Space42 and Leonardo DRS deepen security systems push

Space42 and Leonardo DRS have agreed to combine secure satellite communications with advanced military mission systems, opening a new avenue for sovereign defence capabilities and resilient command networks across the UAE.

The memorandum of understanding creates a framework for integrating Leonardo DRS’s command, control and intelligence technologies with Space42’s satellite infrastructure and AI-enabled communications. The companies plan to explore jointly designed capabilities supporting forces operating beyond the reach of conventional terrestrial networks.

Leonardo DRS will contribute expertise in C5ISR systems — command, control, communications, computers, cyber, intelligence, surveillance and reconnaissance — while Space42 will provide secure satellite communications and Beyond Line of Sight connectivity. The arrangement is aimed at improving situational awareness, protected communications and operational resilience across multiple mission environments.

The partnership reflects growing demand for defence networks capable of maintaining communications when terrestrial infrastructure is unavailable, disrupted or vulnerable to attack. Military forces are increasingly linking vehicles, sensors, command centres and remotely operated systems through networks that can move data securely over long distances.

Space42’s role gives the programme access to sovereign satellite infrastructure controlled from the UAE. The Abu Dhabi-based company was formed in 2024 through the merger of Bayanat and Yahsat, bringing together satellite communications, geospatial intelligence and artificial intelligence under a single group.

Its satellite business has become increasingly important to government communications. Space42 reported revenue of $116 million for the first quarter of 2026, while its Space Services division recorded 15% revenue growth. The company ended the quarter with more than $1 billion in cash and $6.4 billion in contracted future revenue.

A major component of that pipeline is a $5.1 billion, 17-year government agreement supporting the Al Yah 4 and Al Yah 5 satellite programme. The spacecraft are designed to expand secure communications capacity across defence and civil applications. Space42 has also been scaling operations around Thuraya-4, whose services are backed partly by a $700 million, 15-year capacity contract.

The Leonardo DRS agreement extends that infrastructure strategy further into integrated defence systems. Satellite links can provide command networks with persistent communications across large operating areas, including locations where fixed telecoms networks are unavailable or compromised.

Leonardo DRS brings experience in ruggedised computing, tactical displays, vehicle electronics and mission-management platforms used by the US military and allied forces. Its systems are designed to combine information from sensors and networks so commanders can obtain a clearer operational picture while reducing the amount of data individual crews must process.

The company has also been expanding its exposure to AI, data fusion and multi-domain command technologies. Leonardo DRS agreed in July to acquire defence technology company Raft, adding capabilities in artificial intelligence, mission software and digital engineering to its portfolio.

Its financial position has strengthened alongside demand for defence electronics. Second-quarter revenue reached $913 million, up 10% from a year earlier, while net earnings rose 59% to $86 million. Funded backlog climbed 17% to a record $5.1 billion, giving the company greater visibility across defence programmes.

For the UAE, the Space42 collaboration fits a wider effort to develop locally controlled communications, satellite and defence technology rather than depend entirely on imported infrastructure. Space42 already has a strategic satellite communications manufacturing alliance with EDGE Group designed to establish domestic production of antennas, secure communications equipment and related technologies.

That alliance includes electronically steered antenna systems for airborne and mobile platforms, alongside locally developed modem, waveform and cryptographic technologies. Space42 has also pursued agreements involving autonomous aircraft, unmanned systems and satellite-connected mobility platforms.

Ahmed AlMehrzi, Space42’s Chief Commercial Officer for Government, said combining sovereign satellite infrastructure with Leonardo DRS mission technology would strengthen protected communications and support the UAE’s national security ecosystem.

Denny Crumley, senior vice-president and general manager of Leonardo DRS’s Land Electronics business, said the agreement supported UAE security priorities while advancing the company’s international partnerships.