Economic Diversification
Many Middle Eastern countries are pursuing commercial space enterprises as part of a broader plan to invest in high-tech industries — such as artificial intelligence, nuclear power, and renewable energy — and thereby diversify their economies. For the Gulf States, space has become an important part of their national branding — to convey an image of their respective countries as“positive, credible and economically reliable” to potential customers and investors.
Currently, Middle Eastern economies hold about 57% of proven oil reserves and 40.3% of the natural gas resources in the world. Middle Eastern countries — especially Saudi Arabia and the UAE — are investing in the space sector in anticipation of the end of the oil era. As the most oil-dependent country in the world, Saudi Arabia, for example, released in 2016 its Vision 2030 plan, which aspires to manage the global energy transition with a more competitive commercial space sector. It also created a national space agency in 2018 and established the Saudi Space Accelerator Program in October 2022, which plans to give the country’s commercial space industry a $2-billion boost by 2030.
The UAE similarly stood up a national space agency in 2016 and aims to create a vibrant commercial space sector. To that end, UAE’s Space Agency launched the “Space Means Business” campaign in 2022 to invite the country’s private sector to participate in the Emirates Mission to the Asteroid Belt (EMA). In addition, that same year the country established several other space-funding campaigns, including the National Space Fund, which will allocate more than $800 million (USD) to support groundbreaking programs that support international and Emirati companies cooperating in space-sector engineering, sciences, and research applications, and the Space Economic Zones Program, intended to support space startups and other small- and medium-sized enterprises. Both Riyadh and Abu Dhabi have also undertaken projects to build future smart and connected cities — Masdar City (UAE) and NEOM (Saudi Arabia) — which will rely heavily on space applications and artificial intelligence.
To build more competitive and resilient economies, moreover, both countries are pushing for “Emiratization” and “Saudization” of their local workforces. The aim is to strike a balance between their expatriate workforce and local talents. This approach enables the transfer of knowledge, skills, and expertise to local workers. To encourage young people to pursue careers in space, the initiatives exploit the positive image conveyed by the space sector, supported by a strong communication strategy. Astronauts — like Al Neyadi — have become national heroes. Of note, these efforts have included a commitment to a policy of gender equality and women’s economic empowerment, with both countries having sent or planning to send female astronauts to the International Space Station (ISS). Women are also well represented among the science, technology, engineering, and mathematics (STEM) students in these countries.
Nation-Building and Prestige
The space dream also serves nation-building and fosters international prestige. The Emirates’ historical milestones in space help to build an Emirati national identity and are a source of both national pride and legitimacy for the ruling government. The UAE is a federation of seven emirates (Abu Dhabi, Ajman, Dubai, Fujairah, Ras al-Khaimah, Sharjah, and Umm Al-Quwain), which is still consolidating a sense of shared national identity. Emirati astronauts have conducted missions at the ISS, and the Emirates Space Agency launched the Hope Probe, which provides images of Mars. These accomplishments are not only the successes of Dubai or Abu Dhabi but also those of the entire UAE as a nation. These projects employ hundreds of Emirati engineers from all over the country — as well as foreigners. The government has used space to craft a national narrative in which every Emirati citizen can work for the country through space. This narrative also draws on deep Arab roots in space — the achievements of Arab scientists in astronomy are well known, for example, and many of the star names are Arabic in origin. The UAE also seeks to lead Arab space exploration and conquest — another source of national pride. For instance, in 2019, it launched the Arab space cooperation group with 10 other Arab states — Saudi Arabia, Kuwait, Bahrain, Oman, Egypt, Algeria, Morocco, Jordan, Sudan, and Lebanon. All these efforts raise the international profile and status of Abu Dhabi.
Expanding Strategic Partnerships
Middle Eastern states are pursuing diverse international partnerships in space. For instance, the UAE has established new space partnerships with China, India, and Israel. As part of the Belt and Road Initiative, Chinese investments are building space infrastructures in the Middle East, including a Satellite Assembly, Integration, and Test Center in Egypt, and the first-ever space launch center in Oman. These initiatives have sometimes created tensions with traditional partners, like the United States. Countries have tried to manage a difficult balancing act. For example, the UAE has signed onto the U.S.-led Artemis Accords while continuing to cooperate with China on the International Lunar Research Station. This approach presents challenges. In 2022, for instance, U.S. International Traffic in Arms Regulations prevented the Emirati rover “Rashid 2” from joining a Chinese Chang’e 7 mission to the moon. The military dependence of the UAE and Saudi Arabia on the United States is an obstacle to closer ties among the UAE, Saudi Arabia, and China. The UAE and Saudi Arabia have thus far been unwilling to jeopardize their strategic partnerships with the United States by adopting a nonalignment policy.
