Abu Dhabi’s EDGE, an advanced technology and defence group and shipbuilding company Fincantieri have agreed to form a joint venture (JV) focused on the manufacturing of a broad range of sophisticated naval vessels.
The deal is set to create a UAE-based naval manufacturing pipeline worth €30 billion (Dh118.9 billion).
According to the terms of the agreement, EDGE will hold a 51% stake in the venture, while Fincantieri will provide management direction.
The Abu Dhabi-based JV will be awarded prime rights to non-NATO orders, leveraging on the attractiveness of UAE G2G arrangements and export credit financing packages, along with a number of strategic orders placed by select NATO member countries.
The sheet to create the JV was formalised through the signatures of Hamad Al Marar, Managing Director and CEO of EDGE Group, Pierroberto Folgiero, CEO and Managing Director of Fincantieri and Dario Deste, General Manager of the Naval Vessels Division of Fincantieri during the former’s visit to Rome.
The agreement grants the JV strong cooperation to market its products with the Navy of different countries in the world.
This strategic agreement significantly enhances EDGE’s ability to design and build frigates and other large vessels, broadening its range of operations and marking a crucial advancement in the diversification of its maritime solutions portfolio.
The venture will concentrate on sales, commercial operations, and engineering for design and service. It also plans to set up a dedicated design authority, opening up opportunities for highly skilled Emiratis, and drawing in international expertise.
The JV also aims to develop an underwater programme for mid-size submarines.
This collaboration emphasises both companies’ leadership in high-value segments and their commitment to innovation, expertise, and global expansion.
“Through this transformative joint venture with Fincantieri, we are not just expanding EDGE’s diverse capabilities in shipbuilding but setting a new benchmark for collaboration and knowledge exchange in the global maritime industry,” said Hamad Al Marar, EDGE Group Managing Director and CEO.
Pierroberto Folgiero, Fincantieri Group CEO and Managing Director, added, “We are honoured and eager to join forces with EDGE Group with the aim of creating a unique industrial platform able to address with maximum entrepreneurship and distinctive competencies the sizable market opportunities originated in the UAE and from the UAE to the international markets”.
Fincantieri has constructed over 7,000 ships, and played role as a key supplier to various navies and the cruise ship industry.