Yahsat Secures USD 5.1 Billion Satellite Capacity and Services Contract By UAE
Al Yah Satellite Communications, often known as Yahsat, said 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 services. The agreement covers ground segment satellite system and terminal operations, maintenance, and technology management services, which are currently delivered under a separate contract.
The mandate will replace two existing agreements that will expire in November and December 2026, respectively. Yahsat, a subsidiary of Abu Dhabi's sovereign investment arm Mubadala Investment Company, provides multi-mission satellite services to approximately 150 countries in Europe, the Middle East, Africa, South America, Asia, and Australasia.
Under the new mandate from the UAE government, Yahsat will provide services using its Al Yah 1 and Al Yah 2 satellites, currently in orbit, and supplement this by two new satellites, Al Yah 4 (AY4) and Al Yah 5 (AY5), which are expected to be launched in 2027 and 2028, respectively, as per thenationalnews.
"This award is a testament to our long-standing relationship with the government ... by complementing our existing fleet with Al Yah 4 and Al Yah 5 next generation satellites, we will be able to serve the government with new cutting-edge solutions that are not currently possible," said Musabbeh Al Kaabi, chairman of Yahsat.
"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 increases Yahsat's contracted future revenue to Dh25.7 billion, more than 16 times its 2022 annual revenue, and extends the company's backlog well beyond 2040, while increasing future cash flow.