From left, Australian Prime Minister Anthony Albanese, US President Joe Biden and UK Prime Minister Rishi Sunak at a naval base in San Diego, California, on Monday. AP
From left, Australian Prime Minister Anthony Albanese, US President Joe Biden and UK Prime Minister Rishi Sunak at a naval base in San Diego, California, on Monday. AP
From left, Australian Prime Minister Anthony Albanese, US President Joe Biden and UK Prime Minister Rishi Sunak at a naval base in San Diego, California, on Monday. AP
From left, Australian Prime Minister Anthony Albanese, US President Joe Biden and UK Prime Minister Rishi Sunak at a naval base in San Diego, California, on Monday. AP

Aukus deal: US, UK and Australia unveil nuclear submarine project


Ellie Sennett
  • English
  • Arabic

The leaders of the US, the UK and Australia have announced that Canberra will acquire conventionally armed, nuclear-powered submarines.

US President Joe Biden, Australian Prime Minister Anthony Albanese and British Prime Minister Rishi Sunak gathered at a naval centre in San Diego, California, on Monday to hammer out the Aukus security partnership, which was first announced in September 2021.

China and Russia's reaction to the announcement was hostile after the architects of the deal said it was intended to deepen defence ties, at a time when Beijing is expanding its influence across the Indo-Pacific region.

“The latest joint statement from the US, UK and Australia demonstrates that the three countries, for the sake of their own geopolitical interests, completely disregard the concerns of the international communities and are walking further and further down the path of error and danger,” China's Foreign Ministry spokesman Wang Wenbin said on Tuesday.

Meanwhile, the Kremlin said the plan to create a fleet of nuclear-powered submarines raised questions about non-proliferation.

Mr Biden, Mr Albanese and Mr Sunak on Monday said the agreement renewed a centuries-old alliance to sustain peace, stability and prosperity around the world.

Defence officials from the three countries and US congressional representatives celebrated in the audience.

“This is a genuine trilateral undertaking. All three nations stand ready to contribute and all three nations stand ready to benefit,” Mr Albanese said.

“I look out from here today and I see new frontiers … through Aukus, we turn ourselves to face the future.”

Aukus is a trilateral security pact between Australia, the UK and the US. Reuters
Aukus is a trilateral security pact between Australia, the UK and the US. Reuters

He said the new submarines would be “Australian sovereign”, “built by Australians, commanded by the Royal Australian Navy and sustained by Australian workers in Australian shipyards”.

Mr Biden said: “The hard work of enhancing deterrence and promoting stability is going to affect the prospects of peace for decades to come.”

He repeated that the submarines would be nuclear-powered but not nuclear-armed.

“This first project is only the beginning … the United States could not ask for two better friends or partners,” Mr Biden said.

Mr Sunak said the submarines would be “truly interoperable” as the Royal Navy would operate the same submarines as the Royal Australian Navy, sharing parts with the US Navy.

“We will raise our standards of nuclear non-proliferation,” he said. “This is a powerful partnership. For the first time ever, it will mean three fleets of submarines working together across both the Atlantic and Pacific.”

The White House said the alliance had “identified the optimal pathway” to provide Australia with conventionally armed, nuclear-powered submarines, which included the acquisition of a fleet of British-built vessels that incorporate US technology.

Nuclear-powered submarines would give Australia's navy far greater force and strategic strength as they can remain at sea for months.

Chinese warnings that Aukus could set off an arms race were rejected by a senior White House official who said “the fundamental purpose” of the pact was to “enhance deterrence and support security and stability in the Indo-Pacific”.

“We believe that [the Indo-Pacific] is increasingly being challenged [and] under threat, not only by developments in China but other countries like North Korea and Russia,” another official said.

The US had previously shared its submarine technology only with Britain, in the late 1950s.

While the submarines will be nuclear-powered, Australia has made it clear it does not intend to try to obtain nuclear weapons.

Charles Edel, the chairman of the Centre for Strategic and International Studies in Washington, said that the US, through Aukus, was strengthening two of its closest allies and seeking to convince China “that it is no longer operating in a permissive security environment”.

“Each nation has a slightly different rationale for Aukus but it largely boils down to China,” he said at an event hosted by the centre.

China “was not mentioned when Aukus was first announced, although the exponential growth of Beijing's military power and its more aggressive views over the past decade were the clear animating force behind it”, Mr Edel said.

Aukus infuriated Paris, as it caused Australia to abruptly scrap a $66 billion deal to buy conventional French submarines.

Mr Biden pitched a major boost in submarine production in a budget proposal last week.

World record transfers

1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m

MATCH INFO

Uefa Champions League, last-16. first leg

Atletico Madrid v Juventus, midnight (Thursday), BeIN Sports

The National in Davos

We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.

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.”

Ain Dubai in numbers

126: The length in metres of the legs supporting the structure

1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch

16 A380 Airbuses: The equivalent weight of the wheel rim.

9,000 tonnes: The amount of steel used to construct the project.

5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place

192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.

SNAPSHOT

While Huawei did launch the first smartphone with a 50MP image sensor in its P40 series in 2020, Oppo in 2014 introduced the Find 7, which was capable of taking 50MP images: this was done using a combination of a 13MP sensor and software that resulted in shots seemingly taken from a 50MP camera.

Infiniti QX80 specs

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MOUNTAINHEAD REVIEW

Starring: Ramy Youssef, Steve Carell, Jason Schwartzman

Director: Jesse Armstrong

Rating: 3.5/5

Results

Ashraf Ghani 50.64 per cent

Abdullah Abdullah 39.52 per cent

Gulbuddin Hekmatyar 3.85 per cent

Rahmatullah Nabil 1.8 per cent

Updated: March 14, 2023, 11:20 AM