Egyptian President Abdel Fattah El Sisi (R) meets the Chairman of the Presidential Council of Libya, Mohamed Al Menfi at the presidential palace in Cairo. Photo: Egyptian Presidency
Egyptian President Abdel Fattah El Sisi (R) meets the Chairman of the Presidential Council of Libya, Mohamed Al Menfi at the presidential palace in Cairo. Photo: Egyptian Presidency
Egyptian President Abdel Fattah El Sisi (R) meets the Chairman of the Presidential Council of Libya, Mohamed Al Menfi at the presidential palace in Cairo. Photo: Egyptian Presidency
Egyptian President Abdel Fattah El Sisi (R) meets the Chairman of the Presidential Council of Libya, Mohamed Al Menfi at the presidential palace in Cairo. Photo: Egyptian Presidency

Egypt hosts Libyan talks in fresh bid to end political crisis


Ahmed Maher
  • English
  • Arabic

The Egyptian capital Cairo is playing host to a new round of talks aimed at finding a solution to a political limbo in Libya, which could divide its institutions once again and lead to instability.

The UN-sponsored talks involve two delegations representing the parliament, which backs a new prime minister, and the High Council of State (HCS), which is against removing the incumbent whose mandate expired in December.

“The dialogue will kick off today after being delayed over the past few days,” Abdel Qadir Al Hewili, a senior member of the HCS, told The National from Cairo.

"This is progress in itself towards a solution to the political crisis, but the country isn’t out of the woods yet and this progress hangs by a fraying thread."

While the HSC is an advisory body to the government and the House of Representatives, it can express a binding opinion on these bodies under certain circumstances.

“Libya’s political crisis is deeply rooted in a legislative dilemma," Mr Al Hewili said. "The problem isn’t about a certain government, it has everything to do with the legitimacy of the government as the legislators sharply disagree over this point in particular.”

The UN is seeking to resolve the crisis by pushing for new elections soon and has asked political and legislative bodies to set up a joint committee to resolve constitutional and legal disputes that played a big role in cancelling what would have been the country’s first presidential election in December.

Abdel Qadir Al Hewili, a senior member at the High Council of State, attends today’s session in Cairo. He says the dialogue is progress in itself towards a solution to the political crisis. Photo: Abdel Qadir Al Hewili
Abdel Qadir Al Hewili, a senior member at the High Council of State, attends today’s session in Cairo. He says the dialogue is progress in itself towards a solution to the political crisis. Photo: Abdel Qadir Al Hewili

This has created a crisis in the North African country as politicians have argued over the control of executive power and triggered a new phase of political polarisation.

If unresolved, the dispute threatens to reverse the gains achieved over the past two years, when two parallel governments agreed in UN-sponsored talks to end years of civil war and chaos after a Nato-backed uprising against Muammar Qaddafi in 2011.

As the efforts failed in December to reunify the country, the parliament declared null the interim unity government that was meant to oversee the run-up to elections, and appointed Fathi Bashagha as the new prime minister.

The unity government's Prime Minister Abdul Hamid Dbeibah has refused to cede power. Armed factions of each side have mobilised in and around the capital.

The UN secretary general's special adviser on Libya, Stephanie Williams, will attend the Cairo talks, which are expected to last for several days.

In February, Ms Williams told The National that Libya must press ahead with free and fair elections otherwise a national disaster with no end in sight could ensue.

She said all of Libya's institutions suffer from a crisis of popular legitimacy, which can only be solved through the ballot box.

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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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Gulf Men’s League
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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

Updated: April 13, 2022, 9:34 AM