Space42 Wins $5.1 Billion UAE Government Contract to Boost Satellite Services and Management
Space42, a UAE-based space technology company that uses AI and works globally, has won a $5.1 billion (AED 18.7 billion) contract from the UAE government. The deal is for providing secure and essential communication services from 2026 to 2043, lasting 17 years.
Strong Contracted Revenues
The deal strengthens Space42’s financial position, contributing significantly to its $7.1 billion (AED 26 billion) revenue backlog, the company said in a statement on Tuesday.
Under the contract, Space42 will provide secure and reliable satellite services using its existing Al Yah 1 and Al Yah 2 satellites. The company will add two new advanced satellites, Al Yah 4 and Al Yah 5, planned for launch in 2027 and 2028.
This new contract will replace two current agreements—Capacity Services Agreement and Managed Services Mandate, which end in November and December 2026, respectively.
Space42 explained that the new contract combines operations, maintenance, and technology management services for ground systems and satellite terminals, which are currently managed under a separate agreement.
Formed in 2024 through the merger of Bayanat and Yahsat, Space42 operates globally to serve the changing needs of governments, businesses, and communities. It has two main divisions: Yahsat Space Services and Bayanat Smart Solutions.
New Satellites
Space42’s Yahsat Space Services is making good progress toward launching its Al Yah 4 and Al Yah 5 satellites after receiving approval last year.
The company hired Airbus to build the satellites and chose SpaceX to launch them using the Falcon 9 rocket.
As part of the contract, Space42 will receive $1 billion (AED 3.7 billion) in advance payments to build these satellites. Al Yah 4 and Al Yah 5 will provide secure government communications across the Middle East, Africa, Europe, and Asia.
The satellites are built on Airbus’s Eurostar Neo platform, which allows them to carry flexible multiband systems. The total cost, including building, ground systems, launch, and insurance, is about $1.1 billion (AED 3.9 billion).
Key Quote
“The Al Yah 4 and Al Yah 5 satellites will bring new technology capabilities, helping us deliver advanced and secure SpaceTech solutions that better meet the UAE government’s needs,” said Ali Al Hashemi, CEO of Yahsat Space Services, Space42.
Interesting Fact
The company’s contracted revenue backlog is $7.1 billion (AED 26 billion), nearly 10 times its revenue over the past year (as of September 30, 2024). This ensures steady cash flow until 2043.
Published: 17th December 2024
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