Leonardo EDGE venture targets radar export surge

Leonardo and Abu Dhabi’s EDGE Group have set a target of more than €4 billion in orders over five years for a new defence sensors and systems joint venture, signalling a deeper industrial push by the UAE into high-end military technology and a wider export drive by Europe’s defence manufacturers.

The venture, detailed at a Paris event on Wednesday, is expected to begin operations with contracts already secured worth several hundred million euros. EDGE will hold 51 per cent of the company and Leonardo 49 per cent, giving the Abu Dhabi group majority control while drawing on Leonardo’s established portfolio in radar, combat systems, aircraft sensors and advanced training platforms.

The partnership will focus on airborne radars for next-generation stealth platforms, the Kronos Grand Mobile High-Power radar, Combat Management Systems and Multi-Mission Aircraft Sensors. It will also act as a commercial channel to promote and sell Leonardo’s M-346 fighter/trainer aircraft and other defence capabilities across Europe and selected international markets.

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The structure reflects a shift in the defence industry towards joint industrial platforms that combine technology transfer, local production, export access and long-term support. For EDGE, the agreement strengthens Abu Dhabi’s effort to build sovereign industrial capability rather than remain chiefly a buyer of imported systems. For Leonardo, it creates a route to expand sales beyond traditional European procurement channels while retaining a major technology and product role.

The companies first moved towards the partnership with a memorandum of understanding in June 2025 and then advanced the plan at Dubai Airshow in November, where they completed a preliminary assessment of technology transfer activities, market potential and governance principles. The companies said then that the venture would be based in Abu Dhabi and would support design, development, testing, industrialisation, production, sales, leasing, through-life support and training.

The new details give the project clearer commercial scale. A pipeline exceeding €4 billion would be significant even for Leonardo, which recorded €23.8 billion in new orders and €19.5 billion in consolidated revenues in 2025. The group’s order book and defence electronics business have benefited from higher security spending, stronger demand for surveillance systems and Europe’s renewed focus on military readiness.

EDGE, launched in 2019, has grown into one of the Gulf’s most ambitious defence technology groups, consolidating dozens of companies across platforms and systems, missiles and weapons, space and cyber technologies, industrialisation and homeland security. Its strategy has been built around acquiring technology, forming partnerships and using the UAE as a base for exports to markets looking for alternatives to longer-established Western suppliers.

The joint venture’s emphasis on radars and sensors places it in one of the fastest-moving segments of the defence market. Modern air forces are investing heavily in detection, tracking and electronic protection as stealth aircraft, drones, cruise missiles and precision weapons reshape battlefield requirements. Ground-based high-power radars, combat management systems and multi-mission sensor suites are increasingly central to air defence networks and command-and-control architectures.

Leonardo’s role is also tied to its broader push to expand in electronics, cyber, aeronautics and integrated security. The group has been building its presence through major programmes including Eurofighter, the Global Combat Air Programme, Eurodrone and several naval and space activities. Its shareholdings and ventures across MBDA, ATR, Telespazio, Thales Alenia Space, Avio, Leonardo DRS and Hensoldt give it exposure to missile systems, aircraft, satellites, sensors and defence electronics.

The M-346 element adds a second commercial track. The aircraft is used for advanced jet training and can also be configured for light combat roles. Demand for trainer aircraft has been supported by countries upgrading pilot pipelines for fourth- and fifth-generation combat fleets, as well as by air forces seeking lower-cost platforms for operational training and selected missions.

The venture will still have to navigate export controls, technology-transfer limits and national security approvals, particularly where advanced radar, combat management software and stealth-related systems are involved. Such restrictions can shape which markets are accessible and how much sensitive intellectual property can be transferred or localised.



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