Libyan convoy affiliated with Bashagha turns back from Tripoli amid fears of clashes


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An armed convoy affiliated with Libya's new interim prime minister has turned back from its advance towards Tripoli after the UN warned of clashes as armed groups gathered near the capital.

Fathi Bashagha, who was sworn in by Parliament a week ago, is seeking a way to take office after the incumbent refused to cede power.

An attempt to install Mr Bashagha in the capital could ignite fighting between armed factions that support him, and others that back Abdul Hamid Dbeibah, who says he will leave office only after an election.

Mr Bashagha had said on Tuesday that he would arrive in Tripoli within two days, promising to take over the government there peacefully.

Military officials said the convoy set out from Misurata but was unable to find a route into Tripoli without meeting opposition from factions that back Mr Dbeibah, Reuters reported.

Mr Bashagha's office said the convoy was “a security force” not seeking a war, and that it returned to its previous base on Thursday in response to demands from international and regional friends.

A witness outside Tripoli, who was on the main coastal motorway heading towards Misurata, revealed that there were military vehicles and fighters stationed in places along the road but said traffic was moving normally and there was no sign of clashes.

  • A man shows his electoral card during a protest against the postponement of the Libyan presidential election initially planned for December 24, 2021, in Benghazi, Libya. Reuters
    A man shows his electoral card during a protest against the postponement of the Libyan presidential election initially planned for December 24, 2021, in Benghazi, Libya. Reuters
  • A woman holds a banner during a protest against the delay to the Libyan presidential election, in Benghazi, Libya, on December 24, 2021. Reuters
    A woman holds a banner during a protest against the delay to the Libyan presidential election, in Benghazi, Libya, on December 24, 2021. Reuters
  • A man protests against the postponement of the Libyan presidential election, in Benghazi, Libya. Reuters
    A man protests against the postponement of the Libyan presidential election, in Benghazi, Libya. Reuters
  • A demonstration against the postponement of the Libyan presidential election, in Benghazi, Libya. Reuters
    A demonstration against the postponement of the Libyan presidential election, in Benghazi, Libya. Reuters
  • A protest in Benghazi, Libya, against the delaying of the presidential election. Reuters
    A protest in Benghazi, Libya, against the delaying of the presidential election. Reuters
  • Libyans in Benghazi demonstrate against the postponement of elections. AFP
    Libyans in Benghazi demonstrate against the postponement of elections. AFP
  • Libyans demonstrate against the postponement of elections, in the city of Benghazi. AFP
    Libyans demonstrate against the postponement of elections, in the city of Benghazi. AFP

The US ambassador to Libya, Richard Norland, tweeted that he had spoken to Mr Bashagha and “commended him on his willingness to de-escalate tensions today and seek to resolve the current political disagreement through negotiations, not force".

The UN Libya mission had voiced concern at what it called “reports about the mobilisation of forces and movement of large convoys of armed groups that have increased tensions in and around Tripoli".

Libya has enjoyed a rare period of comparative calm since the collapse of a 14-month assault on Tripoli during the summer of 2020 by eastern forces in the civil war, leading to a peace process backed by the UN.

That process included the creation of Mr Dbeibah's interim government with a mandate to unify state institutions that had been divided for years between rival governments in east and west, and to oversee the run-up to national elections.

  • Libya's National Oil Corporation said armed militias had stormed Al Sharara oilfield on Saturday. Reuters
    Libya's National Oil Corporation said armed militias had stormed Al Sharara oilfield on Saturday. Reuters
  • Libya’s oil production returned to about 1 million barrels a day earlier this month. Reuters
    Libya’s oil production returned to about 1 million barrels a day earlier this month. Reuters
  • Al Sharara oilfield pumps out about 350,000 barrels per day. Reuters
    Al Sharara oilfield pumps out about 350,000 barrels per day. Reuters
  • Smoke from a damaged oil facility darkens the sky in Ras Lanuf, Libya. The country's oil facilities were damaged during the civil war. Getty Images
    Smoke from a damaged oil facility darkens the sky in Ras Lanuf, Libya. The country's oil facilities were damaged during the civil war. Getty Images
  • After Libya's civil war, experts were pessimistic about the recovery of its oil sector. AFP
    After Libya's civil war, experts were pessimistic about the recovery of its oil sector. AFP
  • A Libyan oil worker at a refinery inside the Brega oil complex in Libya.
    A Libyan oil worker at a refinery inside the Brega oil complex in Libya.
  • A pipeline at the Zueitina oil terminal, west of Benghazi. Reuters
    A pipeline at the Zueitina oil terminal, west of Benghazi. Reuters

However, the election process collapsed in December shortly before the scheduled vote and rival factions have argued over the right path forward.

Libya's parliament, which mostly took the eastern side during the civil war, declared that Mr Dbeibah's term of office had expired and announced a new transitional period under Mr Bashagha's new government and no elections until next year.

Mr Dbeibah has announced plans to hold an election in the summer.

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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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Based: Amman, Jordan

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Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed

Stage: early-stage startup 

Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.

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