Saudi Arabia is positioning itself as a key player in the satellite industry, with the Neo Space Group (NSG), backed by the nation’s sovereign wealth fund, set to make significant advancements. The company is exploring opportunities to lease multi-orbit capacity as a stepping stone towards owning and operating its own constellation.
Martijn Blanken, the newly appointed CEO of NSG, revealed that the team is diligently identifying strategic areas in the satellite market for potential investment. This initiative aligns with Saudi Arabia’s broader economic diversification strategy, spearheaded by the Public Investment Fund (PIF), one of the largest sovereign wealth funds globally. Established in May, NSG is tasked with spearheading the Kingdom’s commercial satellite and space endeavors, focusing on communications, geospatial services, navigation, and the Internet of Things.
Building a Satellite Powerhouse
The NSG is currently in the process of managing Saudi Arabia’s commercial interests in the Saudi Geo Satellite 1/Hellas-Sat-4, a geostationary satellite constructed by Lockheed Martin. This effort is part of a broader strategy to capitalize on the Kingdom’s substantial stake in Arabasat, a satellite fleet operator owned by 21 regional countries, with Saudi Arabia holding nearly 37%.
Blanken emphasized the importance of leveraging existing satellite assets like the Saudi Geo Satellite 1, alongside leased capacity from third-party providers, to deliver a variety of compelling communication services. NSG is also expanding its geospatial services by acquiring Earth imagery analytics provider Taqnia Space from PIF. Furthermore, NSG is establishing a venture capital fund focused on early-stage satellite and space technology investments, utilizing PIF’s financial strength to acquire both domestic and international businesses.
Seizing Opportunities in a Growing Market
Meeting the increasing demand for inflight connectivity is a strategic priority for NSG. In May, the company entered into an agreement with several regional satellite network operators to pool resources and offer seamless global connectivity services to airlines. Additionally, NSG plans to launch an Earth Observation wholesaler platform with a partner next year.
Despite challenges such as regulatory hurdles and high satellite costs, NSG is poised to disrupt the satellite and space technology sectors. With the backing of PIF, the company is focused on high-opportunity segments, integrating multi-orbit satellite technology with ground networks to deliver effective communication solutions.
At the World Satellite Business Week conference, Blanken highlighted the imminent market disruption, driven by both technological and financial innovations. He noted that while capital is increasingly difficult to secure, NSG benefits from a patient and well-capitalized investor. Projections indicate that Saudi Arabia’s space industry could grow to $2.2 billion by 2030, a significant leap from $400 million in 2022, while the global space economy is expected to triple to $1.8 trillion by 2035, growing at twice the rate of global GDP.
