The six-year satellite development program "will see the first satellite launch in three years," said a statement by the UAE Space Agency.
"The establishment of a dedicated fund to support the UAE's burgeoning space program and the launch of a new initiative to develop radar satellites are expected to expand our growing capabilities in this vital sector while accelerating innovation in environmental sustainability," UAE President Mohamed bin Zayed Al Nahyan tweeted.
"The new project aims to develop the UAE's competitive edge in the space sector and preserve the environment from climate change," he added.
The fund will be used to support the development of Sirb (Arabic for a flock of birds) satellites, which will use radar technology to provide advanced imaging capabilities.
Sirb satellites could send data and imagery "with an accuracy of one meter by day and night," tweeted Mohammed Bin Rashid Al Maktoum, UAE's vice president, prime minister and ruler of Dubai.
Sirb satellites will be built through a number of partnerships between the UAE and international companies, according to the UAE Space Agency.
Latest comments