Libyan rebels teach volunteer recruits how to use an anti-aircraft gun at a base in Benghazi.
Libyan rebels teach volunteer recruits how to use an anti-aircraft gun at a base in Benghazi.
Libyan rebels teach volunteer recruits how to use an anti-aircraft gun at a base in Benghazi.
Libyan rebels teach volunteer recruits how to use an anti-aircraft gun at a base in Benghazi.

Libyan rebels' Benghazi stronghold prepares for the worst


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BENGHAZI // Just days ago, the fervour of the residents of this seaside city could not be contained.

Freed from the yoke of Muammar Qaddafi and his spies for the first time in decades, Benghazis luxuriated in their new-found freedom, speaking their minds night and day without fear of penalty and imprisonment - or worse.

Now, however, storm clouds are gathering over what may be an all-too-brief political spring in Benghazi. Forces loyal to the Libyan leader are drawing near, and a note of fear has crept into those once irrepressible voices.

Rebels lost control of the oil port of Brega yesterday and government warplanes launched air strikes on the rebel-held town of Ajdabiyah, only 140km south of here. From Ajdabiyah, a highway cuts through the desert directly to Tobruk and the Egyptian border. Within days, Benghazi could be surrounded by pro-Qaddafi forces.

Abdel Fattah Younes, a former minister of interior and now rebel chief of staff, called the retreat a "tactical withdrawal", but the signs of crumbling rebel lines and fraying security are everywhere.

Qaddafi loyalists are re-emerging, and as the enemy closes in from without, the fear of the enemy within casts a lengthening shadow for the rebels and their supporters.

"During the day, there are a lot of people in the streets and we feel secure," said Azzadine al Farjan, a 20-year-old shopkeeper in Benghazi. "But in town there are still some Qaddafi supporters, former members of his revolutionary committees."

"We have a list with their names," boasted Mustafa Gheriani, an opposition spokesman. "We will arrest them."

Despite the creation by the rebels of patrols to police Benghazi's streets at night, violence has escalated.

A cameraman for al Jazeera, Ali Hassan Jaber, a Qatari national, was shot dead on Saturday while driving on the outskirts of Benghazi. Jaber and other members of the al Jazeera television crew were ambushed as they returned to Benghazi city centre after covering a demonstration outside the city.

"It is clearly a targeted attack against the press, in particular against al Jazeera," said Mohammed Sharif, 25, a dentistry student at Benghazi University.

The killing of the al Jazeera journalist was the latest sign that Col Qaddafi's allies in Benghazi have become bolder as his forces close in.

As reports from the battlefield turned grimmer for the rebels last week, unknown assailants tossed a grenade before dawn at a Benghazi hotel popular with foreign journalists, and bomb threats against known rebel gathering places escalated.

By Sunday, rebel-assigned security guards were ubiquitous at hotels, and the courthouse, once a hive of insurgent activity, was silent except for the occasional laughter of a young boy watching cartoons on televison.

Benghazi's nights are now punctuated by the pop and roar of explosions. Their source is a mystery.

"A Molotov cocktail was thrown at my neighbour's house," said Mr Sharif. The targeted family had no political affiliation and had not been active in the rebellion, he said. The attack, like others in Benghazi, appear intended simply to terrorise the population.

"Do not go around after dusk," advised a pro-Qaddafi taxi driver. "There's a lot of armed people roaming around town, trying to rob people."

There appears to be no brake on the slide towards bloodshed and anarchy here. After several weeks of combat, the insurgents still do not look like a cohesive army.

A senior rebel officer at the courthouse acknowledged the disorganisation of their ranks, but added optimistically that arms and more skilled fighters were moving to the front.

"Five days ago, professional army officers and members of the special forces joined the youth, which is now on the second lines of the battle," the officer said.

"Our problem is the regime attacks from the air," he said. "This is why we are asking the international community for a no-fly zone."

For the people of Benghazi, the weapons for the upcoming battle, which appears all but inevitable, are likely to be the arms that were looted from military bases during the start of the uprising last month.

With the aid of local mosque officials, rebel leaders are trying to collect the looted arms to prevent them from falling into the wrong hands and to discourage armed violence. Few here think their campaign will be successful, however.

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First Person
Richard Flanagan
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yallacompare profile

Date of launch: 2014

Founder: Jon Richards, founder and chief executive; Samer Chebab, co-founder and chief operating officer, and Jonathan Rawlings, co-founder and chief financial officer

Based: Media City, Dubai 

Sector: Financial services

Size: 120 employees

Investors: 2014: $500,000 in a seed round led by Mulverhill Associates; 2015: $3m in Series A funding led by STC Ventures (managed by Iris Capital), Wamda and Dubai Silicon Oasis Authority; 2019: $8m in Series B funding with the same investors as Series A along with Precinct Partners, Saned and Argo Ventures (the VC arm of multinational insurer Argo Group)

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.”

PROFILE OF INVYGO

Started: 2018

Founders: Eslam Hussein and Pulkit Ganjoo

Based: Dubai

Sector: Transport

Size: 9 employees

Investment: $1,275,000

Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri

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Company Profile

Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million

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Engine: 2.0-litre 4cyl turbo

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Torque: 400Nm at 1,750-4,000rpm

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Fuel consumption: 9.1L/100km

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