Space42, a global space technology company based in Abu Dhabi, has secured a monumental AED18.7 billion ($5.1 billion) contract with the UAE government.
The agreement ensured the continuation of critical, secure satellite communication services for an additional 17 years, extending the partnership beyond 2026 to 2043.
“We are delighted to sign this contract with the UAE Government, which underscores the ongoing trust in Space42’s solutions. 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,” said Ali Al Hashemi, CEO of Yahsat Space Services, Space42.
Space42 will provide secure, reliable satellite capacity and related managed services
Under the new arrangement, Space42, a subsidiary of UAE-based G42 and listed on the Abu Dhabi Securities Exchange, will leverage the existing Al Yah 1 and Al Yah 2 satellites to provide satellite capacity and related managed services. This capability will be further bolstered by the addition of two state-of-the-art satellites, Al Yah 4 and Al Yah 5, slated for launch in 2027 and 2028, respectively.
The contract consolidates services that were previously handled separately, replacing the existing capacity services agreement and managed services mandate set to expire in November and December 2026. This streamlined arrangement integrates operations, maintenance, and technology management services for ground segment satellite systems and terminals.
Space42 will receive AED3.7 billion in advanced payments for constructing Al Yah 4 and Al Yah 5. These satellites are designed to provide secure governmental communications across key regions, including the Middle East, Africa, Europe, and Asia. As part of this initiative, the company has partnered with Airbus for the satellites’ construction and chosen SpaceX’s Falcon 9 rocket to launch them into orbit.
The overall development program for Al Yah 4 and 5, including spacecraft, ground segment infrastructure, launch, and insurance, is estimated to cost AED3.9 billion.
Space42’s AED26 billion backlog of contracted revenues, equivalent to 10 times its last 12-month revenues as of September 30, 2024, ensures long-term financial stability and visibility of cash flows up to 2043.
This landmark agreement underscored the UAE’s commitment to advancing its space capabilities and securing its position as a leader in satellite technology.