Italian shipbuilding giant partners with UAE’s defence firm to create €30B JV

Italian shipbuilding major Fincantieri and defence company EDGE Group have entered into a term sheet aimed at creating a joint venture (JV) that will focus on manufacturing a broad range of sophisticated naval vessels. 

As explained, EDGE will hold a 51% stake in the venture, which has a commercial pipeline valued at approximately €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 UAE G2G arrangements and export credit financing packages, along with a number of strategic orders placed by select NATO member countries.

Furthermore, 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. Moreover, it 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.

This strategic agreement significantly is expected to enhance EDGE’s ability to design and build frigates and other large vessels, broadening its range of operations.

“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. 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,” Hamad Al Marar, EDGE Group Managing Director and CEO, said.

“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 UAE and from UAE to the international markets,” Pierroberto Folgiero, Fincantieri Group CEO and Managing Director, said.