Space42 Secures $695.5 Million to Build New Satellites, Strengthening UAE Space Ambitions

Space42 and the UAE government have signed a Dhs18.7 billion deal that will guarantee the supply of satellite capacity until 2043.

Space42, an Abu Dhabi-based satellite service company, can use $695.5 million to build Al Yah 4 and Al Yah 5 geostationary satellites. They will launch in 2027 and 2028.

These will eventually replace Al Yah 1 and Al Yah 2, which were introduced in 2011 and 2012, respectively.

The new satellites, built on the Airbus Eurostar Neo platform, will have adaptable multi-band payloads made to meet the evolving communication requirements of the United Arab Emirates government.

Ali Al Hashemi, CEO of Yahsat Space Services, the division unit under Space42, expressed his confidence in the company’s capabilities, adding that the deal demonstrated the UAE government’s trust in Space42 solutions.  

He added that Al Yah 5 satellites will significantly enhance their service offerings, helping them fulfil the growing need for secure and reliable communication infrastructure.

Since it was mandated in 2023, Space42 has made rapid progress in launching the satellites. The company recently signed deals with Airbus to build satellites and selected the Falcon 9 rocket for the orbital missions.

The company expects the Al Yah 4 and Al Yah 5 satellites to cost Dhs3.9 billion to develop, including spacecraft, ground infrastructure, and insurance.

The fund is arranged by Santander CIB, Société Générale, Natixis, and Crédit Agricole CIB and supported by Bpifrance Assurance Export. The deal shows how top global banks continue to find Space42 appealing.

Andrew Cole, Chief Financial Officer of Space42 (a company listed on the Abu Dhabi Securities Exchange), stated that the 17-year, $5.1 billion United Arab Emirates (UAE) government contract, which starts in 2026. It is the foundation for the AI Yah 4 and AI Yah 5 programs.

The Export Credit Agency (ECA) financing structure optimises he cost of funding and provides the financial flexibility to execute the expansion plan.

The company stated that this technology enables real-time optimization of coverage, bandwidth, and frequency allocation to satisfy evolving operational needs throughout the Middle East, Africa, Europe, and Asia.

Additionally, Space42 and the UAE government have signed a Dhs18.7 billion ($5.1 billion) deal that will guarantee the supply of satellite capacity and managed services until 2043.

The deal strengthens Space42’s financial position, forming the foundation of its Dhs26 billion revenue backlog.

Space42’s expanding portfolio and robust Dh26 billion backlog will give the company long-term revenue visibility.

As of September, the backlog is valued at around 10 times the company’s last 12-month revenues, providing a strong financial foundation through 2043.

The agreement has various operations, including ground segment satellite systems and terminals, previously managed under separate contracts.

Space42 and ICEYE have agreed to create a joint venture (JV) to build a Synthetic Aperture Radar (SAR) satellite in the United Arab Emirates. For their successful partnership, they have launched the country’s first Synthetic Aperture Radar (SAR) satellite, Foresight-1, in August 2024.

The project will develop the UAE’s Earth Observation (EO) program. They established the program to develop the country’s satellite remote sensing and EO capacities. It also aims to meet the growing need for SAR satellite data and high-resolution imagery used across various cases.

Space42’s new Assembly, Integration and Testing (AIT) and LEO mission operations facilities in Abu Dhabi will become the centre for the local SAR ecosystem. Space42’s constellation operation services will be headquartered in the venture and used for satellite manufacturing operations.

Meanwhile, Space42 was established after the merger of Abu Dhabi satellite operator Yahsat and spatial data and analytics provider Bayanat, creating the first AI-powered space technology company. As of December 2024, the company’s market capitalization was $2.61 billion (Dhs9.61 billion).