The Libyan port town of Derna, where the Turkish ship was intercepted.
The Libyan port town of Derna, where the Turkish ship was intercepted.
The Libyan port town of Derna, where the Turkish ship was intercepted.
The Libyan port town of Derna, where the Turkish ship was intercepted.

Eastern Libya force says it intercepted Turkish ship


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Eastern-based Libyan forces have intercepted a Turkish ship under a Jamaican flag heading to the port of Misrata in western Libya, their spokesman said on Monday.

Turkey is the main foreign backer of the internationally recognised Government of National Accord (GNA), in the west, which has for years been fighting the eastern-based Libyan National Army (LNA).

LNA spokesman Ahmed Al Mismari added that the commercial cargo ship, Mabrouka, had 17 crew, including nine Turkish nationals, and containers that had not yet been inspected. LNA naval forces stopped it near the eastern port of Derna, he said.

A spokesperson for Turkey's Ministry of Foreign Affairs was not immediately available to comment.

The GNA and LNA signed a ceasefire deal in October and the United Nations has been pushing a political dialogue aimed at elections next year as a solution to Libya's long-running conflict.

But both sides have stopped short of withdrawing forces from the front line, as demanded by the truce. On Sunday LNA forces seized a military camp in southern Libya, has further pushed the truce.

Earlier on Monday, Mr Mismari accused Turkey of continuing to supply arms and fighters to the GNA.

European Union foreign ministers also accused Ankara of failing to help resolve a dispute over natural gas resources in the eastern Mediterranean, but they left any decision on retaliatory sanctions for an EU summit on Thursday.

The 27 ministers, who were tasked to evaluate the grounds for economic sanctions on Turkey, did not go beyond agreeing Turkey had aggravated tensions since October, when EU leaders voiced a threat to impose punitive measures in December.

The EU cites Turkish exploration in contested waters, a decision to re-open part of a town in disputed territory in Cyprus and a row with Germany over a UN arms embargo on Libya as evidence that Turkey is no longer a reliable partner.

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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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