Libya has seen dramatic changes in the course of its years-long civil war in the past few days. Most importantly, there appears to be the glimmer of a political solution that could steer the country into a new direction.
Field Marshal Khalifa Haftar’s Libyan National Army, based in eastern Libya, launched an offensive last April to retake Tripoli and unite the country. After intense fighting, Mr Haftar withdrew his forces from Tripoli, in a move that the Government of National Accord, led by Prime Minister Fayez Al Sarraj, and its foreign backers, primarily Turkey, took as a sign of victory. However, it is just another chapter in this bloody war that will not end without a political resolution. Field Marshal Haftar still has the strength to defend the west, which means more bloodshed.
In an attempt to pave the way for a political solution, neighbouring Egypt, which has backed Mr Haftar, drafted a truce deal on Saturday to move forward after years of bloody stalemate. Russia, the UK, France and the UAE have supported the deal, with Mr Haftar agreeing to a unilateral ceasefire. The Cairo Declaration calls for leaders on all sides to convene and share power in the oil-rich country while a new constitution is drafted. It also stipulates that a ceasefire begin on June 15, militias are disarmed and all foreign mercenaries withdraw from Libya. It is of paramount importance to heed the call of Egypt - and the UN - for a ceasefire.
If anything, the past 14 months have proven that no military solution can end Libya’s troubles. In the words of Anwar Gargash, UAE Minister of State for Foreign Affairs, the international community cannot accept continued fighting. “The only solution,” he tweeted “is a political deal that includes all warring sides”.
Instead of recognising that reality, the GNA is gearing up for further clashes. Mr Al Sarraj vowed to “eliminate the enemy” as he visited Turkish President Recep Tayyip Erdogan in Ankara last week. Turkey remains convinced that a military approach can help strengthen its position and increase its leverage in Libya and beyond. Backed by Turkish firepower and Turkish-paid Syrian mercenaries, the GNA is now moving eastwards towards the coastal city of Sirte, a major metropolitan area.
Sirte is a symbolic and strategic stronghold. The hometown of former dictator Muammar Gaddafi is located halfway between Tripoli and Benghazi. Once the heart of his loyalist base, it is also the place where he was eventually tortured and killed.
Sirte suffered intense bombardment by Nato forces in support of a popular revolt in 2011, and was later occupied by ISIS, in May 2015. The city was seized by the GNA in late 2016, before being retaken by the LNA earlier this year. The GNA refuses to hold talks or begin a ceasefire before it can reassert control over Sirte.
Like many in Libya, the people of Sirte have been displaced, killed and brutalised for years, only to be used as a bargaining chip by foreign-backed Islamists. Over 60,000 civilian lives are at stake.
It is now clear that, for the GNA, Turkey’s agenda in Libya is more important than stability and peace. Ankara’s support of the GNA falls within its plan to further the reach of Islamists in the region and to profit from the damage and instability they cause. Last November, Mr Al Sarraj and Mr Erdogan signed a military pact offering Turkish armed support to the GNA while a maritime agreement gave Ankara control of gas-rich areas in the Mediterranean disputed by Cyprus, Egypt and Greece.
Libya's struggle for freedom and opportunity, which began with the 2011 uprising, is no longer centred on the aspirations of Libyans
This barter led to a flood of Turkish mercenaries into Libya to fight alongside the GNA. Among the foreign fighters are disenfranchised youth recruited in Syria. In response, foreign fighters have joined the fray on the side of Mr Haftar.
Libya’s struggle for freedom and opportunity, which began with the 2011 uprising, is no longer centred on the aspirations of Libyans. Rather, it has been hijacked into a struggle for power with geopolitical implications and little regard for civilian lives.
Several ceasefire attempts have failed in the past, and with every failure the country descends into more violence and finds itself further away from a political solution. If it is truly a “national accord” that the GNA desires, then it is high time that it puts Libyan lives above its own agenda and that of its foreign backers, who are holding peace hostage.
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
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Results
International 4, United States 1
Justin Thomas and Tiger Woods (US) beat Marc Leishman and Joaquin Niemann (International) 4 and 3.
Adam Hadwin and Sungjae Im (International) beat Xander Schauffele and Patrick Cantlay (US) 2 up.
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Hideki Matsuyama and C.T. Pan (International) beat Webb Simpson and Patrick Reed (US) 1 up.
Abraham Ancer and Louis Oosthuizen (International) beat Dustin Johnson and Gary Woodland (US) 4 and 3.
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FIGHT CARD
Sara El Bakkali v Anisha Kadka (Lightweight, female)
Mohammed Adil Al Debi v Moaz Abdelgawad (Bantamweight)
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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
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.”