Edge and Italy’s Leonardo sign Kuwait navy combat systems deal

Italian defence company Leonardo has signed a €320 million ($371 million) contract with Abu Dhabi Ship Building, the naval arm of Emirati defence conglomerate Edge Group, to supply combat systems for the Kuwaiti navy.

The deal covers combat systems for the Falaj 3-class vessels ordered by the Kuwaiti navy and deepens cooperation between Leonardo and Edge. The agreement could pave the way for a future joint venture in the UAE, Leonardo said in a statement.

In June 2025, Edge signed an AED9 billion defence contract with Kuwait to supply Falaj 3 missile boats. The missile boat has already been commissioned into the UAE navy.

Leonardo and Edge announced in November plans to launch a joint venture in the UAE in 2026 to design, develop and produce defence systems.

The venture will work on systems including sensors, platforms and integration solutions, for the UAE and selected export markets based on products already offered by Leonardo.

Edge, owned by the Abu Dhabi government, is seeking to broaden development and production partnerships, particularly with US defence companies, its managing director and CEO Hamad Al Marar has said.

Gulf countries may need to step up defence spending as governments reassess security priorities and rebuild depleted stockpiles following the Iran conflict, an industry analyst told AGBI last month.

Outlays could rise by as much as 20 percent during the next three years, reflecting the scale of restocking required and a wider shift towards sustained military readiness.

Further reading:

• UAE signs off Modi visit with $5bn India investment pledge
• UAE defence free zone to accelerate local manufacturing
• Abu Dhabi’s BlueFive plans $3bn investment in defence companies