Airbus
Space42, an artificial intelligence-powered global space technology company, has signed an AED18.7 billion ($5.1 billion) contract with the UAE government to provide critical, secure communication services for an additional 17 years beyond 2026 until 2043.
Under the contract, the Abu Dhabi-listed company will provide 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 5 – expected to be launched in 2027 and 2028, respectively.
The contract will replace the capacity services agreement and managed services mandate, which ends in November and December 2026, respectively. The new deal combines related operations, maintenance, and technology management services of ground segment satellite systems and terminals currently provided under a separate agreement.
Space42 will receive AED3.7 billion in advanced payments to construct the Al Yah 4 and 5 satellites. These new satellites will provide secure governmental communications across the Middle East, Africa, Europe, and Asia.
Space42 recently contracted Europe’s Airbus to construct the satellites and has selected Elon Musk’s SpaceX to launch them into orbit using the Falcon 9 rocket launch vehicle.
The cost of the Al Yah 4 and 5 development programme, including spacecraft, ground segment infrastructure, launch, and insurance, will be AED3.9 billion.
The company’s AED26 billion backlog of contracted revenues is equivalent to 10 times the last 12-month revenues as of September 30, 2024, providing long-term visibility of future cash flows up to 2043.