Space42, the AI-powered spaceTech company, has signed an 18.7 billion UAE dirham ($5.1 billion) contract with the UAE government to provide critical and secure communication services for a further 17 years beyond 2026. 

The satellite capacity and related managed services will be provided through the existing Al Yah 1 and Al Yah 2 satellites, the Abu Dhabi Securities Exchange-listed  company said.

Space42 was created in October this year following the merger of Bayanat and Al Yah Satellite Communications Company (Yahsat).

The services will be supplemented by two new advanced satellites, Al Yah 4 and Al Yah 5, which will likely be launched in 2027 and 2028, respectively.

As part of the contract, Space42 will receive AED3.7 billion in advanced payments to construct the Al Yah 4 and Al Yah 5 satellites.  
The new satellites will provide secure governmental communications across the Middle East, Africa, Europe, and Asia, the statement added.

The cost of the Al Yah 4 and Al Yah 5 development programme is estimated at nearly AED 3.9 billion.

Space42’s backlog of contracted revenues stands at AED 26 billion, which is equivalent to 10 times of the last 12-month revenues as of September 30, 2024.

(Editing by Brinda Darasha; brinda.darasha@lseg.com)