Space has become one of the strategic priorities within the Vision program 2030, which aims to diversify the economy of Saudi Arabia .
Neo Space Group is the central tool of this strategy (NSG), created with the support of the sovereign investment fund Public Investment Fund, whose assets exceed $925 billion. For 18 months since its inception NSG has grown to approx 800 employees, largely due to takeovers. Among them is the acquisition of the German geospatial platform UP42 from Airbus and the French company Display Interactive, specializing in in-flight entertainment and connectivity systems.
Investment priorities
NSG is considering investing in its own space assets, which directly depends on the volume and nature of sovereign demand in Saudi Arabia itself. Development scenarios range from government procurement and operation of satellites to private investment with commercial use of excess capacity. Models of public-private partnership are also being developed.
Acquisition and technology strategy
The company focuses on the so-called downstream activities — services, aimed directly at end users. An example is the Skywaves platform, which allows airlines to manage traffic and personalize the passenger experience, including multi-level integration of services.
The geospatial direction is also actively developing — the acquisition of UP42 strengthened the company's capabilities in satellite data processing. In the future, NSG plans to consolidate the market of remote sensing of the Earth, making it easier for users to access different types of snapshots (optical, hyperspectral, radar) through a single platform.
International cooperation
NSG participates in SES's Open Orbits Alliance initiative, which ensures multi-orbital neutrality. This makes it possible to bypass access restrictions for individual satellite operators in certain countries and provide global connectivity regardless of geopolitical barriers.
Market prospects
The Internet of Things is considered among the areas of development (IoT) and direct device connection models (Direct-to-Device, D2D). IoT, in the opinion of the company, does not require a separate constellation of satellites, rather, it will act as an additional payload on existing devices. Regarding D2D, then the market is evaluated ambiguously: consumer demand is still uncertain, while for defense and intelligence needs, this direction is already considered key.
Long-term vision
In the near future 12 months NSG expects to decide on the amount of funding for space assets. It is about hundreds of millions of dollars, because large geostationary satellites require significant investment. However, Saudi Arabia seeks to reduce dependence on external suppliers and gain partial control over critical infrastructure.
By the end of the decade, the company expects to have several of its own spacecraft in orbit. Geospatial data and satellite communication will be the main areas of income, and the latter will eventually prevail due to the larger market volume.
Challenges
Currently, Saudi Arabia's space economy is still in its infancy. An important task is the training of personnel and the formation of institutions, inherent in mature market economies. This transition makes the formation of the NSG both challenging and promising.
Source: https://spacenews.com