• An armed mob protesting over a film they say offended Islam attacked the US consulate in Benghazi on September 11, 2012, setting buildings and cars on fire. AFP
    An armed mob protesting over a film they say offended Islam attacked the US consulate in Benghazi on September 11, 2012, setting buildings and cars on fire. AFP
  • American staff members of the US consulate died following fierce clashes at the compound, Libyan security sources said. Reuters
    American staff members of the US consulate died following fierce clashes at the compound, Libyan security sources said. Reuters
  • The US Consulate in Benghazi in flames. Reuters
    The US Consulate in Benghazi in flames. Reuters
  • Damage at the US Consulate. Reuters
    Damage at the US Consulate. Reuters
  • Christopher Stevens, the US ambassador to Libya, and three embassy staff were killed as they rushed away from the consulate building, stormed by Al Qaeda-linked gunmen. Reuters
    Christopher Stevens, the US ambassador to Libya, and three embassy staff were killed as they rushed away from the consulate building, stormed by Al Qaeda-linked gunmen. Reuters
  • Stevens was trying to leave the consulate building for a safer location as part of an evacuation when gunmen launched an intense attack, apparently forcing security personnel to withdraw. Reuters
    Stevens was trying to leave the consulate building for a safer location as part of an evacuation when gunmen launched an intense attack, apparently forcing security personnel to withdraw. Reuters
  • A Libyan man stands next to a wall apparently stained with blood at the main entrance of the US consulate in Benghazi on September 13, 2012. AFP
    A Libyan man stands next to a wall apparently stained with blood at the main entrance of the US consulate in Benghazi on September 13, 2012. AFP
  • Damage inside the burnt US consulate building in Benghazi. AFP
    Damage inside the burnt US consulate building in Benghazi. AFP
  • A burnt-out vehicle sits smouldering in flames after it was set on fire inside the US consulate compound in Benghazi late on September 11, 2012. AFP
    A burnt-out vehicle sits smouldering in flames after it was set on fire inside the US consulate compound in Benghazi late on September 11, 2012. AFP
  • Libya said it had made arrests and opened a probe into the attack, amid speculation that Al Qaeda rather than a frenzied mob was to blame. AFP
    Libya said it had made arrests and opened a probe into the attack, amid speculation that Al Qaeda rather than a frenzied mob was to blame. AFP

For Benghazi residents, 2012 attack on US compound started city's descent into violence


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Ten years after the September 11 attacks on the American diplomatic compound in Libya's eastern city of Benghazi, which killed US ambassador J Christopher Stevens and three other Americans, the embassy building remains empty and deserted, despite its restoration.

The building, in the central Beloun neighbourhood, is a witness to a city living with the scars of 10 years of violence.

"It was a quiet night,” Ibrahim Zaidan, 54, who lives near the embassy building, recalled.

  • The popular market in the centre of Benghazi bears the marks of years of fighting to oust armed extremist groups from Libya's second city. Photos: Khalil Al-Barghathi
    The popular market in the centre of Benghazi bears the marks of years of fighting to oust armed extremist groups from Libya's second city. Photos: Khalil Al-Barghathi
  • The headquarters of the Bank of Commerce and Development in the Al Sabri neighbourhood, one of the areas damaged most in the fighting.
    The headquarters of the Bank of Commerce and Development in the Al Sabri neighbourhood, one of the areas damaged most in the fighting.
  • The US Embassy street in Benghazi. The embassy building remains empty despite being rebuilt following the September 11 attack in 2012.
    The US Embassy street in Benghazi. The embassy building remains empty despite being rebuilt following the September 11 attack in 2012.
  • The Court, Passports and Nationality building on the Benghazi Corniche.
    The Court, Passports and Nationality building on the Benghazi Corniche.
  • The Italian Embassy building in the centre of Benghazi.
    The Italian Embassy building in the centre of Benghazi.
  • Damaged bank and commercial buildings in the Al Sabri area of Benghazi. Thousands of homes in the neighbourhood were also destroyed by fighting.
    Damaged bank and commercial buildings in the Al Sabri area of Benghazi. Thousands of homes in the neighbourhood were also destroyed by fighting.
  • Damaged residential buildings on Al Mahdawi Street in Benghazi.
    Damaged residential buildings on Al Mahdawi Street in Benghazi.
  • Al Khaleej Building on Benghazi's Amr Ibn Al-Aas Street.
    Al Khaleej Building on Benghazi's Amr Ibn Al-Aas Street.
  • According to the municipal authority, more than 28,000 families are internally displaced in the city.
    According to the municipal authority, more than 28,000 families are internally displaced in the city.

