UAE’s Space42 Secures $5.1 Billion Deal for Satellite Services

In a significant development for the UAE's space sector, Space42, an AI-powered SpaceTech company, has signed a monumental contract with the UAE Government valued at AED 18.7 billion (USD 5.1 billion). This agreement ensures the provision of secure and reliable satellite communication services for an additional 17 years, extending from 2026 to 2043.

Under this contract, Space42 will utilize its existing satellites, Al Yah 1 and Al Yah 2, to deliver immediate services. To enhance and expand coverage, the company plans to introduce two advanced satellites, Al Yah 4 and Al Yah 5, scheduled for launch in 2027 and 2028, respectively. These new satellites are expected to offer secure governmental communications across regions including the Middle East, Africa, Europe, and Asia.

The agreement also includes an advance payment of AED 3.7 billion (USD 1 billion) from the UAE Government, designated for the construction of Al Yah 4 and Al Yah 5. This financial commitment underscores the government's confidence in Space42's capabilities and the strategic importance of bolstering the nation's satellite infrastructure.

Ali Al Hashemi, CEO of Yahsat Space Services, a subsidiary of Space42, expressed enthusiasm about the partnership, stating, "We are delighted to sign this contract with the UAE Government, which underscores the ongoing trust in Space42’s solutions. 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."

This contract replaces two existing agreements, the Capacity Services Agreement and the Managed Services Mandate, both set to conclude in late 2026. By consolidating these services, Space42 aims to streamline operations, maintenance, and technology management related to ground segment satellite systems and terminals.

The collaboration between Space42 and the UAE Government highlights the nation's commitment to advancing its space capabilities and ensuring secure communication channels across a broad geographical area. With the upcoming launches of Al Yah 4 and Al Yah 5, the UAE is poised to strengthen its position in the global space industry, leveraging cutting-edge technology to meet evolving communication needs.