Abu Dhabi – Mubasher: Al Yah Satellite Communications Company (Yahsat) contracted Airbus Defence and Space SAS for its new geostationary telecommunications satellites, Al Yah 4 (AY4) and Al Yah 5 (AY5).

The step follows the signing of an Authorisation-to-Proceed with Airbus (Airbus ATP) in the second quarter (Q2) of 2023 to commence initial activities about the AY4 and AY5 satellite programme, according to a press release.

It also aligns with the award by the UAE Government in Q3-23 of an AED 18.70 billion ($5.10 billion) mandate to provide satellite communications capacity and managed services for 17 years, primarily on AY4 and AY5.

The two spacecraft will have a design life of 15 years and are planned to be launched in 2027 and 2028, respectively.

The full cost of the AY4 and AY5 procurement programme is forecast to hit nearly AED 3.90 billion ($1.10 billion).

Yahsat will fund the transaction via its resources ahead of the receipt of AED 3.70 billion ($1 billion) in the form of an advance payment from the UAE Government.

Ali Al Hashemi, Group CEO of Yahsat, commented: “We are delighted to sign this contract with Airbus as part of our continuous efforts to enhance our satellite communications capabilities with the next generation of satellites.”

“This is a significant step in Yahsat’s growth trajectory. The Al Yah 4 and Al Yah 5 satellites will enable us to provide the UAE Government with new cutting-edge solutions,” Al Hashemi continued.

He stated: “Additionally, the two new LEO satellite platforms will support Yahsat’s future direction of providing multi-orbit satellite solutions to its customers.”

Alain Fauré, Head of Space Systems at Airbus, said: “Sixteen years ago, we signed our first contract with Yahsat, bringing the first sovereign telecommunications satellite to the UAE. And now, our long-standing relationship is moving up a gear with this contract for two Eurostar Neos, further strengthening Yahsat’s in-orbit resources.”

In the first quarter (Q1) of 2024, Yahsat posted higher net profits attributable to the owners at $52.90 million, compared to $27.07 million in Q1-23.