Space42 Wins ADX Approval for 2.5% Share Buyback, Signalling Confidence in Long-Term Growth

Abu Dhabi-listed Space42 has received approval from the Abu Dhabi Securities Exchange (ADX) to launch a share buyback programme covering as much as 2.5% of its issued share capital. The move gives the UAE-based AI-powered SpaceTech company another tool to manage its capital while seeking to strengthen shareholder returns. The programme had already received shareholder backing at Space42’s General Assembly in April.

The company plans to finance the purchases from its existing cash reserves rather than through additional borrowing. Shares will be acquired through open-market transactions and the programme will operate within the applicable ADX and Capital and Market Authority requirements. Space42 will also disclose completed purchases through the exchange in accordance with market rules, providing investors with visibility on the execution of the programme.

The decision comes at a time when Space42 is showing stronger operating momentum. The company reported first-half 2026 revenue of $260 million, equivalent to about Dh953 million, representing a 15% increase from the corresponding period. The improvement builds on the company’s progress in its satellite services and smart-solutions businesses and adds financial support to its decision to return capital to investors.

Space42 Managing Director Karim Michel Sabbagh indicated that the company believes its market valuation does not adequately represent its underlying business potential. The buyback therefore reflects both management’s confidence in the company’s future and its intention to deploy capital selectively while pursuing growth opportunities.

The company entered 2026 with a substantial financial base. Its first-quarter results showed revenue of $116 million, while cash and short-term deposits stood at more than $1 billion at the end of March. Space42 also reported contracted future revenue of $6.4 billion, providing significant visibility for its business pipeline. Its Space Services segment benefited from a $700 million, 15-year capacity-services agreement that began in July 2025 following the launch of the Thuraya-4 satellite.

The latest announcement also highlights the broader transformation of Space42 since the combination of Bayanat and Yahsat. The business brings together satellite communications, geospatial intelligence, Earth observation and artificial intelligence, giving it exposure to several technology markets expected to play an increasingly important role in the UAE’s digital and space ambitions.

For investors, the buyback is significant because reducing the number of shares in circulation can potentially improve per-share metrics when purchases are made at attractive valuations. However, the company has not yet specified the timetable, purchase price or the exact number of shares it will acquire beyond the authorised ceiling of 2.5%. The effectiveness of the programme will therefore depend on how actively Space42 uses the approval and prevailing market conditions.

With improving revenue, a strong liquidity position, substantial contracted business and continued investment in satellite and AI capabilities, Space42’s buyback programme represents more than a routine corporate action. It signals that the company is attempting to balance expansion and innovation with disciplined capital management, while giving shareholders a potentially meaningful additional avenue for value creation.