Strengthening Military Capabilities
Finally, the acquisition of military space systems by some Middle Eastern countries gives them a strategic advantage. The surveillance of borders and disputed territories is one reason why they have acquired reconnaissance capabilities. The UAE has partially manufactured its own high-resolution imaging satellites — the current KhalifaSat and upcoming MBZ-SAT — which allow it to remotely monitor disputed territories with Iran, specifically the islands of Abu Musa, and the Greater and Lesser Tunbs in the Strait of Hormuz. The UAE’s involvement in various military coalitions — including the International Security and Assistance Force in Afghanistan (2009-2011), Operation Harmattan in Libya (2011), and operations in Yemen — also drove a need for satellite imagery. Realizing they were dependent on the goodwill and availability of satellite imagery from their partners, Emirati authorities sought to acquire their own capabilities. Egypt acquired high-resolution imaging satellites (Misr-Sat 2) from its cooperation with China. The diffusion of space capabilities across the region is not without risk; it could one day lead to a capability that is closely associated with missile technology, which could threaten regional stability.
As space has become more critical to their national interests, some Middle Eastern countries, such as Egypt, Iran, Saudi Arabia, and the UAE, are becoming more active in international fora, seeking to address the safety and security of space activities. However, they disagree about how to achieve this in practice; for example, on whether to adopt a new space treaty or foster norms of behavior in outer space. Iran, along with Russia and China, has pushed the idea of a new space treaty, while other countries in the region are more supportive of strengthening global space norms. Moving forward, to gain broad regional support for space governance, such efforts need to account for the region’s strategic and economic ties with China and Russia, as well as the United States.
Beatrice Hainaut is a Research Fellow at the Institute for Strategic Research (IRSEM) in Paris. The opinions expressed in this brief are solely those of the author.
The Middle East Enters the Space Race
By Beatrice Hainaut
Grand Strategy
In April 2023, Al Neyadi completed the “first Arab spacewalk in history, wearing the Emirati flag on the shoulder of his spacesuit and earning him the moniker the “Sultan of Space.” Neyadi vowed, “It is the first in the Arab world but definitely won’t be the last.” This high-profile mission — like Neyadi’s words — points to a broader trend: The Middle East is quickly becoming a major player in space. Indeed, most countries in the region have published a space policy or national space strategy. Egypt, Iran, Iraq, Syria, and especially the Gulf States — the United Arab Emirates (UAE), Saudi Arabia, Oman, Kuwait, Bahrain and Qatar — are all investing in space. The Emiratis and Saudis are leading the way, launching into orbit to achieve greater economic diversification, national cohesion, and international prestige while attaining other important national security interests, including broadening their strategic partnerships and strengthening their military capabilities.
Economic Diversification
Many Middle Eastern countries are pursuing commercial space enterprises as part of a broader plan to invest in high-tech industries — such as artificial intelligence, nuclear power, and renewable energy — and thereby diversify their economies. For the Gulf States, space has become an important part of their national branding — to convey an image of their respective countries as“positive, credible and economically reliable” to potential customers and investors.
Currently, Middle Eastern economies hold about 57% of proven oil reserves and 40.3% of the natural gas resources in the world. Middle Eastern countries — especially Saudi Arabia and the UAE — are investing in the space sector in anticipation of the end of the oil era. As the most oil-dependent country in the world, Saudi Arabia, for example, released in 2016 its Vision 2030 plan, which aspires to manage the global energy transition with a more competitive commercial space sector. It also created a national space agency in 2018 and established the Saudi Space Accelerator Program in October 2022, which plans to give the country’s commercial space industry a $2-billion boost by 2030.
The UAE similarly stood up a national space agency in 2016 and aims to create a vibrant commercial space sector. To that end, UAE’s Space Agency launched the “Space Means Business” campaign in 2022 to invite the country’s private sector to participate in the Emirates Mission to the Asteroid Belt (EMA). In addition, that same year the country established several other space-funding campaigns, including the National Space Fund, which will allocate more than $800 million (USD) to support groundbreaking programs that support international and Emirati companies cooperating in space-sector engineering, sciences, and research applications, and the Space Economic Zones Program, intended to support space startups and other small- and medium-sized enterprises. Both Riyadh and Abu Dhabi have also undertaken projects to build future smart and connected cities — Masdar City (UAE) and NEOM (Saudi Arabia) — which will rely heavily on space applications and artificial intelligence.
