Space42 Secures USD 5.1 Billion Contract to Develop UAE Satellites

Abu Dhabi-based Space42, an AI-powered SpaceTech company, has secured a USD 5.1 billion (AED 18.7 billion) contract from the UAE government to advance satellite development and extend their collaboration through 2043.

The 17-year agreement replaces two existing contracts set to conclude in late 2026 and will accelerate the construction of the Al Yah 4 and Al Yah 5 satellites, which are expected to launch in 2027 and 2028. A USD 1 billion (AED 3.7 billion) advance payment has been approved to fast-track progress. The new satellites are being designed to provide secure governmental communications across the Middle East, Africa, Europe, and Asia.

For the existing Al Yah 1 and Al Yah 2 satellites currently in orbit, the agreement includes continued provision of secure satellite capacity, operations and maintenance. It also covers ground segment systems and terminals, consolidating existing services under a single contract.

Space42 noted that the deal accounts for a substantial portion of its AED 26 billion revenue backlog, equivalent to about 10 times its revenue over the past 12 months as of September 2024. The agreement ensures long-term visibility of future cash flows until 2043.