Why the UAE must build a spaceport

Why the UAE should build a spaceport.

OVER THE PAST THREE decades the UAE has successfully diversified its economy away from dependence on oil and gas production and exports towards trade, services and industry. Investment in infrastructure, transport and logistics has enabled this structural shift in the UAE’s economy to become a regionally and internationally connected business, tourism and trade hub for the GCC and the Middle East. As the UAE prepares to host Dubai Expo 2020, it needs to prepare for a new phase of growth and development based on investing in new technologies and sectors that will embody innovation. In particular, this article proposes that the UAE should develop and implement a Space Policy and undertake investments to become a significant player in the global space economy.

STAR TREK: THE GLOBAL SPACE ECONOMY IS GROWING

The global space economy grew by four per cent in 2013, reaching a new record of $314.2 billion, according to the Space Foundation, Space Report 2014. The majority of this growth, in absolute terms and as a percentage, took place on the commercial side of the space economy. Commercial products, services, infrastructure, and support industries add up to slightly more than threequarters of the space economy, with government spending (24 per cent of total) constituting the remainder.

Space assets and infrastructure (land and space based) have also been building up with a growing number of satellites being launched. According to satellitedebris.net, there are some 7,090 spacecraft deployed, with 5,201 in low earth orbit (LEO), 875 Geostationary and 380 Medium Earth Orbit (MEO), the remainder are military and other. Russia and the US account for most of the spacecraft: 49 per cent and 30 per cent respectively.

SPACE ECONOMY TRENDS

Three major trends are unfolding. One, the globalisation of the space sector is accelerating. More than 50 countries have satellites in orbit (including the UAE with seven and Saudi with 13) and more are joining.

Two, is the growing ‘privatisation’ of space. The space industry is becoming more commercial, with greater investment by the private sector (e.g. Elon Musk of SpaceX and Richard Branson with Virgin Galactic). Downward pressure on launch prices and cost-saving advances in satellite technology have combined to open the door for small and midsize space companies to enter the market, providing new niche services and solutions to a growing number of customers. These companies are well-positioned to serve the increasing demand for bandwidth and services across regions that expect to see large population growth, such as Asia, Africa, and the Middle East.

Three, there is a growing ‘democratisation’ of the space sector. Individuals can now buy microsatellites (masses below 91kgs.) and nanosatellites online. Microsatellites constituted more than half of the 197 satellites launched in 2013. Rockets are being launched carrying batches of 30 or more nanosatellites. Space technology will become increasingly ubiquitous, like the internet.

SPACE IS THE NEXT FRONTIER FOR THE UAE

Why is all this relevant to the UAE? The UAE’s massive investments in infrastructure and logistics have turned it into a regional and global trade, tourism and business hub. Dubai’s ports, airports, land-sea-air transport companies have transformed it into an Aerotropolis, a city whose activities are increasingly linked to its airports. Integrated transport systems and efficient logistics facilitate trade in goods and services and enable mobility and international connectedness. While these are important achievements, the UAE needs to invest into the new frontier of space, commercial space transportation and the commercial space economy in order to remain internationally competitive and relevant.

The coming decades will witness a growth in space activities and notably the development of the commercial space economy. The space economy includes many mature downstream activities that have reached mass markets and include information technology products and services, such as satellite television and GPS receivers. The geopositioning market, is a rapidly growing new segment building on satellite capacities (including ship, aircraft, vehicle and individual navigation and positioning). Advances in smartphones and other mobile products, all offer geo-positioning capabilities.

SPACE TECHNOLOGY IS INCREASINGLY INTEGRATED INTO EARTHLY ACTIVITIES

Satellite technology is increasingly integrated in land, sea and air navigation,