Space42 Signs AED 18.7 Billion Contract with UAE Government for Satellite Capacity and Managed Services
Space42 (ADX: SPACE42), the UAE-based AI-powered SpaceTech company, announced the signing of a landmark AED 18.7 billion (USD 5.1 billion) contract with the UAE Government. The agreement ensures secure satellite communication services for the next 17 years until 2043 and highlights Space42’s pivotal role in advancing regional satellite infrastructure.
The contract encompasses the procurement of two advanced satellites, Al Yah 4 and Al Yah 5, scheduled for launch in 2027 and 2028. These new satellites will complement the existing Al Yah 1 and Al Yah 2 satellites, further enhancing secure governmental communications across the Middle East, Africa, Europe, and Asia.
Reinforcing Long-term Partnership
This agreement replaces the existing Capacity Services Agreement and Managed Services Mandate, which conclude in 2026. The new contract integrates operations, maintenance, and technology management services for satellite systems and ground segment terminals, streamlining Space42's services.
Ali Al Hashemi, CEO of Yahsat Space Services, Space42, commented:
“We are delighted to sign this contract with the UAE Government, reinforcing their trust in our solutions. Al Yah 4 and Al Yah 5 will introduce cutting-edge capabilities to enhance our technology and service offerings, ensuring efficient, secure, and reliable communications to meet evolving government requirements.”
Strategic Developments and Partnerships
- Space42 has contracted Airbus to construct the Al Yah 4 and Al Yah 5 satellites using the Eurostar Neo platform, known for its flexible multi-band payloads.
- The satellites will be launched into orbit via SpaceX’s Falcon 9 rockets, recognized for their reliability.
- The total development cost, including ground infrastructure, launch, and insurance, is estimated at AED 3.9 billion (USD 1.1 billion).
Strengthening Financial Profile
The AED 18.7 billion contract forms a significant portion of Space42’s AED 26 billion (USD 7.1 billion) contracted revenue backlog, equivalent to approximately 10 times the last twelve-month revenues as of September 30, 2024.
Additionally, Space42 will receive AED 3.7 billion (USD 1 billion) in advance payments for the construction of Al Yah 4 and Al Yah 5, providing substantial visibility into long-term cash flows up to 2043.
Driving Regional Communications
Space42’s Yahsat Space Services continues to play a critical role in strengthening the UAE’s space sector and global communication capabilities, reinforcing the UAE’s position as a leader in space technology and AI-powered satellite communications.
