UAE defence conglomerate Edge is launching a space company to manufacture and assemble Earth observation satellites, as well as provide cybersecurity solutions.
The company, called Fada, Arabic for space, will also develop the UAE Space Agency’s Sirb constellation, a group of radar imaging satellites.
Edge, which specialises in autonomous systems, cybersecurity and weaponry for military and civilian sectors, was awarded the contract by the space agency last year.
Waleid Al Mesmari, president of space and cyber technologies at Edge, told The National that Fada will complete the first satellite for launch in 2026.
“The main idea here is to focus on having a one-stop shop. The company will provide Earth observation services, which can help in many civil applications, whether urban planning, emergency response or monitoring land vegetation,” he said.
“Our focus is on building the base for technological advancement through Fada, which includes nurturing national talents to sustain engineering capabilities in the UAE.”
Earth observation and cybersecurity
This expansion into space technologies marks a significant milestone for Edge, as it seeks to diversify its product portfolio and dive into the rapidly expanding global space industry.
In 2022, the global Earth observation market was valued at $3.5 billion and is predicted to reach $6.4 billion by 2032, according to India-based Allied Market Research.
The UAE Space Agency has been making a significant push to establish a thriving private space sector that benefits the nation's economy and fosters innovation and job creation.
“The idea here is to create healthy competition in the private space sector, where each participant will complement each other and contribute to building a strong space ecosystem,” said Mr Al Mesmari.
For the Sirb constellation, for example, Fada will be developing it, while Yahsat and Bayanat will both manage satellite operations and data.
One of Fada’s unique offerings will be its ability to integrate cybersecurity technologies into satellite systems.
In an era of heightened geopolitical tensions and escalating cyber threats, satellite cybersecurity is becoming a top priority for nations and private space companies.
New satellite manufacturing facility
Fada's operations will be carried out in a new facility in Abu Dhabi dedicated to satellite manufacturing, assembly, integration and testing.
The factory will also be able to support subsystems of satellites, such as power and communication, providing a one-stop shop for customers looking to develop satellites.
Some of the satellites the facility could support include synthetic aperture radar - the radar imaging satellites that Fada is already developing for the UAE Space Agency, optical imaging satellites and infrared payloads, as well as satellite cybersecurity and protection services.
The factory, currently in its design phase, is also expected to help create jobs in the country.
"[The facility] will enable us to have a sustainable technological engineering and space capabilities that will cultivate a high-value workforce in the UAE space sector," Mr Al Mesmari said.
It is not clear when it will be completed.
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2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
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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