Egypt offers military training to Libya, citing ISIL threat



CAIRO // Egypt has offered to train pro-government forces battling rival armed groups in Libya, stepping up efforts to eradicate what it says is a threat to its own stability from the anarchy engulfing its neighbour.

The offer was the latest sign of intervention by competing Arab powers in Libya - a haven for Islamist militants and close to becoming a failed state - while Western governments are preoccupied with Iraq and Syria.

Egypt is trying to reassert its regional authority while also winning back the US military aid suspended after Cairo’s crackdown on the Muslim Brotherhood.

Egyptian military officials and representatives of pro-government Libyan forces have met several times over the past two months in Cairo and the Mediterranean city of Marsa Matrouh, Egyptian officials said.

“Intelligence and training” assistance were on the table, an Egyptian official said.

The spokesman of the Libyan general chief of staff, Ahmad Buzeyad Al Missmari, also confirmed Egypt had offered training for troops.

President Abdel Fattah El Sisi has called for decisive action against militants based in Libya, who Egypt says sneak across the border to help Ansar Bayt Al Maqdis militants attack Egyptian security forces in its Sinai desert.

Egyptian security officials have said Ansar Bayt Al Maqdis – the country’s most dangerous militant group – has contacts with ISIL which is now being targeted by US-led airstrikes in Iraq and Syria.

Mr El Sisi has publically backed but not joined the coalition airstrikes, which the UAE is a part of. He said last month that any global coalition against ISIL should tackle an array of extremist groups, making clear his main concern lay closer to home.

As ISIL’s influence spreads among the North Africa-based Islamist militant groups which send fighters to Syria and Iraq, Algeria too has plans to train Libyan forces.

But deeper involvement by Egypt brings onboard one of the biggest armies in the Middle East.

Libya has been torn apart by the worst violence since the overthrow of Muammar Qaddafi in 2011.

The government and elected parliament have relocated to Tobruk in the far east since losing control of the capital, Tripoli, where a rival administration has been created by mainly Islamist-aligned forces from the western city of Misurata.At the United Nations on Saturday, Libya asked the world for weapons to help restore security and rebuild its institutions so it does not have to “face terrorism alone”.

An Egyptian national security official said the country would not give arms. “Weapons in Libya are like rice,” he said, suggesting they were already abundant.

Officials say Cairo has no intention of intervening directly in the conflict.

* Reuters

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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.

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“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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