INTERVIEW: ‘I have always dreamed of going into space’ — George Whitesides, CEO Virgin Galactic

George Whitesides, CEO Virgin Galactic, speaks to Arab News. (Illustration by Luis Grañena)
Updated 27 December 2018
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INTERVIEW: ‘I have always dreamed of going into space’ — George Whitesides, CEO Virgin Galactic

  • Virgin Galactic CEO and former NASA chief-of-staff was joined by company founder and billionaire Richard Branson for a test flight into space
  • Traveling at almost three times the speed of sound and reaching a height of 51 miles above earth, VSS Unity officially entered space

DUBAI: On a crisp sunny December day in California’s Mojave desert, stood nervously on the edge of the runway waiting for the SpaceShipTwo spacecraft to begin its takeoff on a test mission into space.
The former NASA chief-of-staff was joined by company founder and billionaire Richard Branson, who had brought his son along for the launch, and they gathered with other colleagues and family members of those involved in what was to become a ground-breaking test flight to send a commercial spaceship designed to carry private passengers into space for the first time.
“It was pretty intense right before the flight,” Whitesides said. “You could tell people had that mixture of excitement and nervousness that you always have over a major flight test milestone,” he said, joking he was as nervous as he had been before his wife gave birth to their first child.
“We had all the staff that built the vehicle and maintained the vehicle and many of their families came — and it was in some ways a family affair,” he said.
It was the fourth test flight for the vehicle, SpaceShipTwo — VSS Unity having completed ground tests and glide tests. The ship took off and was carried into the air by another carrier aircraft before it was blasted into space by the force of the rocket burn.
Traveling at almost three times the speed of sound and reaching a height of 51 miles above earth, VSS Unity officially entered space — as defined by US standards — for the first time.
The flight, piloted by Mark “Forger” Stucky and Frederick “CJ” Sturkow, lasted around 1 hour 15 mins, before returning to Earth and landing in front of the now extremely jubilant crowd of onlookers.
“The announcer started calling out — it’s burned for 10 seconds, 20 seconds, 30 seconds and the excitement was just building and building as the flight got higher and higher,” said Whitesides.
“Finally, the announcer said that the vehicle had reached space, and there was this great release of tension and excitement, and a cheer went out. It was the most amazing thing I’ve ever been part of — it was an incredible moment in time.”
He said when the pilots landed, they came out of the craft “looking cool as cucumbers and as if they just went down to the corner store to buy milk.
“But there was a lot of emotion when they were greeted by their spouses and kids,” he said.
The two pilots earned their “Astronaut Wings” from the US aviation agency FAA Commercial after the flight. The decorations will be officially awarded in a ceremony in Washington next year.
The successful mission not only marked the first human spaceflight to be launched from US soil since the final space mission in 2011, but was also the first time a crewed ship designed for commercial passenger service had reached space.
It is a major step forward for Virgin Galactic’s ambitions to take private citizens into space as tourists.
Virgin Galactic was established as an arm of the Virgin Group by Branson in 2004, and he has faced numerous setbacks in his pursuit of developing space tourism. This culminated in October 2014, when a test vehicle broke apart in flight and killed the co-pilot and left the pilot seriously injured.
For both Branson and Whitesides, the achievement of the test flight on Dec. 13 represented the realization of their childhood aspirations.
“I’ve always wanted to go to space to be honest — in some ways this is the perfect thing. I get to go to space but also help others get to space,” Whitesides said.

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BIO

CAREER

- Chief-of-staff for NASA; on leaving he received the Distinguished Service Medal, the agency’s highest award.

- Currently CEO of Virgin Galactic, Sir Richard Branson’s human spaceflight venture, and the Spaceship Company, a manufacturer of advanced space vehicles.  

