Back to all space news

Space42 reports resilient H1, boosted by optimised ops, strategic execution

Sustained operational optimisation, focused capabilities and strategic execution drove resilient H1 performance and higher profit margins

Gulf Business
Gulf Business

07 August, 2025

Space42 reports resilient H1, boosted by optimised ops, strategic execution
Image courtesy: Space42/ For illustrative purposes

TT

16

UAE-based AI-powered Spacetech company Space42 reported a resilient first-half performance for 2025, maintaining profit levels and improving margins amid continued operational optimisation and strategic expansion.

The company, listed on the Abu Dhabi Securities Exchange under the symbol SPACE42, posted a normalised net profit of $53m, flat compared to the same period last year, but with a higher margin.

Cash and short-term deposits stood at $816m as of June 30, alongside a newly secured $0.7bn ECA-backed funding facility. Space42 also reported contracted future revenues of $6.8bn.

“H1 2025 demonstrates our commitment to operational excellence and capability building. The momentum across our platform shows that our dual-use capabilities deliver both commercial success and strategic value. With Thuraya-4 entering commercial operation and our programmatic approach taking hold, combined with sustained optimization, we’re positioned for growth aligned with market demand,” said MD Karim Sabbagh.

Space Services recorded 2 per cent year-on-year revenue growth in Q2 2025, reaching $100m, led by double-digit growth in the oil and gas sector. Growth was attributed to demand for secure communications and mobile satellite services in the UAE, with this trend expected to continue.

The recent launch of the Thuraya-4 satellite, set to enter commercial service in H2 2025, is expected to accelerate growth with new offerings in defense, security, and commercial applications.

The company also reported progress in its direct-to-device (D2D) system, with further developments anticipated later this year.

Despite underperformance linked to multi-year programme timing, Smart Solutions continued capability development and began seeding key programs set to scale in H2 2025. It is focused on deploying the Foresight system, featuring seven Earth observation satellites, and advancing the GIQ geospatial analytics platform, now available on Microsoft Azure Marketplace.

These efforts were recognised with the Future Fit seal by the UAE government under the UAE Space Agency, underscoring the strategic value of Space42’s dual-use technologies.

Strategic pillars show broad progress

Space42 reported progress in these areas:

  • Launched the Middle East’s first SAR satellite manufacturing facility in partnership with ADIO.
  • Completed construction of a High-Altitude Platform Systems (HAPS) manufacturing and R&D site, targeting full commercial rollout by 2026.
  • Signed MoU with Microsoft and Esri for the Map Africa Initiative, a five-year AI-powered mapping program across all 54 African countries.
  • Scaled the GIQ platform ahead of full commercialisation in Q4 2025.
  • Received the UAE Government’s Future Fit Seal for innovation.
  • Advanced joint venture with FADA and EDGE to develop a national geospatial ecosystem.
  • Continued development of AI-integrated command and control systems and sensing technologies.
  • Near completion of Thuraya-4 in-orbit testing, with 16 new products rolling out including IP Neo Broadband and Thuraya Broadband Hotspot.
  • Ongoing development of D2D space systems with Viasat, establishing a 5G NTN multi-orbit platform.
  • Continued progress on the Al Yah 4 and Al Yah 5 satellite programme, with design reviews underway. These assets support a $5.1bn, 17-year government contract generating $300m annual revenues from Q4 2026.

Read: Space42, Microsoft, Esri to expand mapping capabilities across Africa

Financial highlights: At a glance

MetricResult
Revenue$226m (-17 per cent YoY)
Normalised EBITDA$112m (-14 per cent YoY); margin up 2pp to 49 per cent
Normalised Net Profit$53m (flat YoY); margin up 4pp to 23 per cent
Cash CapEx$109m
Cash / Short-Term Deposits$816m
Negative Net Debt$478m
Net Leverage Ratio-1.8x
Contracted Future Revenues$6.8bn

New whitepaper outlines AI-driven coaching trends in GCC

According to research, 75 per cent of Dubai-based Fortune 500 subsidiaries are expected to adopt AI-powered leadership tools by 2030

Rajiv Pillai
Rajiv Pillai

07 August, 2025

New whitepaper outlines AI-driven coaching trends in GCC
SPARK Dubai 2025/Image: Supplied

TT

16

As Gulf governments and private sector employers accelerate workforce development, digital coaching is fast becoming a critical pillar of regional talent strategies. This shift was at the forefront of SPARK Dubai 2025, where WeAce unveiled its latest whitepaper, Powering Talent and Growth in the GCC.

