Yahsat will provide managed services for ground satellite communications services and solutions for the next 5 years
Agreement represents an important milestone that further strengthens Yahsat's contracted future revenues and reiterates its long-term strategic relationship as the preferred satellite solutions partner for the UAE Government
Abu Dhabi, United Arab Emirates, 14 February 2022: Al Yah Satellite Communications Company PJSC ( Yahsat and, together with its subsidiaries, the Group ) listed on the Abu Dhabi Securities Exchange ( ADX ) under (SYMBOL: YAHSAT) (ISIN: AEA007501017), the UAE's flagship satellite solutions provider, today announced that its dedicated government arm, Yahsat Government Solutions ( YGS ), has been awarded a AED 909.5 million (USD 247.5 million) mandate to provide enhanced managed services to the UAE Government for its satellite communications capabilities. The agreement augments the previous operations and maintenance services provided, to include technology management support, from January 2022 until the end of 2026.
This mandate strengthens Yahsat's long-standing relationship with the UAE Government, which dates back over a decade, highlighting the Group's role as the preferred partner for capacity and solutions. Yahsat has been providing operations and maintenance services since 2011 on its first two satellites, Al Yah 1 and Al Yah 2, which form part of a 15-year capacity services agreement with the UAE Government. In 2021, Yahsat was requested by the UAE Government to explore two new satellites, Al Yah 4 and Al Yah 5, to be launched by 2026.
This latest milestone builds upon Yahsat's strategy to expand its Managed Solutions capabilities across the value chain to provide more strategic services to key clients within the UAE and internationally. The mandate increases the Group's contracted future revenues at the beginning of the financial year 2022 to AED 8.4 billion (USD 2.3 billion).
Ali Al Hashemi, Group Chief Executive Officer at Yahsat added, We are delighted to receive this mandate from the UAE Government to provide extensive managed services for their satellite communications capabilities. Today's announcement validates our strategic approach to expand our offering across the value chain while enhancing our ability to provide end-to-end secure and critical satellite solutions and connectivity. This further demonstrates the strength of our relationship with the UAE Government, with whom we have had a strong partnership for over 10 years. It is a sign of confidence in our offering and lays even stronger foundations for the future growth in our relationship. The mandate boosts Yahsat's contracted future revenues to provide more visibility on the long-term financial outlook for the Group.
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Yahsat will provide managed services for ground satellite communications services and solutions for the next 5 years
