Wednesday 22 May 2024

Ali Al Hashemi

Yahsat wins $5.1bn UAE satellite capacity, services deal

ABU DHABI, September 22, 2023

The UAE government has given the go-ahead to Al Yah Satellite Communications Company (Yahsat), the emirate’s flagship satellite solutions provider, to provide satellite capacity and managed services for 17 years.

Yahsat’s government services arm, Yahsat Government Solutions (YGS), has been awarded the AED 18.7 billion ($5.1 billion), mandate that combines related operations, maintenance and technology management services of ground segment satellite systems and terminals currently provided under a separate contract.

The mandate will replace two current agreements, the Capacity Services Agreement (CSA) and the Managed Services Mandate (MSM), which come to an end in November and December 2026, respectively.

Under the new mandate, Yahsat will provide the government with secure and reliable satellite capacity and related managed services using the 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.

The mandate significantly increases Yahsat’s contracted future revenues to AED 25.7 billion ($7 billion), over 16 times its 2022 annual revenues, extending backlog well beyond 2040 and providing security and visibility over its future cash flows.

Commenting on this key milestone, 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, said: “This is a new chapter in Yahsat’s momentous journey serving the satellite communications requirements for the UAE Government. The AED 18.7 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.” - TradeArabia News Service




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