It is designed specifically to combat Russian jets, can land on short strips of motorway, have its engine changed in 40 minutes and is far less costly than its American competitor.
The Gripen fighter jet made by Sweden is on a roll. Interest has piqued on the question of Canada curtailing its US F-35 procurement programme – risking a deepening diplomatic rift with President Donald Trump to plump for the Swedish fighter.
Only last month, Stockholm announced what looks like a blockbuster Gripen order. There are good reasons why Ukraine is buying the Gripen. The fighter, which first entered service in 1996, was specifically designed to take on Russian jets rather than deep-penetration missions.
A major advantage for Ukraine with its airfields under attack, is that the aircraft was built to land on short runways as well as highways, a feature regularly practised in Sweden.
In addition, its single engine is easy to maintain. And, instead of requiring a host of highly trained technicians, it can be refuelled and rearmed in ten minutes by a single technician and five conscripts. The aircraft is designed for simple maintenance with a complete engine change achieved in 40 minutes.
Generational choices
Canada's Prime Minister Mark Carney has been forced to manage a trade war with US President Donald Trump and the F-35 has become a disputed element of Ottawa's defence budget. Following a Canadian auditor general report in June, the costs of the F-35 project were found to be “skyrocketing” by 40 per cent, going from $19 billion to almost $28 billion since the deal was signed in 2022.
The F-35 is a highly advanced “fifth generation” fighter with good stealth technology, but each plane comes at a lifetime cost estimated at $200 million, compared to the 4.5-generation Gripen E at just over half of that.
“The geopolitical point is that the Canadians want to spend money with their friends as opposed to their not-so-friendly southern neighbour,” said Tim Ripley, editor of the Defence Eye magazine.
Hostilities between Canada and its southern neighbour could yet deteriorate further with the possibility it might buy a fleet of the nimble Saab-made fighters.
Relations are poor between the two neighbours with Mr Trump threatening higher tariffs and making Canada America’s “51st state”.
But aside from the bitter politics, there are strong financial reasons for Canada to consider ditching its order of 88 F-35s – although it is under contract to buy 16 – in favour of a cheaper model.
Canada, argued military expert Francis Tusa, is also in a “very lucky position” as it only placed an initial order for just 16 F-35s, allowing it leeway in building an alternative second fleet. “Gripen was also designed from the outset to be super affordable operationally,” he said.
Add into the mix that Ukraine has ordered up to 150 of the Swedish fighters to defend itself against Russia’s continuing air attacks and the argument for its purchase increases.
Cannily, Saab is in talks with Canadian aircraft manufacturer Bombardier to build the Ukraine aircraft in the country.
On some metrics the Swedes have the edge. The Gripen has a 1500km combat range whereas the F-35A variant has 1,110km, which is a factor given the long distances in Canada.
Another additional cost in the F-35 programme will be changing Canada’s aerial refuelling system which is currently “hose and drogue” for its ageing fleet of CF-18 Hornets, and potentially for the Gripens, rather than the “flying boom” system used for F-35s. Experts believe this would add an additional $1.5bn for four new tanker aircraft.
Motorway landings
Ukraine has struggled to maintain the demanding technical needs of its fleet of F-16s, which have proven effective in its air operations.
But they too are American made, which again plays into the new political age with Europe now dedicated to enhancing its own military industrial base as Mr Trump wavers in his support for Nato.
International action
Thailand’s fleet of 11 Gripens were also reported to have performed well during the country’s border skirmish with Cambodia in July.
Beyond Thailand, the Gripen is gaining more international orders with the Philippines set to ink a deal for at least 20, alongside potential buyers in Portugal and interest from Oman.
It already manufacturers Gripens in Brazil, where ten are in service, which is opening up the market for other interested South American countries such as Peru and Colombia that are suffering from Mr Trump’s tariffs.
But there are drawbacks with the Gripen, argued Mr Ripley, particularly that it only has one engine. “Their main air defence activity is defending Canadian airspace which is big, covers loads of Arctic and water and inhospitable places so having two engines gives you an insurance policy if something goes wrong,” he said. “But if they're short of money then Gripen is a good option.”
While Mr Trump could well retaliate with harsher tariffs, America has to remember that its northern neighbour also “acts as the bulwark for the US because of its air defence of North America,” said Mr Tusa, adding that “allies have to work together”.
New UK refugee system
- A new “core protection” for refugees moving from permanent to a more basic, temporary protection
- Shortened leave to remain - refugees will receive 30 months instead of five years
- A longer path to settlement with no indefinite settled status until a refugee has spent 20 years in Britain
- To encourage refugees to integrate the government will encourage them to out of the core protection route wherever possible.
- Under core protection there will be no automatic right to family reunion
- Refugees will have a reduced right to public funds
Killing of Qassem Suleimani
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
UAE currency: the story behind the money in your pockets
The specs: Aston Martin DB11 V8 vs Ferrari GTC4Lusso T
Price, base: Dh840,000; Dh120,000
Engine: 4.0L V8 twin-turbo; 3.9L V8 turbo
Transmission: Eight-speed automatic; seven-speed automatic
Power: 509hp @ 6,000rpm; 601hp @ 7,500rpm
Torque: 695Nm @ 2,000rpm; 760Nm @ 3,000rpm
Fuel economy, combined: 9.9L / 100km; 11.6L / 100km
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- energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces
- infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes,
- many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts.
MATCH INFO
Newcastle 2-2 Manchester City
Burnley 0-2 Crystal Palace
Chelsea 0-1 West Ham
Liverpool 2-1 Brighton
Tottenham 3-2 Bournemouth
Southampton v Watford (late)
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.”
PROFILE OF STARZPLAY
Date started: 2014
Founders: Maaz Sheikh, Danny Bates
Based: Dubai, UAE
Sector: Entertainment/Streaming Video On Demand
Number of employees: 125
Investors/Investment amount: $125 million. Major investors include Starz/Lionsgate, State Street, SEQ and Delta Partners