EDUCATION

- Princeton University’s Woodrow Wilson School

- University of Cambridge

- Fulbright Scholarship to Tunisia

FAMILY

- Lives in California with his wife Loretta and two children

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“I grew up in the mid-1970s just after the Apollo program, and was really inspired by what was doing. I remember when I was 11 or 12 looking up, thinking I wanted to go up to space one day, and I have always had that dream,” he said, reflecting on his childhood growing up outside Boston in the US.
Whitesides pursued his early interest in space, first studying at Princeton University’s Woodrow Wilson School before earning a master’s degree in geographic information systems and remote sensing from the University of Cambridge.
His studies took him to work for the US space agency NASA, where be became chief-of-staff. On leaving he was awarded a medal for Distinguished Service, the highest award granted by the agency.
While at the agency, the Virgin Galactic project caught his eye, and he and his wife, Loretta — who also has a passion for space travel — were among the first customers to buy tickets in 2005 for Virgin Galactic’s planned commercial spaceship. This purchase paved the way to his appointment as CEO of the
venture in 2010.
Around the same time, the UAE also took an interest in the project, with the Gulf state initially taking a 31.8 percent stake in 2010, rising to a 37.8 percent the following year. The stake is currently held by the state-owned Mubadala Investment Company.
More recently there had been talks between Branson and Saudi Arabia about a potential $1 billion investment in the project by the Kingdom. Following the murder of Saudi journalist Jamal Khashoggi in October, however, Branson announced he had suspended talks with the Kingdom. Whitesides was unable to comment further on the current state of relations with Saudi Arabia.
Beyond the excitement and exhilaration of launching rockets beyond the Earth’s atmosphere, Whitesides is motivated by the profound impact the Galactic project and space travel could have on humanity as a whole.
“What inspires me is the idea of planetary perspective, the perspective when you go up in space. It is really important for the world to have that right now. If we can take a bunch of leaders from all over the world — some of them commercial leaders, some political leaders and some will be everyday citizens — and take them up into space, we can show them the planet.
“Show them how we are on this relatively fragile rock and you know we need to work together to solve some of our biggest problems. That is very inspiring to me. That is what motivates me. That space perspective is so important to our future,” he said.
Whitesides described photographs taken during the latest mission as “spectacular,” explaining that you can see the “blue marble under the thin atmosphere and
the wonderful beauty of planet Earth below.”
More than 600 people are already on the waiting list for the first commercial flights, all eager to see these views for themselves. Celebrities such as Leonardo diCaprio and pop star Justin Bieber are said to be among those who have bought tickets.
Since the latest test flight, interest has only heightened in getting a seat on the spaceship, Whitesides said, noting the importance of these first pioneers of space tourism.
“They have a special sparkle in their eye about doing new things and being at the forefront,” he said. “Without them we wouldn’t have the evidence of that large potential market out there,” he said.
Technology used for SpaceShipTwo ensures that the aircraft are reusable, Whitesides said, which is key to making this venture commercially viable. Typically spacecraft are abandoned after use one or two times, while the SpaceShipTwo model aims to operate more like a commercial jumbo jet and reused
multiple times.
“If you take a 747 across the Atlantic, that ticket is affordable because the airplane itself is reused thousands of times. So the key, really, to lowering the cost of space and enabling the benefits of space to be experienced more broadly by people around the world is to enable reusability.
“That’s what we have been working on so hard for SpaceShipTwo — to create a vehicle that can be reused not twice or three times or five times but 100 times for years and years,” he said.
Whitesides is optimistic there is demand for space travel, and that it will only grow once the first few successful journeys are completed.
“The number of people who would want to go to space is huge. I speak all over the world and I ask audiences everywhere who would like to go to space — and almost always I see most of the hands go up,” he said.
“There are a lot of people who want to go up, but they want to see it demonstrated first,” he said.
The current SpaceShipTwo vehicle is designed only to take people up to space and back.
However, Whitesides said that the next step would be to create new spacecraft models capable of high-speed space travel between continents.
“What is amazing in a sort of surprising way is that we have been going at roughly the same speed in terms of jet travel for almost 50 years — which is about Mach 0.8,” he said.
“Our children or grandchildren will be surprised that we got on planes to fly for 12 hours or 15 hours between continents. They will get used to much higher speed transportation,” he said.
Following the latest launch, they will start installing the customer interiors — these are ready and waiting to be installed in the craft.
“We are really on the home stretch here,” he said. “We need to fly a few flights … with our staff on board in the back — and those flights will allow us to make sure our customer experience is terrific and everyone is well trained. I would hesitate to give a specific date, but I think we are getting pretty close.”
Further developments with Virgin Galactic’s existing tie-up with the UAE are in the pipeline as well, with talks about developing a spaceport in the Gulf state to send people to space at an “exciting” stage.
The UAE is keen to develop its space industry, having set up its own space agency in 2014 and aiming to send the first Emirati astronaut to the international space station next year.
“What you may see in the coming period of time are discussions and announcements around the formation of a small number of space ports (around the world),” he said. Initially these will be used to send ships to space and back down again before potentially forming the basis for a network for intercontinental space travel.
Italy is one of the already publicly disclosed locations for a potential spaceport, while “the UAE in many respects is the furthest along, so that is exciting,” he said.


