Drone deliveries got a step closer to reality as the White House issued an order giving local governments more authority to conduct tests of the burgeoning new technology.
The US president Donald Trump last week signed an executive order designed to speed the approval of drone flights over crowds and for longer distances. The administration says it wants to open new commercial uses for the aircraft and create jobs.
"In order to maintain American leadership in this emerging industry here at home, our country needs a regulatory framework that encourages innovation while insuring airspace safety," said Michael Kratsios, a deputy assistant to the president at the office of science and technology policy.
Mr Trump’s order, a response to calls from companies making and using drones, will allow local governments to apply to the Federal Aviation Administration (FAA) for waivers allowing them to conduct tests of deliveries, drone air-traffic systems, long-range flights and other uses generally prohibited under current rules, Mr Kratsios said.
While US companies have been among the industry’s leaders, some have complained that restrictive federal regulations have slowed their ability to move forward. Companies including Amazon.com and Alphabet’s Project Wing have at times had to test their drone-delivery systems in other countries. Project Wing is now testing Mexican food delivery via drone in Australia.
In addition to deliveries, drones can be tested for such uses as rushing medical supplies to emergencies, performing inspections of pipelines and power grids, and filming news events. Earlier this month, CNN was granted an FAA waiver allowing routine drone flights over people.
“Amazon supports the administration’s efforts to create a pilot program aimed at keeping America at the forefront of aviation and drone innovation," said Gur Kimchi, the vice president of Amazon Prime Air.
The programme will give state, local and tribal governments "a voice and a stake in the development of a federal regulatory framework for aviation," Mr Kratsios said. Details of how far the local agencies could go to press the federal regulators were not released, but their programmes must be approved by the FAA.
The new programme helps resolve some of the tensions over which governmental agencies will ultimately control drone operations by giving the FAA and its parent, the department of transportation, the ultimate authority, said Michael Drobac, the executive director of the Small UAV Coalition.
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"This is a good step," he said. "We needed to have some clarity and the administration needed to act."
The programme allows local officials to have input into drone operations in their communities “without infringing on the US government’s jurisdiction over the national airspace”, said Brian Wynne, the president and chief executive of the Association for Unmanned Vehicle Systems International.
In its announcement, the White House was at times critical of federal regulators and the programme may pit Mr Trump’s top officials against some federal agencies, including national security offices and the FAA. Mr Kratsios said uses of drones have grown rapidly and more than a million were registered with the government, far exceeding the number of traditional aircraft.
"However, our aviation regulatory framework has not kept pace with this change," he said.
One of the main reasons the FAA has moved slowly to allow expanded drone flights has been reservations by the FBI and security agencies concerned about them being used as terrorist weapons or for criminal activity. As a result, the FAA is trying to craft rules that would require at least some drones to broadcast their identity and position at all times.
Similarly, the FAA is grappling with growing safety concerns about drones. The first mid-air collision between a drone and a traditional aircraft occurred September 21 near New York City. Earlier this month, the FAA cited growing numbers of reported safety incidents as justification for rapidly moving to a new system for approving flight waivers.
The data gathered in test flights will help with both this issues, according to the White House.
Mr Trump’s order says the transportation secretary Elaine Chao will approve at least five applications from local governments within six months. The applicants can propose using the drones themselves, such as a police or fire department, or can establish partnerships with businesses using the devices. Their operations should begin within 90 days.
The Lost Letters of William Woolf
Helen Cullen, Graydon House
The specs
Engine: 2.0-litre 4-cylturbo
Transmission: seven-speed DSG automatic
Power: 242bhp
Torque: 370Nm
Price: Dh136,814
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
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.”
Results
1. Mathieu van der Poel (NED) Alpecin-Fenix - 3:45:47
2. David Dekker (NED) Jumbo-Visma - same time
3. Michael Morkov (DEN) Deceuninck-QuickStep
4. Emils Liepins (LAT) Trek-Segafredo
5. Elia Viviani (ITA) Cofidis
6. Tadej Pogacar (SLO UAE Team Emirates
7. Anthony Roux (FRA) Groupama-FDJ
8. Chris Harper (AUS) Jumbo-Visma - 0:00:03
9. Joao Almeida (POR) Deceuninck-QuickStep
10. Fausto Masnada (ITA) Deceuninck-QuickStep
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Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
The specs
Engine: 1.6-litre 4-cyl turbo
Power: 217hp at 5,750rpm
Torque: 300Nm at 1,900rpm
Transmission: eight-speed auto
Price: from Dh130,000
On sale: now
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
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At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km