Nation watches as Qadafi declares: 'We are here'


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RABAT // On Tuesday evening, Libyans switched on the state-run television channel, Jamahiriya, to a long-unimaginable sight: the country's leader, Muammer Qadafi, settling into Libya's chair at the UN security council during a private visit that day. "He took pen and paper and wrote in English, 'We are here' and 'I was here', then signed it," said Mustafa Fetouri, a political analyst in the capital, Tripoli, who watched the footage.

Mr Qadafi's triumphant note expressed the core subtext of his first ever address on Wednesday to the UN General Assembly, a hour-and-a-half discourse calling for a dramatic overhaul of the world body and featuring a grab-bag of provocative remarks, analysts said. The visit comes in a year of victories for the Libyan leader, who in January was elected to chair the African Union and this month celebrated 40 years in power since overthrowing Libya's pro-western king in a military coup, banning political parties and reorganising the country as a Jamahiriya, or "state of the masses", with himself as Brother Leader and Guide of the Revolution.

Shunned for decades by western countries for its support of militant groups, Libya has since repaired relations with the US, UK and other countries, seen international sanctions lifted and currently holds a seat on the UN Security Council. Meanwhile, the UN General Assembly is presided over by a Libyan diplomat, Ali Treki, who introduced Mr Qadafi on Wednesday as "king of kings" before the Libyan leader launched a fiery critique of what he called the inequality in the UN between the mighty and the poor.

"How can we be happy about the world security if the world is controlled by four or five powers?" Mr Qadafi said, suggesting that the veto power of the Security Council's five permanent members be annulled. "It should not be called the Security Council, it should be called the terror council." "When he speaks about international law, he's talking to western countries," said Mr Fetouri, a professor of business management at Tripoli's Academy of Graduate Studies. "But his harshness was for Libyan consumption - he's stated such views many times before, in Libya."

"Through a blend of tough control, but also understanding his people, he's been remarkably enduring," said Jon Marks, a Libya expert and chairman of Cross-Border Information, a British risk-assessment firm. "He feels invulnerable." However, Mr Qadafi's criticisms of the UN, while well-founded, also raise questions about Libya, said Mr Fetouri. Among the 65 wars the Libyan leader said the UN had failed to prevent were Libya's incursions in the 1970s and 1980s into neighbouring Chad.

"When you call for certain events to be investigated by [the] UN, you have to remember that you may be in line for investigation as well," said Mr Fetouri. Mr Qadafi's performance seemed to fatigue his listeners, some of whom left the room while he fumbled with handwritten notes, defended the Taliban's right to establish an Islamic emirate, speculated that swine flu had been prepared in a laboratory and demanded that the West pay US$7.77 trillion (Dh28.5trillion) to African countries in reparations for European colonialism.

Many Libyans have come to accept Mr Qadafi's eccentricities, said Mr Marks. Some say his growing stature gives him the right to speak his mind. "He doesn't need to moderate what he says in front of America or Europe," said Mohammed, a Tripoli bookshop owner who did not want his surname given, by telephone. "He's not just representing Libya now, but the whole African Union." For Ali Bouredi, a hotel owner in Tripoli, Mr Qadafi's call for reform of the UN chimed with the preceding speech by the US president, Barack Obama, urging countries to work together on global problems.

"I thought Mr Qadafi's speech was inclusive of Mr Obama's and came with a new vision," said Mr Bouredi by telephone. Libya has placed top priority on improving relations with the US, for years its chief adversary, a process that began in 1999 when Libya offered up suspects for trial in the 1988 Lockerbie bombing. In 2003, Libya renounced the quest for a nuclear weapon. In his speech on Wednesday, Mr Qadafi called Mr Obama "our son" and wished eternal presidency upon him. Washington has also sought keenly to mend ties with Libya, a goal unlikely to change despite anger over the perceived hero's welcome given in Tripoli last month to Abdel Bassat al Megrahi, the released Lockerbie bombing convict.

Mr Qadafi emphatically declined to heed US warnings to keep his remarks to the UN concise and restrained. "The only predictable thing about his visit to the US was that the brother leader was in no way going to spend 15 minutes thanking the global community," said Mr Marks. "He was going to stand up and tell people what he thinks." jthorne@thenational.ae

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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.”

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What the law says

Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.

“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.

“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”

If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.