Space42 Signs $5.1 Billion Contract with UAE

Space42, the UAE-based AI-powered SpaceTech company with global reach, on Tuesday announced that it has signed a $5.1 billion contract with the UAE Government to provide critical, secure communication services for a further 17 years beyond 2026 until 2043.

The contract reinforces Space42’s strong financial profile, making up a significant majority of its $7.1 billion, backlog of contracted revenues, the company which is listed on Abu Dhabi Securities Exchange (ADX), informed the bourse in a regulatory filing this morning.

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. This will be supplemented by two new advanced satellites, Al Yah 4 and Al Yah 5, expected to launch in 2027 and 2028, respectively, Space42 said.

The new 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 $1 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.

Ali Al Hashemi, CEO of Yahsat Space Services, Space42 said that signing the latest contract with the UAE Government underscores the ongoing trust in Space42’s solutions.

He said: “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.”

As Per Schedule

Since receiving the mandate last year, Space42’s Yahsat Space Services business unit has made significant progress in meeting the timelines for the launch of Al Yah 4 and Al Yah 5. 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 multi-band 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 AED 3.9 billion (USD 1.1 billion).

It may be mentioned here that Space42’s $7.1 billion backlog of contracted revenues is equivalent to approximately 10 times of the last-twelve-month revenues as of 30 September 2024, which provides long-term visibility of future cash flows up to 2043.

Space42, whose major shareholders include G42, Mubadala and IHC, was established in 2024 following the successful merger between Bayanat and Yahsat, and global reach allows it to address the rapidly evolving needs of its customers in governments, enterprises, and communities.

Space42 comprises of two business units: Yahsat Space Services and Bayanat Smart Solutions. The Yahsat Space Services unit focuses on upstream satellite operations for both fixed and mobility satellite solutions.