The UAE government has awarded Abu Dhabi-based Space42 a contract worth AED 18.7bn ($5.1bn) to provide “critical, secure communication services”.

The contract covers a further 17 years beyond 2026, when two existing contracts end, until 2043.  

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, Space42 said.

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 AED3.7bn 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, the firm said.

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 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 $3.9bn.

According to Space42, its AED26bn backlog of contracted revenues is equivalent to approximately 10 times its last 12-month revenues as of 30 September, which provides "long-term visibility of future cash flows up to 2043".

Space42 was established this year following a merger between geospatial firm Bayanat and satellite communications firm Yahsat.