TAMPA, Fla. — Saudi Arabia’s sovereign wealth fund-backed Neo Space Group (NSG) is looking to lease multi-orbit capacity to bolster its foothold in the satellite market, ahead of likely owning and operating its own constellation.

“Our team is currently working hard to identify those areas in the market where it makes sense to deploy our own capital,” NSG’s newly appointed CEO Martijn Blanken told SpaceNews in an interview.

Saudi Arabia’s Public Investment Fund (PIF), one of the world’s largest sovereign wealth funds, created NSG in May as part of plans to become a major force in space and further diversify its economy from oil.

Blanken said NSG would be responsible for Saudi Arabia’s commercial satellite and space activities, focusing specifically on communications, geospatial services, navigation, and Internet of Things monitoring networks, though the company has provided few details about its long-term plans.

Meanwhile, the recently created Saudi Space Agency focuses on space activities that are not yet commercially viable. The country’s Communications, Space and Technology Commission (CST) regulates and provides international representation on space issues.

Setting up

NSG is in the middle of taking over the commercial activities of Saudi Arabia’s share of the Saudi Geo Satellite 1/Hellas-Sat-4 satellite, a dual payload geostationary condosat built by Lockheed Martin and launched in 2019.

The other half of the spacecraft is held by Riyadh, Saudi Arabia-headquartered satellite fleet operator Arabasat, which is owned by 21 countries in the region.

While Saudi Arabia owns the largest share of Arabasat with a stake of nearly 37%, the country sees growing potential to expand its space capabilities.

“Our initial plan is to leverage Saudi Geo Satellite 1 (SGS-1) in combination with leased capacity from third-party multi-orbit satellite constellation providers as building blocks for a range of compelling communications services,” Blanken said via email.

“In parallel, we will expand our existing geospatial services business in Saudi Arabia,” pointing to NSG’s takeover of Earth imagery analytics provider Taqnia Space from PIF.

NSG, which is also setting up a satellite and space-focused venture capital fund for early-stage investments, plans to draw on PIF’s sizable financial resources to buy domestic and international businesses to expand its presence.

Meeting demand in the burgeoning market for inflight connectivity is a strategic priority for the company.

In May, multi-orbit operator SES said NSG was one of several regional satellite network operators to agree in principle to pool their capacity to offer seamless connectivity services to airlines worldwide.

Blanken said NSG is also planning to introduce an Earth Observation wholesaler platform with a partner early next year.

“The satcom and space tech sector poses unique challenges, including regulatory hurdles, cybersecurity, and high satellite costs,” he continued.

“However, NSG brings a fresh perspective, unburdened by legacy issues like declining broadcast revenues or debt. Backed by PIF, we’re poised to disrupt the industry by focusing on high-opportunity segments and delivering effective communication solutions through multi-orbit satellite technology and ground networks.”

Speaking at the World Satellite Business Week conference in Paris Sept. 17, Blanken said: “The market is about to be disrupted — let’s face it, not just from a technology perspective but also from a financial perspective.

“Capital is harder to [come] by nowadays. We are fortunate enough to be backed by an investor who has a bit of capital. It’s relatively cheap and relatively patient.”

CST published research last year predicting Saudi Arabia’s space industry would grow to $2.2 billion by 2030, compared with $400 million in 2022.

A recent forecast by McKinsey & Co. said the global space economy will triple in value to US$1.8 trillion by 2035, growing at twice the rate of global GDP.