Libya's economic growth has varied wildly in recent years, with a 2.3 per cent fall in 2009 followed by a 10.6 per cent rise the next year.
Libya's economic growth has varied wildly in recent years, with a 2.3 per cent fall in 2009 followed by a 10.6 per cent rise the next year.
Libya's economic growth has varied wildly in recent years, with a 2.3 per cent fall in 2009 followed by a 10.6 per cent rise the next year.
Libya's economic growth has varied wildly in recent years, with a 2.3 per cent fall in 2009 followed by a 10.6 per cent rise the next year.

Business

Invest AD launching Libya fund

Invest AD is starting a Libyan investment fund, aiming to capitalise on fast growth in the north African country's oil-based economy.

Asa Fitch

January 21, 2011

  • English
  • Arabic

Invest AD, an investment company owned by the Abu Dhabi Government, is launching a fund to invest in Libya's young stock market.

The fund, seeded with Invest AD's own money, aims to take advantage of growth in Libya's oil-based economy and the development of a stock market founded only four years ago.

"Libya has taken positive steps to open its economy and is reaping the rewards, with very high rates of economic growth," said Nazem Fawwaz al Kudsi, Invest AD's chief executive. "We're glad to be there at an early stage of this process, and are very much long-term investors.

"This fund will contribute capital to some of the country's most promising businesses to help them grow for years to come," he said.

Only 25 stocks are listed in Libya, and the combined value of shares is only about US$2.2 billion (Dh8.08bn). Invest AD did not disclose the size of its fund.

Libya's economic growth has been volatile in recent years, with a 2.3 per cent fall in 2009 followed by a 10.6 per cent climb last year, according to IMF estimates.

But the country is Africa's largest oil producer - it produces about 1.8 million barrels per day - and is building up its energy infrastructure, which Invest AD is hoping will inject more money into the local economy and lead to a rise in stock-market activity.

More than 10 stock listings are already in the pipeline, Invest AD said. Part of the strategy for the new fund is to invest in initial public offerings and take stakes in private companies that are preparing to list.

The Libya fund adds to a growing portfolio of investment offerings from Invest AD in underdeveloped frontier markets. The company launched funds focused on Iraq and emerging African markets last year, adding to a suite of funds targeting the MENA region, the GCC and the UAE.

"We are very bullish on frontier markets, which have lagged [behind] the global markets recovery in the last couple of years but display some of the highest rates of economic growth in the world," said Mohammed al Hashemi, the head of asset management at Invest AD.

AS IT STANDS IN POOL A

1. Japan - Played 3, Won 3, Points 14

2. Ireland - Played 3, Won 2, Lost 1, Points 11

3. Scotland - Played 2, Won 1, Lost 1, Points 5

Remaining fixtures

Scotland v Russia – Wednesday, 11.15am

Ireland v Samoa – Saturday, 2.45pm

Japan v Scotland – Sunday, 2.45pm

While you're here
While you're here
The Year Earth Changed

Directed by:Tom Beard

Narrated by: Sir David Attenborough

Stars: 4

Key findings of Jenkins report
  • Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
  • Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
  • Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
  • Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Farage on Muslim Brotherhood

Nigel Farage told Reform's annual conference that the party will proscribe the Muslim Brotherhood if he becomes Prime Minister.
"We will stop dangerous organisations with links to terrorism operating in our country," he said. "Quite why we've been so gutless about this – both Labour and Conservative – I don't know.
“All across the Middle East, countries have banned and proscribed the Muslim Brotherhood as a dangerous organisation. We will do the very same.”
It is 10 years since a ground-breaking report into the Muslim Brotherhood by Sir John Jenkins.
Among the former diplomat's findings was an assessment that “the use of extreme violence in the pursuit of the perfect Islamic society” has “never been institutionally disowned” by the movement.
The prime minister at the time, David Cameron, who commissioned the report, said membership or association with the Muslim Brotherhood was a "possible indicator of extremism" but it would not be banned.

PROFILE OF HALAN

Started: November 2017

Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga

Based: Cairo, Egypt

Sector: transport and logistics

Size: 150 employees

Investment: approximately $8 million

Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar

Kareem Shaheen on Canada
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