Prime Minister Boris Johnson has announced plans to invest in British space projects. AFP
Prime Minister Boris Johnson has announced plans to invest in British space projects. AFP
Prime Minister Boris Johnson has announced plans to invest in British space projects. AFP
Prime Minister Boris Johnson has announced plans to invest in British space projects. AFP

UK ‘marching towards’ 2022 satellite launch date


Paul Peachey
  • English
  • Arabic

The UK is on track to launch its first all-British satellite programme in 2022 amid fears of space becoming increasingly militarised.

The ambition was announced by Prime Minister Boris Johnson in November as part of a £16.5 billion ($22.4bn) expansion on future warfare programmes, including space, to address weaknesses in Britain’s defence arsenal. He said it was the biggest investment in British defence since the end of the Cold War.

The new head of Britain’s military space programme said that his team was targeting the 2022 date for a domestically-built satellite and launch platform from UK soil in Scotland.

“That end point is very definitely in our programme and we are marching towards that,” said Air Vice Marshal Harv Smyth, head of the defence ministry’s Space Directorate.

British defence officials previously told The National that rival nations were ramping up efforts to seize control of outer space with daily hostile incidents targeting hundreds of military satellites in orbit.

Modern militaries increasingly rely on satellites to provide communications to ground forces and for accurate targeting with GPS technology that has turned space into a new frontier in the great power competition.

Mr Smyth told a webinar organised by the world’s largest arms fair, Defence and Security Equipment International, said the systems were vital for precision targeting of senior ISIS figures in urban areas without alienating the general population.

The same technology is used for civilian purposes including traffic lights, bank transfers and supermarket delivery systems. He said the failure of position, navigation and timing systems could cause “anarchy on the streets” and cost the UK £1 billion a day.

He said that Britain had been at the forefront of efforts to update old international laws to cope with the new environment in space.

Current laws developed in the 1960s have failed to keep pace with modern development, with the initial goal of preventing nuclear weapons being used in space. “Now that’s the least of our worries,” he said.

Mr Smyth said the UK was hoping to secure a competitive edge by harnessing the ideas of private industry from major players to “two blokes in a garden shed with a good idea and a small satellite”.

He highlighted the work of small companies tackling the growing problem of space junk – hundreds of thousands of fast-moving pieces of debris with the capacity to destroy multi-million-pound space projects. Other ongoing work includes using onboard-satellite artificial intelligence systems to assess data before beaming it back to Earth.

The number of craft launched is expected to increase dramatically as costs fall with governments and private developers planning huge constellations of satellites for both military and civilian use.

Nearly 3,000 satellites are currently in space, with about half of those put into orbit by the United States, according to a database compiled by the Union of Concerned Scientists.

The US’s geopolitical rivals, Russia and China, has 172 and 382 respectively, according to the figures updated to August last year.

The US created a new defence command in 2019, Spacecom, because of concerns its satellites were being targeted, potentially reducing its ability to shoot down missiles aimed at the US.

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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How to apply for a drone permit
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  • Fly it within visual line of sight
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