IRIA News

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UAE defense giant EDGE Group has announced the formation of a new joint venture with French shipbuilding firm CMN NAVAL. The venture, named AD NAVAL (ADN), will be headquartered in Abu Dhabi and focus on the design, development, and manufacturing of high-value small to mid-size naval vessels.

The formation of AD NAVAL marks a significant expansion in EDGE Group’s naval portfolio and is part of its broader international growth strategy. The joint venture will manufacture a range of naval platforms, including Corvettes, Offshore Patrol Vessels (OPVs), High-Speed Interceptors, Trimarans, and Landing Crafts, catering primarily to non-NATO markets.

The partnership comes with an impressive existing order pipeline valued at approximately €7 billion ($7.5 billion), which will now be managed under the new entity. According to EDGE, the joint venture is underpinned by an exclusivity agreement that binds both companies to work solely together within the specified naval segment, enhancing collaboration and consolidating resources for efficiency and innovation.

EDGE remains majority shareholder

As part of the agreement, EDGE will hold a majority 51% stake in the joint venture, granting the Emirati firm operational and strategic control. EDGE will also establish a dedicated design bureau, which will take over the intellectual property rights for all future designs produced by the joint venture a move aimed at ensuring local innovation and technology sovereignty.

EDGE Group Managing Director and CEO, Hamad Al Marar said, “This is yet another example of our strategy of measured growth through an international partnership with the world’s leading players across the air, land, and maritime domains.”

“The scope of our collaboration with CMN, which is particularly strong in EDGE’s key focus markets in Africa, for example, will enable us to combine our expertise, and to share technology and know-how in the naval domain to build superior vessels in the UAE,” he added.

He added, “Furthermore, it will enable us to develop cross-complementary integration programs for our autonomous air and sea systems, smart weapons, radar, and cyber solutions, onto the vessels being manufactured for non-NATO navies around the world. Ultimately, it will also create valuable direct and indirect employment opportunities in the UAE and overseas, contributing to economic growth in this versatile and diverse sector. We are confident that CMN will be a great partner for continued innovation and success.”

The initial agreement was signed during IDEX 2023

The joint venture builds on an initial agreement signed at the International Defense Exhibition (IDEX) in Abu Dhabi in February 2023, where EDGE and CMN NAVAL first announced their intention to jointly expand their footprint across the naval sector. The partnership reflects a shared strategic vision to tap into growing demand from non-NATO countries, particularly across the Middle East, Africa, and Latin America.

EDGE’s international investment momentum has been evident in recent years, including its $1.1 billion contract in 2023 to supply naval vessels to the Angolan Navy. In a similar model to the AD NAVAL, EDGE also entered a partnership with Italian shipbuilding giant Fincantieri in 2023. That joint venture named Maestral, focused on non-NATO markets and gave EDGE prime rights to Fincantieri’s contracts outside of the alliance.

Through the ADN venture, EDGE will gain access to CMN NAVAL’s global supply chain, integrated logistics support system, and software infrastructure. Importantly, EDGE will also begin integrating its own weapons systems, sensors, and autonomous technologies onto the platforms produced under the joint venture, creating a comprehensive, homegrown naval capability.

This vertical integration approach enables EDGE not only to design and build vessels but also to equip them with a suite of advanced technologies, including unmanned systems, guided munitions, radar solutions, and cybersecurity frameworks, all areas in which EDGE has been investing heavily.

CMN NAVAL

For CMN NAVAL, a well-established player in shipbuilding with a strong export track record, especially in Africa and the Middle East, the JV represents an opportunity to deepen its footprint in the Gulf and benefit from EDGE’s growing influence in the global defense sector.

By focusing on non-NATO clients, the JV strategically positions itself in markets that often require custom naval solutions not readily addressed by traditional Western defense firms. The emphasis on small- to mid-size vessels reflects an understanding of evolving naval warfare trends, where agility, multi-role capability, and regional power projection are increasingly prioritized.

The launch of AD NAVAL is a bold step by EDGE Group to enhance the UAE’s self-reliance in the defense sector, strengthen its role as a global defense exporter, and deepen its industrial capabilities in naval systems. With a substantial backlog of orders, cutting-edge technologies, and a powerful international partner, AD NAVAL is poised to become a key player in the naval manufacturing arena, not only in the Middle East but across emerging defense markets worldwide.