Defense & Military
EDGE Group and Leonardo Finalize Joint Venture in UAE Defense Sector
EDGE Group and Leonardo finalize governance for a UAE-based JV focused on advanced defense tech production and innovation by 2026.
A New Era in Defense Collaboration: EDGE Group and Leonardo Finalize Joint Venture
On November 19, 2025, the defense sector witnessed a pivotal moment at the Dubai Airshow 2025 as EDGE Group and Leonardo announced a definitive milestone in their strategic partnership. We observe that this agreement marks the finalization of governance principles and commercial assessments necessary to launch a new Joint Venture (JV) headquartered in Abu Dhabi. This development is not merely a commercial transaction but a structural evolution in how international defense collaborations are formed in the region.
The collaboration brings together EDGE Group, the UAE’s leading advanced technology and defense conglomerate, and Leonardo, an Italian global leader in aerospace and security. The announcement follows a series of strategic steps taken throughout the year, starting with an initial collaboration agreement at IDEX in February 2025 and a Memorandum of Understanding signed in June 2025. We see this progression as a testament to the rapid pace at which both entities are moving to solidify their industrial ties.
Scheduled to become fully operational in 2026, this joint venture represents a significant leap toward localized defense manufacturing. By moving beyond the traditional buyer-seller dynamic, the two companies are establishing an industrial hub capable of designing, developing, and producing complex systems within the United Arab Emirates. This move aligns with broader geopolitical and economic trends where sovereign capability is becoming a priority for nations in the Gulf region.
Structuring the Alliance: Governance and Scope
The structural framework of this joint venture is designed to ensure mutual benefit while prioritizing local industrial growth. Under the agreed terms, EDGE Group will hold a 51% majority stake, while Leonardo will retain 49%. We understand that this ownership split is significant; it secures the UAE’s directive to maintain sovereign control over critical defense capabilities while leveraging the deep technical expertise and global reach of an established European prime like Leonardo.
Operational Focus and Technology Domains
The scope of the new entity is comprehensive, covering the entire product lifecycle. Rather than focusing solely on final assembly, the JV will handle design, engineering, Manufacturing, and sustainment. We note that the technology domains targeted are vast, spanning air, land, sea, and cyber sectors. Specific focus areas include airborne radar, naval combat management systems, and secure communications. This multi-domain approach ensures that the JV can address a wide array of modern defense requirements.
Furthermore, the partnership places a heavy emphasis on advanced technologies. The integration of AI (AI) and high-performance computing into missile applications and counter-drone (C-UAS) systems is a key priority. By focusing on these high-demand areas, the joint venture positions itself to compete in the market for next-generation warfare tools. We see this as a strategic move to capture market share in sectors that are currently seeing exponential growth due to global security challenges.
Another critical aspect of the agreement involves Intellectual Property (IP). The deal includes provisions for IP licensing and, crucially, the development of new shared IP within the UAE. This indicates that the Abu Dhabi headquarters will not just be a production facility but a center for innovation. We believe this shift is essential for the long-term sustainability of the partnership, as it fosters the creation of indigenous technology rather than relying exclusively on technology transfer.
“This latest milestone… underscores not only the speed with which we are moving, but highlights what can be achieved when two industry players collaborate on the development of a smart strategy… We can tailor solutions born from solid experience, expertise, and innovation, through the UAE to existing and new untapped markets.”, Hamad Al Marar, Managing Director & CEO, EDGE Group.
Strategic Implications for the Region
The establishment of this joint venture is a direct execution of the UAE’s “Make it in the Emirates” initiative. This national strategy aims to increase the industrial sector’s contribution to the GDP and reduce reliance on foreign imports for critical hardware. We observe that by securing a majority stake and mandating local production, EDGE Group is effectively localizing the supply chain for advanced defense electronics and combat systems.
For Leonardo, the partnership offers a privileged channel into the UAE market and beyond. While the Italian firm has operated in the Emirates for 50 years, this JV embeds them deeply into the local industrial fabric. We analyze this as a necessary evolution for global defense primes; to secure major Contracts in the current climate, companies must offer more than just products, they must offer economic value and technology transfer. This partnership provides Leonardo with a platform to export jointly developed solutions to “untapped markets” in the Middle East, Africa, and Asia, leveraging the UAE’s diplomatic and trade relationships.