The invite-only event, held at The St. Regis Downtown Dubai, brought together senior HR leaders, policymakers, and leadership experts to explore how leadership development is evolving in the face of technological disruption and changing expectations around inclusion, nationalisation, and continuous learning. Curated by WeAce in collaboration with SDA Bocconi School of Management, the evening also examined how coaching is moving from a niche, executive-only tool to a scalable, AI-enabled solution.

The WeAce whitepaper highlighted how platforms like its own are now delivering multilingual, culturally localised modules and real-time analytics to make leadership development more accessible and measurable. “The future of leadership is neuro-personalised, life-centric, and deeply human – even when guided by AI,” said Anuranjita Kumar, CEO & Co-founder of WeAce. “Coaching must move beyond performance management to support purpose, wellbeing, and long-term growth.”

Among the emerging trends identified in the whitepaper is the rapid expansion of AI-driven coaching in the UAE and beyond. According to the research, 75 per cent of Dubai-based Fortune 500 subsidiaries are expected to adopt AI-powered leadership tools by 2030. The UAE’s digital coaching market, valued at $44.6m in 2023, is projected to reach $189.3m by 2034, growing at an annual rate of 14.1 per cent.

Read: From budgets to layoffs: UAE businesses trust AI with big calls

Importantly, coaching is now being evaluated with more precision. Global benchmarks cited in the whitepaper show that coaching can generate a return on investment of up to 788 per cent, driven by improvements in employee retention and productivity. The research also indicates that by 2030, 60 per cent of UAE-based leadership programmes are likely to include ESG-related content, underscoring the broader role coaching plays in shaping socially responsible leadership.

Digital coaching is also playing a pivotal role in advancing nationalisation initiatives such as Emiratisation, enabling organisations to nurture agile, future-ready leaders in hybrid working environments. “In a region as dynamic as the Middle East, the intersection of talent, technology, and trust will define competitive advantage,” said Alessandro Giuliani, Managing Director at SDA Bocconi Asia Center. “Our role as leaders is to ensure that people – not just systems – remain at the heart of transformation.”

“The Middle East is not just adapting to change – it’s shaping it,” added Nader Haffar, former chairman and CEO of KPMG Lower Gulf. “Our future will be defined by how boldly we invest in talent, how wisely we deploy technology, and how deeply we build trust across business and society.”

WeAce, now active across Asia, Africa, and the Middle East, is among the companies leading this transformation. Its platform integrates behavioural coaching, structured mentoring, and AI-powered development tools in both English and Arabic, supported by a global network of experienced practitioners. With over 20 enterprise clients already onboarded in the region, WeAce is scaling up its presence to support the long-term transformation of the GCC’s workforce.

UAE’s SCA, VARA align on unified regulatory framework for virtual assets

The agreement defines a unified registration mechanism for VASPs across both jurisdictions and outlines operational coordination principles based on mutual collaboration and effective oversight

Neesha Salian
Neesha Salian

07 August, 2025

UAE’s SCA, VARA align on unified regulatory framework for virtual assets
Image: Getty Images/ For illustrative purposes

TT

16

The UAE’s Securities and Commodities Authority (SCA) and the Dubai Virtual Assets Regulatory Authority (VARA) have signed a strategic partnership to align regulatory frameworks for virtual assets across the country, aiming to eliminate duplication and strengthen supervision.

The agreement sets out a unified mechanism for registering virtual asset service providers (VASPs), enabling mutual recognition of licenses and facilitating the exchange of information between the two regulators.

It also introduces joint oversight and operational coordination.

The move comes after months of coordination between the two bodies and reflects broader efforts by the UAE to build a streamlined, globally credible regulatory environment for digital assets.

