Credit: Paul Devitt/CNN

(CNN) -- In recent years, the UAE has achieved remarkable accomplishments beyond Earth, from sending its first astronaut to space to reaching Mars' orbit with the Hope Probe.

Now, as countries around the world focus on building their own sovereign satellite networks amid rising geopolitical tensions, a UAE company is manufacturing commercial satellites on a large scale.

Orbitworks, headquartered in the UAE capital Abu Dhabi, is developing AI-powered satellites that will form a constellation of 10 Earth observation satellites called 'Altair', which can be used in various fields, from military intelligence gathering to environmental monitoring.

The company is a joint venture between Marlan Space in Abu Dhabi and Loft Orbital, based in San Francisco, USA, and plans to launch its first satellite this October.

Today, US-based SpaceX holds about 69% of all active satellites, according to satellite tracking site Orbital Radar. But Canada has plans to launch hundreds of new satellites to protect its national sovereignty and reduce reliance on Washington, while the European Union is developing its own network of 290 satellites.

Orbitworks describes itself as helping to 'build sovereign space capabilities in the UAE'.

Dr. Hamdullah Mohib, acting CEO of Orbitworks and CEO of Marlan Space, told CNN: 'There has been much greater focus by countries on owning their own assets in space.'

Mohib added that 'not everyone can afford the cost of owning their own space assets,' so Altair will be offered under a 'constellation-as-a-service' model, allowing companies, governments, and researchers to lease its capabilities.

Orbitworks describes itself as 'the first private space infrastructure company in the Middle East'

Mohib said that traditional satellites typically send large amounts of raw data to Earth for processing, a process that can take hours or more, while Orbitworks satellites use AI to process data in space and send the extracted information to users 'almost instantly'.

This will be necessary to compete globally, as other satellite companies are also integrating AI technologies into their systems.

For his part, Quentin A. Parker, emeritus professor of astrophysics and space science at the University of Hong Kong, explained: 'Every major player in the satellite field is looking to put AI onboard their satellites.'

Mohib said he hopes that the involvement of US company Loft Orbital will help attract more Western customers.

He added: 'There was a lot of temptation to partner with a Chinese company,' citing competitive prices and willingness to share intellectual property.

Mohib noted that discussions are underway with potential customers who may want to leverage Orbitworks' manufacturing capabilities. The company's factory, spanning 4,645 square meters (50,000 square feet), has the capacity to produce 50 satellites per year, each weighing up to 500 kilograms.

The growing space economy

The global space market was worth about $224 billion in 2024, according to a 2025 report by the Boston Consulting Group, with the bulk of growth coming from satellite communications and Earth observation. The space market in the Middle East and Africa was estimated at $18 billion, with the UAE contributing between 40% and 45%.

The UAE plans to double space economy revenues to become among the top 10 space economies in the world by 2031, as part of its efforts to diversify its economy ahead of the post-oil era.

Globally, private space companies have reduced costs and accelerated innovation. For example, SpaceX has significantly lowered launch costs thanks to its pioneering reusable rocket technology.

In recent decades, the UAE has established specialized space institutions, set regulations for commercial space activities, and made significant investments. The National Space Fund was created with 3 billion dirhams ($820 million) to support collaboration between international and UAE companies and build national knowledge and expertise.

Engineer at Orbitworks at work. Credit: Paul Devitt/CNN

This investment has helped drive the growth of the private sector in the UAE, which includes a new generation of companies like Orbitworks, which describes itself as 'the first private space infrastructure company in the Middle East'.

The UAE still has plans for major space missions, such as a 5-billion-kilometer (3.1-billion-mile) journey to the asteroid belt between Mars and Jupiter, scheduled for launch in 2028. But over the past year or two, the country has increasingly focused on building sovereign space security infrastructure and developing technologies to seize economic opportunities, according to Faisal Hamadi, managing director and partner at Boston Consulting Group in Dubai, in an email to CNN.

Hamadi said: 'For much of its early history, the UAE bought satellites and expertise from abroad, but the national strategy now clearly aims to build a market-driven ecosystem rather than a government-led one.'

He added that 'lower launch costs and the emergence of AI applications are opening new commercial avenues, from monitoring oil and gas infrastructure to disaster response and climate change tracking.'

The Abu Dhabi Maritime Academy will use intelligence derived from Orbitworks satellites for port management, including providing real-time information on ship traffic. The Abu Dhabi Fund for Development, which provides aid to developing countries, will also use Altair satellites to remotely monitor its projects. The French Space Agency has also signed a cooperation agreement, according to Orbitworks.

Mohib said: 'This is a huge endorsement for us,' adding that it signals the UAE's shift from a country that buys space services from France to one that provides space services.

Orbitworks is exploring potential financing options for a $1 billion expansion plan to help it send 40 additional satellites into orbit.