The commander of US forces in Africa and the head of the US embassy in Libya have met Libyan military commander Field Marshal Khalifa Haftar in the eastern city of Benghazi, amid a standoff between the country's rival power centres that has shut down oil production.
The US embassy said Gen Michael Langley and charge d'affaires Jeremy Berndt “highlighted the importance of preserving Libya’s stability and of de-escalation in the context of current tensions” during their meeting on Tuesday with Mr Haftar, whose Libyan National Army controls the country's east and south.
Their meeting focused on the commitment of the US to strengthening its partnership with Libyans from all parts of the country and supporting Libyan efforts to protect the country's sovereignty amid regional security challenges, the embassy said in a post on X.
“The United States urges all Libyan stakeholders to engage constructively in dialogue” with support from the UN Support Mission in Libya and the international community, added the embassy.
Libya has been grappling with a complex political landscape since the overthrow of Muammar Qaddafi in 2011, with control divided between two rival governments. The internationally recognised Government of National Unity is located in Tripoli, while the Government of National Stability, which is backed by Mr Haftar, is based in the east.
Authorities in the east – where most of Libya's oilfields lie – declared on Monday that all oil production and exports, the country's main source of revenue, would be halted. The move followed a decision by Tripoli-based authorities to sack the head of the central bank.
Since the fall of Qaddafi, numerous armed groups have emerged in Libya. Militias have consolidated power through leaders who have acquired top government and military posts, blurring the lines between militias and state forces.
Observers say this has diminished prospects for disarmament and reintegration into a unified army under state control.
According to a report by the US Congressional Research Service, Washington has a complicated relationship with Mr Haftar and the LNA.
While the US has recognised the GNU as the legitimate government of Libya, it has also worked with Mr Haftar in counterterrorism efforts against ISIS and Al Qaeda affiliates in the country.
Mr Haftar's recent moves have further complicated the political landscape. On August 12, the GNU strongly condemned Egypt's decision to receive Osama Hamad, the head of the GNS, for an official visit.
Mr Hamad was accompanied by Mr Haftar’s son, Balqasim, who is the director general of the Libyan Development and Reconstruction Fund.
Prior to their visit to Egypt, Mr Hamad and Balqasim Haftar were hosted for talks in Turkey in July.
Ankara, previously a supporter of the UN-backed GNU, has recently shifted its position on Libya and is now engaging the rival GNS in diplomacy.
The GNU said it views these engagements by Egypt and Turkey as an escalation and a departure from the international community's previously unified position on Libya.
It has not commented publicly on visit to Benghazi by Gen Langley and Mr Berndt.
Prime Minister Abdul Hamid Dbeibeh recently formed a security committee to address the proliferation of armed groups in Tripoli and limit security operations to Ministry of Interior personnel.
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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UK’s AI plan
- AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
- £10bn AI growth zone in South Wales to create 5,000 jobs
- £100m of government support for startups building AI hardware products
- £250m to train new AI models