New SCA committee to work with VARA

In a parallel development, the SCA’s board has approved the formation of a Coordinating Committee for Legislative Review, which will work with VARA to assess and develop legislation in line with international standards.

The partnership also includes joint technical consultations, shared risk assessments – particularly in anti-money laundering and counter-terrorism financing – and collaboration through joint task forces.

Both entities are aligning systems to enable real-time information sharing and institutional integration.

The two regulators say the goal is to enhance transparency, improve market integrity, and foster innovation within the virtual asset ecosystem.

They also aim to deepen international cooperation through active participation in global forums including the Financial Action Task Force (FATF).

“Our strategic partnership with VARA represents a global benchmark in effective governance and advanced oversight, further reinforcing the UAE’s status as a premier international hub for digital assets,” said Waleed Al Awadhi, CEO of the SCA. “We are committed to leading this regulatory transformation by achieving exceptional standards in transparency and security.”

VARA CEO Matthew White described the collaboration as a step towards “future-proofing” the UAE’s virtual asset economy.

“By unifying oversight and aligning supervisory frameworks with SCA, we are not only minimising regulatory duplication, but also laying the groundwork for a globally credible, secure, and innovation-first ecosystem,” White said.

The agreement positions the UAE to consolidate its role as a competitive hub for digital asset investment and regulation in the region and beyond.

Dubai RTA nol card top-ups: What’s behind the rise in transactions?

The authority emphasised that digital adoption will continue to be a key focus in enhancing Dubai’s public transport infrastructure

Nida Sohail
Nida Sohail

07 August, 2025

Dubai RTA nol card top-ups: What’s behind the rise in transactions?

TT

16

Dubai’s Roads and Transport Authority (RTA) reported a 20% rise in nol card top-up transactions via digital channels during the first half of 2025 compared to the same period in 2024. The increase reflects the RTA’s continued push toward digital transformation in public transport and efforts to enhance customer convenience.

Read-Dubai’s public transport surge: 395 million riders in first half of 2025

The RTA attributed the growth to several initiatives, including installing digital machines for ticket sales and top-ups, raising public awareness about using digital platforms such as its website and mobile apps, and increasing the minimum top-up amount for nol cards at machines and ticket offices, a WAM report said.

According to RTA statistics, there was a 28 per cent drop in top-up transactions made through ticket vending machines overall, even as digital usage through these machines rose by 20 per cent. At the same time, cash transactions at ticket sales offices fell by 37 per cent, and digital transactions declined by 6 per cent, resulting in an overall 26 per cent decrease in office-based transactions.

The RTA stated that this shift has helped reduce queues and cut operating costs associated with cash handling. Additionally, the move away from cash led to an 80 per cent decline in vending machine malfunctions.

The authority emphasised that digital adoption will continue to be a key focus in enhancing Dubai’s public transport infrastructure.

From budgets to layoffs: UAE businesses trust AI with big calls

As trust in AI grows, experts say the next step is making systems more emotionally responsive, especially when dealing with stressful situations

Nida Sohail
Nida Sohail

07 August, 2025

From budgets to layoffs: UAE businesses trust AI with big calls
Image credit: Getty Images

TT

16

Business leaders and executives in the UAE are demonstrating unprecedented trust in artificial intelligence (AI), according to new research released by technology services provider Endava. The findings show a sweeping embrace of AI not just for routine tasks, but for decisions that directly impact employees’ careers, finances, and well-being.

A significant 79 per cent of UAE business decision-makers now trust AI to allocate budgets across their organisations, decisions that could directly influence individual compensation. The same percentage expressed confidence in AI’s ability to manage talent, including recruitment, performance evaluation, and redundancy planning. Additionally, 80 per cent of respondents were comfortable with AI overseeing critical health and safety operations within their companies.

Read-AI is rising, but can it replace the Majlis? The GCC still runs on relationships

This marks a substantial shift in mindset, indicating a new era where AI is no longer seen as a tool for back-office automation, but as a trusted decision-maker in high-stakes areas.

