Prime Minister Abdul Hamid Dbeibah. AFP
Prime Minister Abdul Hamid Dbeibah. AFP
Prime Minister Abdul Hamid Dbeibah. AFP
Prime Minister Abdul Hamid Dbeibah. AFP

Libya’s unity PM set to stand in December election as divisions deepen


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Libya’s Prime Minister Abdul Hamid Dbeibah will put himself forward for the country’s December elections despite an earlier promise not to stand, senior government officials said on Sunday.

The country’s Higher National Elections Commission said at the weekend that registration for the December 24 presidential and parliamentary polls would open on Monday.

The head of Libya's national elections commission, Imad Al Sayeh, gives a press conference in the capital Tripoli as a translator converts the speech into sign language. AFP
The head of Libya's national elections commission, Imad Al Sayeh, gives a press conference in the capital Tripoli as a translator converts the speech into sign language. AFP

Mounting political tension has strained Libya’s fragile transition process, with wrangling over the legal basis for the vote, which was agreed in a UN-backed road map to end a conflict between parallel administrations in the country’s east and west.

The fighting halted with the formation of the UN-mediated interim government led by Mr Dbeibah to reunify institutions and plan the end-of-year vote. He and others in the government swore not to run, but his about-turn was long predicted by analysts.

Deep divisions between competing sides threaten both the December 24 vote and the wider peace process, seen as the country’s best hope in years of ending the instability and violence that has plagued Libya since dictator Muammar Qaddafi was overthrown in 2011.

An election law proposed by the parliament in September was rejected by the body's critics, including other political entities, for breaching some conditions set by the UN road map.

The law set a first round of the presidential election in December but said the date for parliamentary elections would not be set until January.

The election commission chairman Emad Al Sayeh, who has previously said parliamentary elections would take place within 30 days of the presidential election, said it had received amendments to the law from the parliament.

Registration for presidential election candidates would be open until November 22 and for parliamentary candidates until December 7, he said.

Other potential candidates include Khalifa Haftar, the commander of eastern-based forces in the civil war; Saif Al Islam Qaddafi, the son of the former dictator; the parliament head Aguila Saleh; and a former interior minister, Fathi Bashagha.

The vote law to govern the elections and other procedural matters have yet to be agreed.

There is still sporadic fighting between armed groups, and deep mistrust between the eastern and western factions. Thousands of foreign fighters are still on the ground, despite numerous calls from international officials for them to leave.

Days before diplomats meet in Paris for an international conference later this week to support the transition, Libya’s ruling presidential council on Saturday suspended Foreign Minister Najla Mangoush and barred her from travelling abroad. It said it was investigating what it described as the monopolisation of the country’s foreign policy without co-ordination with the government.

Libyan Foreign Minister Najla Mangoush. AFP
Libyan Foreign Minister Najla Mangoush. AFP

A spokeswoman for the council did not elaborate on the circumstances behind the decision.

The government challenged the council, a three-member body led by former diplomat Mohamed Al Menfi that serves as Libya’s president.

It said the council had “no legal right” and vowed that Ms Mangoush would perform her duties as normal. The unity government said the powers to “appoint or cancel the appointment of members of the executive authority, suspend them or investigate them” were exclusive to Mr Dbeibah.

Summer special
Moon Music

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Label: Parlophone/Atlantic

Number of tracks: 10

Rating: 3/5

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Director: Shady Ali
Cast: Boumi Fouad , Mohamed Tharout and Hisham Ismael
Rating: 3/5

Updated: November 07, 2021, 2:47 PM