UAE-based Space42 signs contract worth USD5.1B to provide satellite communications
Date
12/17/2024 4:01:03 AM
(MENAFN) The UAE-based company Space42 has secured a contract worth 17.7 billion dirhams (approximately 5.1 billion dollars) with the UAE government to provide satellite communications services over a period of 17 years, from 2026 to 2043. According to a statement published on the Abu Dhabi Securities Exchange website, this agreement marks a significant milestone for Space42, solidifying its financial position and contributing to its future contracted revenues, which now stand at 26 billion dirhams.
Under the contract, Space42 will deliver satellite communications services through its existing Al Yah 1 and Al Yah 2 satellites and, in the future, through the new Al Yah 4 and Al Yah 5 satellites. These new satellites are expected to be launched in 2027 and 2028, enabling secure government communication services across the Middle East, Africa, Asia, and Europe. The agreement replaces two prior deals—the Satellite Services Agreement (CSA) and the Managed Services Delegation Agreement (MSM)—which are set to expire in November and December 2026, respectively.
The scope of the contract also includes operational, maintenance, and technical management services for ground satellite systems and substations, which Space42 will provide to the UAE government. This comprehensive set of managed services underscores the company's role in supporting critical communication infrastructure.
Additionally, Space42 will receive 3.7 billion dirhams in upfront payments during the construction phase of Al Yah 4 and Al Yah 5. As of September 30, 2024, the company’s contracted future revenues of 26 billion dirhams represent 10 times its revenue over the past 12 months, demonstrating the scale and long-term impact of this new agreement.
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