Beyond business: AI as a life advisor

Remarkably, this trust in AI extends well beyond the workplace. According to Endava’s research, four in five respondents said they would trust fully automated systems to make personal career decisions, from advising on promotions to suggesting salary trajectories and job changes.

The same percentage expressed confidence in AI for personal financial planning, including investments and retirement strategies. Even health recommendations, traditionally the domain of human professionals, saw similar levels of trust.

David Boast, General Manager, UAE and KSA at Endava, believes this reflects more than just technological optimism. “Trust is the critical enabler of any AI strategy,” he said. “The UAE’s clear national vision, its youthful and tech-savvy population, and its digital-first mindset are combining to give organisations a unique opportunity to innovate with confidence.”

While other regions remain cautious, often bogged down by concerns over job displacement and AI ethics, UAE businesses appear ready to move forward boldly, supported by a workforce that is not just accepting of AI, but eager to embrace it.

Designing emotionally intelligent AI

As trust in AI grows, experts say the next step is making systems more emotionally responsive, especially when dealing with sensitive or stressful situations.

“Ultimately, the path to trust isn’t through forcing AI into the foreground, but by designing it to quietly empower the experiences consumers already value,” said Jessica Constantinidis, Innovation Officer – EMEA at ServiceNow. “By embedding AI into service architecture in a way that’s invisible but impactful, organisations in the UAE can deliver emotionally intelligent experiences that meet high expectations, without sacrificing efficiency.”

Despite the growing trust in AI, many consumers still crave human connection. A separate ServiceNow research reveals that 68 per cent of UAE consumers prefer to speak with a real person, not due to a resistance to technology, but because they value empathy and nuance. This preference is especially strong when emotions are heightened, such as during financial disputes or service failures.

The hybrid model: Best of both worlds

The study makes it clear that while customers want fast and efficient service, they also seek reassurance. A full 85 per cent of UAE consumers say they prefer self-service options, yet their confidence in AI remains fragile when it comes to emotionally charged or complex issues.

“The answer lies in embracing a hybrid model,” Constantinidis explained. “AI systems should not be standalone tools but part of a broader support ecosystem. For routine tasks, automation can deliver speed. But during moments of high stress, there must be intelligent pathways to human support.”

For example, AI should be able to detect distress signals, not just through language, but through behavior patterns, such as repeated actions or extended time to resolution. If a customer isn’t getting results within two interactions, the system should seamlessly escalate the issue to a human agent.

“That’s not a failure of AI, that’s smart design,” Constantinidis said. “Too often, companies bolt AI onto existing policies without rethinking the experience. True transformation means reimagining customer support with hybrid experiences built from the ground up.”

Insights: Dubai’s hospitality sector is coming of age

Smart hotels that incorporate automation and connectivity to create seamless and intuitive experiences are gaining prominence

Sidharth Mehta
Sidharth Mehta

07 August, 2025

Insights: Dubai’s hospitality sector is coming of age
Image: Supplied

TT

16

Once known primarily for its towering skyscrapers and world-class shopping malls, Dubai has evolved into a multifaceted tourism powerhouse, where history, culture, and sustainability seamlessly blend with luxury.

This transformation is not just reshaping visitor expectations but redefining the very essence of hospitality in the region. Dubai, in particular, is attracting a growing number of visitors eager to explore historical and cultural experiences.

According to data released by the Dubai Department of Economy and Tourism (DET), Dubai welcomed 18.72 million international overnight visitors from January to December 2024, registering a 9 per cent year-over-year (YoY) increase from the previous record of 17.15 million in 2023.

It’s no doubt that Dubai’s strong reputation for safe travel, hosting major international events, and strong government support has contributed to the city’s attractiveness.

This growth is further reinforced by the Dubai Economic Agenda D33 to strengthen further the emirate’s position as one of the best cities to visit, live, and work.

Within this surge in visitor numbers, the hospitality sector faces the challenge of maintaining the right balance between exclusivity and catering to a diverse market. Luxury hotels have always been a significant part of the UAE’s hospitality landscape. However, there is a growing demand for boutique and lifestyle hotels offering unique experiences and personalised services.

