UAE marks 25 years since momentous launch of first satellite


Sarwat Nasir
  • English
  • Arabic

The UAE is marking 25 years since the launch of its first satellite, a milestone mission that helped lay the foundations for one of the world's fastest-growing space programmes.

It was on October 21, 2000, that Thuraya-1, a communications satellite built by Boeing and commissioned by Thuraya Telecommunications Company in Abu Dhabi, was propelled into the skies on board a Sea Launch Zenit-3SL rocket from a mobile platform in the Pacific.

At the time, it was one of the heaviest commercial telecoms satellites, weighing more than five tonnes, and helped provide service to Thuraya’s satellite phones.

Two hours and 22 minutes after lift-off, a ground station in Italy received the first signal, confirming the spacecraft was operating normally. It also became the Middle East's first telecoms satellite.

Building block of UAE space ambitions

There was no domestic satellite manufacturing industry in the UAE at the time, but ownership and operation of Thuraya-1 represented the nation’s first strategic step into space.

Jassem Nasser, chief business development officer at Space42, said Thuraya-1 was the beginning of satellite communication innovation.

“I like to think of Thuraya-1 as the first building block, setting the foundation for a far-reaching national space programme,” he told The National. “Over the past 25 years, we have truly embraced the spirit of leading the industry, as reflected in the many awards and accolades we’ve received, and in Thuraya’s name becoming synonymous with innovation.”

The Thuraya Hughes 7100 handset, which connected to the satellite for coverage. Photo: Thuraya Telecoms
The Thuraya Hughes 7100 handset, which connected to the satellite for coverage. Photo: Thuraya Telecoms

Mr Nasser said the launch also signalled a shift in the UAE’s technological capability at a time when few countries had ventured into space.

“When Thuraya-1 was launched in 2000, the UAE’s priority was to build the infrastructure that could connect people across the globe,” he said. “Since then, the nation has transformed those foundations into a dynamic space ecosystem anchored by institutional maturity, strategic foresight and commercial ambition.”

Space42, the space technology company in Abu Dhabi that Mr Nasser now helps to lead, is a product of that transformation. Thuraya became a subsidiary of Yahsat in 2018, and last year Yahsat merged with Bayanat to form Space42.

It now provides satellite communications, geospatial data and advanced mobility intelligence to governments and industries worldwide. “The UAE has moved from being a customer and buyer of space technology, to a recognised developer and provider across telecoms and Earth observation satellite industries,” Mr Nasser said.

Thriving satellite industry

A total of 27 satellites and other spacecraft have been launched by the UAE since Thuraya-1. Some of them have been built domestically, including the Mohammed bin Rashid Space Centre’s KhalifaSat and MBZ-Sat Earth observation satellites.

The country is focusing more on developing this technology to help boost talent and private-sector growth.

Infrastructure for the UAE Space Agency’s Emirates mission to the asteroid belt, for example, is being built mostly by domestic companies.

Commercial era takes shape

The rise of commercial satellite services was also a turning point for the country, helping drive long-term investment into the UAE space sector. Mr Nasser said this commercial participation has been central to the UAE’s success.

“Commercialisation has transformed the UAE’s space sector from a government-led endeavour into a self-sustaining industry that attracts capital, talent and innovation,” he said. “From a national perspective, and through an investment of roughly Dh44 billion [$12 billion], the UAE has created fertile ground for private-sector participation and international collaboration.”

He said this investment encouraged Emirati companies to develop “agile, market-driven solutions” that supported national priorities and helped the UAE compete internationally.

Space ecosystem

Thuraya-1 was the first of three satellites launched by the company, followed by Thuraya-2 in 2003 and Thuraya-3 in 2008. Space42 launched the fourth mission in January this year.

Dr Dimitra Atri, principal investigator at NYU Abu Dhabi’s space exploration laboratory, said the UAE’s space programme has undergone considerable progress since its first satellite launch.

The country has an impressive civil space programme, with two astronauts already sent to the International Space Station, a probe orbiting Mars and lunar rovers being developed.

“In 25 years, that initial capability has grown into a complete ecosystem, from Earth observation to Mars, the Moon and now the asteroid belt,” Dr Arti said. “Other nations today study the UAE model … how to build a space programme that is rapid, focused and strategically forward-looking.”

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: October 23, 2025, 9:32 AM