Italy’s Fincantieri and UAE’s Edge Group sign for naval joint venture

UAE conglomerate Edge Group and Italian shipbuilder Fincantieri have signed a naval joint venture (JV) agreement which, according to the companies, has a commercial pipeline worth as much as €30 billion (US$32.4 billion).

The UAE company, which owns Abu Dhabi Ship Building (ADSB), will hold a 51% stake in the JV with management direction provided by Fincantieri.

The Abu Dhabi-based JV will mostly focus on non-NATO orders, especially leveraging on government-to-government arrangements and export credit financing packages, along with a number of strategic orders placed by select NATO member countries.

While the JV will have a role to play in enhancing Edge’s ability to design and build frigates and other large vessels, “the JV also harbours ambitions to develop an underwater program for mid-size submarines”, according to an ADSB statement. 

Fincantieri has a substantial book of naval orders, both for Italy, other countries and as part of multinational programmes such as FREMM (Frégate européenne multi-mission/ Fregata europea multi-missione).

The company has also been active in the Middle East, including manufacturing two OPVs for the Qatari Emiri Navy as part of a larger seven-vessel €4 billion ($4.67 billion) contract and has been bidding for Saudi Arabia’s LPD requirement.

In February 2023, ADSB signed a significant deal with Angola to supply the African nation with BR71 MKII corvettes and small watercraft. In May 2021, it signed an AED3.5 billion (US$952.8 million) contract with the UAE to build four Falaj 3-class offshore patrol vessels (OPVs) for the UAE Navy.