The Long March 5B Y3 carrier rocket blasts off from the Wenchang Space Launch Centre in southern China. Photo: Li Gang / Xinhua via AP
The Long March 5B Y3 carrier rocket blasts off from the Wenchang Space Launch Centre in southern China. Photo: Li Gang / Xinhua via AP
The Long March 5B Y3 carrier rocket blasts off from the Wenchang Space Launch Centre in southern China. Photo: Li Gang / Xinhua via AP
The Long March 5B Y3 carrier rocket blasts off from the Wenchang Space Launch Centre in southern China. Photo: Li Gang / Xinhua via AP

Fears that Chinese space rocket debris will crash into Earth


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Debris from a Chinese rocket is set to crash to Earth some time over the next few days, with the potential for wreckage to land across a wide section of the globe.

Part of the Long March 5B rocket launched by China on Sunday will make an uncontrolled re-entry around July 31, says The Aerospace Corporation, a non-profit group in El Segundo, California that receives US funding.

Parts of the US, Africa, Australia, Brazil, India and South-east Asia could be hit by debris, according to Aerospace predictions.

China has dismissed concerns over the rocket’s re-entry and the potential fallout. Its state-backed media has described such warnings as “sour grapes” from people resentful of the country’s rise as a space superpower.

“The US is running out of ways to stop China’s development in the aerospace sector, so smears and defamation became the only things left for it,” the Global Times newspaper reported, citing Song Zhongping, a television commentator who closely follows China’s space programme.

“The US and Western media deliberately exaggerate the ‘loss-of-control’ of the Chinese rocket debris and the probability of personal injury caused by the rocket debris, obviously with bad intentions,” Shanghai-based news site Guancha.cn said.

The descent of the 23-tonne booster is part of what critics say is a string of uncontrolled crashes that highlights the recklessness of China’s escalating space race with the US.

The rocket took off from Wenchang Space Launch Centerein Hainan province on April 29. Photo: China Daily via Reuters
The rocket took off from Wenchang Space Launch Centerein Hainan province on April 29. Photo: China Daily via Reuters

“Due to the uncontrolled nature of its descent, there is a non-zero probability of the surviving debris landing in a populated area — over 88 per cent of the world’s population lives under the re-entry’s potential debris footprint,” Aerospace said Tuesday.

In May 2021, pieces of another Long March rocket landed in the Indian Ocean, prompting concern that the Chinese space agency had lost control of it.

“It is clear that China is failing to meet responsible standards regarding their space debris,” Nasa Administrator Bill Nelson said that month. “It is critical that China and all space-faring nations and commercial entities act responsibly and transparently in space to ensure the safety, stability, security and long-term sustainability of outer space activities.”

China’s most recent launch, which sent a module to the nation’s space station, included a booster to put the spacecraft into orbit. That booster is now “dead” and beyond the control of the Chinese space agency, said Jonathan McDowell of the Centre for Astrophysics, which is operated by Harvard University and the Smithsonian Institution.

“The Chinese are right that the best bet is that it will fall in the ocean,” he said, although “there are plenty of populated areas” within the rocket booster’s range.

More debris may fall to Earth later this year, when China will be launching another Long March rocket to the space station, Mr McDowell said.

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Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

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Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

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Company name: Happy Tenant

Started: January 2019

Co-founders: Joe Moufarrej and Umar Rana

Based: Dubai

Sector: Technology, real-estate

Initial investment: Dh2.5 million

Investors: Self-funded

Total customers: 4,000

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Company: Verity

Date started: May 2021

Founders: Kamal Al-Samarrai, Dina Shoman and Omar Al Sharif

Based: Dubai

Sector: FinTech

Size: four team members

Stage: Intially bootstrapped but recently closed its first pre-seed round of $800,000

Investors: Wamda, VentureSouq, Beyond Capital and regional angel investors

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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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Date started: 2012

Founder: Amir Barsoum

Based: Dubai, UAE

Sector: HealthTech / MedTech

Size: 300 employees

Funding: $22.6 million (as of September 2018)

Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC

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How will Gen Alpha invest?

Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.

“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.

Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.

He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.

Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”

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About Proto21

Date started: May 2018
Founder: Pir Arkam
Based: Dubai
Sector: Additive manufacturing (aka, 3D printing)
Staff: 18
Funding: Invested, supported and partnered by Joseph Group

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Updated: July 27, 2022, 9:35 AM