Palestinian children queue for a hot meal at a charity kitchen in Gaza City on April 30, 2025. (Photo by Omar AL-QATTAA / AFP)
Palestinian children queue for a hot meal at a charity kitchen in Gaza City on April 30, 2025. (Photo by Omar AL-QATTAA / AFP)
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Cash Shortage Squeezes Gaza Residents

Palestinian children queue for a hot meal at a charity kitchen in Gaza City on April 30, 2025. (Photo by Omar AL-QATTAA / AFP)
Palestinian children queue for a hot meal at a charity kitchen in Gaza City on April 30, 2025. (Photo by Omar AL-QATTAA / AFP)

Even when food is available, many in Gaza cannot afford to buy it, as the enclave suffers from a severe cash shortage. Israel has blocked the entry of new currency into the territory since October 7, 2023, leaving residents at the mercy of money changers who have hiked exchange rates on remittances to exorbitant levels.

Palestinians in Gaza primarily rely on the Israeli shekel for daily transactions, which used to enter the strip through banks operating under the Palestinian Monetary Authority, supplied by the Bank of Israel.

Banking operations in Gaza have ground to a halt since the start of the war, and no fresh banknotes have entered the enclave, worsening an already dire humanitarian situation. Residents say they have been left at the mercy of traders who exploit the cash shortage to impose arbitrary rules on currency use.

'The Traders’ Game'

Dubbed “the traders’ game” by many in Gaza, the practice began with merchants refusing to accept worn-out banknotes and certain coins, such as the 10-shekel piece (worth about $3), which have all but vanished from local markets. Some vendors now reject older versions of bills - like the brown-hued 100-shekel note (around $28) - insisting instead on the newer yellow ones. The same rules apply to various denominations.

Speaking to Asharq Al-Awsat, Hani Jahjouh, a resident of al-Shati Camp west of Gaza City, said vendors selling vegetables and essential goods - when available - often refuse worn banknotes or specific coins, claiming they are counterfeit or easily faked.

“This just adds to the burden of people already crushed by impossible living conditions,” said Jahjouh, 59. “We don’t have solutions. We don’t even know where to get the money they’re asking for.”

Only a very small number of traders accept digital payments, and even then, residents say, they impose tough conditions - such as inflated prices or demands for partial payment in cash.

Displaced Gazan Duaa Ismail, originally from Beit Hanoun in the north of the enclave, says even when goods are available, she cannot afford them due to a lack of cash.

“We’re suffering badly from a shortage of money, and that makes it even harder to get basic items like flour and sugar - when they’re even in stock,” she told Asharq Al-Awsat from a shelter in Gaza City’s Sheikh Radwan neighborhood.

Ismail said that during a brief ceasefire, some traders had accepted digital payments through mobile apps. “But once the war resumed, things worsened, and they stopped taking them altogether,” she said.

Salaries They Can’t Spend

The crisis has also hit public-sector employees, private workers, and international aid staff, many of whom receive salaries through bank transfers or mobile wallets but have no way of accessing their funds with banks shuttered. They are forced to rely on currency dealers or traders with access to physical cash.

Amjad Hasballah, an employee with the Palestinian Authority, said he has been cashing his monthly salary through mobile banking apps for over a year and a half, paying a steep commission to money traders in return.

“When I received my last salary in early April, the commission had reached 30%,” he said.

Speaking to Asharq Al-Awsat, Hasballah explained that at the start of the war, commissions hovered around 5%, but they spiked during Ramadan, peaking at 35% around Eid al-Fitr, before dipping slightly to 30%.

“My salary is just 2,800 shekels. When I pay a 30% fee, there’s barely anything left,” he said bitterly. “At this point, the traders might as well take the whole salary and just give us pocket money.”

Caught in a Trap

Jamal Al-Mashal, a father of six who lost two children in an Israeli airstrike, said he lives off 1,000 shekels (about $280) in monthly international aid. But even that amount is slashed by up to 30% when he exchanges it through local traders.

“People in Gaza have become a cash trap for currency dealers and big traders,” he said. “They’re exploiting our desperation, and it’s like a harvest season for them - raking in profits while we suffer.”

The poorest and most vulnerable are hit hardest. Many international agencies rely on electronic payment platforms to distribute aid to these groups, who often have no access to physical currency.

No Oversight, No Restraint

The Hamas-run government has made attempts to cap commission rates at 5%, but those efforts have largely failed. Officials blame ongoing Israeli targeting of personnel involved in regulating the process.

Money changers defend the high fees, arguing that the lack of currency entering Gaza leaves them with limited options.

“We raise commission rates because there’s simply no new cash coming in,” one trader told Asharq Al-Awsat. “Once money is distributed to the public, we have no way of getting it back. What goes out doesn’t return.”

He added that while ministries and law enforcement have tried to impose limits, traders view the rules as unfair. “There have been attempts to regulate us, but we haven’t complied - they’re asking too much from us under impossible conditions,” he said.

Some municipal leaders and community elders in Gaza have recently appealed to the Palestinian Monetary Authority in Ramallah to intervene in what they describe as unchecked profiteering by traders controlling access to scarce cash.

They have called for greater oversight, including monitoring and freezing the traders’ bank accounts.

The authority has repeatedly warned against exploitation of civilians and threatened to take action. But in practice, traders continue to charge hefty commissions on money transfers with little deterrence.

The Authority has urged residents to use its Instant Payment System available through mobile banking apps, which it says offers a practical alternative to cash, promotes digital payments, and enables real-time transactions.

Cash Squeeze Tightens Further

Despite the hardship, Israel is considering new measures that could further tighten the financial stranglehold on Gaza. One proposal involves withdrawing the 200-shekel banknote (worth about $55) from circulation, on the grounds that Hamas allegedly uses it to pay salaries to its fighters.

The suggestion was reportedly made by Israeli Foreign Minister Gideon Sa’ar to Bank of Israel Governor Amir Yaron, who rejected the move. Other proposals include voiding the serial numbers of banknotes believed to be inside Gaza, effectively rendering them worthless, a step that could deliver a significant financial blow to Hamas.

According to a report published Tuesday by the Israeli daily Maariv, the proposal has backing from several ministers and economists both within and outside the central bank.

The report estimated that around 10 billion shekels in high-denomination bills - 100 and 200 shekels - remain in circulation within Gaza. These notes entered the enclave over the years through official banking channels supplied by the Bank of Israel.

Economists told Maariv that Gaza residents receive an estimated 150 to 200 million shekels each month through digital transfers from aid organizations and the Palestinian Authority. That money is then converted into cash within markets dominated by Hamas and supported by a network of money changers.

Israeli security sources estimate that Hamas has accumulated up to five billion shekels since the war began and has spent nearly one billion shekels on salaries for fighters and new recruits. The sources claim Hamas has profited significantly by reselling aid and fuel at inflated prices during the conflict.