Libya could again return to instability under two rival administrations, the UN has warned.
Undersecretary General Rosemary DiCarlo told the UN Security Council on Wednesday that elections are needed to unify the North African nation as soon as possible.
Ms DiCarlo said she is encouraged by support for a UN initiative to convene a joint committee from Libya’s rival House of Representatives and High State Council.
The goal is for both bodies to reach an agreement “on a constitutional basis that would lead to elections this year”.
The crisis erupted after Libya failed to hold its first presidential election on December 24 under a UN-led reconciliation effort.
The House of Representatives, based in the country's east, named a new interim prime minister, former interior minister Fathi Bashagha, in February.
The politicians claimed that the mandate of incumbent Prime Minister Abdul Hamid Dbeibah, who is based in the capital, Tripoli, expired when the election failed to take place.
However, Mr Dbeibah insists he will remain in office until elections are held. The High State Council, which advises his government, criticised the move by parliament to name a new prime minister before elections are held, describing it as “incorrect”.
On March 3, UN special adviser on Libya Stephanie Williams asked the speaker of the House of Representatives and the president of the High State Council to appoint six members to the joint committee and both responded favourably, said Ms DiCarlo.
She said the council nominated its representatives on Tuesday and the UN expects the House of Representatives to do the same in the coming days.
Separately, Ms Williams has offered to mediate between Mr Dbeibah and Mr Bashagha “to overcome the current political impasse”, Ms DiCarlo said.
Libya election cancellation in December - in pictures
Libya plunged into chaos after a Nato-backed uprising in 2011 toppled longtime dictator Muammar Qaddafi.
For years, the country has been split between rival administrations in the east and the west, each supported by an array of militias and foreign governments.
In April 2019, eastern-based Field Marshal Khalifa Haftar and his Libyan National Army launched an offensive to capture Tripoli. The campaign collapsed after Turkey and Qatar stepped up their military support for the Tripoli government.
Mediated by Ms Williams, who was acting UN envoy at the time, an October 2020 ceasefire agreement led to the formation of a transitional government led by Mr Dbeibah, and scheduled elections for December 24.
Worrying developments
Ms DiCarlo said the continuing standoff over “executive legitimacy” could again lead to two parallel administrations, “instability and, possibly, unrest and deal a severe blow to the prospect of elections”.
She said there have been “worrying developments” since March 1, when the House of Representatives held a vote of confidence on Mr Bashagha’s new government.
The vote was marred by “procedural flaws and threats of violence against some members of the chamber and their families”, according to reports received by the UN.
Ms DiCarlo pointed to the continuing suspension of flights between cities in the east and Tripoli, and “forces in western Libya supporting either side" moving on March 9-10 towards the capital”.
She said Ms Williams engaged both sides “and managed to reduce tensions”.
However, the UN political chief issued a warning that “Libya is now facing a new phase of political polarisation, which risks dividing its institutions once again and reversing the gains achieved over the past two years".
match details
Wales v Hungary
Cardiff City Stadium, kick-off 11.45pm
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
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How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Killing of Qassem Suleimani
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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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