Additionally, workforce development stands as a central pillar of this agreement. The collaboration aims to build a skilled, locally-based workforce by Training Emirati engineers in advanced European defense technologies. We recognize that human capital development is often the most challenging aspect of defense localization, and the commitment to training suggests a long-term view toward building a self-sustaining defense ecosystem in Abu Dhabi.
Concluding Perspectives
As the joint venture prepares for its operational launch in 2026, it sets a precedent for future defense collaborations in the Middle East. The finalization of governance principles at the Dubai Airshow 2025 demonstrates that EDGE Group and Leonardo have moved past the aspirational phase and are now executing a concrete industrial strategy. We expect this entity to become a key player in the regional defense market, offering competitive, locally produced solutions that rival off-the-shelf imports.
Looking ahead, the success of this venture will likely depend on the speed of technology transfer and the ability to integrate distinct corporate cultures. However, with the governance structure now settled and clear commercial targets defined, the foundation is strong. We view this Partnerships as a clear indicator of the industry’s shift toward “hybrid sovereignty,” where local champions and global giants merge capabilities to navigate an increasingly complex security landscape.
FAQ
Question: What is the ownership structure of the new joint venture?
Answer: The joint venture is majority-owned by the UAE-based EDGE Group, which holds a 51% stake, while Italy’s Leonardo holds the remaining 49%.
Question: When will the joint venture become operational?
Answer: The new entity is scheduled to launch and become fully operational in 2026, following the finalization of agreements in November 2025.
Question: What technologies will the joint venture focus on?
Answer: The JV will focus on the design, development, and production of systems across air, land, sea, and cyber domains. This includes airborne radar, naval combat management systems, secure communications, and AI-integrated solutions.
Sources
Photo Credit: Leonardo
Defense & Military
Saab Names Canadian Partners for Gripen E Fighter Bid
Saab AB names CAE, IMP Aerospace, and Magellan as partners for its Gripen E bid in Canada’s fighter replacement program.
Saab AB has outlined its proposed domestic supply chain for Canada’s future fighter acquisition program, naming CAE Inc., IMP Aerospace & Defence, and Magellan Aerospace as principal partners for the Gripen E bid.
In a press release issued on October 27, 2026, the Swedish aerospace manufacturer detailed a strategy to establish in-country final assembly, aerostructures manufacturing, and long-term sustainment. The industrial ecosystem is conditional on the Government of Canada selecting the Gripen E to modernize the Royal Canadian Air Force (RCAF) fleet.
Structuring the domestic supply chain
Saab has structured specific industrial agreements with the three Canadian entities to cover different phases of production and support. Under a Teaming Agreement, IMP Aerospace & Defence would establish a final assembly line, handle electrical assembly production, and provide in-service support (ISS) within Canada.
IMP Aerospace & Defence President David Gossen noted that the capability would meet domestic requirements while offering broader export potential.
“We see a real opportunity for IMP to produce and support aircraft for Gripen customers internationally, positioning Canadian industry as an enduring part of the global Gripen program,” Gossen said.
Saab signed a Memorandum of Understanding (MoU) with Magellan Aerospace for the local manufacturing of advanced aerostructures, composite structures, and structural assemblies. Magellan Aerospace Vice President of Business Development Haydn Martin stated the company is positioned to bring its manufacturing expertise to the program, supporting high-tech job creation and sovereign defense capabilities.
A separate MoU with CAE Inc. covers the delivery of advanced fighter pilot and technician training, mission systems engineering, and sustainment capabilities. CAE Defense & Security President Pascal Grenier highlighted the company’s longstanding commitment to RCAF training needs and its readiness to support Canada’s future fighter force.
Meeting Canada’s industrial requirements
The Canadian fighter replacement program requires bidders to offer significant domestic industrial and technological benefits. Saab’s proposed ecosystem aims to provide Canada with a self-reliant capability to deploy, sustain, and enhance the Gripen E aircraft over its operational life.
Saab AB President and CEO Micael Johansson described the potential acquisition as a long-term national investment.
“Together with CAE, IMP and Magellan Aerospace we are prepared to establish a strong Canadian industrial ecosystem around Gripen that delivers operational effect, national sovereignty and lasting industrial and technological benefits,” Johansson said.
