The jihadist group, which controls large swaths of territory in Syria and Iraq, still poses a threat to Libya but the report cited several weaknesses in its operations in what has been widely viewed as an IS rear base.
"ISIL is only one player among multiple warring factions in Libya and faces strong resistance from the population as well as difficulties in building and maintaining local alliances," said the report by a sanctions monitoring team.
There is no indication that the extremist group is profiting from the refugee smuggling networks in Libya or that it has set up the elaborate extortion rackets that it runs in Syria and Iraq, according to the report.
"ISIL operations in Libya do not appear nearly as lucrative as its operations" in Syria and Iraq, it added.
The Islamic State first appeared in Libya in 2014 when a group of Libyan IS fighters returned from Syria and reorganized in the port city of Derna, declaring eastern Libya to be a province of the caliphate.
There has been growing international alarm about IS's influence in Libya since a video was released in February showing the horrific beheadings of Egyptian Coptic Christians.
But the report seemed to downplay fears that it was on the verge of a breakthrough in Libya.
"Currently, ISIL seems limited in its ability to expand quickly from its current stronghold," it said.
"While ISIL is able to perpetrate terror attacks in any part of Libya, its limited number of fighters does not allow for rapid territorial expansion."
At its highest point of influence, the group commanded a force of 1,100 men in Derna but many have since left for Sirte, where IS now has about 1,500 fighters.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
