Image: Supplied
Space42, a UAE-based AI-powered SpaceTech company, has signed a contract valued at Dhs18.7bn ($5.1bn) with the UAE government, ensuring the provision of satellite capacity and managed services through to 2043.
This new agreement strengthens Space42’s financial standing, forming the backbone of its substantial Dhs26bn revenue backlog.
The contract follows Space42’s recent appointment to a capacity and managed services mandate in September 2023, cementing its long-standing relationship with the UAE Government.
It will see the company extend its critical satellite services, providing secure communication channels across the Middle East, Africa, Europe, and Asia.
Under the terms of the deal, Space42 will continue to operate and maintain the existing Al Yah 1 and Al Yah 2 satellites, adding to this capacity with the upcoming Al Yah 4 and Al Yah 5 satellites, scheduled for launch in 2027 and 2028.
The new agreement consolidates various operations, including ground segment satellite systems and terminals, which were previously managed under separate contracts.
In a significant step forward, Space42 will receive Dhs3.7bn in advanced payments to fund the development of Al Yah 4 and Al Yah 5, which will replace two existing agreements due to expire in late 2026.
These new satellites, built on the Airbus Eurostar Neo platform, will feature flexible multi-band payloads designed to meet the UAE Government’s evolving communication needs.
Space42’s solutions trusted by the government
Ali Al Hashemi, CEO of Yahsat Space Services, the business unit under Space42 responsible for satellite operations, expressed confidence in the company’s capabilities: “This contract is a testament to the trust the UAE government has placed in Space42’s solutions.
“The Al Yah 4 and Al Yah 5 satellites will significantly enhance our service offerings, helping us meet the growing demand for secure, reliable communication infrastructure.”
Since being awarded the mandate in 2023, Space42 has made rapid progress in preparing for the satellite launches. The company recently signed contracts with Airbus to build the satellites and selected SpaceX’s Falcon 9 rocket for the orbital launches.
The development cost for the Al Yah 4 and Al Yah 5 satellites, including spacecraft, ground infrastructure, and insurance, is estimated at Dhs3.9bn.
Space42’s growing portfolio and robust backlog of Dhs26bn are expected to provide the company with long-term revenue visibility.
As of September, the backlog is valued at approximately ten times the company’s last 12-month revenues, providing a solid financial foundation through 2043.
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