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Italian defence contractor Leonardo announced Wednesday it will establish a joint venture with the United Arab Emirates' state-owned EDGE Group, marking a significant expansion of the European company's presence in the Gulf region.
The partnership, set to launch next year, will be majority-controlled by EDGE with a 51 percent stake, while Leonardo will hold the remaining 49 percent. The venture will be headquartered in Abu Dhabi, though specific details about which defence sectors it will cover remain undisclosed.
The joint venture will encompass a range of Leonardo's technological capabilities, including sensors, system integration, and platforms, according to the Italian company's statement. Leonardo, in which the Italian government maintains a 30.2 percent stake, specializes in helicopter manufacturing and avionics, as well as cyber security and space technologies.
"By collaborating across several critical domains including air, land, sea, and electro-optics, we can tailor solutions born from solid experience, expertise, and innovation, through the UAE to existing and new untapped markets," said Hamad Al Marar, managing director and chief executive of EDGE Group.
The agreement represents a strategic shift for Leonardo in the Emirates. The company has maintained operations in the UAE for five decades but is now seeking to "transform our commercial presence into an industrial one," co-general manager Carlo Gualdaroni told Italian news agency ANSA.
The two defence firms signed a memorandum of understanding in June laying the groundwork for the collaboration. They formalized the joint venture agreement at the Dubai Airshow, one of the Middle East's premier aerospace and defense exhibitions.
Joint ventures between international defence contractors and Gulf state entities have become increasingly common as countries in the region seek to develop domestic military manufacturing capabilities and reduce dependence on foreign suppliers.
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