A man prays as the destruction caused by the fatal floods is visible in the background, in Derna, Libya, September 20, 2023. Reuters
A man prays as the destruction caused by the fatal floods is visible in the background, in Derna, Libya, September 20, 2023. Reuters
A man prays as the destruction caused by the fatal floods is visible in the background, in Derna, Libya, September 20, 2023. Reuters
A man prays as the destruction caused by the fatal floods is visible in the background, in Derna, Libya, September 20, 2023. Reuters

Washington calls for ‘unified’ reconstruction efforts following Libya floods


Willy Lowry
  • English
  • Arabic

Washington has called for Libya’s factions to form a united front as the country tries to recover from last month’s devastating floods.

On September 11, heavy rainfall from Storm Daniel caused major flooding in Derna, a city in eastern Libya on the Mediterranean coast. Two dams burst creating a deluge of water that washed away roughly one third of the city’s buildings.

“The US focus is on trying to help the Libyans pull together a unified reconstruction effort to maximise its effectiveness,” said Richard Norland, US Special Envoy for Libya.

Government officials and aid agencies estimate the death toll from the disaster to be between 4,000 and 11,000.

Washington has contributed $12 million in humanitarian assistance to Libya, making it the largest donor to the relief efforts in Derna.

Reconstruction efforts have been complicated by Libya's deep divisions. Since 2011, when a Nato-backed uprising toppled longtime dictator Muammar Qaddafi, rival factions have vied for power.

The UN-backed Government of National Unity controls the capital Tripoli and much of the west, while the Libyan National Army, led by Khalifa Haftar, which is allied with a parliament confirmed government, controls Derna as it governs the east and south.

Attempts to hold unified elections have so far failed. But Washington believes the tragedy in Derna has created an opportunity for the country to come together.

  • An upturned car inside a shop where it was carried by a torrent of floodwater in Derna, Libya. Reuters
    An upturned car inside a shop where it was carried by a torrent of floodwater in Derna, Libya. Reuters
  • A flood survivor takes a breather from removing mud from his home in the aftermath of deadly floods in Derna. Reuters
    A flood survivor takes a breather from removing mud from his home in the aftermath of deadly floods in Derna. Reuters
  • Mohammed Fathallah Al Hassi lost his mother and sister in Derna when dams collapsed, flooding the city, after heavy rainfall and a powerful storm hit eastern Libya. Reuters
    Mohammed Fathallah Al Hassi lost his mother and sister in Derna when dams collapsed, flooding the city, after heavy rainfall and a powerful storm hit eastern Libya. Reuters
  • A Spanish rescue worker in Derna where authorities have been struggling to cope with thousands of flood victims' bodies washing up or decaying under rubble. Reuters
    A Spanish rescue worker in Derna where authorities have been struggling to cope with thousands of flood victims' bodies washing up or decaying under rubble. Reuters
  • The destruction in the aftermath of the floods in Derna, Libya, as seen from the air. Reuters
    The destruction in the aftermath of the floods in Derna, Libya, as seen from the air. Reuters
  • A view of Derna in the aftermath of the floods. Reuters
    A view of Derna in the aftermath of the floods. Reuters
  • The aftermath of the floods in Derna. Libyan authorities said access to some areas had become impossible. Reuters
    The aftermath of the floods in Derna. Libyan authorities said access to some areas had become impossible. Reuters
  • Volunteers amid the ruins and damaged homes after the Mediterranean Storm Daniel hit Libya's eastern city of Derna. AFP
    Volunteers amid the ruins and damaged homes after the Mediterranean Storm Daniel hit Libya's eastern city of Derna. AFP
  • A rubble-strewn street in Libya's eastern city of Soussa. AFP
    A rubble-strewn street in Libya's eastern city of Soussa. AFP
  • People view areas damaged in the flooding in Derna, Libya. Reuters
    People view areas damaged in the flooding in Derna, Libya. Reuters
  • Locals view a list of the missing following the floods in Derna. Reuters
    Locals view a list of the missing following the floods in Derna. Reuters
  • A Palestinian woman in the Gaza Strip displays a picture of her relatives, who had been living in Libya, that were among the victims of the flooding. Reuters
    A Palestinian woman in the Gaza Strip displays a picture of her relatives, who had been living in Libya, that were among the victims of the flooding. Reuters
  • Libya's port city of Derna, days after floods swept away entire communities after two dams collapsed amid heavy rain. Reuters
    Libya's port city of Derna, days after floods swept away entire communities after two dams collapsed amid heavy rain. Reuters
  • The dams collapsed causing a huge flash flood that killed thousands of people. Reuters
    The dams collapsed causing a huge flash flood that killed thousands of people. Reuters
  • Thousands were still missing while more than 30,000 were displaced. Reuters
    Thousands were still missing while more than 30,000 were displaced. Reuters
  • Five Emirati planes arrived in Benghazi carrying three rescue teams, urgent relief and medical aid, as part of UAE efforts to provide relief to the Libyan people. Wam
    Five Emirati planes arrived in Benghazi carrying three rescue teams, urgent relief and medical aid, as part of UAE efforts to provide relief to the Libyan people. Wam
  • Sudanese workers who lost family members and friends during the disaster sit outside a tile factory in Derna. Reuters
    Sudanese workers who lost family members and friends during the disaster sit outside a tile factory in Derna. Reuters
  • A police vehicle washed away by floods lies on a street in Derna. AFP
    A police vehicle washed away by floods lies on a street in Derna. AFP
  • A militiaman directs vehicles on along a muddy road after deadly floods caused by Storm Daniel hit Derna, forcing two dams to collapse. AFP
    A militiaman directs vehicles on along a muddy road after deadly floods caused by Storm Daniel hit Derna, forcing two dams to collapse. AFP
  • Vehicles washed away by the floods are piled up on the outskirts of Derna. AFP
    Vehicles washed away by the floods are piled up on the outskirts of Derna. AFP
  • A school damaged by the floods in Derna. Reuters
    A school damaged by the floods in Derna. Reuters
  • A man carries his belongings, in the aftermath of floods in Derna. Reuters
    A man carries his belongings, in the aftermath of floods in Derna. Reuters
  • A worker puts bread in a box at a bakery, in the aftermath of the floods in Derna. Reuters
    A worker puts bread in a box at a bakery, in the aftermath of the floods in Derna. Reuters
  • The trail of destruction left by the floods that hit Derna. AFP
    The trail of destruction left by the floods that hit Derna. AFP

“I think we're entering a period of real political ferment and the events in Derna and eastern Libya have added new urgency to the need to unify the country's institutions,” Ambassador Norland told reporters.

Mr Norland cautioned that unified elections would not “happen overnight” but that all the necessary parties needed to be involved in the process.

“Now is the time for them to send representatives to take part in these discussions,” he said. “This really offers the best hope for Libyans not only to move forward on the reconstruction process, but also towards the political unity and the legitimisation of their institutions.”

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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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4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

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Ep1: A recovery like no other- the unevenness of the economic recovery 

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Updated: October 06, 2023, 7:43 PM