The UAE space sector is set to make strides in 2025, with major missions and technological advancements set to enhance its standing on the global stage.
From the much-anticipated launch of MBZ-Sat to progress on its second lunar rover and private sector growth, the year is expected to be transformative for the nation’s burgeoning space industry.
Launch of MBZ-Sat satellite
The 700kg MBZ-Sat, the region’s most advanced Earth observation satellite, is expected to lift off in early 2025 aboard a SpaceX rocket. Officials from the Mohammed bin Rashid Space Centre (MBRSC) announced that a launch is scheduled for January.
It has been in development by Emirati engineers at the MBRSC since 2020, with the majority of the satellite parts manufactured by private companies, in efforts to help boost the local industry.
Amar Vora, head of space at Serco Middle East, a company that provides services and consultancy to the public and private sector, said that the satellite will provide the highest resolution imagery in the region, surpassing its predecessor KhalifaSat in capability.
“This will unlock new and improved civilian applications across the UAE and beyond, helping to better manage infrastructure, monitor the environment and support disaster relief, among a range of other uses,” Mr Vora told The National.
In addition to MBZ-Sat, progress is anticipated on the Sirb programme, a constellation of highly accurate radar satellites by the UAE Space Agency.
In September, the agency contracted Fada, a company under the UAE defence conglomerate Edge, to develop the satellites. “This is demonstrating the importance of building up the local space ecosystem and relevant capabilities in-country,” said Mr Vora.
Partners of the Emirates Airlock
The UAE’s involvement in Nasa’s Gateway project, a lunar-orbiting station, is set to expand next year with the announcement of suppliers for the Emirates Airlock expected soon.
Development of the airlock module, designed to facilitate crew and cargo transfers to and from the lunar station, is being overseen by the MBRSC. In exchange, the UAE will send an Emirati astronaut to the Gateway in future.
The National reported exclusively in December that the space centre was fielding bids from leading organisations, including a publicly listed US aerospace manufacturing and space infrastructure technology company, and a French aerospace manufacturer, as the Gateway lunar station project gathers pace.
“We are finalising our process in terms of the selection of the partners,” Adnan Al Rais, assistant director general at the MBRSC, said. “We will work with partners to develop the Airlock module and are preparing it for launch, hopefully, by the 2030 time frame.”
Progress on lunar rover Rashid 2
Emirati engineers at the MBRSC are also busy developing Rashid 2, the country’s second lunar rover, with a lander to carry it to the surface already selected and to be announced soon, according to a senior space centre official.
The first Rashid rover failed to land softly on the lunar surface, after the Japanese lander carrying it crashed.
“We've already started working on the second rover and we're good in terms of schedule,” Amer Al Sayegh, senior director of the space engineering department, told The National in October. “In the current decision, we've taken into consideration which company has done it before and has already got experience. Our target is to reach the surface of the Moon and we'll do it, from our perspective, the most successful, safest way.”
MBR Explorer spacecraft
The UAE Space Agency is overseeing a mission to the main asteroid belt, in which the MBR Explorer spacecraft will journey to seven asteroids and attempt a landing on the last one. On the way there, it will also swing by Venus and could also possibly take images of the hot planet.
In 2025, the blueprint of the 2,300kg craft is expected to receive its final approval, called the critical design review. Engineers can then start developing the spacecraft, with a launch expected in 2028.
The agency is working with the Laboratory for Atmospheric and Space Physics (Lasp) at the University of Colorado Boulder again for this mission, as they did previously for its mission to Mars.
Private space sector boost
This coming year is expected to be a defining year for the UAE’s private space sector, with new entrants and investments reshaping the landscape.
Anna Hazlett, founder of AzurX, a UAE-based private advisory and investment firm specialising in the space sector, said there was growing interest from both regional and international investors.
“The entry of new private sector players, increased venture capital, and international partnerships will be crucial in shaping the ecosystem,” she told The National. “Additionally, we anticipate a growing interest from regional VC (venture capitalists) and private capital in investing in the global space sector, reflecting the UAE's commitment to becoming a key player in this dynamic industry.”
In December, the US Chamber of Commerce organised a visit to the UAE for a delegation of 20 US companies to explore partnerships with Emirati organisations and government bodies working in the space sector. Ms Hazlett said she also expects a trend of technology localisation to take place in the coming year.
“There will be a strong push towards capacity building and localised manufacturing of space technologies,” she said. “At AzurX, we’ve observed a significant appetite for fostering home-grown innovation, particularly as the UAE aims to broaden its sovereign capabilities in this domain.”
UAE's astronaut programme
In 2023, astronaut Dr Sultan Al Neyadi, now the Minister of Youth, launched to the International Space Station for a six-month mission and carried out the first spacewalk by an Arab. The MBRSC partnered with the US to make this mission possible.
He was the second Emirati in space, after his colleague Hazza Al Mansouri blasted off to the station in 2019 for an eight-day trip aboard a Russian rocket.
There are two other members in the UAE's astronaut corps who are yet to fly, including Nora Al Matrooshi and Mohammed Al Mulla.
No deals on a new flight for an Emirati astronaut have been announced so far that indicate a mission will take place next year.
The ISS is nearing retirement at the end of this decade, but there are still at least two more private missions to the station expected to take place before the station is brought down to the ocean.
MBRSC, which oversees the astronaut programme, would also have the option of commercial space stations in future if it wants to keep an Emirati presence in low-Earth orbit.
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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Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Founders: Ines Mena, Claudia Ribas, Simona Agolini, Nourhan Hassan and Therese Hundt
Date started: January 2017, app launched November 2017
Based: Dubai, UAE
Sector: Private/Retail/Leisure
Number of Employees: 18 employees, including full-time and flexible workers
Funding stage and size: Seed round completed Q4 2019 - $1m raised
Funders: Oman Technology Fund, 500 Startups, Vision Ventures, Seedstars, Mindshift Capital, Delta Partners Ventures, with support from the OQAL Angel Investor Network and UAE Business Angels
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
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