Saudi Arabia’s private debt market targets over $1.77bn by Q3 2024: report

Updated 24 November 2024
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Saudi Arabia’s private debt market targets over $1.77bn by Q3 2024: report

RIYADH: Saudi Arabia’s private debt market is experiencing significant growth, with eight active funds targeting to raise over $1.77 billion in capital by the third quarter of 2024, according to a new report.

This growth is driven by a sharp rise in investor confidence, with 97 percent of Middle East-based institutional investors now viewing the Kingdom as the most promising market for private debt in the coming year, up from 82 percent in 2023, based on Preqin survey data.

The report, titled “Territory Guide: The Rise of Private Debt Funds in Saudi Arabia 2024,” was published in collaboration with Saudi Venture Capital Co. It highlights the increasing interest from both regional and global investors, fueled by the positive outcomes of the Kingdom's Vision 2030 reforms.

The findings align with the fact that Saudi Arabia accounts for up to 27.5 percent of private debt fund transactions in the Middle East and North Africa region between 2016 and the third quarter of 2024.

In 2022, private debt funds focused on Saudi Arabia raised a record $335 million in total capital, a sharp rise from the $32 million raised by a single fund in 2003.

“This first-of-its-kind report highlights the emergence of private debt funds as a key asset class in Saudi Arabia, driven by the Kingdom’s Vision 2030 and its ambition to diversify the economy,” said Nabeel Koshak, CEO and board member at SVC.

“At SVC, we continue our commitment to support the development of such reports that provide policymakers, investors, and founders with insights and data to inform strategic decisions and policies to nurture the private capital ecosystem further,” Koshak added.

David Dawkins, lead author of the report at Preqin, commented: “Global investment firms are not alone in closely watching the growth and evolution of Saudi Arabia’s nascent private debt industry.”

Dawkins also noted: “For other developing economies in the Middle East and beyond, Saudi Arabia’s success in this area will strengthen the impetus for improving transparency to secure the capital needed for sustainable growth in a net-zero world.”

The study further revealed that among all private debt funds with investments tied to Saudi Arabia that concluded between 2016 and the third quarter of 2024, mezzanine funds accounted for 50 percent of total exposure, with direct lending and venture debt funds closely following at 30 percent and 20 percent, respectively.

Support for startups and small to medium-sized enterprises in the Kingdom is also reflected in the high proportion of venture debt, which represents 75 percent of all funds in the market with Saudi Arabia exposure.

The report also highlighted that private debt marked its second consecutive year as the asset class with the highest proportion of Middle Eastern investors intending to increase their investments in the coming year. Nearly 58 percent of investors expressed this sentiment, up from 50 percent in 2023.

The percentage of investors considering private debt the most promising asset class in the region rose by 12 percentage points, from 31 percent in 2023.

Private debt is expected to further bolster Saudi Arabia’s growing entrepreneurial community as the nation advances toward its Vision 2030 goals. Since 2018, new regulatory frameworks have been implemented, ushering in an era of increased transparency and equity within the private debt sector, closely aligned with the Kingdom’s broader investment vision.


Closing Bell: Saudi main index rises to close at 11,864 

Updated 24 November 2024
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Closing Bell: Saudi main index rises to close at 11,864 

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 24.38 points, or 0.21 percent, to close at 11,864.90. 

The benchmark index recorded a trading turnover of SR4.22 billion ($1.12 billion), with 124 stocks advancing and 99 declining. 

The Kingdom’s parallel market Nomu also posted gains, climbing 345.06 points, or 1.13 percent, to close at 30,885.34, as 49 stocks advanced and 32 declined. 

The MSCI Tadawul Index increased by 4.74 points, or 0.32 percent, to close at 1,491.56. 

The best-performing stock of the day was Arabian Contracting Services Co., whose share price surged 9.97 percent to SR167.60. 

Other notable gainers included Saudi Reinsurance Co., rising 4.97 percent to SR45.45, and Saudi Public Transport Co., which climbed 3.98 percent to SR23.00.     

