Space42: A rising star at the intersection of space and AI
The company was formed in 2024 with the merger of Bayanat AI and Al Yah Satellite Communications Company PJSC (Yahsat). The transaction, announced in 2023 and approved by shareholders in April 2024, was executed through a share swap, with Bayanat remaining as the legal entity, and Yahsat delisted from the exchange. The shareholders of Bayanat and Yahsat own 54% and 46% of the merged entity, respectively.
Space42 comprises two business units: Yahsat Space Services and Bayanat Smart Solutions. The Yahsat Space Services unit focuses on upstream satellite operations for both fixed and mobility satellite solutions. The Bayanat Smart Solutions unit integrates geospatial data acquisition and processing with AI to inform decision-making, enhance situational awareness and improve operational efficiency. The company operates across more than 150 countries, reaching over 80% of the world's population.
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The new merged entity has already had several early wins that have bolstered its future growth prospects.
In December 2024, Space42 announced an AED18.7 billion (U.S.$5.1 billion) contract with the UAE government to provide secure governmental communications across the Middle East, Africa, Europe and Asia until 2043. The contract underpins Space42's strong financial profile, making up a significant majority of its AED26 billion (U.S.$7.1 billion) backlog of contracted revenues.
In January 2025, the company launched its Thuraya 4 telecommunications satellite into orbit.Considered a next-generation mobile telecommunications system, Thuraya 4 expands Space42's capabilities and advances the company's plans to launch more than 15 new products to cater to the rapid growth in use cases across various sectors, including defence, government and enterprise.
Strategic growth drivers
In March, Space42 signed a memorandum of understanding with Nasdaq-listed Viasat Inc., a global mobile satellite services (MSS) operator in L- and S-band spectrum, to explore ecosystem partnership options for developing a 5G Non-Terrestrial Network (NTN) initiative. The collaboration would enable both companies to address the growing opportunities in direct-to-device (D2D) satellite communications to smartphones, narrowband Internet of Things (NB-IoT), and existing and next-generation MSS services. The D2D market is set to reach U.S.$50 billion by 2032.
Investment
Space42 ended its first quarter with U.S.$895 million in cash and short-term deposits and contracted future revenues of nearly U.S.$7 billion. It also made progress on capturing the next wave of opportunity in spacetech, including government and defence solutions, smart mobility and autonomous systems, direct-to-device connectivity, and AI-powered geospatial and satellite communication services to emerging markets in Africa and Asia, offering solutions for agriculture monitoring and disaster management.
Growth through organic and bolt-on acquisitions
The company offers strong liquidity, low leverage, a cut-cost-and-grow-stronger approach, and predictable future cash flow underpinned by a financial framework focused on organic investments, bolt-on acquisitions and generating attractive returns.
Space42 believes it is positioned to leverage capabilities across three sectors – satellite communications, AI analytics and geospatial services – to unlock value for customers, partners and shareholders and position itself as global leader. Its overarching position as a dual-use player brings further unique opportunities and ability to scale.
The company also aims to tap the global high-altitude platform station (HAPS) market, offering the full suite of HAPS products and solutions. To boost its presence in the market, Mira Aersopace, a subsidiary of Space42, created the MENA region's first HAPS manufacturing centre in Abu Dhabi. The new facility will significantly enhance Mira Aerospace's production capabilities, drive advanced R&D, support the commercialisation of HAPS technology and lay the foundation for long-term, sustainable growth.
ESG leadership
Standard & Poor's (S&P) recognised Space42 as one of the Top 3 Sustainability Companies in the UAE. Yahsat, the predecessor of the Yahsat Space Services unit of Space42, achieved notable recognition as one of the top 10 most sustainable companies in the Middle East, securing the sixth and third positions in the region and UAE rankings respectively, as per the S&P Global ESG Scores.
The company plans to enhance its sustainability governance by establishing an ESG Committee as part of a Sustainability Strategy and Roadmap update in 2025, and implement the sustainability agenda across Space42.
Space and AI market outlook
Space42 is positioning itself as a strategic enabler of the UAE's long-term ambitions, aligning its operations with the National Space Strategy 2030 and the AI Strategy 2031. The company stands to benefit from a rapidly expanding global space economy, projected to nearly triple to U.S.$1.8 trillion by 2035 from U.S.$630 billion in 2023. At the same time, the global AI market is expected to surge to U.S.$1.8 trillion by 2030, up from U.S.$279 billion in 2024. With capabilities spanning both sectors, Space42 sits at the intersection of two transformative growth trends.
Looking ahead
Space42 has major ambitions to be a leader in several growth areas, including geospatial intelligence and AI platform services, non-terrestrial connectivity (NTN) and secure connectivity.
To find out more, visit the company's page on adx.ae.
To invest, contact one of the ADX brokers now.
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