YahSat wins $5bn UAE business
September 26, 2023
By Chris Forrester
Abu Dhabi-based YahSat has secured an order from the United Arab Emirates (UAE) worth more than $5 billion (€4.73bn) for future broadband satellite business.
The cash covers a 17-year contract for capacity and extending existing contracts which will expire in 2026. The funding will also cover the costs for two new geostationary satellites (Al Yah 4 and 5) already on order with Airbus and due for delivery and launch in 2027 and 2028.
Musabbeh Al Kaabi, Chairman of Yahsat, said: “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. 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. 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. We are excited by this new journey and look forward to serving our customer with true operational excellence.”
Ali Al Hashemi, Group Chief Executive Officer at Yahsat, added: “We are delighted to receive this mandate, which allows us to continue to provide capacity and related services to the UAE Government beyond 2026 using our current satellite fleet, and beyond 2040 on two new satellites, which are already under construction. This is a new chapter in Yahsat’s momentous journey serving the satellite communications requirements for the UAE Government. The AED 18.7 billion [USD 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 AED 25.7 billion [USD 7.0 billion] or over 16 times annual revenues based on backlog figures at the end of the second quarter. Representing one of the largest backlog multiples and strongest balance sheets in the industry, we remain optimistic about providing a broader, more diverse and cutting-edge solutions portfolio to both the government and our customers.”
With the UAE now taking around half of the expected capacity on Al Yah 4 and 5, Al Hashemi’s team is looking to sell the rest to international buyers.