New naval shipbuilding joint venture to be based in Abu Dhabi

Italian shipbuilder Fincantieri and UAE-based defence technology company the EDGE Group have entered into a term sheet aimed at creating a joint venture that will focus on the manufacture of a broad range of naval vessels.

EDGE will hold a 51 per cent stake in the venture, which has a commercial pipeline valued at approximately €30 billion (US$32.4 billion), with management direction provided by Fincantieri.

The Abu Dhabi-based joint venture will be awarded prime rights to non-NATO orders. Construction will initially focus on surface combatants though there are also plans to expand into mid-size submarines.