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Yahsat, a leading UAE-based satellite company, has recently won a significant $5.1 billion, 17-year contract from the UAE government for satellite capacity and managed services.
The contract will consolidate two existing agreements, set to expire in November and December 2026, and will include operations, maintenance, and technology management services for ground segment satellite systems and terminals.
The award also includes an advance payment from the UAE government of $1 billion to be received in 2024.
Under the new contract, Yahsat will utilize its existing satellites, Al Yah 1 and Al Yah 2, to offer services. Additionally, they will complement these assets with two forthcoming satellites, Al Yah 4 and Al Yah 5, slated for launch in 2027 and 2028, respectively.
“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,” says 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,” he added.
This marks a new chapter in Yahsat’s extensive history of catering to the satellite communications requirements of the UAE government. The $5.1 billion contract positions Yahsat for sustainable future growth, aligning with other ambitious projects currently in development.
The new contract increases Yahsat’s future revenue to $7.0 billion, more than 16 times its 2022 annual revenue, extends its backlog beyond 2040, and enhances its future cash flow.