Will gallant Obama enter the Raptor's lair and slay it?


  • English
  • Arabic

US President George W Bush has shown us how much easier it is to wage war, even an unnecessary one, than it is to control the US defence budget. From 2001 to this year, defence spending rose to US$480 billion (Dh1.76 trillion), an increase of 60 per cent. Include off-budget expenditures for the wars in Iraq and Afghanistan and that figure swells to $670bn. The US spends more on national security than the rest of the world combined, with an annual outlay slightly larger than the GDP of Turkey, the world's 17th-largest economy. If there was ever a prime target for cost cutting in the world's most indebted economy - particularly in this recession - it is America's bloated defence budget. But will Barack Obama, the president-elect, pull the -trigger? If Mr Obama wants to demonstrate to the world his commitment to budgetary discipline in the face of fierce political pressure, he must do just that. He must venture into the lair of the Raptor and slay it. The F-22 Raptor war plane, produced by Lockheed Martin, is an engineering marvel. Among its many tricks is to pivot horizontally as it surveys the horizon for targets. It is also, as its name suggests, a dinosaur, designed to match the best Soviet fighters never built. Since it was developed in the late 1980s, the US government has spent $65bn manufacturing the F-22, which - depending on how many are produced - costs between $140 million and $345m, according to the US government accountability office. (The Pentagon's other "fifth generation" warplane, the F-35 Joint Strike Fighter is a bargain at $70m a unit.) The air force is lobbying for $9bn to build 60 more F-22s over three years, for a total fleet of 243. The air force says it needs the aircraft to counter the threat from... well, no one is sure, really. Robert Gates, the secretary of defence, who has been asked by Mr Obama to remain at his post, opposes further investment in the programme. There is nothing in the Russian or Chinese air arsenals to match the F-22, assuming they would ever be inclined to try. So far, the only battle the Raptor has fought has been with budget hawks, and it has won them all. If the fighter has no peer for manoeuvrability in the skies, neither is there anyone in Washington to rival the marketing instincts of its maker. In developing the aircraft, Lockheed Martin was careful to spread its supplier network across many legislative districts, meaning 25,000 workers owe their livelihoods to the Raptor at a time when the US economy is expected to -contract. Senior legislators, Republican and Democrat, support the F-22 for the sake of the jobs that would be lost to production cuts - making it a $65bn jobs mill. If only this situation ended with the F-22. The US defence budget is packed with outdated weaponry that could have been discarded decades ago were it not for nest-feathering -politicians. Donald Rumsfeld, Mr Gates's predecessor and a formidable Washington operator, tried with little success to transform the Pentagon's cold-war arsenal into a lighter, more flexible fighting force. He, too, tried to ground the Raptor, only to be outmanoeuvred by politicians. Now it is Mr Gates's turn. Fortunately, his new boss seems to be far more interested in the federal bureaucracy, including its military budget, than did Mr Bush. If the president-elect can't pull the nation's defence spenders into line, no one can. The question is whether Mr Obama will have the courage to choose fiscal temperance over political sanctuary. sglain@thenational.ae

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PROFILE

Name: Enhance Fitness 

Year started: 2018 

Based: UAE 

Employees: 200 

Amount raised: $3m 

Investors: Global Ventures and angel investors 

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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.

“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.”

Company profile

Company: Verity

Date started: May 2021

Founders: Kamal Al-Samarrai, Dina Shoman and Omar Al Sharif

Based: Dubai

Sector: FinTech

Size: four team members

Stage: Intially bootstrapped but recently closed its first pre-seed round of $800,000

Investors: Wamda, VentureSouq, Beyond Capital and regional angel investors

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What is graphene?

Graphene is extracted from graphite and is made up of pure carbon.

It is 200 times more resistant than steel and five times lighter than aluminum.

It conducts electricity better than any other material at room temperature.

It is thought that graphene could boost the useful life of batteries by 10 per cent.

Graphene can also detect cancer cells in the early stages of the disease.

The material was first discovered when Andre Geim and Konstantin Novoselov were 'playing' with graphite at the University of Manchester in 2004.

Greatest Royal Rumble results

John Cena pinned Triple H in a singles match

Cedric Alexander retained the WWE Cruiserweight title against Kalisto

Matt Hardy and Bray Wyatt win the Raw Tag Team titles against Cesaro and Sheamus

Jeff Hardy retained the United States title against Jinder Mahal

Bludgeon Brothers retain the SmackDown Tag Team titles against the Usos

Seth Rollins retains the Intercontinental title against The Miz, Finn Balor and Samoa Joe

AJ Styles remains WWE World Heavyweight champion after he and Shinsuke Nakamura are both counted out

The Undertaker beats Rusev in a casket match

Brock Lesnar retains the WWE Universal title against Roman Reigns in a steel cage match

Braun Strowman won the 50-man Royal Rumble by eliminating Big Cass last

'Nope'
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Specs
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What is Genes in Space?

Genes in Space is an annual competition first launched by the UAE Space Agency, The National and Boeing in 2015.

It challenges school pupils to design experiments to be conducted in space and it aims to encourage future talent for the UAE’s fledgling space industry. It is the first of its kind in the UAE and, as well as encouraging talent, it also aims to raise interest and awareness among the general population about space exploration. 

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RESULTS
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My Country: A Syrian Memoir

Kassem Eid, Bloomsbury

Biography

Her family: She has four sons, aged 29, 27, 25 and 24 and is a grandmother-of-nine

Favourite book: Flashes of Thought by Sheikh Mohammed bin Rashid

Favourite drink: Water

Her hobbies: Reading and volunteer work

Favourite music: Classical music

Her motto: I don't wait, I initiate

 

 

 

 

 

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