“Suddenly, armed clashes erupted and my children were screaming in fear. We ran to help but only found bodies lying on the ground and a big fire in the embassy building," he told The National.

"I did not realise at the time the extent of the danger that was to come. Today, after years of wars, destruction, killing and terror, I realised that the attack was a declaration of the control of terrorist groups over the city."

The damaged interior of the US consulate building in Benghazi after a militant attack on September 11, 2012. AFP
The damaged interior of the US consulate building in Benghazi after a militant attack on September 11, 2012. AFP

The Al Qaeda-aligned group Ansar Al Sharia launched the attack on the American diplomatic compound at 9.40pm on September 11, 2012, killing Stephens and US Foreign Service Information Management Officer Sean Smith. Hours later, at 4am, the group attacked a nearby CIA compound with mortars, killing two CIA contractors, Tyrone Woods and Glen Doherty, and wounding 10 others.

The attacks, coming a year after the overthrow of dictator Muammar Qaddafi in a popular uprising that began in Benghazi, came amid a general increase in lawlessness across Libya as rival groups and militias battled for power. The country remains divided between power centres in the east and west despite UN-led peace efforts.

Muhammad Al Warfali, 37, is one of many residents who left Beloun, a centre for international organisations and diplomatic missions, after the attack, fearing more violence.

“When I saw the building burning, I decided to move, especially after my wife was hit by shrapnel,” he said.

"I feared that my family would be injured or killed in similar attacks by terrorist groups, especially since my house was close to the headquarters of international organisations that may be targeted in the future,” he told The National.

“The attack was the beginning of a new phase of killing, vandalism and destruction that swept the city for years, as families were displaced and many innocents were killed,” said Shim Boufaneh, a Libyan researcher and political activist.

“Terrorist groups took control of the city after that attack, but hundreds of people demonstrated against their presence.”

The attacks announced the start of a wave of violence that would engulf the city for years until its liberation in 2017 by the Libyan National Army under the command of Field Marshal Khalifa Haftar.

Lost futures

For Khadija Al Tajouri, 34, the attack cost her the chance to study abroad.

“It destroyed my future,” said Ms Al Tajouri, now a graduate student at the University of Benghazi's Faculty of Law.

"I was one of 14 students applying to study abroad in 2012, in the US, UK and Malaysia, but procedures stopped completely and I was unable to obtain a visa because of that attack."

The impact of the attacks on travel was not short-lived, Ms Boufaneh said. "Young people and businessmen were the most affected, especially when in 2017 many were prevented from returning to the US because of the Donald Trump administration travel ban on Libyans.”

Ms Al Tajouri is one of many young Libyans who suffered economically and socially from the political repercussions, despite being opposed to the violence.

Ms Boufaneh said that once terrorist groups took control of Benghazi after the 2012 attack, they tried to recruit residents with money but were unsuccessful. “Hundreds took to the streets against them,” she said.

Destroyed by war

Libya is still suffering from conflict and war. Benghazi has lived in relative security after its liberation from extremist groups in 2017, but its streets still witness occasional fighting between security forces and armed criminal gangs, and residents live with the fear of new conflicts.

According to the Benghazi Security Directorate, terrorist activity has been almost eliminated, although there is a level of violence by criminals.

However, thousands of residents who had to flee the city during military operations against terrorist groups between 2014 and 2017 are still waiting to return to their homes.

Entire neighbourhoods that were completely destroyed in the fighting have yet to be rebuilt. According to the Benghazi municipality, 6,666 housing units were destroyed, especially in the central Al Sabri area and in Ikhrbish, and more than 28,000 families are internally displaced in the city.

“Most Libyans aspire to the rule of law and state institutions for which the 2011 revolution took place,” Mr Al Warfali said. “I want our children to see our country prosperous, safe and stable.”

“In the western region of the country, armed militias abound, unlike in the cities in the east, which now enjoy security. I look forward to the day when weapons are withdrawn from the hands of armed militias, and when the state imposes its control over the whole country,” the former Beloun resident said.

This article was written in collaboration with Egab.

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.”

Updated: June 13, 2023, 8:28 AM