Space42, a UAE-based AI-powered space technology company, has announced the signing of a Dh18.7 billion ($5.1 billion) agreement with the UAE Government to provide critical, secure communication services for the next 17 years, from 2026 to 2043.
This contract significantly boosts Space42’s financial standing, contributing largely to its Dh26 billion backlog of contracted revenues. The backlog is approximately 10 times the company’s revenue for the last twelve months, as of September 30, 2024, ensuring strong visibility of future cash flows through 2043.
Under the terms of the agreement, Space42 will continue providing secure and reliable satellite capacity along with related managed services through its current Al Yah 1 and Al Yah 2 satellites. Additionally, the company will launch two new advanced satellites, Al Yah 4 and Al Yah 5, scheduled for deployment in 2027 and 2028, respectively.
This new deal will replace two existing agreements—Capacity Services Agreement and Managed Services Mandate—that are set to expire in November and December 2026. The new contract merges operations, maintenance, and technology management services for satellite systems and ground terminals, which were previously handled separately.
Space42 will receive Dh3.7 billion in advance payments to support the construction of the Al Yah 4 and Al Yah 5 satellites as part of the contract.
These new satellites will enhance secure government communications across the Middle East, Africa, Europe, and Asia. Ali Al Hashemi, CEO of Yahsat Space Services, Space42, stated, “The Al Yah 4 and Al Yah 5 satellites will bring new capabilities to advance our technology and service offerings, enabling us to continue delivering innovative SpaceTech solutions to meet the UAE Government’s evolving needs more efficiently, securely, and reliably.”
Space42 has contracted Airbus for the construction of the satellites and selected SpaceX to launch them into orbit using the Falcon 9 rocket. The Al Yah 4 and Al Yah 5 development program, including spacecraft, ground infrastructure, launch, and insurance, is expected to cost approximately Dh3.9 billion.
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