Space42, an Abu Dhabi-based AI-powered SpaceTech company, has been awarded a significant 17-year contract by the UAE government, aimed at accelerating the construction of new satellites and enhancing continuity in the country’s growing space sector.
The Dh18.7 billion ($5.1 billion) agreement will replace two contracts expiring in 2026 and extend collaboration through 2043, as announced in a filing to the Abu Dhabi Securities Exchange. The contract also includes an advanced payment of Dh3.7 billion to fast-track the development of the Al Yah 4 and Al Yah 5 satellites, set to launch in 2027 and 2028. These satellites are designed to ensure secure government communications across the Middle East, Africa, Europe, and Asia.
As part of the new agreement, Space42 will continue managing satellite services for the Al Yah 1 and Al Yah 2 satellites currently in orbit. This includes maintaining reliable satellite capacity, operations, and technology management for the ground segment systems, alongside existing agreements for terminal services.
This new deal significantly contributes to Space42’s Dh26 billion revenue backlog, offering a robust financial outlook with long-term visibility up to 2043. Ali Al Hashemi, CEO of Space42’s Yahsat Space Services unit, emphasized that the contract underscores the company’s strong financial position and continued trust in its innovative solutions.
“The Al Yah 4 and Al Yah 5 satellites will bring new capabilities to improve our services and technology, enabling us to meet the UAE government’s evolving needs more efficiently and securely,” said Al Hashemi.
Space42 was formed in 2023 after the merger of Bayanat, an AI-driven geospatial solutions provider, and Al Yah Satellite Communications Company (Yahsat), the UAE’s leading satellite solutions provider.
The UAE’s space sector is the largest in the Arab world, driven by substantial investments. In 2022, the UAE launched a Dh3 billion fund to advance its space program and radar satellite development. Additionally, the UAE formed the Supreme Space Council to oversee the sector’s growth and approve key policies.
Space42 is also expanding its satellite offerings with the Foresight constellation project, designed to provide high-resolution images of disaster zones, enabling real-time support for emergency teams. The first satellite, Foresight-1, was launched in August, with more to follow over the next 18 months.
Space42’s Yahsat Space Services unit has made significant progress toward launching the Al Yah 4 and Al Yah 5 satellites on schedule. Space42 made its debut on the Abu Dhabi Exchange (ADX) in October, joining a wave of UAE companies raising capital through market listings to fund their growth.
