Elon Musk and Starlink: How the tech tycoon is positioning himself at the heart of global geopolitics


Sarwat Nasir
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Elon Musk’s Starlink constellation has transformed global connectivity. With thousands of satellites orbiting Earth, Starlink provides internet access to underserved and remote regions, often filling the gaps left by traditional communication infrastructure.

The global scale and significance of this network, however, has caused a debate over whether the owner of Tesla has the power to influence global geopolitics through Starlink, with its reach into conflict zones, rural areas and regions where governments may lack control over telecoms. Mr Musk's reach already extends worldwide through his ownership of media platform X which has also drawn criticism around the topic of moderating hate speech.

Connecting the world

By September 2024, SpaceX had launched more than 6,100 satellites, with the goal of eventually stationing 12,000 and potentially increasing that number to 42,000 satellites in low Earth orbit. It currently serves more than 70 countries, making it a critical tool in connecting millions of people around the world.

Amar Vora, head of the space division at Serco Middle East – a company that provides services and consultancy to the public and private sector – told The National that the billionaire’s influence through Starlink goes beyond merely bridging the digital divide.

Roy Cooper / The National
Roy Cooper / The National

“Elon Musk’s influence on global geopolitics is significant, particularly through the soft power he wields by providing communication in regions where access is limited or controlled,” he said.

“This influence has the potential to shape political outcomes or support movements that align with his values. The presence of Starlink could compel governments to align with Musk's business interests.”

Mr Vora said governments might feel pressured to align with Musk's business interests or broader geopolitical goals to secure or maintain access to its services. “This development challenges the traditional state-centric model of international relations, where global influence has predominantly been the domain of nation-states.”

Limited control

Despite Mr Musk’s far-reaching influence through Starlink, the programme operates under the control and regulations of the US government, and a licence is required in the country where it is operating, as well as access to ground terminals.

Michael Byers, Canada research chair in global politics and international law at the University of British Columbia, told The National that Starlink is licensed by federal authorities, which grants the US significant oversight of the satellite network’s operations.

This means that while Mr Musk holds substantial soft power through his global satellite communications, his control is not absolute.

“The United States government is SpaceX’s largest customer, whether for launches for Nasa and Space Force, travel to and from the International Space Station, or communications support from the Starlink mega-constellation of satellites,” said Mr Byers.

“The US government licenses the rocket and satellites and also controls market access to customers for Starlink in the United States. All this is to say that the US government has the ability to constrain and control SpaceX, if it wishes to do so.”

Access during conflict

Starlink’s presence in politically sensitive areas allows Mr Musk to act as a key intermediary in providing essential services. This was particularly relevant in Ukraine, where his satellite network has become a crucial tool during the continuing war with Russia.

In 2022, the Ukrainian government received more than 22,000 Starlink terminals, ensuring continued communication for civilians and military personnel despite Russia’s efforts to disrupt traditional communication systems.

Amar Vora, head of space at Serco Middle East. Photo: Serco Middle East
Amar Vora, head of space at Serco Middle East. Photo: Serco Middle East

Mr Musk had asked the US government to cover the costs of providing Starlink services in Ukraine, as SpaceX could no longer afford to fund the service independently, which reportedly cost $20 million a month to maintain. Last year, the Pentagon awarded a contract to the rocket company to continue the services in Ukraine.

Bound by US law

This reality shows how, despite Starlink’s growing geopolitical relevance, its operations remain deeply tied to US strategic interests.

This was evident when Mr Musk was unable to activate Starlink over Crimea during Russia’s invasion of Ukraine. Although the Ukrainian government requested Starlink access to support military operations in the region, Mr Musk was bound by US sanctions, which recognise Crimea as being under Russian control.

Scott Pace, director of the Space Policy Institute at George Washington University, told The National that Mr Musk would have been violating US law if he had activated Starlink over Crimea.

“Even though it's understandable that the Ukrainian government would ask Elon [to activate Starlink over Crimea], he could not do that without violating US law,” said Mr Pace, who served as the executive secretary of the White House's National Space Council after former US president Donald Trump nominated him in 2017.

Scott Pace, former Nasa official and National Space Council executive secretary, now directs the Space Policy Institute at George Washington University. Photo: Getty Images
Scott Pace, former Nasa official and National Space Council executive secretary, now directs the Space Policy Institute at George Washington University. Photo: Getty Images

Mr Musk was allowed to activate Starlink over Iran during the 2022 nationwide protests, despite the Iranian government's severe internet restrictions.

The protests were caused by the death of Mahsa Amini, a 22-year-old Iranian woman who died in custody after being arrested by the country's “morality police” for allegedly violating the government's strict dress code.

Her death led to widespread protests, with citizens calling for greater rights and freedoms, particularly for women. Iran’s government imposed severe internet restrictions. In response, Mr Musk activated Starlink to provide internet access in the country, bypassing local censorship. Iran's government, however, took measures to block the satellite signals.

Meeting world leaders

Mr Musk’s international influence extends beyond technology as he frequently engages with political leaders, drawing attention to his role in shaping global discussions. This, however, is far from unprecedented.

“He’s a celebrity, and politicians meet with celebrities all the time,” said Mr Pace. “Some of them are sports and movie people that don’t have large communication systems.”

“We would have pictures of Henry Kissinger meeting with people decades after he stopped being a government employee. He was still a notable celebrity who would go and meet lots of people. If it was Taylor Swift meeting with prominent world leaders, would people care?”

Elon Musk with Italian prime minister Giorgia Meloni at an awards ceremony in New York in September. EPA
Elon Musk with Italian prime minister Giorgia Meloni at an awards ceremony in New York in September. EPA

Mr Musk has met several world leaders over the years, including French President Emmanuel Macron and Turkish President Recep Tayyip Erdogan, discussing topics such as technology investments and space co-operation.

While his political engagements may attract attention, they do not necessarily imply US government endorsement or a shift in geopolitical strategy, according to Mr Pace.

“The US government is probably not that thrilled with him meeting them, so I don’t think the government is using Elon Musk,” Mr Pace said. “If it was up to them, they would probably prefer he not, but he’s a US citizen, and he’s free to go and meet with whoever he wants.”

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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.”

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Stephen King, Penguin

Updated: October 07, 2024, 11:43 AM