EDGE Group – Fincantieri | Launch of Multi-Billion Joint Venture Agreement on UAE-based naval manufacturing pipeline
Defence Redefined
Published on 22/02/2024 at 11:31

EDGE Group and Fincantieri have entered into an agreement aimed at creating a joint venture to capitalise on global shipbuilding opportunities with a focus on the manufacturing of a broad range of sophisticated naval vessels. 

According to a relevant announcement, EDGE will hold a 51% stake in the venture, which has a commercial pipeline valued at approximately 30 billion euros, with management direction provided by Fincantieri. The Abu Dhabi-based joint venture will be awarded prime rights to non-NATO orders, especially 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.

In Rome, Italy, in the presence of Matteo Perego di Cremnago, Undersecretary of State for Defence, Admiral Enrico Credendino, Chief of the Italian Navy, Lieutenant General Luciano Portolano, Italian Secretary General of Defence/National Armaments Director, and, for Fincantieri, of General Claudio Graziano, Chairman, and of Dario Deste, General Manager of the Naval Vessels Division, the agreement for the joint venture was formalised through the signatures of Hamad Al Marar, Managing Director and CEO of EDGE Group, and of Pierroberto Folgiero, CEO and Managing Director of Fincantieri.

Also read: ONEX | Agreement extension with Fincantieri

This agreement grants the joint venture strong cooperation to market its products with the Navy of different countries in the world, underlining its global ambition and commitment to developing joint intellectual property and future designs. 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 joint venture also harbors ambitions to develop an underwater program for mid-size submarines. 

Further, it 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. Additionally, the joint venture 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.

Fincantieri brings to the table an illustrious history and extensive expertise, having constructed over 7,000 ships, and its role as a key supplier to various Navies and the cruise ship industry. This collaboration represents a pivotal step in redefining global naval shipbuilding, emphasizing both companies’ leadership in high-value segments and their commitment to innovation, expertise, and global expansion.

Also read: EDGE Group | Supply of MANSUP anti-ship missile systems to the Brazilian Navy




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