Consequently, Dubai’s hospitality sector is tasked with catering to an ever-evolving visitor profile and adjusting to global uncertainties, such as economic fluctuations and unforeseen disruptions, which affect travel patterns, spending habits, and consumer behavior. Remarkably, Dubai has stepped up to the challenge, reinventing itself and embracing the demand for responsible, curated cultural experiences combined with eco-friendly practices.

A shift to sustainable tourism

The city’s commitment to sustainability is evident as hotels and resorts consider environmental impact in every facet of their operations, including energy-efficient architecture and initiatives aimed at reducing energy and water consumption. This reflects a sense of corporate responsibility but also appeals to the changing preferences of a conscientious global traveler.

More specifically, there is a shift to eco-friendly experiences, like desert resorts and renewable energy projects. Restaurants and food outlets are also adopting eco-friendly practices by incorporating local and organic produce into their menus, supporting sustainable agriculture, and reducing their carbon footprint.

Many hotels and resorts are incorporating wellness-focused amenities and experiences into their offerings to cater to the growing segment of travellers seeking rejuvenation – but with a local touch. In addition, hotels are increasingly looking into healthy food options, fitness classes, spa treatments, and tranquil spaces for relaxation.

Infrastructure investments to support sustainability

Supporting the shift to eco-conscious travel involves investing in the proper infrastructure for it. Dubai is not a stranger to build infrastructure successfully from the ground up, with its hospitality sector playing a crucial role in the city’s tourism success. By the end of December 2024, Dubai’s hotel inventory had expanded to 154,016 rooms across 832 establishments, compared to 150,291 rooms in 2023.

The occupancy rate increased from 77.1 to 77.7 per cent, and the Average Daily Rate (ADR) increased from Dhs654.4 to Dhs666, reflecting the growing demand and the sector’s ongoing contribution to Dubai’s position as a top global destination.

Many of these hotels have embedded technological advancements to enhance the guest experience and support their sustainability ambitions. Data and analytics have become essential tools for hospitality businesses to make informed decisions about everything, from marketing campaigns to menu development.

We now see businesses collecting and analysing data to tap into the workings of customer preferences and trends. Smart hotels that incorporate automation and connectivity to create seamless and intuitive experiences are gaining prominence. This includes offering customised amenities, recommendations, décor, menus, and personalised services based on guest data and preferences. These technology investments have paid off, as KPMG’s latest Dubai Hospitality Report shows that an overwhelming majority, 94 per cent, of respondents were satisfied with their hotel stay in Dubai.

Navigating challenges

Amidst this impressive growth, Dubai’s hospitality sector is navigating a dynamic landscape marked by rising operating costs, increased competition from short-term rentals, and the need for continuous investment in technology and talent. Global economic uncertainty and evolving consumer preferences for sustainability, wellness, and authentic local experiences add a layer of complexity to the hospitality sector.

Additionally, seasonality remains a challenge, as with any market, with fluctuating demand between peak and off-peak months prompting hotels to refine their strategies and optimise operations year-round. Yet, these challenges have become catalysts for innovation, pushing businesses to rethink traditional models, diversify their services, and develop guest experiences beyond the norm.

A bright future ahead

The diversification of Dubai’s hospitality industry is expected to drive it forward in the mid-term. As new types of accommodation, restaurants, and entertainment venues join the mix, this diversification will cater to a wide range of tourists and residents, from budget-conscious travelers to luxury seekers. According to estimates, 11,300 new hotel rooms are expected to open in Dubai by 2027.

Guests are expected to become more price-sensitive. Consequently, hotels will adjust their prices and focus on numbers rather than relying solely on high-spending customers. The price correction could also affect mid-range and budget hotels, reducing their rates to maintain higher occupancy and stay competitive.

Regardless, Dubai’s hospitality industry is poised for continued growth this year. As the city aims to become the world’s most-visited city by 2025, the hospitality sector must think beyond numbers. The future belongs to those who innovate, embrace sustainability, and craft experiences that leave a lasting imprint on travellers’ minds and hearts. The question is: What will this next wave of transformation look like?

The writer is a partner and head of Real Estate at KPMG Lower Gulf.

More news in space