Digital visualization of Planet Earth focusing on the Middle East, with intricate, glowing network lines representing air traffic routes based on real-world data. The continents are depicted with detailed topography and bright network connections, symbolizing global connectivity. The image has a deep blue background, suggestive of outer space. This is a 3D rendering illustration.

Constellations spoke with Steve Bochinger, Affiliate Executive Advisor at Euroconsult, about growth in the space sector in the Middle East and Euroconsult’s recently released whitepaper, “Beyond the Stars: The Middle East’s Space Ecosystem on the Move.”

Growth in the Middle East and North Africa (MENA) is driven by many factors, including the diversification of investments beyond satellite and Earth observation, the significant ground segment advantage in the Middle East and defense spending.

Middle East Space Sector Plays Catch-Up

The Middle East is quickly catching up with the growing global space sector; 13 countries in MENA have invested $1.4 billion in space, a number expected to double by the end of the decade and reflected in the programs and initiatives emerging throughout the region. “We’ve seen space policies, space strategies, space agencies created,” says Bochinger. “There are a lot of initiatives that are starting right now and this is creating a real momentum in the region.”

Bochinger believes that sovereignty is one of the main driving forces for space development in the region. “[It] is a number one concern … to secure sovereign access to satellite assets and to space in general,” he says. “It’s a major driver to be autonomous and to develop domestic industry and to be able to develop a national ecosystem.”

Diversifying Investments

Traditional areas of investment for countries entering the space sector include satellite applications like Earth observation, and MENA is no different. “The countries in the Middle East are acquiring satellite assets … 80% of the investments for the last decade that are targeting [satellite] applications,” Bochinger says.

These countries hope to diversify and strengthen the greater economy by using these investments to build the national ecosystem. “When a government agency in the Middle East is acquiring a satellite system, the objective is to build the capabilities locally,” says Bochinger. Building local capabilities and skills through these investments is a challenge that requires time and patience. “It’s not only acquiring satellite assets from a foreign vendor, it’s actually progressively localizing the technology developments in the nation so that they can be self-sustainable at some point.”

A movement towards larger and more involved investments, such as launch capabilities, is growing as well. “What we are seeing for the future is an evolution towards … more mature space programs, like access to space, science, exploration, Moon and Mars.” Bochinger added that these areas “are going to account for up to 40% of these investments in ten years.”

An Ideal Location for Ground Systems

“The ground segment is at the heart of the transformation of the space sector,” says Bochinger. Many new and exciting advancements in space technology put pressure on the ground segment, including digitization, mega-constellations, hybrid networks, AI and cloud computing.

“The Middle East has geographical advantages with respect to the deployment of ground segments,” he says. “This is an ideal location for the deployment of ground segments, meaning that a number of countries have put this… as one of the key features of a space program.”

Defense Spending on the Rise

Development of the defense sector is another crucial aspect of space investment in MENA. “Defense represents about 40% of investments in space in the Middle East,” says Bochinger, which puts them slightly below the global average of 50%. In this area, they are playing catch-up, and “by the end of the decade, we should see around 50% of the investment coming from the defense community.”

Military and defense spending have a significant impact on the type of technology developed. “The defense community is looking for very sophisticated and advanced technologies, more, maybe, than what you can see in the civil area,” says Bochinger. These technologies tend to be “more cutting edge and sophisticated,” and often open business opportunities for international manufacturers.

Bochinger is optimistic about the potential of the region. “This is maybe one of the most dynamic regions worldwide today for space,” he says, adding that he looks forward to “a new ecosystem of players and the region being able to take full part of the space sector worldwide.”

For more on the national space agencies of the Middle East, building regulatory frameworks and commercial partnerships in the region, listen to the full episode here.