Arab Investors Hope To Have A Piece Of The Commercial Space Action

A group of Arab investors looking to buy a piece of Virgin Galactic has raised red flags in Washington, where the proposed deal is undergoing government scrutiny.

The Committee on Foreign Investments in the United States (CFIUS), a function of the Treasury Department, has opened an investigation into the proposed sale, reported to be worth $280 million. Aabar Investment of Abu Dhabi, which is led by Sheikh Mansour bin Zayed al-Nahyan, a member of the Abu Dhabi ruling family, hopes to buy 32 percent of the commercial space venture which unveiled its new SpaceShip Two last week. The committee investigating the terms of the sale includes  the Secretary of Treasury, as well as representatives of the departments of Defense and Homeland Security.

The Times of London reports that Virgin Galactic has been ordered to re-file its application for sale, and include more detailed information due to the complexity of the proposed deal. While Virgin Galactic President Will Whitehorn said that he had “absolute confidence" the sale would go through, representatives of Aabar are less sure. They cited what they see as a growing concern about the perception of Arab investors in the U.S.

One possible reason for the CFIUS scrutiny is that Burt Rutan, head of Scaled Composites, possibly does work for the U.S. Government, which would trigger such an investigation. Another, according to the Times, is that the Virgin Galactic business model includes possibly placing small satellites in orbit, which would have national security implications.

FMI: www.ustreas.gov/offices/international-affairs/cfius/,  www.virgingalactic.com