SpaceX and federal investigators are poring over a few milliseconds of data as they probe why a blaze destroyed a Falcon 9 rocket and a satellite Facebook planned to use on a Florida launchpad two days before a scheduled flight.
The space exploration company founded by billionaire Elon Musk said it is working to determine “causes and fixes” for the incident, which incinerated a satellite that Facebook planned to use to beam internet access across a broad swathe of Africa. Also unknown is the scale of damage to the SpaceX pad known as SLC-40 at Cape Canaveral air force station, from which it has fired missions into orbit.
“We deeply regret the loss of Amos-6, and safely and reliably returning to flight to meet the demands of our customers is our chief priority,” SpaceX said.
The accident occurred eight minutes before a scheduled test firing during a dress rehearsal for Saturday’s planned launch of the communications satellite. Data shows the “anomaly” started around the upper stage liquid oxygen tank, the company said.
The blast was a reminder of the peril inherent in space flight, which relies on controlled explosions to power payloads to orbit. But it was not expected to dent Mr Musk’s effort to shake up the staid launch industry or dim his goal of one day colonising Mars.
The “incident – while it was not a Nasa launch – is a reminder that spaceflight is an incredible challenge, but our partners learn from each success and setback”, Nasa said.
SpaceX said it began searching for the root cause of the accident immediately after the loss and is in the “early process” of reviewing about 3,000 channels of telemetry and video data covering 35 to 55 milliseconds. The federal aviation administration, Nasa, the US air force and other industry experts are also involved in the probe.
Pre-launch accidents are “extremely unusual” for US spacecraft, said Marco Caceres, a senior space analyst with Teal Group. Since the rocket was not operational at the time of the blast, the investigation will probably focus on external causes such as a fuel leak, he said.
If that is the case, then SpaceX would probably face less disruption than last year, when its rockets were grounded for six months after a Falcon 9 bound for the International Space Station exploded minutes into flight, Mr Caceres said.
While the accident caused a Web frenzy because of the satellite’s Facebook connection, it may not prove more than a short-term setback for SpaceX, which has scheduled more than 70 launches representing US$10 billion in contracts.
“It’s unfortunate that this happened. But the satellite for Facebook can be rebuilt pretty quickly,” said Timothy Carone, an astrophysicist and teaching professor at the University of Notre Dame’s Mendoza College of Business. “SpaceX knows how to make vehicles, put payloads up there. I think the recovery from this will be pretty rapid.”
SpaceX is restoring another pad on the Florida cape. Launch Complex 39A is on track to be operational in November, and will be capable of supporting both Falcon 9 and larger Falcon Heavy launches, the company said. It also uses California’s Vandenberg air force base for some missions.
“We are confident the two launch pads can support our return to flight and fulfill our upcoming manifest needs,” SpaceX said.
The destroyed satellite was intended to beam internet service to sub-Saharan Africa as Facebook and Eutelsat team up to connect people in remote parts of the world. The Facebook chief executive Mark Zuckerberg was on his first trip to region when he got word of the accident.
“I’m deeply disappointed to hear that SpaceX’s launch failure destroyed our satellite that would have provided connectivity to so many entrepreneurs and everyone else across the continent,” Mr Zuckerberg said. “We remain committed to our mission of connecting everyone.”
Saturday’s launch was to be the ninth of the year for SpaceX, which had settled into a steady tempo of flights following the 2015 accident. That failure was linked to a two-foot-long, inch-thick strut that snapped in a liquid oxygen tank.
Mr Musk’s California-based company has shaken up the space industry by introducing cost competition and successfully landing rocket boosters to be reused. It has won contracts with Nasa to ferry cargo and crew to the International Space Station and agreements with commercial satellite companies to send satellites into orbit.
The venture has done thorough investigations of its accidents in the past and should be able to learn from this incident, said Eric Stallmer, the president of the Commercial Spaceflight Federation.
“SpaceX isn’t going anywhere,” Mr Stallmer said. “SpaceX has a tremendously reliable product that provides reliable access to space. They’ll be launching as soon as possible, I’m confident.”
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Profile
Company: Justmop.com
Date started: December 2015
Founders: Kerem Kuyucu and Cagatay Ozcan
Sector: Technology and home services
Based: Jumeirah Lake Towers, Dubai
Size: 55 employees and 100,000 cleaning requests a month
Funding: The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups.
UAE currency: the story behind the money in your pockets
Mohammed bin Zayed Majlis
Company profile
Company name: Suraasa
Started: 2018
Founders: Rishabh Khanna, Ankit Khanna and Sahil Makker
Based: India, UAE and the UK
Industry: EdTech
Initial investment: More than $200,000 in seed funding
more from Janine di Giovanni
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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Director: Anna Boden, Ryan Fleck
Starring: Brie Larson, Samuel L Jackson, Jude Law, Ben Mendelsohn
4/5 stars
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MWTC info
Tickets to the MWTC range from Dh100 and can be purchased from www.ticketmaster.ae or by calling 800 86 823 from within the UAE or 971 4 366 2289 from outside the country and all Virgin Megastores. Fans looking to attend all three days of the MWTC can avail of a special 20 percent discount on ticket prices.
Company Profile
Company name: NutriCal
Started: 2019
Founder: Soniya Ashar
Based: Dubai
Industry: Food Technology
Initial investment: Self-funded undisclosed amount
Future plan: Looking to raise fresh capital and expand in Saudi Arabia
Total Clients: Over 50
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer