Qatar Strengthens Its Role in Middle East Space Market; Invests $220Mn

Qatar has strengthened its role in Middle East space market with $220mn civil space investments and expected to grow 5% annually through 2033, according to Boston Consulting Group (BCG).

"Qatar, alongside the UAE and Saudi Arabia, represents the core of the region’s civil space investments, each contributing actively to the Gulf Cooperation Council's or GCC’s emergence as a hub for space innovation and ambition," BCG said in its latest report.

Qatar, with a $220mn investment in civil space activities for 2024, contributes around 5% of the market today and holds just under 5% downstream services market share, strengthening the GCC’s collective leadership and offering a strong foundation for future growth, it said.

Downstream refers to ongoing operations and services, while upstream includes spacecraft design and manufacturing, launch facilities, and ground operations. Downstream markets are increasingly merging with the digital industry, adopting technologies like AI (artificial intelligence) and cloud computing for efficient mass data collection and processing.

The UAE has demonstrated a strategic commitment to space, with $443mn invested in civil space in 2024, corresponding to approximately 40–45% of government spending across the MEA (Middle East and Africa) region, whose space market is valued at $18bn.

The UAE is positioned to capture more than 50% of the region’s downstream services market share, including satellite communications and earth observation, according to BCG.

Saudi Arabia, with a comparable $220mn investment in 2024, accounts for an estimated 20–25% share of government space spending in the region and is expected to hold more than 20% of the regional downstream services market

"All three markets are projected to grow at or above the global space economy compound annual growth rate (CAGR) of 5% through 2033, underscoring the region’s long-term commitment and momentum.

Qatar's Es'hailSat plays a crucial role in regional satellite communications, while the UAE's Mars Hope Probe showcases successful international collaboration frameworks.

"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," Thibault Werle, Managing Director and Partner at BCG, said.

Saudi Arabia's partnerships with NASA and Axiom, along with private sector participation from entities like Neo Space Group, demonstrate the effectiveness of hybrid investment models.