The SpaceX Starship spacecraft lifts off from Starbase in Boca Chica, Texas, on March 14, 2024. AFP
The SpaceX Starship spacecraft lifts off from Starbase in Boca Chica, Texas, on March 14, 2024. AFP
The SpaceX Starship spacecraft lifts off from Starbase in Boca Chica, Texas, on March 14, 2024. AFP
The SpaceX Starship spacecraft lifts off from Starbase in Boca Chica, Texas, on March 14, 2024. AFP

SpaceX secures Starship boost after winning approval for 25 launches a year


Sarwat Nasir
  • English
  • Arabic

SpaceX is primed to accelerate development of its Starship space rocket after being granted permission to increase its launches from five to 25 per year.

The US Federal Aviation Administration issued its final environmental assessment, in which it said that SpaceX’s licence was being modified to increase the number of launches from Starbase in Boca Chica, Texas.

Starship, a two-stage system that involves the Super Heavy Booster and the Starship spacecraft, has been launched on eight test flights in two years, with each one bringing SpaceX closer to beginning commercial operations.

“The FAA's evaluation of a permit or licence application includes a review of public safety issues (such as overflight of populated areas and payload contents), national security or foreign policy concerns, insurance requirements for the launch operator and potential environmental impact,” the administration said.

Dr Sarath Raj, project director of the Satellite Ground Station at Dubai's Amity University, told The National that the move will “significantly accelerate” the rocket’s development.

“This substantial increase from the previous limit allows SpaceX to implement a rapid iterative testing campaign, quickly identifying and rectifying design or operational flaws through frequent flight data,” he said.

“Each launch provides invaluable real-world performance data crucial for refining the Starship system, including its novel full reusability aspects.”

More flights, faster progress

SpaceX has also used this rapid development approach for its flagship Falcon rockets, building and testing them quickly to gather data and make improvements.

But frequent test flights of Starship have been a challenge in the past due to strict requirements.

Billionaire Elon Musk threatened to sue the FAA in September after it proposed to issue $633,009 worth of penalties to SpaceX for not following licence requirements during two of its launches in 2023.

When US President Donald Trump won the election in November, experts predicted that the new administration would help fast-track Starship’s path to commercial operations by cutting down on regulatory delays.

“For instance, the administration could prioritise rapid permitting for launches and streamline environmental reviews, which have historically slowed SpaceX operations at Boca Chica,” Sahith Madara, an aerospace engineer and founder of Paris advisory firm Bumi and Space, told The National at the time.

“The FAA could waive certain regulatory requirements or set aggressive deadlines for assessments, potentially shortening the approval timeline for each launch.”

Powerful friend in the White House

The Trump administration has historically advocated for reducing regulatory barriers and expediting approval processes, especially for industries it considers critical to the US, such as aerospace and defence.

Mr Musk has influence in the administration, having been appointed by Mr Trump to lead a drive to improve government efficiency.

“With Trump’s re-election, his administration’s pro-space, tech-driven and industrial vision for America’s future could lead to supportive FAA policies for commercial space ventures, potentially fast-tracking projects like Starship,” said Anna Hazlett, founder of AzurX, a UAE-based space advisory and investment firm.

On May 3, SpaceX's launch site Starbase officially became a city in Texas, after residents of the area, many of whom are SpaceX employees, voted in favour of Mr Musk's proposal.

While the regulatory approval enables SpaceX to speed up development, Dr Raj said that the company should still manage environmental responsibilities.

SpaceX's Starbase in Boca Chica, Texas. AP
SpaceX's Starbase in Boca Chica, Texas. AP

Boca Chica, on the Texas Gulf Coast, is home to sensitive wildlife habitats and has been at the centre of environmental debates over rocket debris, noise and pollution.

“Crucially, this progress must be accompanied by robust environmental monitoring, including air and water quality, noise levels and debris impact, ensuring alignment with global sustainability efforts in space activities,” he said.

Starship is central to SpaceX’s long-term vision, as the company holds a $2.89 billion Nasa contract to develop a lunar landing system for the Artemis programme.

Mr Musk’s ultimate goal, however, is to use the rocket to “make life multiplanetary” and eventually send humans to Mars.

A new budget proposal for Nasa by the White House suggests a greater focus on human space exploration of the Moon and Mars.

The ninth test flight of Starship is planned for this month.

In the previous flight in March, the Starship spacecraft successfully separated from the booster, which then returned to be captured mid-air by mechanical arms on a launch tower.

Mission control lost contact with the spacecraft during its ascent. It broke up and re-entered the atmosphere over Florida and the Bahamas.

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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When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

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