Space42 Signs AED 18.7 Billion Contract with the UAE Government for Satellite Capacity and Managed Services
Date
12/17/2024 4:15:07 AM
(MENAFN- trailrunnerint)
Abu Dhabi, UAE, 17 December 2024: Space42 (ADX: SPACE42), the UAE-based AI-powered SpaceTech company with global reach, announced that it has signed an AED 18.7 billion (USD 5.1 billion) contract with the UAE Government to provide critical, secure communication services for a further 17 years beyond 2026 until 2043.
The contract reinforces Space42’s strong financial profile, making up a significant majority of its AED 26 billion (USD 7.1 billion) backlog of contracted revenues.
Under the contract, Space42 will provide secure and reliable satellite capacity and related managed services with the existing Al Yah 1 and Al Yah 2 satellites in orbit. This will be supplemented by two new advanced satellites, Al Yah 4 and Al Yah 5, expected to launch in 2027 and 2028, respectively. The contract will replace two current agreements, the Capacity Services Agreement and the Managed Services Mandate, which 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.
Space42 will receive AED 3.7 billion (USD 1 billion) in advanced payments to construct the Al Yah 4 and Al Yah 5 satellites as part of the contract. The new satellites will provide secure governmental communications across the Middle East, Africa, Europe, and Asia.
Ali Al Hashemi, CEO of Yahsat Space Services, Space42 said: “We are delighted to sign this contract with the UAE Government, which underscores the ongoing trust in Space42’s solutions. 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.”
Since receiving the mandate last year, Space42’s Yahsat Space Services business unit has made significant progress in meeting the timelines for the launch of Al Yah 4 and Al Yah 5. Space42 recently contracted Airbus to construct the satellites and has selected SpaceX to launch them into orbit using the reliable Falcon 9 rocket launch vehicle.
The satellites are based on the Airbus Eurostar Neo platform, which can deploy flexible multi-band payloads in orbit. The cost of the Al Yah 4 and Al Yah 5 development program, including spacecraft, ground segment infrastructure, launch, and insurance, will be approximately AED 3.9 billion (USD 1.1 billion).
It is noteworthy that Space42’s AED 26 billion (USD 7.1 billion) backlog of contracted revenues is equivalent to approximately 10 times of the last-twelve-month revenues as of 30 September 2024, which provides long-term visibility of future cash flows up to 2043.
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