UAE’s EDGE and Fincantieri have entered into an agreement aimed at creating a joint venture (JV) to capitalize on global shipbuilding opportunities with a focus on the manufacturing of a broad range of sophisticated naval vessels.
EDGE will hold a 51 percent stake in the venture, which has a commercial pipeline valued at approximately $32 billion (30 billion euro), 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 several strategic orders placed by select NATO member countries.
Hamad Al Marar Group MD & CEO EDGE
“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 defense solutions.”
According to the statement, the agreement grants the JV 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 JV also harbors ambitions to develop an underwater program for mid-size submarines. The incorporation of the JV is subject to a series of conditions precedent, customary for an agreement of this kind.
Pierroberto Folgiero, Fincantieri Group CEO and Managing Director, said that, “We are honored and eager to join forces with EDGE Group to create 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.”
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. 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.
