Field Marshal Khalifa Haftar salutes during a military parade in the eastern city of Benghazi, Libya. AFP
Field Marshal Khalifa Haftar salutes during a military parade in the eastern city of Benghazi, Libya. AFP
Field Marshal Khalifa Haftar salutes during a military parade in the eastern city of Benghazi, Libya. AFP
Field Marshal Khalifa Haftar salutes during a military parade in the eastern city of Benghazi, Libya. AFP

Libya's Field Marshal Khalifa Haftar 'open to dialogue'


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Field Marshal Khalifa Haftar, whose forces have been battling to capture the seat of the UN-recognised government in Tripoli since April, has said he is open to dialogue after repeatedly rejecting UN calls for talks.

"When all is said and done, we need dialogue and we need to sit down" at the negotiating table, Field Marshal Hafar said in a statement issued on Wednesday night on the eve of a special session on Libya on the sidelines of the United Nations General Assembly in New York.

Field Marshal Haftar stressed, however, that dialogue was "not possible so long as terrorist groups and criminal militias control Tripoli," a reference to the myriad militias that back the Government of National Accord.

He welcomed the special session to be co-chaired by France and Italy in New York later on Thursday, saying that he hoped it would come up with "proposals that serve Libya's interests and at the same time restore security and stability".

Earlier this month, Field Marshal Haftar, whose forces control eastern Libya and most of the far-flung oases and oilfields of the desert south, rejected a UN call for renewed peace talks, saying that a military solution was the best way of bringing the conflict to an end.

Speaking at the Concordia conference in New York on the sidelines of the UN General Assembly on Monday, Prime Minister Fayez Al Sarraj called for a resumption of the UN-led peace process.

“We can hold a Libya forum where all of the factions and people in Libya are invited and can work out a road map for the forthcoming stage, including parliamentary and presidential elections,” said Mr Al Sarraj, leader of the Government of National Accord.

“The UN can handle the logistics. We are not going to abandon our principles.”

He said he regretted the failure of international conferences in France and Italy, and a meeting with Field Marshal Khalifa Haftar, leader of the Libyan National Army. Since the breakdown of talks, fighting has cost hundreds of lives in Tripoli, where the LNA is battling militias allied to the GNA.

“We were keen on getting all of the factions together and the only condition is that they sign up to the national accord,” Mr Al Sarraj said.

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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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