Abu Dhabi-based Yahsat’s government services arm, Yahsat Government Solutions (YGS), has secured an AED18.7 billion ($5.1 billion) mandate from the UAE government.
The announcement was made by Al Yah Satellite Communications Company PJSC (Yahsat) – a prominent satellite solutions provider in the UAE – in a statement on Friday.
The Authorisation to Proceed (ATP), valued at AED18.7 billion ($5.1 billion), grants YGS the authority to provide satellite capacity and managed services for a period of 17 years.
Yahsat to offer “secure and reliable satellite capacity”
Under this mandate, Yahsat will offer secure and reliable satellite capacity along with related managed services, the statement said.
The services will be delivered using the Al Yah 1 and Al Yah 2 satellites, currently in orbit, and will be supplemented by two new satellites, Al Yah 4 (AY4) and Al Yah 5 (AY5), expected to launch in 2027 and 2028, respectively.
This development signifies the culmination of a long-standing partnership between Yahsat and the UAE Government, dating back nearly two decades, further solidifying Yahsat’s role as the preferred and trusted partner for the government’s secure satellite capacity and solutions needs.
The mandate also significantly enhances Yahsat’s contracted future revenues, amounting to AED25.7 billion ($7.0 billion), providing financial security and visibility well beyond 2040.
In June 2023, Yahsat signed an Authorisation-to-Proceed with Airbus (Airbus ATP) for the construction of AY4 and AY5.
This move preserves the program schedule and enables the commencement of critical activities such as system requirements review, design work, and procurement activities for long-lead items.
The procurement for AY4 and AY5, including spacecraft, ground segment infrastructure, launch, and insurance, will be financed through Yahsat’s resources and other potential funding options currently under evaluation.
UAE has also provided an advance payment of $1 billion, which will be received in 2024.
“We are honoured to secure the continued trust of the UAE Government to provide critical, secure communication services for a further 17 years beyond 2026. This award is a testament to our long-standing relationship with the Government and the quality of service that we provide as we continue to strive to consistently exceed customer expectations,” Musabbeh Al Kaabi, Chairman of Yahsat said.
“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,” he added.
Echoing the sentiment, Ali Al Hashemi, Group Chief Executive Officer at Yahsat said: “This is a new chapter in Yahsat’s momentous journey serving the satellite communications requirements for the UAE Government. The AED18.7 billion [$5.1 billion] mandate positions Yahsat for sustainable future growth, alongside other ambitious projects in the pipeline.”
“Our financial position has never been stronger, and we now enjoy a contracted revenue backlog of AED25.7 billion [$7.0 billion] or over 16 times annual revenues based on backlog figures at the end of the second quarter,”
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