Space42, a UAE-based AI-powered SpaceTech company, has signed a landmark AED18.7 billion ($5.1 billion) contract with the UAE Government, extending its secure communication services for an additional 17 years, through to 2043. This deal significantly strengthens Space42’s financial standing, making up a large portion of its AED26 billion backlog of contracted revenues.
Under this agreement, Space42 will provide secure satellite capacity and related managed services using the existing Al Yah 1 and Al Yah 2 satellites. These services will be further enhanced by the addition of two new advanced satellites, Al Yah 4 and Al Yah 5, which are scheduled for launch in 2027 and 2028, respectively.
The new contract will replace two current agreements—the Capacity Services Agreement and the Managed Services Mandate—set to end in November and December 2026. It consolidates various services, including operations, maintenance, and technology management of the ground segment satellite systems and terminals, which were previously managed separately.
As part of the deal, Space42 will receive AED3.7 billion in advanced payments for the construction of the Al Yah 4 and Al Yah 5 satellites. These new satellites will ensure secure government communications across the Middle East, Africa, Europe, and Asia.
Ali Al Hashemi, CEO of Yahsat Space Services, Space42, expressed his excitement about the contract: “We are delighted to sign this contract with the UAE Government, which highlights the continued trust in Space42’s solutions. The Al Yah 4 and Al Yah 5 satellites will bring enhanced capabilities, advancing our technology and service offerings to meet the evolving requirements of the UAE Government securely and reliably.”
Since receiving the mandate last year, Space42 has made significant strides in meeting the development timelines for the new satellites. The company has contracted Airbus to build the satellites and selected SpaceX for their launch using the Falcon 9 rocket vehicle. The satellites will be built on the Airbus Eurostar Neo platform, allowing for flexible multi-band payload deployment in orbit. The total cost for developing Al Yah 4 and Al Yah 5, including spacecraft, ground segment infrastructure, launch, and insurance, is estimated at AED3.9 billion.
Space42’s AED26 billion backlog of contracted revenues provides long-term financial visibility, equating to approximately 10 times its revenue for the last twelve months as of September 30, 2024, ensuring predictable cash flows through 2043.
