In 2011, after the Arab uprisings reached Libya, the nation turned away from the iron-fisted and eccentric rule of Muammar Qaddafi to become a country with great hopes but few rules.
There is nothing positive to say about the tyrannical leadership of the nation's former dictator. But his total grip on power in the country for decades and the suddenness of his departure, through popular protest and Nato intervention, created a vacuum that was soon filled by a variety of malign forces. Some originated domestically, but many came from abroad. Despite the fact that the military intervention in Libya was sanctioned by the UN, no international forces were posted to protect the country after the collapse of Qaddafi's regime.
Libyans watched as smugglers overran their country, trafficking guns, narcotics and, most tragically, people. Victims of these gangs, particularly migrants attempting to reach Europe, are vulnerable to all forms of abuse and live in appalling conditions, adding to the trauma of their already dangerous journey. Meanwhile, militias that emerged in the fight against Qaddafi became powerful players, getting salaries directly from Libya’s state budget.
Extremist groups flourish in the chaos. As ISIS's presence in Syria and Iraq waned, parts of the organisation regrouped in Libya. With no national security services to battle it, ISIS lives on in the nation largely undisturbed.
Fighting has blighted Libya for years. AFP
This threatens neighbouring states. Egypt, for example, shares a border with the country that extends over 1000 kilometres, making it extraordinarily difficult to secure. Terrorists targeting Europe continue to use Libya as a base for training and organising attacks.
The moral ambitions of Libya’s uprising were poisoned early on. Islamists quickly found a place in the Government of National Accord. Another factions were found in the rival Libyan National Army.
Egypt shares a border with the country that extends over 1000 kilometres, making it extraordinarily difficult to secure
Now, the UAE along with other powers is calling for a peaceful settlement through renewed diplomatic efforts and political solutions. Lana Nusseibeh, the UAE's Permanent Representative to the UN, recently backed a Security Council call for all foreign forces to withdraw from Libya.
With so many different players involved, settling on a route to peace is not easy. Ms Nusseibeh's statement advocates securing and maintaining a ceasefire as the surest first step. She also called for the implementation of conclusions reached in last year's Berlin conference.
At that conference, 12 nations and a host of international bodies gathered to agree on a framework for stability in Libya. Its conclusions included an acknowledgement that there could never be a military solution to the crisis, the necessity of maintaining an arms embargo and the need for robust monitoring of the situation in the country.
The conference also reaffirmed the importance of a domestically led political process, something that would empower the group most marginalised by the conflict: the Libyan people. Yesterday, Libyan delegates met once again in Geneva, in an effort to choose a new executive body to help bring the country to elections next December. A stable transition of power would benefit Libyans and the world greatly.
Without international recognition that Libyan affairs rest foremost in Libyan hands, citizens of the country – 10 years on from the tyranny of Muammar Qaddafi – will be locked in the different tyranny of a failed state.
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
The National in Davos
We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.
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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.”
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
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