UAE-based AI-powered spacetech company Space42 has signed a government contract worth Dh18.7 billion ($5.1 billion) to provide critical, secure communication services until 2043.
The contract amounts to a significant majority of Space42’s Dh26 billion ($7.1 billion) backlog of contracted revenues. The creation of the spacetech powerhouse followed the successful merger of Bayanat, a leading AI-powered geospatial solutions provider, and Al Yah Satellite Communications Company (Yahsat), earlier this year.
Under the contract, Space42 will provide secure and reliable satellite capacity and related managed services with the Al Yah 1 and Al Yah 2 satellites currently in orbit and Al Yah 4 and Al Yah 5, to be launched in the coming years. These satellites will serve to provide secure governmental communications across the Middle East, Africa, Europe and Asia.
“We are delighted to sign this contract with the UAE Government, which underscores the ongoing trust in Space42’s solutions,” said Ali Al Hashemi, CEO of Yahsat Space Services, Space42. “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.”
The cost of the Al Yah 4 and Al Yah 5 development programme, including spacecraft, ground segment infrastructure, launch and insurance, will be approximately Dh3.9 billion ($1.1 billion). As part of the new contract, Space42 will receive Dh3.7 billion ($1 billion) in advanced payments to construct the Al Yah 4 and Al Yah 5 satellites.
In August, the UAE launched its first SAR satellite, Foresight-1, which is set to be part of Space42’s Foresight constellation, boosting the UAE’s Earth Observation capabilities and reducing the nation’s dependency on external sources. Nonetheless, Space42’s goals go beyond governmental initiatives and aim to support business growth across industries.
Space42 plans to launch next-generation mobility services centred on a new Thuraya 4 satellite later this year, with the Al Yah 4 and Al Yah 5 satellites scheduled to be launched in 2027 and 2028, respectively. The company’s goal, according to Bayanat’s CEO, Hasan Al Hosani said is “to operate on a multi-orbit level with a fleet of more than 200 satellites”.
