UAE-based satellite operator Space42 announced on Tuesday it has signed a new AED18.7 billion (US$5.1 billion) contract with the UAE government to provide satellite services until 2043, which will also help fund construction of two new satellites in the pipeline.
Space42 currently has two agreements with the government – a capacity services agreement and a managed services mandate – that are in effect until November and December 2026, respectively. The new contract extends that arrangement by another 17 years to 2043, and also combines related operations, maintenance, and technology management services of ground segment satellite systems and terminals currently provided under a separate agreement.
Under the contract, Space42 will provide satellite capacity and related managed services with the existing Al Yah 1 and Al Yah 2 satellites in orbit. The contract also covers capacity from Space42’s upcoming Al Yah 4 and Al Yah 5 satellites, which will provide secure governmental communications across the Middle East, Africa, Europe, and Asia.
In fact, as part of the deal, Space42 said that it will receive AED3.7 billion in advanced payments from the government to construct Al Yah 4 and Al Yah 5, which are expected to launched by SpaceX in 2027 and 2028, respectively.
That advance payment would cover most of the AED 3.9 billion Space42 has budgeted to develop Al Yah 4 and Al Yah 5, including the spacecraft, ground segment infrastructure, launch, and insurance. The satellites are based on the Airbus Eurostar Neo platform, which can deploy flexible multi-band payloads in orbit.
“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 at Space42, in a statement.
Space42 is the product of the merger between Yahsat, the UAE’s flagship satellite operator, and AI-powered geospatial solutions provider Bayanat earlier this year.
In related news, Space42 said that another planned geostationary satellite, Thuraya 4, arrived at Kennedy Space Center in Florida last week, where it will be launched into orbit by SpaceX before the end of this month.
In the pipeline since 2020, Thuraya 4 sports a 12 meter L-band antenna and a payload with on-board processing. Space42 said this will provide advanced routing flexibility of up to 3,200 channels with dynamic power allocation over a large number of spot beams across Europe, Africa, Central Asia, and the Middle East.
