Edge and Fincantieri Launch Multi-Billion Euro Naval Venture

Abu Dhabi – Edge, a global advanced technology and defense group based in Abu Dhabi, and Fincantieri, one of the world’s largest shipbuilding companies, have officially launched a multi-billion euro joint venture (JV). The agreement, solidified during a recent visit to Rome, aims to capitalize on global shipbuilding opportunities, particularly in the manufacturing of sophisticated naval vessels.

Under the terms of the agreement, Edge will hold a controlling 51% stake in the venture, boasting a commercial pipeline valued at approximately 30 billion euros. Fincantieri, renowned for its shipbuilding prowess, will provide management direction for the JV. Notably, the Abu Dhabi-based venture is strategically positioned to secure prime rights to non-NATO orders, leveraging UAE Government-to-Government (G2G) arrangements and export credit financing packages. This includes strategic orders from select NATO member countries.

The term sheet formalizing the JV was signed by 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. This agreement signifies a strong cooperation that extends beyond borders, aiming to market naval products globally, showcasing the JV’s commitment to developing joint intellectual property and future designs.

This collaboration positions Edge to enhance its capabilities in shipbuilding, marking a significant advancement in the diversification of its maritime solutions portfolio. The JV’s ambitions extend beyond frigates, envisioning the development of an underwater program for mid-size submarines. However, the incorporation of the JV is subject to customary conditions precedent for such agreements.

Hamad Al Marar, CEO of Edge Group, expressed the transformative nature of this venture with Fincantieri, stating that it expands Edge’s diverse capabilities in shipbuilding while setting a new benchmark for collaboration and knowledge exchange in the global maritime industry. Al Marar emphasized the partnership’s commitment to innovation, leveraging Fincantieri’s expertise to explore opportunities globally.

The JV will focus 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, it will establish a dedicated design authority, creating opportunities for highly skilled Emiratis and drawing in international expertise.