The UN Security Council meeting last week in New York. AP
The UN Security Council meeting last week in New York. AP
The UN Security Council meeting last week in New York. AP
The UN Security Council meeting last week in New York. AP

UN Libya envoy urges 'unified government' for election


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UN Libya envoy Abdoulaye Bathily said on Tuesday that “a unified government, agreed upon by the major players, is an imperative for leading the country to elections”.

It was an apparent shift from an earlier position that elections should come first.

Libya's Government of National Unity in Tripoli has not been accepted by the eastern-based parliament since early 2021 after a failed attempt to have national elections.

The dangers of Libya's unresolved conflict were apparent last week when armed factions battled in Tripoli, killing 55 people in the worst fighting there in years.

UN diplomacy in recent years had focused on the urgency of holding national elections despite differences, rather than replacing GNU Prime Minister Abdulhamid Dbeibeh and forming another interim government to oversee the vote.

“It's a bad day for Dbeibah. The earth is shaking beneath his feet,” said Libya specialist Jalel Harchaoui of the Royal United Services Institution in London.

Mr Bathily has been pushing the parliament, known as the House of Representatives, and the High State Council – a second consultative body with a say over major political issues – to finalise electoral laws.

At the UN Security Council on Tuesday, he said he was exploring the possibility of convening a meeting “of the main stakeholders or their representatives” to resolve major issues.

Libya has had little peace or security since a 2011 Nato-backed uprising and it split in 2014 between warring eastern and western factions.

Although major warfare paused after a 2020 ceasefire, there is little trust between the main factional leaders.

Many Libyans suspect their political leaders have little interest in a lasting settlement or elections that could remove them from positions of authority that they have held for years.

“A negotiation over a new interim government has a chance because there is a carrot for rivals to participate,” said Tim Eaton, Libya researcher at Chatham House.

"But once it is created all incentives for elections disappear. And Bathily has no stick."

Mr Bathily said he was working with the head of the Tripoli-based Presidential Council, Mohammed Al Menfi, to look at bringing the main players to a meeting.

Besides Mr Al Menfi, he named House of Representatives speaker Aguila Saleh, Mr Dbeibeh and eastern commander Field Marshal Khalifa Haftar.

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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