Yahsat Government Solutions (YGS), a subsidiary of Yahsat, has secured a significant new contract with the UAE government worth over $5 billion.
The deal, announced on September 22nd, grants YGS an Authorization to Proceed (ATP) to provide satellite capacity and managed services for a period of 17 years. This mandate, valued at AED 18.7 billion ($5.1 billion), consolidates various operations, maintenance, and technology management services for ground segment satellite systems and terminals that were previously covered by separate agreements.
The new mandate will replace two existing contracts, the Capacity Services Agreement (CSA) and the Managed Services Mandate (MSM), which are set to expire in November and December 2026 respectively. Under the terms of the new agreement, Yahsat will deliver secure and reliable satellite capacity and related managed services using its existing Al Yah 1 and Al Yah 2 satellites, as well as two new satellites, Al Yah 4 (AY4) and Al Yah 5 (AY5), which are scheduled for launch in 2027 and 2028.
Yahsat’s CEO, Ali Al Hashemi, expressed his enthusiasm for the company’s future prospects, stating:
“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.”