Abu Dhabi-based Space42 Signs 17-Year Contract with UAE Government for Advanced Satellite Services
Space42, the UAE’s leading AI-powered space technology company, has secured a monumental Dh18.7 billion ($5.1 billion) contract with the UAE government to provide secure communication services for the next 17 years, from 2026 through 2043. This agreement marks a significant milestone in bolstering the nation’s space capabilities and strengthens Space42’s standing as a major player in the global space technology sector.
Under the newly signed contract, Space42 will leverage its existing satellites, Al Yah 1 and Al Yah 2, alongside two upcoming advanced satellites, Al Yah 4 and Al Yah 5, which are set for launch in 2027 and 2028. The company has partnered with Airbus for the construction of these next-generation satellites and selected SpaceX’s reliable Falcon 9 rocket for their launch into orbit.
A Significant Boost to Space42’s Future
This multi-billion-dollar deal contributes significantly to Space42’s already robust revenue backlog, which now stands at Dh26 billion. To provide perspective, this backlog equates to approximately ten times the company’s last-twelve-month revenues as of September 2024, ensuring long-term financial stability and visibility for the organization up to 2043.
The agreement will consolidate two existing contracts—the Capacity Services Agreement and Managed Services Mandate—which are due to expire in late 2026. By streamlining operations, maintenance, and technology management under one comprehensive agreement, the UAE government and Space42 aim to ensure seamless and secure communication services across critical regions.
Cutting-Edge Satellite Technology
The upcoming Al Yah 4 and Al Yah 5 satellites, developed on Airbus’ Eurostar Neo platform, will bring advanced features, including flexible multiband payloads and improved operational efficiency. These satellites will provide secure and reliable communication solutions across the Middle East, Africa, Europe, and Asia, meeting evolving governmental and defense requirements.
Space42 will receive an advance payment of Dh3.7 billion to kickstart the development of Al Yah 4 and Al Yah 5. The overall cost for the program, including spacecraft construction, ground segment infrastructure, launch, and insurance, is estimated at Dh3.9 billion.
Pioneering Partnerships with Airbus and SpaceX
To ensure the highest quality and reliability, Space42 has contracted Airbus to design and build the satellites, leveraging its proven expertise in satellite systems. Airbus’ Eurostar Neo platform, renowned for its cutting-edge technology and efficiency, will play a pivotal role in enabling Space42 to deliver next-generation capabilities.
SpaceX, a leader in space launch services, has been selected to launch the Al Yah 4 and Al Yah 5 satellites using its Falcon 9 rockets. Known for its reliability and cost-effectiveness, the Falcon 9 launch system ensures that the satellites reach their intended geostationary orbits with precision.
Commitment to Innovation and Global Reach
Ali Al Hashemi, CEO of Yahsat Space Services and Space42, emphasized the importance of this deal in advancing Space42’s capabilities: “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 innovative SpaceTech solutions that meet the UAE Government’s evolving requirements more efficiently, securely, and reliably.”
This announcement comes shortly after Space42’s successful Thuraya 4 satellite shipment to the Kennedy Space Center in Florida, where it is scheduled for launch later this year. The Thuraya 4 satellite, also developed by Airbus, showcases Space42’s ambition to expand its communication services with state-of-the-art solutions for mobility, defense, and enterprise sectors.
A Long-Term Vision for UAE’s Space Sector
This historic agreement reflects the UAE’s long-term vision to establish itself as a global hub for space technology and innovation. By investing in AI-powered solutions, advanced satellite systems, and strategic partnerships with industry leaders, the UAE continues to pave the way for a secure, connected future.
With Al Yah 4 and Al Yah 5 set to enter service in the coming years, Space42 is positioned to deliver unmatched secure communication solutions across multiple continents, reaffirming its commitment to technological excellence and innovation.
Key Highlights:
- Space42 signs Dh18.7 billion contract with UAE Government to provide secure satellite communication until 2043.
- Upcoming Al Yah 4 and Al Yah 5 satellites to launch in 2027 and 2028 using SpaceX’s Falcon 9 rocket.
- Airbus to build advanced satellites based on the Eurostar Neo platform.
- The deal enhances Space42’s Dh26 billion revenue backlog, ensuring long-term financial stability.
- Secure communications will cover regions across the Middle East, Africa, Europe, and Asia.