Abu Dhabi-based AI-powered space technology company, Space42, has signed a landmark Dh18.7 billion ($5.1 billion) agreement with the UAE Government. This agreement provides secure satellite communication services until 2043. The 17-year contract, set to commence in 2026, highlights the UAE’s growing leadership in space technology. It also reinforces Space42’s financial strength.
Long-Term Revenue and Advanced Services
The contract significantly strengthens Space42’s financial position. It forms a large part of its Dh26 billion backlog of contracted revenues. This backlog represents approximately 10 times its last-12-month revenues as of September 30, 2024. Thus, it ensures a clear, long-term cash flow outlook through 2043.
Under the new agreement, Space42 will continue providing secure satellite capacity and managed services via its Al Yah 1 and Al Yah 2 satellites already in orbit. These will be supplemented by two new cutting-edge satellites. Al Yah 4 and Al Yah 5 are expected to launch in 2027 and 2028, respectively.
The deal consolidates Space42’s operations by replacing two existing agreements—the Capacity Services Agreement and Managed Services Mandate. Both are set to expire in late 2026. Additionally, the new contract integrates operations, maintenance, and advanced technology management for ground segment systems and terminals. These are currently covered under separate agreements.
Dh3.7 Billion Advanced Payments for New Satellites
Ali Al Hashemi, CEO of Yahsat Space Services, Space42, emphasised the contract’s significance, 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.”
Cutting-Edge Technology and Launch Partners
Space42 has partnered with Airbus to construct the satellites, leveraging the Airbus Eurostar Neo platform. This platform is known for deploying flexible multiband payloads in orbit. To ensure a reliable launch, SpaceX has been selected to deliver the satellites into orbit using its trusted Falcon 9 rocket.
The total cost for the development of Al Yah 4 and Al Yah 5, including the spacecraft, ground infrastructure, launch, and insurance, is estimated at Dh3.9 billion.
Strategic Communication Capabilities
Once operational, the new satellites will play a pivotal role in enhancing secure governmental communications and boosting the UAE’s regional and global connectivity. This project aligns with the country’s continued investment in space innovation. It cements its position as a leader in the evolving SpaceTech sector.
With this monumental contract, Space42 is poised to set new standards for secure communication technology. This will further advance the UAE’s ambitious space programme.