United Arab Emirates (UAE) defence entity EDGE Group and Italian shipbuilder Fincantieri have agreed to launch a joint venture (JV) to capitalise on global shipbuilding opportunities with a focus on the manufacturing of a broad range of sophisticated naval vessels, the companies announced on 21 February 2024.
EDGE will hold a 51% stake in the venture, which has a commercial pipeline valued at approximately EUR 30 billion, with management direction provided by Fincantieri. The Abu Dhabi-based JV will be awarded prime rights to non-NATO orders, especially leveraging on the attractiveness of Emirati government-to-government arrangements and export credit financing packages, along with a number of strategic orders placed by select NATO member countries.
The agreement, which was formalised at a recent event at Palazzo Marina in Rome attended by senior Italian defence officials, was signed by Hamad Al Marar, managing director and CEO of EDGE Group, and Pierroberto Folgiero, CEO and managing director of Fincantieri.
The agreement grants the JV a strong mandate to market its products to navies worldwide, underlining its global ambition and commitment to developing joint intellectual property and future designs. The deal 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 JV also harbours ambitions to develop an underwater programme for mid-sized submarines.
The incorporation of the JV is subject to a series of conditions customary for an agreement of this kind.
“The JV will concentrate on sales, commercial operations, and engineering for design and service, taking charge of developing shared intellectual property and retaining exclusive rights to all future designs,” the companies jointly stated. “Furthermore, the JV will set up a dedicated design authority, opening up opportunities for highly skilled Emiratis, and drawing in international expertise to support this innovative and strategic initiative.”
“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,” Al Marar was quoted as saying. “This partnership embodies our commitment to innovation, leveraging Fincantieri’s unmatched expertise to explore opportunities in the global market. This venture is a testament to our strategic vision of growth through collaboration, promising a future of technological advancements and enhanced naval defence solutions.”
Folgiero 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.”
