A man clears mud from a house that was damaged by the fatal floods in Derna, Libya. Reuters
A man clears mud from a house that was damaged by the fatal floods in Derna, Libya. Reuters
A man clears mud from a house that was damaged by the fatal floods in Derna, Libya. Reuters
A man clears mud from a house that was damaged by the fatal floods in Derna, Libya. Reuters

Communications briefly cut in Libya's devastated Derna


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Recovery efforts in Libya’s flood-devastated city of Derna have been seriously hampered after critical communications in the area were cut, triggering a local investigation.

The state-run Libyan Post Telecommunications Company said it was trying to determine whether digging for bodies had severed fibre optic cables, or whether it was an act of sabotage, company spokesman Mohamed Al Bdairi said.

Attempts to find survivors from the September 11 disaster have all but ended, with almost all of the estimated 4,000 to 15,000 victims thought to have died in the moments after two dams in the mountains above the city collapsed.

On Thursday, the International Organisation for Migration (IOM) said at least 43,059 people have been displaced by severe floods in north-eastern Libya. The organisation said a lack of clean water supplies appeared to be driving many displaced people out of Derna to municipalities to the east and west of the Mediterranean city.

Anger has risen after a series of experts and local officials said the dams had not been maintained since 1998, while cracks in the structures had been identified.

When communications were interrupted on Tuesday, there was speculation that authorities had cut internet and phone lines to stem growing protests.

The communications problem has slowed recovery efforts in the city, which has been segmented by authorities in an attempt to stop the spread of waterborne disease.

Angry protesters

Health authorities have launched a vaccination campaign that initially targeted search and rescue teams and children in Derna and other impacted areas.

Hundreds of angry protesters gathered outside the main mosque in Derna on Monday. They lashed out at the political class that has controlled Libya since the removal and killing of Muammar Qaddafi in a Nato-supported 2011 uprising.

The protesters demanded an investigation into the disaster to be accelerated and called for the reconstruction of Derna to be under UN supervision.

General prosecutor Al Sidiq Al Sour has launched an investigation into the collapse of the two dams in Derna. In comments to local TV on Wednesday, he vowed to take “serious measures” to deliver justice for the victims of the floods.

“It’s a great catastrophe, and the casualty toll is significant. Certainly, if measures had been taken at the right time in the past years, a catastrophe with such magnitude wouldn’t happen,” he said.

The Old Slave and the Mastiff

Patrick Chamoiseau

Translated from the French and Creole by Linda Coverdale

Company profile

Name: Steppi

Founders: Joe Franklin and Milos Savic

Launched: February 2020

Size: 10,000 users by the end of July and a goal of 200,000 users by the end of the year

Employees: Five

Based: Jumeirah Lakes Towers, Dubai

Financing stage: Two seed rounds – the first sourced from angel investors and the founders' personal savings

Second round raised Dh720,000 from silent investors in June this year

At Everton Appearances: 77; Goals: 17

At Manchester United Appearances: 559; Goals: 253

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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.”

Russia's Muslim Heartlands

Dominic Rubin, Oxford

Updated: September 21, 2023, 1:47 PM