Al-Baha Investment and Development Co. led the decliners, falling 6.06 percent to SR0.31. Aldrees Petroleum and Transport Services Co. dropped 4.33 percent to SR123.60, and Batic Investments and Logistics Co. declined 3.23 percent to SR3.59. 

Leejam Sports Co. announced the opening of four new fitness centers. These include a men’s center and the first ladies’ center in Al-Rass city, Qassim Province, as well as the first men’s and ladies’ centers in Al-Qunfidah city, Makkah Province.  

Branded under “Fitness Time” and “Fitness Time - Ladies,” the centers will feature state-of-the-art facilities, high-spec sports equipment, and modern designs. 

The financial impact of these openings is expected to reflect in the fourth quarter of 2024. Despite the announcement, Leejam Sports Co. closed the session at SR180, down 0.34 percent. 

Obeikan Glass Co. reported a net profit of SR29.89 million for the nine months ending Sept. 30, a 58.3 percent drop from the same period in 2023. The decline was attributed to lower average selling prices due to global market conditions and increased administrative expenses related to a new investment in a subsidiary, Saudi Aluminum Casting Foundry.  

The stock ended at SR49.60, down 1.59 percent. 

United Mining Industries Co. announced the issuance of two exploration licenses for gypsum and anhydrite ore from the Ministry of Industry and Mineral Resources. The company plans to conduct studies to determine the availability of raw materials, with financial impacts to be announced upon completion.  

Its stock closed at SR39.60, up 0.26 percent.


Morgan Stanley receives approval to establish regional HQ in Saudi Arabia

Updated 24 November 2024
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Morgan Stanley receives approval to establish regional HQ in Saudi Arabia

RIYADH: US-based investment bank Morgan Stanley has been granted approval to establish its regional headquarters in Saudi Arabia, as the Kingdom continues to attract international investment.

This move aligns with Saudi Arabia’s regional headquarters program, which offers businesses various incentives, including a 30-year exemption from corporate income tax and withholding tax on headquarters activities, as well as access to discounts and support services.

Saudi Investment Minister Khalid Al-Falih confirmed the progress of this initiative in October, stating that the Kingdom has successfully attracted 540 international companies to set up regional headquarters in Riyadh—exceeding its 2030 target of 500.

“Establishing a regional HQ in Riyadh reflects the growth and development of Saudi Arabia and is a natural progression of our long history in the region,” said Abdulaziz Alajaji, Morgan Stanley’s CEO for Saudi Arabia and co-head of the bank’s Middle East and North Africa operations, according to Bloomberg.

Morgan Stanley first entered the Saudi market in 2007, launching an equity trading business in Riyadh, followed by the establishment of a Saudi equity fund in 2009.

This approval follows a similar move by Citigroup earlier this month, with the bank also receiving approval to establish its regional headquarters in Saudi Arabia.

Fahad Aldeweesh, CEO of Citi Saudi Arabia, emphasized that this development would support the firm’s future growth in the Kingdom.

Goldman Sachs, another major Wall Street bank, also received approval in May to set up its regional headquarters in Saudi Arabia.

Prominent international firms that have already established regional headquarters in Saudi Arabia include BlackRock, Northern Trust, Bechtel, PepsiCo, IHG Hotels and Resorts, PwC, and Deloitte.

In addition, a recent report from Knight Frank noted that Saudi Arabia's regional headquarters program has led to increased demand for office space in Riyadh, with the city’s office stock expected to grow by 1 million sq. meters by 2026.

In August, Kuwait’s Markaz Financial Center echoed this sentiment, predicting a significant uptick in the Kingdom’s real estate market during the second half of the year, driven by the regional headquarters program.


QatarEnergy strengthens global footprint with offshore expansion in Namibia 

Updated 24 November 2024
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QatarEnergy strengthens global footprint with offshore expansion in Namibia 

RIYADH: QatarEnergy has expanded its portfolio through a new agreement with TotalEnergies to increase its ownership stakes in two offshore blocks in Namibia’s Orange Basin. 

According to a press release, the state-owned energy firm will acquire an additional 5.25 percent interest in block 2913B and an additional 4.7 percent interest in block 2912 under the new deal, subject to customary approvals.  

Once finalized, QatarEnergy’s share in these licenses will rise to 35.25 percent in block 2913B and 33.025 percent in block 2912.  

