Joint forces affiliated with Libya's Government of National Unity assemble inside the closed Tripoli International Airport, as they deploy on the outskirts and entrances of the capital Tripoli on July 25, 2022. - At least 16 people were killed and 52 wounded in fighting between armed groups in Tripoli, the health ministry said on July 23, following the latest politically driven violence to hit the Libyan capital. (Photo by Mahmud Turkia / AFP)
Joint forces affiliated with Libya's Government of National Unity assemble inside the closed Tripoli International Airport, as they deploy on the outskirts and entrances of the capital Tripoli on July 25, 2022. - At least 16 people were killed and 52 wounded in fighting between armed groups in Tripoli, the health ministry said on July 23, following the latest politically driven violence to hit the Libyan capital. (Photo by Mahmud Turkia / AFP)
Joint forces affiliated with Libya's Government of National Unity assemble inside the closed Tripoli International Airport, as they deploy on the outskirts and entrances of the capital Tripoli on July 25, 2022. - At least 16 people were killed and 52 wounded in fighting between armed groups in Tripoli, the health ministry said on July 23, following the latest politically driven violence to hit the Libyan capital. (Photo by Mahmud Turkia / AFP)
Joint forces affiliated with Libya's Government of National Unity assemble inside the closed Tripoli International Airport, as they deploy on the outskirts and entrances of the capital Tripoli on July

UN extends Libya mission for three months at Russia’s insistence


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The UN Security Council voted to extend its political mission in Libya, but at Russia’s insistence for only three months rather than a year-long mandate.

The council’s three African members abstained to protest Russia’s blocking the longer extension they say is needed to help the divided country move to elections and stability.

Russia’s deputy ambassador, Dmitry Poyansky, reiterated Moscow’s position that the U.N. mission must get a new special representative before it has a longer mandate.

UN special envoy Jan Kubis resigned last Nov. 23 after 10 months on the job, and a number of candidates proposed by U.N. Secretary-General Antonio Guterres have been rejected either by council members, Libya or neighboring countries.

After Kubis left, Guterres appointed veteran American diplomat Stephanie Williams, a former UN deputy special representative in Libya, as his special adviser. But council diplomats said she is leaving that post Sunday, which means the mission will have no leader as Libyans grapple with a constitutional and political crisis.

US Ambassador Linda Thomas-Greenfield said the United States shares the frustration of the council’s three African members — Ghana, Kenya and Gabon. She called Russia’s contention that a three-month extension until Oct. 31 will somehow spur the selection of a new special representative “specious.”

The mission is important for the Libyan people “in supporting preparations for elections, monitoring the cease-fire, reporting on human rights issues, and providing technical assistance on state finances and budget,” she told the council after the 12-0 vote.

“It does a disservice to them, and all of us, to play games with the mandate,” she added.

Oil-rich Libya has been wracked by conflict since a NATO-backed uprising toppled and killed longtime dictator Moammar Gadhafi in 2011.

The country was split by rival administrations, one in the east backed by military commander Khalifa Hifter and a U.N.-supported administration in the capital of Tripoli in the west. Each side is supported by different militias and foreign powers.

In April 2019, Haftar and his forces, backed by Egypt and the United Arab Emirates, launched an offensive trying to capture Tripoli. His campaign collapsed after Turkey stepped up its military support for the U.N.-supported government with hundreds of troops and thousands of Syrian mercenaries.

An October 2020 cease-fire accord led to an agreement on a transitional government in early February 2021 headed by Prime Minister Abdul Hamid Dbeibah and to the scheduling of elections for last Dec. 24. But the elections weren’t held.

Dbeibah has refused to step down, and in response the country’s east-based lawmakers elected a rival prime minister, Fathy Bashagha, a former interior minister who is now operating a separate administration out of the city of Sirte.

Assistant Secretary-General Martha Pobee told the council Monday that the overall situation in Libya remains “highly volatile,” with a tense security situation, “deeply disturbing” shows of force and sporadic violence by militias engaged in political maneuvering.

She also cited a dispute over leadership of the National Oil Corporation and serious human rights concerns, including the reported arrest by armed groups of dozens of protesters who took part in July 1 demonstrations decrying deteriorating living conditions and demanding progress on elections

Polyansky said Russia understands the view of his African colleagues, but he defended limiting the mission’s mandate without the appointment of a new special representative, saying it is unusual the body “has remained headless for quite some time already.”

He warned that Libya “has approached a red line, upon the crossing of which armed conflict may resume.”

“What’s at stake now is the future of Libya and its people,” Polyansky said after the vote.

Solomon Korbieh, minister-counselor at Ghana’s UN Mission, said the fifth brief extension of the mission’s mandate demonstrated again the Security Council’s failure “to show commitment to the Libyan people.”

He called on council members “to place the overall interests of Libya above all else” and work with the secretary-general to find a new leader for the mission.

“The people of Libya are crying for elections as a basic step towards the rebuilding of their nation and this council cannot let them down,” Korbieh said.

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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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Updated: July 29, 2022, 5:59 PM