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Yahsat Wins Long-Term Satellite Capacity, Managed Services Contract with UAE Government

By Mark Holmes | September 22, 2023

Yahsat CEO, Ali Al Hashemi. Photo: Yahsat

Yahsat Government Solutions (YGS), an arm of Yahsat has won a new mandate worth over $5 billion with the UAE government. The deal was announced Sept. 22. The UAE government has given an Authorization to Proceed (ATP) to provide satellite capacity and managed services for 17 years. This mandate, valued at AED 18.7 billion ($5.1 billion), 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.

“This is a new chapter in Yahsat’s momentous journey serving the satellite communications requirements for the UAE Government. The AED 18.7 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 AED 25.7 billion [$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,” Ali Al Hashemi, Group Chief Executive Officer at Yahsat, said in statement.