Dubai: Space42 - the company created by merging Abu Dhabi heavyweights Yahsat and Bayanat - has picked up Dh18.7 billion in new contracts from the UAE Government to provide critical communication services. This, in effect, adds a further 17 years to the deals that the company has with the government on a range of cutting-edge services.
The contract period now goes all the way up to 2043. It was this year that Space42 was created, becoming one of the biggest publicly listed space tech companies anywhere. At the time of the merger, the entity already had a sizeable project book, bolstered by government contracts.
The latest one 'reinforces Space42’s strong financial profile' and make up a majority of its Dh26 billion ($7.1 billion) backlog of contracted revenues. (On ADX, the stock will start the day at Dh2.01.)
Payment for new satellites
Space42 will receive Dh3.7 billion ($1 billion) in advance payments to build the Al Yah 4 and Al Yah 5 satellites as part of the contract. The new satellites will provide governmental communications across the Middle East, Africa, Europe, and Asia.
"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," said Ali Al Hashemi, CEO of Yahsat Space Services, Space42.
Under the terms of the new contract, Space42 will also 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 the two new satellites, Al Yah 4 and Al Yah 5, which are expected to launch in 2027 and 2028, respectively.
New consolidated agreement
The contract thus replaces two current agreements - the Capacity Services Agreement and the Managed Services Mandate, which were to end in November and December 2026, respectively.
The new contract combines related operations, maintenance, and technology management services of ground segment satellite systems and terminals currently provided under a separate agreement.
