Dubai: Space42 has finally launched – and along with it another major push by the UAE towards making a statement in a hugely lucrative and still developing space economy.
Space42 represents the merger of two ADX-listed entities, Yahsat and Bayanat, to create what’s been billed as one of the biggest publicly listed space technology companies in the world. Today (October 1), the Space42 ticker made its debut on the ADX. (The stock opened at Dh2.38.)
For Ali Al Hashemi, it’s a natural step up from being the CEO of Yahsat, whose prime operational role was to create the satellite and communications capabilities for UAE’s space program.
In an interview with ‘Gulf News’, Al Hashemi talks through the rationale behind the creation of Space42 and what the company and he plan to do next.
Yahsat had its set of unique capability while Bayanat was more into AI solutions. Does it meant less overlaps to deal with in creating the merged entity?
Ali Al Hashemi: I don’t see Yahsat and Bayanat as having been too different. Today, you have a tech sector that’s dominated by AI and what AI-enabled applications can do. This integration was about bringing geo-system and communication services together and to empower them with AI.
This is the global trend in the tech sector.
Second, if you think about it, there is also the integration happening in satellite communication, satellite operations and their maintenance. Even if we get into satellite manufacturing in the future, there’s a lot of synergies we can get from creating Space42.
So, Space42 is essentially about taking you into new realms?
If you look at our history as Yahsat, we have delivered many geostationary Earth observation satellites to the UAE Government. Our immediate priority as Space42 is to bring three or four launches, which will bring around 16 types of applications to the market.
The nature of satellite business, of the space industry itself is always about facing disruption. It's in our DNA as Space42 to look at the next big wave
As for the SAR program, we have already launched the first SAR (synthetic aperture radar) satellite. We will continue to launch around six or seven satellites from four sites as part of our 'Foresight' constellation.
There will also be a continuation of the direct-to-device strategy in three stages:
- This year, launch a smartphone with satellite capabilities.
- Next year, enable our satellites with text capability for direct-to-mobile devices. Which means if you have a smartphone with S band or L band communication, it will be able to talk to our satellite.
- Finally, we will be sending the Leo satellite constellation to enable direct-to-mobile devices. (Direct-to-mobile service is about accessing high data content without the need for an internet connection.)
All these require Space42 to call in more equity? Or even debt?
As Yahsat and Bayanat, we were well funded and with around zero leverage. If needed, we can easily go to 3-4x leverage easily. And if you think about it, we have a contract that we just signed for Dh5.1 billion, and there are many other contracts too.
We are fully geared for expansion - as Space42.
As Yahsat, you had looked at stake buys in international satellite focused businesses, even one in the US. Given that the merger with Bayanat has just happened, will overseas deal-making take a backseat?
I don’t think the merger will be an obstacle in any way. We’ll be fully integrated soon. If any investors are worried about the integration process, I will be telling them there is not even a single issue.
On our table right now is a full list of programs that we need to do – the SAR satellites, the direct-to-device strategy. If we focus on just these two, it will be a gamechanger for Space42.
