Space42, which combines satellite communications, Earth observation and AI analysis, currently generates 90% of its revenue in the UAE, with government clients accounting for about 80%. Managing director Karim Sabbagh, speaking on the sidelines of the Frontier Summit in Abu Dhabi, said the company expects those ratios to shift toward a 70/30 split between domestic and international revenue, and between government and commercial customers, over a five-year runway.
The company generated $260 million in revenue in the first half of 2026, up 15% year on year, with $18 million in profit.
Sabbagh said the $1.7 billion capital commitment, part of the broader expansion plan, could grow. "If anything, we may make the plan more ambitious," he said, with any decision expected at the company's annual investor day next month. Space42 is also open to acquisitions that would add specific capabilities, particularly in geospatial intelligence. "I think there are going to be opportunities for very complementary capabilities, particularly in geospatial intelligence," he said, pointing to companies with specialized analytical models and established customer bases in areas such as agriculture and critical infrastructure.
Last month, Space42 signed a binding agreement with US communications group Viasat to establish Equatys, a shared platform designed to connect smartphones and other devices directly to satellites. Space42 is committing $600 million to the venture, while Viasat is committing $400 million. The platform is expected to launch by 2029, initially comprising fewer than 200 satellites, with plans to expand the constellation to 2,800. Sabbagh said Equatys can leverage 400 relationships with mobile network operators worldwide.
"The business model is unique because it's a shared infrastructure in space, which will then allow existing sovereign direct-to-device satellite networks to integrate with our system," he said. Under the model, national networks could connect into the shared infrastructure rather than each country building its own, making better use of satellite capacity that might otherwise sit idle outside primary coverage areas.
Sabbagh predicted direct-to-device services could grow the market from fewer than 10 million mobile satellite users to billions. "We want to truly democratize space-based voice and data services to make them accessible at a price point that's comparable to the services offered by alternatives delivered through terrestrial platforms," he said, while acknowledging that building subscriber bases and commercial packages could take one to three years.
Space42 also positions AI-enabled analysis as a differentiator, particularly for synthetic aperture radar, which can image the Earth through darkness and cloud cover. "An optical lens, for example, cannot capture images from 400 kilometres away in the dark," Sabbagh said. "SAR doesn't care about any of this."
The company is backed by Abu Dhabi's sovereign fund Mubadala, which has $385 billion in assets under management, and International Holding Company, Abu Dhabi's largest listed firm.