Dubai, UAE, 15 December 2025: KPMG Middle East has released a new report analysing how global investment in space is evolving and how these investments support broader national growth objectives. The report, titled The New High Ground: Leveraging Space Investments to Drive National Growth, examines public and private funding flows across the space economy and outlines how space-enabled systems contribute to economic diversification, innovation, and long-term resilience.
According to global industry estimates referenced in the report, government spending on space reached approximately USD 140 billion in 2024. Defense-related programmes accounted for more than half of this total for the first time, driven by demand for secure satellite communications, advanced surveillance, autonomous monitoring, and early-warning technologies. Major markets, including the United States, China, India, and Japan, continue to expand their investments in satellite infrastructure, launch systems, and mission-ready capabilities.
Private-sector participation is accelerating at a similar pace. Investment in AI-enabled geospatial intelligence grew from USD 1 billion in 2020 to more than USD 21 billion by the third quarter of 2025. These technologies support a growing range of applications, including climate monitoring, disaster response, maritime tracking, agricultural optimisation, and national infrastructure planning.
These global shifts are shaping how countries plan their long-term space programmes, including national strategies, investment priorities, and capability development. This context is particularly relevant for the UAE as it continues to strengthen its position in advanced industries, research, and satellite-enabled applications.
The UAE’s space ambitions are guided by the UAE Space Strategy 2030, which sets out a long-term national framework for developing advanced space capabilities, strengthening research and engineering expertise, and expanding the role of space-based applications in economic and social development. The strategy places strong emphasis on industrial growth, specialised talent development, international cooperation, and the use of satellite data to support national priorities in climate resilience, environmental monitoring, and digital infrastructure. These national focus areas closely align with the report’s themes of integrating space systems into broader economic transformation, innovation, and long-term capability development.
The UAE is also expanding the practical use of space-based applications. Earth observation, geospatial analytics, and satellite-enabled monitoring now support national initiatives in environmental planning, climate resilience, agricultural development, and disaster preparedness. These efforts align closely with the report’s emphasis on integrating space systems into broader economic and digital transformation strategies.
Arjun Sreekumar, Associate Director, Aerospace, Defense and Space at KPMG Middle East, said: “Global space investment is moving into a new phase where defense, data, and advanced technology are converging. Space systems are becoming part of the national infrastructure that supports secure communications, geospatial intelligence, climate resilience, and economic diversification.”
Chris Moore, Partner, Head of Defense and Security, KPMG Middle East, added, “Countries that invest in STEM talent, industrial capability, and cross-sector partnerships stand to benefit the most. The UAE’s long-term commitment to science, technology, and advanced industries positions it well to align with many of the themes highlighted in this report.”
The report identifies several dimensions through which space investments contribute to national growth. These include high-value manufacturing and precision engineering, research and innovation partnerships, the development of specialised STEM talent, and the strengthening of secure digital infrastructure. Space-based monitoring and geospatial analytics also support climate and sustainability priorities, while improving public services such as environmental management, emergency response, and national planning.
The report introduces a practical assessment framework to help policymakers evaluate the impact of space investments across economic contribution, operational performance, innovation output, and public service effectiveness. As emerging technologies converge with the global space economy, the study notes that integrating space systems into national strategies will become increasingly central to strengthening productivity, competitiveness, and long-term resilience.
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