UAE Space Sector Emerges As Global Hub For Investment And Business Innovation

The UAE's space sector is entering into a new phase driving innovation and growth, while establishing the country as a global hub for investment, research, and business opportunities.

Through initiatives like the UAE Space Economic Survey, the country has been actively tracking the expansion of its space economy since 2017, measuring contributions to GDP, R&D spending, workforce development, and downstream industries (applications and services that rely on space technology) that benefit from space technologies.

The framework is aligned with OECD (Organisation for Economic Co-operation and Development) and UN standards, enhancing global comparability and investor confidence.

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Rising R&D and industry contributions

Recent data also shows promising trends. A 2021 survey revealed a 14.8 per cent increase in research and development spending, strong contributions from the communications sector, and a surge in scientific publications - all signs of a maturing and diversified UAE space ecosystem.

Speaking to Khaleej Times on the sidelines of the Space Economic Survey 2025 announcement, Fatima Al Shamsi, Director of Space Policy and International Relations at the UAE Space Agency, said the survey helps policymakers and industry alike, track momentum in critical areas.

“There's a huge emphasis on increasing the number of private companies and startups in the space sector. We're also placing strong trust in youth and talent as drivers of innovation. Another focus is understanding the cross-sectoral impact of our missions - how space technologies are being applied in industries such as agriculture, telecom, and climate monitoring.”

She added that the nation is determined to ensure regulations and support systems enable growth rather than restrict it.

“We try to ease the process of authorization for space companies and have launched initiatives such as the Space Economic Zones program, which offers incentives for startups to sustain and grow. We also maintain constant engagement with our ecosystem through workshops, partnerships, and participation in international events.”

The UAE Space Agency's 'Space Means Business' initiative is another key step in integrating startups into flagship missions.

Al Shamsi explained that the Emirates Mission to the Asteroid Belt is designed to create opportunities for local companies.

“Executing such a mission involves multiple components that can be developed with private sector contributions. Even if startups play a small role, it ensures they have a presence in major projects and benefit from the knowledge and contracts generated.”

Salem Butti Al Qubaisi, Director-General of the UAE Space Agency, noted that national industry contributions are already shaping mission development.

“The design review of the MBR Explorer was successfully completed earlier this year, and the spacecraft is beginning to take shape. Initial testing, including vibration trials, has already started. Our national industry is directly involved in developing the lander - a UAE contribution to this mission - which will eventually touch down on one of the asteroids.”

Non-space sectors reap benefits from space-enabled services

The UAE defines its space economy broadly, encompassing not only satellite manufacturing, launch systems, and propulsion technologies, but also non-space sectors that benefit from space-enabled services such as telecom, transport, agriculture, and climate monitoring.

This expansive approach fosters cross-sector innovation and attracts foreign investment.

Highlighting the next steps, Al Qubaisi added, "We aim to do even more by strengthening partnerships, particularly with the private sector and R&D centers in the UAE, to enhance both midstream (operational and deployment activities) and upstream (early, technology-creation stage) activities in the value chain. Insights from the survey and our ongoing engagements highlight areas where we need to align our strategies, improve infrastructure, and streamline licensing processes. Our goal is to ensure these processes are efficient and supportive, rather than a barrier, for stakeholders to execute their initiatives.”

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