To build more competitive and resilient economies, moreover, both countries are pushing for “Emiratization” and “Saudization” of their local workforces. The aim is to strike a balance between their expatriate workforce and local talents. This approach enables the transfer of knowledge, skills, and expertise to local workers. To encourage young people to pursue careers in space, the initiatives exploit the positive image conveyed by the space sector, supported by a strong communication strategy. Astronauts — like Al Neyadi — have become national heroes. Of note, these efforts have included a commitment to a policy of gender equality and women’s economic empowerment, with both countries having sent or planning to send female astronauts to the International Space Station (ISS). Women are also well represented among the science, technology, engineering, and mathematics (STEM) students in these countries.
Nation-Building and Prestige
The space dream also serves nation-building and fosters international prestige. The Emirates’ historical milestones in space help to build an Emirati national identity and are a source of both national pride and legitimacy for the ruling government. The UAE is a federation of seven emirates (Abu Dhabi, Ajman, Dubai, Fujairah, Ras al-Khaimah, Sharjah, and Umm Al-Quwain), which is still consolidating a sense of shared national identity. Emirati astronauts have conducted missions at the ISS, and the Emirates Space Agency launched the Hope Probe, which provides images of Mars. These accomplishments are not only the successes of Dubai or Abu Dhabi but also those of the entire UAE as a nation. These projects employ hundreds of Emirati engineers from all over the country — as well as foreigners. The government has used space to craft a national narrative in which every Emirati citizen can work for the country through space. This narrative also draws on deep Arab roots in space — the achievements of Arab scientists in astronomy are well known, for example, and many of the star names are Arabic in origin. The UAE also seeks to lead Arab space exploration and conquest — another source of national pride. For instance, in 2019, it launched the Arab space cooperation group with 10 other Arab states — Saudi Arabia, Kuwait, Bahrain, Oman, Egypt, Algeria, Morocco, Jordan, Sudan, and Lebanon. All these efforts raise the international profile and status of Abu Dhabi.
Expanding Strategic Partnerships
Middle Eastern states are pursuing diverse international partnerships in space. For instance, the UAE has established new space partnerships with China, India, and Israel. As part of the Belt and Road Initiative, Chinese investments are building space infrastructures in the Middle East, including a Satellite Assembly, Integration, and Test Center in Egypt, and the first-ever space launch center in Oman. These initiatives have sometimes created tensions with traditional partners, like the United States. Countries have tried to manage a difficult balancing act. For example, the UAE has signed onto the U.S.-led Artemis Accords while continuing to cooperate with China on the International Lunar Research Station. This approach presents challenges. In 2022, for instance, U.S. International Traffic in Arms Regulations prevented the Emirati rover “Rashid 2” from joining a Chinese Chang’e 7 mission to the moon. The military dependence of the UAE and Saudi Arabia on the United States is an obstacle to closer ties among the UAE, Saudi Arabia, and China. The UAE and Saudi Arabia have thus far been unwilling to jeopardize their strategic partnerships with the United States by adopting a nonalignment policy.
Strengthening Military Capabilities
Finally, the acquisition of military space systems by some Middle Eastern countries gives them a strategic advantage. The surveillance of borders and disputed territories is one reason why they have acquired reconnaissance capabilities. The UAE has partially manufactured its own high-resolution imaging satellites — the current KhalifaSat and upcoming MBZ-SAT — which allow it to remotely monitor disputed territories with Iran, specifically the islands of Abu Musa, and the Greater and Lesser Tunbs in the Strait of Hormuz. The UAE’s involvement in various military coalitions — including the International Security and Assistance Force in Afghanistan (2009-2011), Operation Harmattan in Libya (2011), and operations in Yemen — also drove a need for satellite imagery. Realizing they were dependent on the goodwill and availability of satellite imagery from their partners, Emirati authorities sought to acquire their own capabilities. Egypt acquired high-resolution imaging satellites (Misr-Sat 2) from its cooperation with China. The diffusion of space capabilities across the region is not without risk; it could one day lead to a capability that is closely associated with missile technology, which could threaten regional stability.
As space has become more critical to their national interests, some Middle Eastern countries, such as Egypt, Iran, Saudi Arabia, and the UAE, are becoming more active in international fora, seeking to address the safety and security of space activities. However, they disagree about how to achieve this in practice; for example, on whether to adopt a new space treaty or foster norms of behavior in outer space. Iran, along with Russia and China, has pushed the idea of a new space treaty, while other countries in the region are more supportive of strengthening global space norms. Moving forward, to gain broad regional support for space governance, such efforts need to account for the region’s strategic and economic ties with China and Russia, as well as the United States.
Beatrice Hainaut is a Research Fellow at the Institute for Strategic Research (IRSEM) in Paris. The opinions expressed in this brief are solely those of the author.
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