The Middle East’s space economy reached a pivotal turning point in 2025, transitioning decisively from ambition to execution, according to a new report by venture capital firm Beyond Earth Ventures. The annual report, titled “The Middle East Space Economy: 2025 Review and 2026 Outlook,” highlights a significant strategic shift across the region towards building sustainable, interconnected space ecosystems.
A Strategic Shift to Sustainable Growth
The report observes that governments, sovereign-backed entities, and private operators have moved away from isolated, flagship projects. Instead, the focus has pivoted towards ensuring continuity, driving commercialisation, and establishing robust governance frameworks for the burgeoning sector.
“In 2025, governments, sovereign-backed entities, and private operators across the Middle East shifted from isolated flagship projects to a focus on continuity, commercialisation, and governance,” said Viktor Shpakovsky, MENA General Partner at Beyond Earth Ventures.
Shpakovsky added that the region is now actively building comprehensive ecosystems that link regulation, launch capabilities, satellite services, talent development, and crucial international partnerships.
UAE at the Forefront of Regional Ambitions
The UAE continues to lead the region’s progress, with significant advancements in satellite launches and active space missions. The report highlights ambitious deep-space and lunar initiatives, such as the Emirates Mission to the Asteroid Belt and the Rashid Rover 2, as key examples of this leadership.
Beyond the UAE, the development of sovereign launch capabilities in countries like Oman is also contributing to the region’s growing self-sufficiency and influence in the global space industry.
Technology and Private Investment Fueling the Future
Technological development and increasing private-sector participation are central to this new phase of growth. The report points to breakthroughs in AI-enabled satellites, 3D-printed engines, and near-space platforms as critical enablers.
Furthermore, milestones in human spaceflight, ongoing research aboard the International Space Station, and growing cooperation with partners in the US, Europe, and Asia are strengthening the region’s position. The assessment prominently features the rise of startup activity, deep-tech investment, and the strategic build-out of infrastructure for manufacturing, launch services, and innovation.
Looking ahead to 2026, the foundations laid this year are expected to support accelerated growth, driven by clearer regulation, increased commercialisation of satellite services, and a significant rise in private investment. The region’s alignment with global trends—including AI-driven satellite operations, mega-constellations, and reusable launch systems—is set to further cement its role in the global space economy.
About Beyond Earth Ventures
Beyond Earth Ventures is a venture capital firm investing in the future of the space economy. The firm backs visionary founders building technologies that will define the next generation of space infrastructure and applications.
Source: Gulf Business
