The UK High Court has agreed to delay a ruling on whom it recognizes as the rightful head of Libya’s sovereign wealth fund, the Libyan Investment Authority (LIA), on the advice of the British government.

Hasan Buhadi, who is the head of the fund recognized by the Baida-based administration in northeast Libya, launched legal proceedings in the UK in September 2015 in an effort to exclude Tripoli-backed rival ‘Abd al-Majid Breish from the LIA leadership.

The case was expected to...