Libya risks its future by vengeful attacks



When rebels were celebrating their victory in Sirte last week, an image played on television foreshadowed a potentially violent split facing the "liberated" nation. A Qaddafi loyalist was lashed to the barrel of an anti-aircraft gun mounted on a pick-up truck. Dazed from the fighting, he was pleading for mercy.

We can only guess at this man's fate, although it's reasonable to assume that mercy played no part in it. On Monday, Human Rights Watch reported that it had discovered the corpses of 53 pro-Qaddafi fighters in a Sirte hotel. Some had their hands bound behind their backs when they were shot.

Factional rivalries were always below the surface as ragtag Libyan militants fought to depose Qaddafi's regime. But for months, the National Transitional Council - from its base in the eastern city of Benghazi - promised that when Muammar Qaddafi was gone, rebel fighters would coalesce under their leadership.

Today, that promise seems more than a little hollow.

After four decades of violent repression and dictatorial rule, Libyans can be excused for an excess of emotion. But violence - including cold-blooded murder - is not how Libya will break from its troubled past.

The NTC has sounded the right notes: elections within eight months, and frequent calls for reconciliation and unity. These words have brought praise from the foreign governments that contributed to Qaddafi's fall with air support and fire power.

As soon as the tide turned on the road from Benghazi to Tripoli, we warned in these pages of the possibility of war crimes, which could worsen Libya's historic rivalries. Those fears are now being realised. As The National reported yesterday, Tripoli remains "a patchwork of armed fiefdoms" battling "for the spoils of war". Similar power struggles are certain to emerge elsewhere; fighters from Misurata, with tribal loyalties of their own, have proven especially unwilling to cede control.

So far Nato's post-war strategy has been to leave Libya to Libyans. By the end of this month, the foreign military campaign will come to an end. Quick to declare victory after Qaddafi's death, all sides need to recognise that a stable Libya is still far from assured.

The future depends on Libyans themselves. But amid signs that the NTC is not in full control, every party must urge restraint in this unsettled time.

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Company%C2%A0profile
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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.”

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6.35pm: Palm West Beach - Maiden (TB) Dh82,500 (T) 1,800m

7.10pm: The View at the Palm - Handicap (TB) Dh85,000 (Dirt) 1,400m

7.45pm: Nakeel Graduate Stakes - Conditions (TB) Dh100,000 (T) 1,600m

8.20pm: Club Vista Mare - Handicap (TB) Dh95,000 (D) 1,900m

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9.30pm: The Palm Tower - Handicap (TB) Dh87,500 (T) 1,600m