Delegates attend a national reconciliation forum in Libya's eastern-based parliament in Benghazi. AFP
Delegates attend a national reconciliation forum in Libya's eastern-based parliament in Benghazi. AFP

UN presents inclusive, intra-Libyan proposal to overcome political deadlock


Adla Massoud

The UN has presented a proposal aimed at resolving Libya's political deadlock and advancing towards national elections, the bloc's envoy to the country said on Monday.

The plan, described as an inclusive, intra-Libyan initiative, seeks to end the status quo and renew the legitimacy of the country’s institutions.

“I intend to facilitate this process through an incremental, flexible approach to enable progressive building of consensus,” acting UN envoy to Libya Stephanie Koury told the Security Council. “This incremental approach is also designed in such a way as to not predetermine any decisions made by the next special representative and can be adjusted as appropriate.”

Libya continues to struggle with recovery from years of conflict after the 2011 Nato-backed uprising that removed long-time ruler Muammar Qaddafi. The country remains split between the UN-recognised government in Tripoli and a rival eastern administration aligned with military leader Field Marshal Khalifa Haftar.

Unsmil, the UN's mission to Libya, will establish an advisory committee to help resolve electoral issues and to pave the way for general elections, Ms Koury said. There has been no indication of when the elections might be held, however.

“We need a new political process in Libya, as difficult as that might seem,” said US ambassador to the UN Linda Thomas-Greenfield. “And we continue to believe the UN is the best placed international actor to lead that process.”

She said “real progress on the political future of Libya” requires leaders to make tough compromises on contentious issues.

“But here’s what we know: that kind of compromise is possible. The resolution of the central bank crisis demonstrated that. Consensus-based solutions, brought about through dialogue, are not out of reach – they are essential,” Ms Thomas-Greenfield said.

Libya's ambassador to the UN, Taher El Sonni, said that the speakers at the Security Council briefing on the situation in his country “owe an apology to the Libyan people”. “The only commonality is admitting a stalemate and lack of a clear vision or time frame while the upcoming political process remains elusive,” he said.

Mr El Sonni said the successful delivery of recent local elections showed that the issue with staging a national vote was not logistical but political. Some local and regional elections have been held, such as in Libya's third city Misurata on November 16, but no national vote has been conducted.

A UN-brokered agreement signed in Geneva after a ceasefire in Libya's civil war aimed to establish interim institutions before nationwide parliamentary and presidential elections set for December 2021. But the elections were postponed indefinitely due to disputes over the legal framework governing the vote.

“It is my priority, based on my consultations with Libyans across the country, to address contentious issues in the legal framework for the elections,” Ms Koury said. “While the existing framework is the positive outcome of Libyan efforts, and a good basis, it remains highly contentious among Libyans and it is unlikely to produce a viable and peaceful electoral event without some tweaks.

“We must be mindful of past experiences, in particular of the failed 2021 election.”

She noted that Libya has faced significant economic challenges in recent years, compounded by external interference, although she refrained from naming specific countries. “Libya has the potential to become a beacon of stability and prosperity for the Mediterranean region and beyond,” she said.

Ms Koury said the UN aims to enable dialogue to establish “a unified national vision” for the country's future.

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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.

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“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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Updated: December 16, 2024, 8:15 PM