This past week, Israeli Foreign Minister Eli Cohen announced what has since been called a planned, secret meeting in Rome with his Libyan counterpart, the Government of National Unity’s Najla Mangoush. The announcement, which Libyan Prime Minister Abdul Hamid Dbeibeh and Israeli Prime Minister Benjamin Netanyahu have both denied clearing, created a regional diplomatic fracas. It led to public protests in Libya, inter-agency finger-pointing in Israel, and Ms Mangoush’s dismissal and exit from Libya on a private plane.
While some sections of the media have focused on the possible harm this incident may have done to prospects for a Saudi-Israel deal, this is not the most useful question. On the 12th anniversary of the ouster of its leader Muammar Qaddafi, it is important to ask how this incident reflects Libya’s deep political dysfunction, and what can be done to mitigate the damage that its disintegration has caused inside and outside the country.
The story goes back decades. In 2003, the US struck a complex deal with Qaddafi in the shadow of the Iraq War, tied to two linked efforts: the co-opting of Qaddafi to support the War on Terror, and the attempted co-optation of Qaddafi’s Islamist enemies to serve the same end. Without a clear roadmap for the West-Libya relationship, however, the honeymoon slowly dissolved into mutual recriminations. Qaddafi became fond of saying: “I gave up my nuclear weapons [such as they were] – and for what?”
The US-Libya relationship cooled further under the Obama administration. This left the two countries without an open channel of communication, when things went haywire – which they did during the Arab uprisings that began in neighbouring Tunisia in late 2010. Isolated and enraged, Qaddafi became an easy sacrifice to a wave of regional change, when western intervention in Syria, for example, was unpalatable.
In the period between the intervention in March 2011 and Qaddafi’s public lynching months later, better-organised, better-funded and heavily armed Islamists and local militias attempted to sideline the so-called “moderates”, who participated in Qaddafi’s reform process and sold the US on intervention at the 11th hour.
Over the following year and a half, Libya’s security situation declined rapidly, even as the interim government managed to pull off two reasonably free and fair national elections – a testament to Libyans’ desire to redeem the revolution. By then, however, Libya’s medium-term fate was sealed.
Then, on September 11, 2012, Al Qaeda proxies attacked the US mission in Benghazi, driving the Americans, and much of the West, out of Libya. This paved the way for militants affiliated with Al Qaeda and ISIS to take over of much of Libya’s east, and contributed to chaos in Syria, the Sahel and elsewhere.
The attack forced the political transition process back in Tripoli into a nosedive, and in 2014 Libya split between east and west, following another round of elections. This was another turning point, as the winners were forced to decamp to Libya’s east, while the international community recognised the self-proclaimed government in the west. In the crucible of “Benghazi” was thus born the outlines of the current political architecture, with the eastern government backed by Field Marshal Khalifa Haftar’s Libyan National Army. Field Marshal Haftar, it is worth noting, previously served in the Libyan army under Qaddafi.
The sad fact is that today, despite their public acrimony, most of Libya’s powerbrokers can tolerate the conflict and status quo
Over the following years, the UN attempted to stitch the two governments together again, beginning with the 2015 Skhirat Agreement that created the so-called Government of National Accord. Obstacles were often overcome by fiat, and without drawing in those with significant influence on the ground – including Field Marshal Haftar. The mixing of elected and unelected bodies, with officials appointed by foreign bodies, effectively severed the thread of political legitimacy accorded by the early elections. Libya’s political scene became a Frankenstein of inconsistent external mandates and local militia rule. Western leaders, meanwhile, focused on the short-term political liabilities associated with ever-growing flow of African migrants entering Europe, and terrorist attacks linked to Al Qaeda training camps in Libya.
The sad reality is that today, despite the continued suffering of Libyans, many of the country’s powerbrokers much prefer to tolerate a broken status quo, rather than submit to national elections. This leads us back to the current Libya-Israel fracas.
The US and other countries have been hinting that it would like to see the Government of National Unity give way to yet another interim government that will then lead the country to elections – despite an obvious defect in that logic. There is a widespread belief among Libyans that their leaders are courting Israel to curry favour with the US, so that the latter will not press for elections. In Israel, opponents of Mr Netanyahu have suggested his government decided that taking credit for a high-level political encounter with Libya was more valuable than an actual deal between the two countries. The ground for such an agreement has not been prepared, and it would be tarred by questions of political legitimacy in any case. Libyans’ anger seems to be directed as much towards their politicians, as Israel and its policies towards the Palestinians.
As for other Arab countries’ willingness to join the Abraham Accords, this recent incident doesn’t help, but it probably won’t deter any meaningful future agreements. Where there is something to negotiate, any deal will come at a significant cost to all parties.
Ironically, there are new and old reasons for optimism.
