Abu Dhabi, UAE – Space42, the UAE-based AI-powered space technology company, has secured a monumental Dh18.7 billion ($5.1 billion) contract with the UAE Government to provide critical satellite communication services over the next 17 years.
This new agreement, which extends from 2026 to 2043, further cements Space42’s position as a key player in the space industry, reinforcing its robust financial profile and long-term revenue outlook.
The contract is set to significantly boost Space42’s financial standing, contributing to the company’s Dh26 billion backlog of contracted revenues.
This backlog, which is nearly ten times its most recent twelve-month revenues as of September 30, 2024, provides the company with substantial cash flow visibility until 2043.
Under the terms of the deal, Space42 will continue to offer secure satellite capacity and managed services using the existing Al Yah 1 and Al Yah 2 satellites, which are currently in orbit.
The company’s commitment to long-term service continuity is further bolstered by the planned launch of two new advanced satellites, Al Yah 4 and Al Yah 5, in 2027 and 2028.
These new satellites will enhance the UAE Government’s secure communications across the Middle East, Africa, Europe, and Asia.
This new contract replaces two existing agreements – the Capacity Services Agreement and the Managed Services Mandate – which are set to expire in late 2026.
The consolidated contract will unify various satellite services, including the operations, maintenance, and technology management of ground segment satellite systems and terminals, which are currently managed under separate agreements.
As part of the deal, Space42 will receive Dh3.7 billion in advanced payments to support the development and construction of the Al Yah 4 and Al Yah 5 satellites.
The satellites will be built in collaboration with Airbus, which has been contracted to manufacture the spacecraft. SpaceX has been selected as the launch partner for the satellites, with the reliable Falcon 9 rocket vehicle set to carry the new payloads into orbit.
The Al Yah 4 and Al Yah 5 satellites will utilize the Airbus Eurostar Neo platform, renowned for its flexibility in deploying multiband payloads.
The total cost for the development of the two satellites, including the spacecraft, ground segment infrastructure, launch, and insurance, is expected to be around Dh3.9 billion.
Ali Al Hashemi, CEO of Yahsat Space Services, the parent company of Space42, expressed confidence in the capabilities of the new satellites, stating, “The Al Yah 4 and Al Yah 5 satellites will offer new capabilities to advance our technology and service offerings, enabling us to continue providing our innovative SpaceTech solutions that meet the UAE Government’s evolving requirements more efficiently, securely, and reliably.”
This strategic partnership underscores the UAE’s commitment to strengthening its space infrastructure and ensuring secure communication services across a broad geographic region.
Space42’s continued collaboration with leading industry players such as Airbus and SpaceX further solidifies the UAE’s ambitions to remain at the forefront of the global space sector.
The new contract also aligns with the UAE’s Vision 2021, aiming to position the nation as a global leader in space technology and innovation, fostering long-term sustainability in the space industry.
With the launch of the Al Yah 4 and Al Yah 5 satellites, Space42 is poised to contribute significantly to the UAE’s ongoing mission to enhance its space capabilities and ensure secure communication systems for decades to come.