Cairo Balances Haftar and Dbeibah

The News:

Egyptian President Abdel Fattah el-Sisi received Field Marshal Khalifa Haftar and his sons Khaled, the chief of staff, and Belqasem, director of the Development and Reconstruction Fund, on Wednesday, August 19, in the presence of General Intelligence Director Hassan Rashad. Sisi affirmed his support for Libya's unity, the unification of its institutions, and the holding of elections.

Background:

Cairo views eastern Libya as an extension of its national security due to the shared border. It has backed Haftar politically and militarily for years while also insisting on a political settlement and unified institutions. The visit comes amid domestic turmoil: growing protests against the Dbeibah government over power cuts and deteriorating services, and drone attacks on oil and power facilities in Zawiya.

Causes:

Egypt's interests in Libya go beyond protecting its western border from armed groups, smuggling, and irregular migration to include a share of the reconstruction and energy market. In 2026, the two countries signed a memorandum of understanding on oil, gas, and mining in January; the Egyptian Businessmen's Association launched a plan in July to expand companies' presence in the Libyan market; and Prime Minister Madbouly discussed expanding cooperation in gas, refining, and electricity interconnection with Dbeibah. Major Egyptian companies, including Orascom and Hassan Allam, operate in both east and west. Politically, Cairo does not want to face a settlement drawn up by Washington, Ankara, and Moscow without it. For its part, the east sees Egypt as an economic and political gateway that eases its isolation, especially after the approval of the first unified budget in more than a decade, with about 40 billion dinars for development projects.

Implications:

The relationship between Cairo and the east is shifting from a security partnership to one in reconstruction, trade, energy, and training, while Egypt is widening its room for maneuver toward Tripoli in an effort to turn influence tied to one camp into influence over the entire Libyan scene.

Why It Matters for the United States:

Washington now treats the Haftar camp as an unavoidable party in unifying institutions, as shown when Secretary Rubio and envoy Boulos hosted Saddam Haftar in Washington in June 2026. Egyptian influence could therefore become an indirect pressure channel pushing the east toward a settlement and the unification of the military and the oil sector, rather than leaving the field to Turkish and Russian competition, especially after Ankara moved from dialogue with Haftar to concrete military and training cooperation with his forces. But this role could become a complicating factor if it entrenches Haftar's power or upsets the east-west balance. Cairo acts according to its own priorities, not American ones, so its role remains a card Washington can use, not a substitute for direct U.S. engagement.