The Gripen E and RCAF modernization
Saab designs and manufactures the Gripen series of advanced multi-role fighter aircraft alongside other defense and security systems. The company is offering the Gripen E to the Government of Canada as the replacement for the current RCAF fighter fleet. The activation of the partnerships with CAE, IMP Aerospace & Defence, and Magellan Aerospace remains entirely dependent on the government selecting the Swedish aircraft.
The three Canadian partners are established aerospace entities. CAE specializes in advanced simulation technologies and training services for defense forces globally. IMP Aerospace & Defence provides in-service support, engineering, and maintenance for military aircraft. Magellan Aerospace manufactures complex aerospace systems, aerostructures, and components.
AirPro News analysis
Saab’s industrial strategy highlights the stringent economic requirements embedded in Canada’s fighter replacement program. By offering a domestic final assembly line and integrating Canadian firms into the global supply chain, Saab is attempting to maximize its industrial and technological benefits proposition. The proposal for IMP Aerospace & Defence to potentially produce and support aircraft for international Gripen customers is particularly notable, as it offers long-term economic value that extends beyond the RCAF procurement cycle. We view this as a calculated move to address both sovereign defense capability and domestic economic priorities in a highly competitive acquisition process.
Photo Credit: Saab AB
Defense & Military
India DAC Clears Rs 2.12 Lakh Crore Defence Acquisitions
India’s Defence Acquisition Council approved Rs 2,12,000 crore in military procurement, with 82% directed to domestic manufacturers.
India‘s Defence Acquisition Council cleared capital acquisition proposals valued at an estimated Rs 2,12,000 crore on October 26, 2026, directing the vast majority of the funds toward domestic aerospace and defence manufacturers.
The approvals, known as Acceptances of Necessity (AoN), mark the formal beginning of the procurement process for the Indian Armed Forces. According to a press release from the Press Information Bureau, approximately 82% of the cleared procurements will be sourced from Indian industry, underscoring the government’s ongoing push for military self-reliance.
Rotary-wing and weather surveillance modernization
The aviation and aerospace components of the clearance reflect modern battlefield priorities across multiple branches of the Indian military. A significant portion of the approval centers on modernizing the country’s rotary-wing fleets.
The Indian Air Force (IAF) and the Indian Army will jointly procure Light Multi Role Helicopters (LMRH). The government stated the LMRH will be utilized for “Reconnaissance and Surveillance, Combat, Search and Rescue of troops, Humanitarian Assistance and Disaster Relief.” The joint procurement strategy aims to standardize the utility helicopter fleet across the two branches.
In addition to the LMRH program, the IAF will acquire Special Utility Helicopters specifically configured for air transport operations. To support flight operations and tactical planning in forward areas, the IAF will also procure Mobile X-Band Doppler Weather Radar Systems. These mobile units are designed to provide high-resolution, localized weather surveillance, a critical capability for flight safety and mission execution in challenging environments.
Expanding unmanned and air defence capabilities
The October 26 clearance heavily emphasizes unmanned aerial systems and the corresponding technologies required to defeat them. The Indian Army’s drone capabilities will undergo a significant expansion through the acquisition of Long Range Kamikaze Drone Systems, Surveillance Unmanned Aerial Vehicles (UAV), and Integrated Surveillance and Strike Systems.
To counter emerging aerial threats, the armed forces will acquire Very Short-Range Air Defence Systems (VSHORADS). These systems provide terminal air defence against low-altitude aerial threats. The procurement also includes Platform Based Counter Unmanned Aerial Systems (C-UAS), which are specifically intended to protect armored formations from hostile drone activity.
The Indian Navy is also included in the aerospace and defence technology upgrades, with the council clearing the procurement of the Active Offboard Decoy System (AODS) to enhance maritime defensive capabilities.
The Acceptance of Necessity framework
The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, serves as the highest decision-making body within the Indian Ministry of Defence regarding military procurement. The council is responsible for clearing major capital acquisitions for the Indian Army, Navy, and Air Force.
In the Indian defence procurement system, an Acceptance of Necessity represents the in-principle administrative approval that initiates the formal acquisition process. It is the mandatory first step before the government can proceed with the acquisition.
