Libya’s $70bn wealth fund sees thaw in UN asset freeze by year-end

Crude oil storage tanks are seen at Azzawiya oil refinery, in Zawiyah, west of Tripoli, Libya July 23, 2020. (REUTERS)
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Updated 03 August 2024
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Libya’s $70bn wealth fund sees thaw in UN asset freeze by year-end

  • Of its estimated $70 billion in assets, the fund has $29 billion in global real estate, $23 billion in deposits invested in Europe and Bahrain and $8 billion in equities spread over more than 300 companies around the world

LONDON: The Libyan Investment Authority is expecting UN sign-off by the end of the year to actively manage its $70 billion in assets for the first time in more than a decade, its chief executive told Reuters.
The LIA, set up under Muammar Qaddafi in 2006 to manage the country’s oil wealth, has been under a United Nations asset freeze since the 2011 revolution that toppled Qaddafi.
This means that in order for Africa’s largest sovereign wealth fund to make new investments, or even move cash from negative interest rate accounts, where they have been losing money, the LIA needs UN Security Council sign-off.
Chief Executive Ali Mahmoud Mohamed said the authority is confident the council will provide the landmark approval by November or December for an investment plan it submitted in March.
“We believe our investment plan with be accepted ... we don’t think they will refuse it,” Mohamed told Reuters via a translator.
The first of LIA’s four-part plan is the “very simple” step of reinvesting money that has built up during the freeze, such as payouts from bond holdings.
The LIA has previously tried to actively manage its funds. But in the turmoil following Qaddafi’s ouster, it at one point had dueling chairmen, backed by different factions within the country. A British court ruled in 2020 in Mohamed’s favor. In 2020, the LIA said a Deloitte audit showed the freeze had cost it some $4.1 billion in potential equity returns.
He said transparency has since improved; the LIA released audited financial statements in 2021, covering 2019. It aims to publish the 2020 numbers in the coming months and provide them annually from next year.
And while the LIA was 98th out of 100 sovereign funds in a 2020 ranking of sustainability and governance by Global SWF, an industry data specialist, it stood at 51st this year.
Of its estimated $70 billion in assets, the fund has $29 billion in global real estate, $23 billion in deposits invested in Europe and Bahrain and $8 billion in equities spread over more than 300 companies around the world. It also has roughly $2 billion worth of matured bonds.
The UN Security Council Committee was not immediately available to comment. Last year, after meeting with the LIA, its members “noted the progress made on the implementation of the LIA’s Transformation Strategy” and stressed “the importance of guaranteeing the frozen funds for the benefit of the Libyan people.”
Mohamed said that it is also planning to request approval this year for two further investment plan “pillars” — one that covers its share portfolio and another that relates to domestic investment plan.
The LIA is targeting domestic investments in solar power and helping increase oil exports. Libya is one of Africa’s largest oil exporters, pumping roughly 1.2 million barrels per day.
If the UN does not approve its investment proposals, Mohamed said “we will keep trying...we will keep asking and requesting.”

 


How one displaced family in Gaza is observing Ramadan’s first day under a fragile ceasefire deal

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How one displaced family in Gaza is observing Ramadan’s first day under a fragile ceasefire deal

KHAN YOUNIS, Gaza Strip: Waleed al Zamli longingly recalled the joys and traditions of the first day of Ramadan before the Israel-Hamas war had drastically altered his life: Lanterns for the children. Sweets. Special dishes.
“Before the war, we would greet it with happiness,” the father of 11 said, speaking from Muwasi, an area crowded with tents sheltering Palestinians who were forced by the Israeli military offensive to flee their homes.
Not anymore, he said.
It saddens and pains him that he’s unable to provide for his family, which now ekes out an existence in displacement. Al Zamli lost his job after the shop where he had worked was destroyed, he said.
So, for the first Ramadan “iftar,” the fast-breaking meal, his wife picked up meals Wednesday from a charity kitchen that the family has heavily depended on. She made soup to go with it.
“This year, there’s no happiness,” al Zamli said.
Hardships and losses dampen Ramadan’s spirit for many
Ramadan arrived in Gaza under a fragile ceasefire deal, but many Palestinians there say the month’s typically festive spirit is eluding them as they grapple with the hardships of their daily lives and the grief and losses of the war.
Some of these difficulties were on display at the charity kitchen where dozens crowded, many with their arms outstretched as they vied for a spot and held empty pots. They included children, women and elderly people.
During Ramadan, observant Muslims fast daily from dawn to sunset. It’s a time for increased worship, religious reflection and charity. In normal circumstances, the month often brings families and friends together to break their fast in joyous gatherings.
But circumstances in Gaza are far from normal. Israel’s military offensive has killed more than 72,000 Palestinians, according to Gaza’s Health Ministry, and caused widespread destruction and displaced most of the territory’s residents. Israel launched the offensive after Hamas-led militants killed some 1,200 people, mostly civilians, and took another 251 hostage in their attack on Oct. 7, 2023.
For al Zamli, the biggest challenge this Ramadan is providing food for his family. He said he’s received limited aid. Foods, like meat and poultry, are more expensive than their prewar prices, he said, and with no income many items are beyond his reach.
“The children want to feel happy like other people’s children, to get dressed and to eat something clean and special,” he said.
The financial strain can be especially amplified during Ramadan, he said. Typically, many shoppers throng to markets to stock up on food staples and buy decor and other supplies. Food can play a central role as the daily fasting gives way to nourishing, and for some elaborate, iftar meals. Muslims also eat a predawn meal known as “suhoor” to nurture their bodies ahead of the fast.
As Gaza residents visited markets this week, some lamented how economic woes cast a pall on the month.
Ramadan decorations among the ruins
Still, amid the struggles, some in the Gaza Strip have worked to bring a taste of the month’s festivities — for example, hanging strands of Ramadan decorations among the ruins. At their displacement camp, al Zamli’s children played with empty soda cans fashioned to look like Ramadan lanterns.
The Oct. 10 US-brokered ceasefire deal attempted to halt more than two years of war between Israel and Hamas. While the heaviest fighting has subsided, the ceasefire has seen almost daily Israeli fire.
Israeli forces have carried out repeated airstrikes and frequently fire on Palestinians near military-held zones, killing more than 600 Palestinians, according to Gaza health officials. The ministry, which is part of the Hamas-led government, maintains detailed casualty records that are seen as generally reliable by UN agencies and independent experts. But it does not distinguish between civilians and militants.
Militants have carried out shooting attacks on Israeli troops, and Israel says its strikes are in response to that and other violations. Four Israeli soldiers have been killed.
Despite some much-needed respite under the shaky ceasefire deal, many daily struggles, big and small, persisted.
Al Zamli said the war has deprived him and his family of many things. A son-in-law, he said, was killed, shortly after he married his now-widowed daughter.
This Ramadan, he will pray “for the bloodshed to end … and to feel security, safety, and tranquility” and “to be able to provide good food and clothes for our children.”