For one, more analysts and policymakers outside of Libya seem to be coming to the inescapable conclusion that trying to sever the Gordian knot of warring militias in Tripoli is hopeless; that 12 years of war have inflicted an unacceptable cost not only on Libya but the region. There are more arguing that stability in Libya – and in the region – lies in bottom-up, not top-down, development, and that productive investment in regional infrastructure, jobs and services is possible without a fully functioning national government. There is also a realisation that there are creative (if expensive) ways for Europe to address the problem of migration and trafficking in people, which don’t involve complicity in the deaths of tens of thousands every year in the desert and on the Mediterranean.
Second, despite daunting problems, Libya remains wealthy in resources, if not peace, with extensive oil and gas reserves. Energy companies such as ENI, Sonatrach and BP have recently lifted force majeure, paving the way for a return to the country. Libya is also blessed with nearly limitless renewable resources, an enviable geography for Southern-Eastern Mediterranean and Africa trans-shipment, and a small population. Absent fighting, the country has all the makings of a major tourist destination, with hundreds of kilometres of pristine coastline and some of the best-preserved Roman and Greek antiquities.
If Israel wants to pave the way for a longer-term relationship with Libya, it would do well to resurrect some of its pioneering technical assistance programmes in Africa from the 1970s – in partnership with its new Arab partners. The UAE, for instance, has made a tremendous difference in Africa through its post-independence agricultural, water and infrastructure investments – and more recently, through building some of the most advanced port and logistics infrastructure on the continent.
What Libyans need are friends who see the country as a potential asset, not a perpetual problem, or a lever to score domestic political points. It needs countries, and companies, who are willing to take measured risks to help unwind the damage done, and who realise that repeating the same mistakes is only going to create more problems for the region.
Scores
Scotland 54-17 Fiji
England 15-16 New Zealand
The Sky Is Pink
Director: Shonali Bose
Cast: Priyanka Chopra Jonas, Farhan Akhtar, Zaira Wasim, Rohit Saraf
Three stars
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
The specs: 2019 Haval H6
Price, base: Dh69,900
Engine: 2.0-litre turbocharged four-cylinder
Transmission: Seven-speed automatic
Power: 197hp @ 5,500rpm
Torque: 315Nm @ 2,000rpm
Fuel economy, combined: 7.0L / 100km
AUSTRALIA SQUAD
Aaron Finch (captain), Ashton Agar, Alex Carey, Pat Cummins, Glenn Maxwell, Ben McDermott, Kane Richardson, Steve Smith, Billy Stanlake, Mitchell Starc, Ashton Turner, Andrew Tye, David Warner, Adam Zampa
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.”
Roll of honour 2019-2020
Dubai Rugby Sevens
Winners: Dubai Hurricanes
Runners up: Bahrain
West Asia Premiership
Winners: Bahrain
Runners up: UAE Premiership
UAE Premiership
Winners: Dubai Exiles
Runners up: Dubai Hurricanes
UAE Division One
Winners: Abu Dhabi Saracens
Runners up: Dubai Hurricanes II
UAE Division Two
Winners: Barrelhouse
Runners up: RAK Rugby
LEADERBOARD
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SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
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The%20specs
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The biog
Born: High Wycombe, England
Favourite vehicle: One with solid axels
Favourite camping spot: Anywhere I can get to.
Favourite road trip: My first trip to Kazakhstan-Kyrgyzstan. The desert they have over there is different and the language made it a bit more challenging.
Favourite spot in the UAE: Al Dhafra. It’s unique, natural, inaccessible, unspoilt.
The biog
Name: Salem Alkarbi
Age: 32
Favourite Al Wasl player: Alexandre Oliveira
First started supporting Al Wasl: 7
Biggest rival: Al Nasr
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The five new places of worship
Church of South Indian Parish
St Andrew's Church Mussaffah branch
St Andrew's Church Al Ain branch
St John's Baptist Church, Ruwais
Church of the Virgin Mary and St Paul the Apostle, Ruwais
Ads on social media can 'normalise' drugs
A UK report on youth social media habits commissioned by advocacy group Volteface found a quarter of young people were exposed to illegal drug dealers on social media.
The poll of 2,006 people aged 16-24 assessed their exposure to drug dealers online in a nationally representative survey.
Of those admitting to seeing drugs for sale online, 56 per cent saw them advertised on Snapchat, 55 per cent on Instagram and 47 per cent on Facebook.
Cannabis was the drug most pushed by online dealers, with 63 per cent of survey respondents claiming to have seen adverts on social media for the drug, followed by cocaine (26 per cent) and MDMA/ecstasy, with 24 per cent of people.
Babumoshai Bandookbaaz
Director: Kushan Nandy
Starring: Nawazuddin Siddiqui, Bidita Bag, Jatin Goswami
Three stars
What is a Ponzi scheme?
A fraudulent investment operation where the scammer provides fake reports and generates returns for old investors through money paid by new investors, rather than through ligitimate business activities.
Nepotism is the name of the game
Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad.