Published by Global Banking & Finance Review®
Posted on November 19, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleLeonardo and EDGE will launch a UAE joint venture in 2026 to develop defence systems, focusing on sensors and integration for local and export markets.
MILAN (Reuters) -Italian defence and aerospace company Leonardo and Abu Dhabi's EDGE group will launch a joint venture in the United Arab Emirates next year to design, develop and produce defence systems, the companies said at the Dubai Airshow on Wednesday.
The venture will work on systems including sensors, platforms and integration solutions, for the United Arab Emirates (UAE) and selected export markets based on products already offered by Leonardo, the companies said.
The joint venture, which was first outlined in a memorandum of understanding signed earlier this year, will be 51% owned by EDGE and 49% by Leonardo.
Leonardo CEO Roberto Cingolani said the deal arrived after "months of intense work between the partners".
"By collaborating across several critical domains including air, land, sea, and electro-optics, we can tailor solutions ... through the UAE and new untapped markets," EDGE Managing Director and CEO Hamad Al Marar said in the statement.
EDGE, which is owned by the Abu Dhabi government, is seeking to broaden development and production partnerships, particularly with U.S. defence giants, Al Marar said in an interview this week.
The joint venture will also be involved in testing, industrialisation, and training, as well as building a skilled local workforce, the groups said.
(Reporting by Cristina Carlevaro; Editing by Giulia Segreti and Conor Humphries)
A joint venture is a business arrangement where two or more parties agree to pool their resources for a specific project or business activity, sharing profits, losses, and control.
Defense systems refer to technologies and strategies used to protect a nation or organization from threats, including military equipment, surveillance systems, and cybersecurity measures.
Technology integration involves combining different technological systems and tools to work together effectively, enhancing efficiency and functionality in various applications, including defense and business operations.
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