A communication satellite in Earth orbit. Getty Images
A communication satellite in Earth orbit. Getty Images
A communication satellite in Earth orbit. Getty Images
A communication satellite in Earth orbit. Getty Images

Iraq unveils plan to build and launch satellite


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Iraq unveiled plans this week to build and launch a communications satellite soon and is seeking foreign partners, a government official told The National.

The satellite is intended to help modernise the country's telecommunications services.

"Iraq is seeking foreign and Arab countries to build and launch a satellite for the country. What has been announced this week is the tender for the project," communications ministry spokesman Raad Mashhadani told The National.

Details on how long it will take to be built, where they plan to launch it from and the cost will be finalised after receiving bids, Mr Al Mashhadani said.

The tender invites the developers to design, build, launch and operate the satellite, offering a partnership deal, according to the tender seen by The National.

Interested companies have to pay 75 million Iraqi dinar ($51,000) to obtain the documents and have until November 18 to submit their bids.

“This achievement came with the support and guidance of Prime Minister Mustafa Al Khadhimi who is pushing for Iraq to keep up with developments taking place in the new telecoms sector,” Mr Al Mashhadani said.

Iraq's TigriSat reached space in June 2014. The satellite is used to detect dust storms using camera technology. Photo: Nanosats
Iraq's TigriSat reached space in June 2014. The satellite is used to detect dust storms using camera technology. Photo: Nanosats

Iraq's Minister of Communications Arkan Al Shaibani, who announced the plan at the Second Iraqi Cyber ​​Security Conference in Baghdad, said “the development represents the prestige and sovereignty of the state”.

In 2014 a team of Iraqi students at the University of Rome built a micro satellite called TigriSat, which blasted into orbit in June of that year on board a converted Soviet-era intercontinental ballistic missile.

The small satellite – Iraq's first – uses a camera to detect dust storms over the country and is still in orbit.

Iraq claimed it had tested two rockets capable of carrying a satellite into space in 1989 under Saddam Hussein's government, which would have made it the first Arab state with such a capability.

The launch was the culmination of a secretive space programme called Al Ta-ir, which aimed to put two experimental satellites into orbit.

The programme came to an abrupt halt with the outbreak of the Gulf war in 1991 however, and the satellites, one of which was described as looking like a "1970's disco-themed coffee table", never got beyond the development stage.

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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Updated: September 23, 2021, 1:42 PM