Illustrations of the design of the Gateway Lunar Space Station project, in which the UAE is taking part. Mohammed Bin Rashid Space Centre
Illustrations of the design of the Gateway Lunar Space Station project, in which the UAE is taking part. Mohammed Bin Rashid Space Centre
Illustrations of the design of the Gateway Lunar Space Station project, in which the UAE is taking part. Mohammed Bin Rashid Space Centre
Illustrations of the design of the Gateway Lunar Space Station project, in which the UAE is taking part. Mohammed Bin Rashid Space Centre

White House proposes Nasa cuts that would end Lunar Gateway project


Sara Ruthven
  • English
  • Arabic

US President Donald Trump on Friday unveiled the White House's budget proposal, which includes major cuts to Nasa that would eliminate the Lunar Gateway project.

The international project, which includes contributions from the UAE, aims to put a space station in orbit around the Moon by 2027, with the station acting as a base for astronauts looking to descend to the lunar surface as well as a launch pad for eventual missions to Mars.

The White House said the proposed budget “terminates multiple unaffordable missions and reduces lower priority research, resulting in a leaner Science programme that reflects a commitment to fiscal responsibility”. Gateway is singled out as one of these “unaffordable” programmes.

The White House's budget proposal is not binding and has been sent to Congress, which does not have to incorporate it into its plans. But the budget does signal the priorities for the Trump administration over the next year.

Overall, the budget proposes a 25 per cent cut to Nasa, from about $25 billion to $18.8 billion.

The Gateway project would be used to support future Space Launch System and Orion programmes, but the budget proposal suggests phasing out the “grossly expensive and delayed” SLS rocket and the Orion capsule after three flights. The two projects have been decades in development, and critics say their slow progress does not warrant their high price tags.

In January last year, Nasa and the Mohammed bin Rashid Space Centre announced the UAE would be providing the Crew and Science Airlock module for Gateway. The European, Canadian and Japanese space agencies are also developing components for habitation, power and propulsion.

While Gateway is an international project, a withdrawal of US support is likely to have a significant impact.

Despite the proposed cuts, the US is still focused on “beating China back to the Moon and putting the first human on Mars”.

“By allocating over $7 billion for lunar exploration and introducing $1 billion in new investments for Mars-focused programmes, the Budget ensures that America’s human space exploration efforts remain unparalleled, innovative and efficient,” the proposal said.

It is unclear how the Trump administration will achieve these goals given the cuts to Nasa, but it could turn to private space exploration companies, such as Elon Musk's SpaceX and Jeff Bezos's Blue Origin. The stated goal of Mr Musk's SpaceX is the establishment of an habitable station on Mars.

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Sri Lanka: Dinesh Chandimal (capt), Lahiru Thirimanne (vice-capt), Dimuth Karunaratne, Kaushal Silva, Kusal Mendis, Sadeera Samarawickrama, Roshen Silva, Niroshan Dickwella, Rangana Herath, Lakshan Sandakan, Dilruwan Perera, Suranga Lakmal, Nuwan Pradeep, Vishwa Fernando, Lahiru Gamage

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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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Updated: May 02, 2025, 5:50 PM