Yahsat, also known as Al Yah Satellite Communications, announced on Friday that the UAE has given its government services arm a Dh18.7 billion ($5.1 billion) 17-year services mandate to offer satellite capacity and managed services.
The agreement includes services currently covered by a different contract for ground segment satellite systems and terminal operations, maintenance, and technology management.
Two current agreements will be replaced by the mandate when they expire in November and December of 2026, respectively.
Multi-mission satellite services are provided by Yahsat, a subsidiary of Mubadala Investment Company, the sovereign investment arm of Abu Dhabi, in more than 150 nations in Europe, the Middle East, Africa, South America, Asia, and Australasia.
As part of the new contract with the UAE government, Yahsat will continue to operate its two existing satellites, Al Yah 1 and Al Yah 2, as well as two further satellites, Al Yah 4 (AY4) and Al Yah 5 (AY5), which are scheduled to be launched in 2027 and 2028, respectively.
“This award is a testament to our long-standing cooperation with the government because it will allow us to provide the government with innovative, cutting-edge technologies that will complement our current fleet of Al Yah 4 and Al Yah 5 satellites. are not currently possible.
According to the company, “The performance of the new satellites is expected to significantly surpass current industry capabilities, including capacity, coverage, and flexibility, allowing us to offer a wide range of next-generation applications to our end user.”
The new mandate stretches backlog well through 2040 and raises Yahsat’s contracted future revenue to Dh25.7 billion, more than 16 times its 2022 annual revenue. It also improves the company’s future cash flow.
Yahsat’s group chief executive Ali Al Hashemi declared, “This is a new chapter in Yahsat’s momentous journey… our financial position has never been stronger.”
“We remain optimistic about offering the government and our customers a broader, more diverse, and cutting-edge solutions portfolio.”
Yahsat, which is listed on the Abu Dhabi Securities Exchange, stated last month that the success of its infrastructure sector had helped it increase first-half earnings by 5%. According to the corporation, normalized earnings for the six-month period ending in June increased to $48 million.
Yahsat and Airbus agreed to build AY4 and AY5 in June after signing a contract.
According to the firm, Yahsat will use its own funds, as well as other possible funding methods and a $1 billion government advance payment to be received in 2024, to pay for the AY4 and AY5 procurement, which includes the spacecraft, ground segment infrastructure, launch, and insurance.
With its current fleet of five satellites, the company can now reach more than 80% of the world’s population, making it possible to provide mobility solutions, broadcasting, and other vital communications services.
A national satellite remote sensing and Earth observation capability-building space initiative was launched in May by Yahsat and Bayanat, a producer of geospatial data goods and services.
In a statement to the ADX at the time, Bayanat stated that the space program will search for revenue opportunities in the regional and international Earth observation market.