Property disputes will exacerbate Libya conflict

Subject

The impact of the property rights question.

Significance

Longstanding grievances over former leader Muammar al-Qadhafi's property redistribution policies were one of several motivating factors in the 2011 revolution against him. The question of how to address the consequences of such policies has since been one of the most divisive legacy issues faced by the interim authorities. Efforts to amend Qadhafi's most controversial redistribution laws have foundered amid deteriorating security. Some owners have taken the law into their own hands to reclaim property and land, making this issue a key driver in localised conflicts. The lack of clear title has also hampered the post-revolutionary economy. Resolving the prickly issue of property rights will be one of the key challenges of the country's transition.

Impacts

• Left unchecked, long-running tensions over property are likely to tear further at Libya's social fabric.
• The prospect of navigating the maze of competing property claims will prove a major deterrent for potential investors.
• Without clarity on titles, developing the private sector and lessening dependence on the hydrocarbon sector will be hampered.