Abu Dhabi’s Space42 signs Dh18.7 billion deal with UAE govt to provide services until 2043

The AI-powered company recently contracted Airbus to construct satellites and has selected SpaceX to launch them into orbit

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A Staff Reporter

Published: Tue 17 Dec 2024, 8:44 AM

Space42, the UAE-based AI-powered space technology company, on Tuesday said it signed a Dh18.7 billion ($5.1 billion) contract with the UAE Government to provide critical, secure communication services for 17 more years from 2026 until 2043.

The contract reinforces Space42’s strong financial profile, making up most of its Dh26 billion backlog of contracted revenues. The backlog is equivalent to approximately 10 times of the last-twelve-month revenues as of September 30, 2024, which provides long-term visibility of future cash flows up to 2043.

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Under the contract, Space42 will provide secure and reliable satellite capacity and related managed services with the existing Al Yah 1 and Al Yah 2 satellites in orbit.

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This will be supplemented by two new advanced satellites, Al Yah 4 and Al Yah 5, expected to launch in 2027 and 2028, respectively.

The contract will replace two current agreements, the Capacity Services Agreement and the Managed Services Mandate, which end in November and December 2026, respectively. The new contract combines related operations, maintenance, and technology management services of ground segment satellite systems and terminals currently provided under a separate agreement.

Space42 will receive Dh3.7 billion in advanced payments to construct the Al Yah 4 and Al Yah 5 satellites as part of the contract.

The new satellites will provide secure governmental communications across the Middle East, Africa, Europe, and Asia.

“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,” said Ali Al Hashemi, CEO of Yahsat Space Services, Space42.

Space42 recently contracted Airbus to construct the satellites and has selected SpaceX to launch them into orbit using the reliable Falcon 9 rocket launch vehicle.

The satellites are based on the Airbus Eurostar Neo platform, which can deploy flexible multiband payloads in orbit. The cost of the Al Yah 4 and Al Yah 5 development program, including spacecraft, ground segment infrastructure, launch, and insurance, will be approximately Dh3.9 billion.

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A Staff Reporter

Published: Tue 17 Dec 2024, 8:44 AM

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