Saad Sherida Al-Kaabi, Qatar’s minister of state for energy affairs and CEO of QatarEnergy, said: “We are pleased to expand QatarEnergy’s footprint in Namibia’s upstream sector. This agreement marks another important step in working collaboratively with our partners toward the development of the Venus discovery located on block 2913B.” 

TotalEnergies, the operator of both blocks, will retain 45.25 percent in block 2913B and 42.475 percent in block 2912. Other partners include Impact Oil & Gas, which holds 9.5 percent in both blocks and the National Petroleum Corp. of Namibia, which owns 10 percent in block 2913B and 15 percent in block 2912.   

Located about 300 km off the coast of the African country, in water depths ranging from 2,600 to 3,800 meters, these blocks host the promising Venus discovery. The Venus field has attracted considerable attention as a significant find that could impact Namibia’s energy future.  

This offshore acquisition complements QatarEnergy’s recent ventures into renewable energy. In October, the company announced a 50 percent stake in TotalEnergies’ 1.25-gigawatt solar project in Iraq.  

The initiative, part of Iraq’s $27 billion Gas Growth Integrated Project, aims to enhance Iraq’s energy self-sufficiency by addressing its reliance on electricity imports and reducing environmental impacts.   

The solar project, set to deploy 2 million bifacial solar panels, will generate up to 1.25 GW of renewable energy at peak capacity, supplying electricity to approximately 350,000 homes in Iraq’s Basra region.  

QatarEnergy will share equal ownership of the project with TotalEnergies, which retains the remaining 50 percent. 

The firm’s dual focus on traditional and renewable energy highlights its strategic approach to meeting global demands while addressing sustainability concerns.  

Its involvement in Namibia’s offshore blocks and Iraq’s shift toward renewable energy highlights a well-rounded portfolio that includes fossil fuels and clean energy investments. 


GCC lending growth hits 3.1% in Q3, Saudi Arabia leads: report

Updated 24 November 2024
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GCC lending growth hits 3.1% in Q3, Saudi Arabia leads: report

RIYADH: Listed banks in the Gulf Cooperation Council achieved their highest lending growth in 13 quarters, with loans rising 3.1 percent to $2.12 trillion in the third quarter.

According to a report by Kamco Invest, Saudi Arabia led the surge with a 3.7 percent quarter-on-quarter increase in gross loans, marking its fastest growth in nine quarters.

Qatar followed with a 1.9 percent rise, while Bahrain recorded a 1.2 percent increase.

This growth aligns with the International Monetary Fund’s projection of 3.5 percent nominal gross domestic product growth for GCC nations in 2024, driven by the strong performance of non-oil sectors in the UAE, Qatar, Bahrain, and Saudi Arabia.

The region’s commitment to diversification and long-term infrastructure development continues to drive its financial sector.

 Despite record lending levels, aggregate net income for GCC-listed banks increased marginally by 0.4 percent to $14.9 billion.

While total revenues grew 4.1 percent, supported by a 2.8 percent rise in net interest income and a 6.9 percent increase in non-interest income, higher expenses and impairments weighed on profitability.

Loan impairments rose to a three-quarter high of $2.5 billion, with increases in the UAE, Saudi Arabia, Oman, and Bahrain partially offset by declines in Qatar and Kuwait.

Customer deposits across GCC-listed banks reached a nine-quarter high, rising 3.2 percent to $2.5 trillion.

Saudi Arabia led with a 4.6 percent increase, while the UAE maintained its position as the largest deposit market at $828 billion.

Deposits in Oman and Qatar also saw solid growth, contributing to the region’s overall resilience.

The aggregate loan-to-deposit ratio remained stable at 81.4 percent, with Saudi Arabia reporting the highest ratio of 92.8 percent and the UAE the lowest at 69.3 percent, reflecting its strong liquidity position.

The GCC banking sector’s resilience is further demonstrated by its consistent focus on operational efficiency. The cost-to-income ratio declined slightly to 39.9 percent, highlighting the sector’s ability to manage expenses effectively despite rising costs. 

As the region continues to diversify its economy, the banking sector remains a critical enabler of growth, funding large-scale projects and fostering financial innovation.

While rising funding costs and potential interest rate cuts may pose challenges, the sector’s robust fundamentals and strategic focus on non-oil growth position it for sustainable expansion.

The commitment to balancing economic diversification with financial innovation is expected to drive the sector’s continued success, reinforcing its pivotal role in the GCC’s broader economic landscape.