EDGE, one of the world’s leading advanced technology and defence groups, and Fincantieri, one of the largest shipbuilding companies in the world, have entered into a term sheet aimed at creating a joint venture (JV) to capitalise on global shipbuilding opportunities with a focus on the manufacturing of a broad range of sophisticated naval vessels, according to Fincantieri's release.
EDGE will hold a 51% stake in the venture, which has a commercial pipeline valued at approximately 30 billion euros, 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 a number of strategic orders placed by select NATO member countries.
This agreement grants the JV strong cooperation to market its products with the Navy of different countries in the world. 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 harbours 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.
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.