The UAE has emerged as the leading investor in the Middle East’s $18 billion space market, according to a new report by Boston Consulting Group (BCG). With $443 million in civil space investment in 2024, the nation has secured more than 50 per cent of the regional downstream services market, which includes satellite communications and Earth observation.
UAE’s commanding position
The BCG report, Governments in Space: A Universe of Opportunities, highlights the UAE, Saudi Arabia, and Qatar as the main drivers of civil space investments in the region. The UAE’s spending accounts for 40–45 per cent of total government space budgets across the Middle East and Africa. This commitment has allowed the country to capture a dominant share of downstream services, which represent around 70 per cent of the global space industry.
Faisal Hamady, Managing Director and Partner at BCG, said: “The UAE’s commanding position in the Middle East space market reflects a decade-plus commitment to strategic space investments that balance public sector vision with private sector innovation.”
Regional competitors
Saudi Arabia has also been expanding its space ambitions, investing $220 million in 2024. This provides the kingdom with a 20–25 per cent share of MEA government space spending and over 20 per cent of the downstream services segment. Qatar has committed a comparable $220 million, securing about 5 per cent of the market and a similar share of downstream services.
The report notes that flagship UAE programmes such as MBZ-SAT, the Hope Probe, and Arab 813 are expected to deliver returns of three to four times their investment. Meanwhile, Saudi Arabia’s partnerships with NASA and Axiom, along with Qatar’s Es’hailSat project, illustrate the growing role of public-private partnerships in advancing regional capabilities.
Long-term growth outlook
BCG projects that the UAE, Saudi Arabia, and Qatar will see space markets grow at or above the global economy’s five per cent compound annual growth rate through 2033. This growth will be fuelled by digital-space integration, including satellite broadband, low Earth orbit constellations, and Earth observation data.
Thibault Werle, Managing Director and Partner at BCG, said: “What we’re witnessing across the GCC is a comprehensive understanding that space industry success requires simultaneous excellence across multiple dimensions—financial commitment, partnership strategy, risk management, and policy integration—while maintaining patience for long-term returns in a rapidly evolving global landscape.”
With its sustained investment strategy, the UAE continues to strengthen its position as a global hub for space innovation, setting the pace for GCC leadership in the wider space economy.
