Nasa is set to fast-track plans for the construction of a nuclear reactor on the Moon and to replace the International Space Station with one built by private industry.
The directives are expected to be announced soon by US Transportation Secretary Sean Duffy, who selected by President Donald Trump as Nasa’s interim administrator in July.
The space agency is undergoing major restructuring, with mass layoffs and budget cuts that will heavily impact its scientific programmes and place a greater focus on crewed exploration.
The push for an accelerated timeline is also a response to China and Russia’s plans for a lunar reactor, which was announced last year as part of their joint International Lunar Research Station, to be launched in 2033.
“While solar power systems have limitations on the Moon, a nuclear reactor could be placed in permanently shadowed areas, where there may be water ice, or generate power continuously during lunar nights, which are 14-and-a-half Earth days long,” Nasa said in a statement last year.
Powering future missions
A nuclear reactor would give Nasa a reliable power source for future missions to the Moon and Mars, where sunlight is limited by long nights and dust storms.
It would help keep astronauts alive, run habitats and support scientific work in those harsh environments.
The agency plans to return humans to the Moon under its Artemis programme and eventually crews to Mars from there.
Nasa has been working on plans for a lunar reactor since 2008 when the Fission Surface Power project was announced. Technical challenges, limited funding and a changing political landscape have brought many delays.
The agency still does not have a confirmed leader. Mr Duffy, who has no background in space exploration, was appointed after the White House abruptly withdrew its nomination of billionaire Jared Isaacman.
What is the timeline?
In one of his directives, Mr Duffy is expected to order Nasa to select a contractor within 60 days to lead the design and construction of a 100-kilowatt nuclear fission reactor that could be deployed on the Moon by 2030.
The memo, which has been seen by The National, warns that if China or Russia were to deploy a nuclear system first, they could potentially establish territorial restrictions around it, creating geopolitical challenges for US activities on the Moon.
A second directive aims to speed up the replacement of the ISS with at least two privately-operated space stations.
The goal is to have them ready by the time the station is decommissioned in 2030.
Nasa has been working with companies such as Axiom Space, Blue Origin and Starlab to develop low-Earth orbit destinations, but Mr Duffy’s directive reshapes how the contracts are managed and paid for.
Once the ISS is retired, China’s Tiangong will become the only station in low-Earth orbit.
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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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