Fincantieri allies with Abu Dhabi for 30 billion business

A 30 billion euro business with its operational arm in Abu Dhabi and its management core in Italy. Fincantieri has reached an agreement with the Emirati Edge, one of the world's leading advanced technology and defence groups, to create a joint venture capable of seizing the opportunities in shipbuilding at a global level, with a focus on the production of a wide range of naval vessels and a production chain based in the United Arab Emirates. According to the term sheet signed between the two parties, Edhe will hold a 51% stake in the joint venture while Fincantieri will be in charge of management. The joint venture, based in Abu Dhabi, will be, according to the definition of the Emirati top management, 'transformative'; it will have - according to Fincantieri itself - pre-emption rights for non-NATO orders, exploiting in particular the attractiveness of the UAE's G2G agreements and export credit financing packages, together with a series of strategic orders placed by selected NATO member countries.

The agreement was signed at Palazzo Marina, Rome, in the presence of government and Italian Armed Forces representatives, by Hamad Al Marar, CEO and General Manager of Edge Group, and by Pierroberto Folgiero, CEO and General Manager of Fincantieri..

The JV," explains Fincantieri, "will have strong cooperation in the marketing of its products with navies in several countries around the world, in line with its global ambition and commitment to the development of joint intellectual property and future designs. In particular, this strategic agreement enhances Edge's ability to design and build frigates and other large ships, expanding its reach and marking a crucial advance in the diversification of its portfolio of maritime solutions. The agreement also aims to develop the underwater domain with a mid-size submarine programme. 

With this transaction "we are not only expanding Edge's diverse capabilities in shipbuilding," explains Hamad Al Marar, CEO and MD of Edge, "but we are establishing a new benchmark for collaboration and knowledge exchange in the global maritime industry. This partnership embodies our commitment to innovation, leveraging Fincantieri's unparalleled expertise to explore opportunities in the global marketplace; it is a testament to our strategic vision of growth through collaboration, promising a future of technological advancements and improved naval defence solutions."

In detail, the JV will focus on sales, business operations and engineering for design and technical assistance, taking responsibility for developing shared intellectual property and maintaining exclusive rights to all future designs. In addition, the JV will establish a dedicated design authority, opening up new opportunities for highly qualified Emiratis and attracting international expertise to support this innovative and strategic initiative.