Space42, a UAE-based AI-powered space technology company, announced on Tuesday that it has signed a Dh18.7 billion ($5.1 billion) contract with the UAE Government. The deal ensures secure and critical communication services for 17 years, starting in 2026 and running until 2043.
This agreement strengthens Space42’s financial standing, contributing to its Dh26 billion backlog in contracted revenues. This backlog equals approximately 10 times the company’s revenue for the last 12 months as of September 30, 2024. The deal offers a clear long-term view of cash flows, stretching until 2043.
As part of the contract, Space42 will continue providing secure satellite services using its current satellites, Al Yah 1 and Al Yah 2, which are already in orbit.
To further improve their services, two new advanced satellites, Al Yah 4 and Al Yah 5, will be launched in 2027 and 2028, respectively. These satellites will enhance secure communication across the Middle East, Africa, Europe, and Asia.
The new agreement replaces the existing Capacity Services Agreement and Managed Services Mandate, which will end in November and December 2026. Under this unified contract, operations, maintenance, and technology management for satellite systems and terminals will now be consolidated.
Space42 will receive Dh3.7 billion in advance payments for the construction of Al Yah 4 and Al Yah 5 satellites. These advanced satellites will help meet the UAE Government’s growing needs with better reliability, security, and efficiency.
Ali Al Hashemi, CEO of Yahsat Space Services under Space42, said
“The Al Yah 4 and Al Yah 5 satellites will bring new capabilities, allowing us to deliver innovative SpaceTech solutions. This ensures we meet the UAE Government’s evolving requirements more efficiently and securely.”
For the project, Airbus has been contracted to build the satellites, and SpaceX will launch them using the dependable Falcon 9 rocket.
The satellites will be based on the Airbus Eurostar Neo platform, which allows for flexible, multi-band payloads in orbit. The total cost for developing Al Yah 4 and Al Yah 5, including spacecraft, ground infrastructure, launch, and insurance, is estimated at Dh3.9 billion.
