The Russian president Dmitry Medvedev, right, speaks with Libyan leader Muammar Gaddafi, left, during their meeting in Gorki residence outside Moscow, Russia, October 31 2008.
The Russian president Dmitry Medvedev, right, speaks with Libyan leader Muammar Gaddafi, left, during their meeting in Gorki residence outside Moscow, Russia, October 31 2008.

Tripoli and Moscow could revive ties



The Libyan leader Moamer Kadhafi met the Russian president Dmitry Medvedev yesterday on his first visit to Russia since 1985, a trip that could revive military ties between Tripoli and Moscow. "I hope your visit will be productive... Our countries have had friendly relations for decades," said Mr Medvedev prior to dinner with his guest at his country residence outside Moscow. Mr Kadhafi, at his turn, responded: "I hope this visit will be fruitful for our relations."

Arms purchases and nuclear energy are on the cards for Mr Kadhafi's three-day visit. Libya might also offer to host a Russian naval base at the Mediterranean port of Benghazi, the Russian newspaper Kommersant reported. "The Russian military presence will be a guarantee of non-aggression against Libya from the United States," it said. Mr Kadhafi is expected to meet the Russian prime minister Vladimir Putin today.

One topic of this weekend's talks would be "military-technical co-operation," a Kremlin official said ahead of Mr Kadhafi's visit, using a term that typically describes arms purchases. Tripoli bought many of its arms from Moscow during the Cold War, which was inching closer to its climax when Mr Kadhafi last visited 23 years ago. Talks could also touch on "the peaceful atom," the Kremlin official said on condition of anonymity, following previous reports that Russia was in talks about building a nuclear power plant in Libya.

For Russia, a Mediterranean naval base would cement its military comeback after it dispatched a flotilla of warships in a show of might last month. The ships stopped in Tripoli this month and are due to continue to Venezuela. Libya could agree to buy more than US$2 billion (Dh7.35 billion) of Russian arms this weekend, the Interfax news agency reported yesterday, citing a source in the Russian defence industry.

It was interested in S-300 and Tor-M1 surface-to-air missile systems, Su-30 and MiG-29 fighter jets and T-90 battle tanks, the source said. According to Libyan sources in Moscow, Mr Kadhafi would visit Ukraine and Belarus after his visit to Russia. Relations have warmed significantly this year between Russia and Libya, which began to shed its pariah status in 2003 when it renounced weapons of mass destruction and took responsibility for the December 1988 bombing of a New York-bound Pan Am airliner over Lockerbie, Scotland, that killed 270 people.

The Libyan leader has even been allowed to pitch his traditional Bedouin tent inside the Kremlin during the official visit. During a trip to France in December 2007, he set it up in the gardens of the Hotel Marigny, a 19th-century mansion next to the Elysee Palace used as an official guesthouse on state visits. On Thursday, the Russian foreign ministry said the countries shared a "common position" on the importance of a "multipolar world".

In April, during a visit to Tripoli by Mr Putin, who was then Russia's president, Moscow agreed to cancel billions of dollars of Libyan Soviet-era debt in exchange for big contracts with Russian companies. The deals included a co-operation agreement between Russian gas giant Gazprom and Libya's national energy company, as well as a $2.8 billion contract for Russia's rail monopoly to build a railway line in Libya.

But Mr Kadhafi has dragged his feet on implementing the deals and he angered Moscow by refusing to bring his energy-rich country into a "gas Opec" with Russia and Qatar, Kommersant said yesterday. *AFP

The Perfect Couple

Starring: Nicole Kidman, Liev Schreiber, Jack Reynor

Creator: Jenna Lamia

Rating: 3/5

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.”

Liverpool’s fixtures until end of 2019

Saturday, November 30, Brighton (h)

Wednesday, December 4, Everton (h)

Saturday, December 7, Bournemouth (a)

Tuesday, December 10, Salzburg (a) CL

Saturday, December 14, Watford (h)

Tuesday, December 17, Aston Villa (a) League Cup

Wednesday, December 18, Club World Cup in Qatar

Saturday, December 21, Club World Cup in Qatar

Thursday, December 26, Leicester (a)

Sunday, December 29, Wolves (h)

The biog

Name: Marie Byrne

Nationality: Irish

Favourite film: The Shawshank Redemption

Book: Seagull by Jonathan Livingston

Life lesson: A person is not old until regret takes the place of their dreams

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Israel Palestine on Swedish TV 1958-1989

Director: Goran Hugo Olsson

Rating: 5/5

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The Travel Diaries of Albert Einstein The Far East, Palestine, and Spain, 1922 – 1923
Editor Ze’ev Rosenkranz
​​​​​​​Princeton

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Score

Third Test, Day 2

New Zealand 274
Pakistan 139-3 (61 ov)

Pakistan trail by 135 runs with 7 wickets remaining in the innings

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Brief scoreline:

Tottenham 1

Son 78'

Manchester City 0

First Person
Richard Flanagan
Chatto & Windus 

'My Son'

Director: Christian Carion

Starring: James McAvoy, Claire Foy, Tom Cullen, Gary Lewis

Rating: 2/5