Following the AoN clearance on October 26, 2026, the Ministry of Defence will issue Requests for Proposal (RFP) to domestic defence manufacturers. The issuance of RFPs will lead to a structured process of equipment trials, commercial negotiations, and eventual contract awards to the selected vendors.
AirPro News analysis
We view the allocation of 82% of a Rs 2,12,000 crore clearance to domestic industry as a definitive structural shift in the Indian defence market. The Ministry of Defence has been aggressively pushing its “Aatmanirbharta” (self-reliance) initiative to reduce dependence on foreign military imports and build a robust domestic manufacturing ecosystem. By ring-fencing such a massive capital outlay for local suppliers, the government is ensuring that the majority of the capital flows directly into the domestic aerospace and defence sectors.
For foreign original equipment manufacturers, this clearance reinforces the reality that direct, off-the-shelf sales to India are becoming increasingly rare. Accessing the Indian market now requires deep integration with domestic firms through joint ventures, technology transfers, and local manufacturing subsidiaries. The emphasis on domestic development for complex platforms like the Light Multi Role Helicopter also signals high government confidence in the maturity of local prime contractors and their supply chains.
Photo Credit: Indian Air Force
Defense & Military
RCAF Accepts First Two CF-35A Fighters at Luke Air Force Base
Canada takes delivery of CF-35A fighters AR-1 and AR-2 at Luke AFB as its C$19B procurement program remains under review.
This is original reporting and analysis by AirPro News.
The Royal Canadian Air Force (RCAF) officially accepted delivery of its first two Lockheed Martin CF-35A Lightning II stealth fighters at Luke Air Force Base in Arizona on October 22, 2026, marking the physical introduction of the fifth-generation platform into the Canadian military.
The handover of the aircraft, designated AR-1 and AR-2, proceeds even as the broader C$19 billion procurement program remains in political limbo. Following trade and diplomatic tensions with the United States, Prime Minister Mark Carney initiated a formal review of the 88-aircraft purchase in March 2025, leaving the ultimate size and composition of Canada’s future fighter fleet unconfirmed.
Initial training operations in Arizona
The first two CF-35As will remain stationed at Luke Air Force Base to support the initial training cadre of Canadian instructor pilots and maintainers. The Arizona installation serves as a primary international training hub for the F-35 platform, hosting multiple allied nations. According to the Department of National Defence (DND), a total of eight Canadian jets are planned to be based at the facility through 2026 and 2027.
The delivery occurred exactly one month after the first Canadian aircraft completed its maiden flight at Lockheed Martin’s production facility in Fort Worth, Texas, on September 23, 2026. In an official statement regarding the delivery, the RCAF noted that the arrival of the jets represents a foundational step, adding that the future of air and space power is built on more than equipment alone.
Procurement review and fleet uncertainty
Canada has been a partner in the Joint Strike Fighter program since 1997. After years of political debate and a reset of the procurement process, the Canadian government selected the F-35A in 2022 over the Saab Gripen E to replace its aging McDonnell Douglas CF-18 Hornet fleet. The CF-18 has been in service since the 1980s and is slated for retirement in the early 2030s. In January 2023, Ottawa finalized the agreement to purchase 88 F-35As.
The procurement trajectory shifted in March 2025 when Prime Minister Carney ordered a formal review of the acquisition. Currently, only 16 of the 88 jets are firmly committed and funded. Minister of National Defence David McGuinty confirmed the ongoing evaluation, stating that the question of the F-35 remains under review and that both he and the prime minister are highly engaged in the issue alongside the emerging Defence Investment Agency.
The government is actively evaluating the possibility of operating a mixed fighter fleet. This approach could integrate Saab Gripen E fighters alongside a smaller number of F-35s, reopening a competition that Saab had previously lost during the Future Fighter Capability Project selection.
Path to operational capability
Despite the political uncertainty surrounding the final fleet size, the RCAF continues to execute its transition plan for the funded aircraft. The first CF-35As are scheduled to arrive on Canadian soil at 4 Wing Cold Lake in Alberta in 2028.
The air force plans to declare Initial Operational Capability (IOC) for the CF-35A fleet between 2029 and 2030. This timeline aligns with the necessary infrastructure upgrades at Canadian bases and the completion of initial pilot and maintainer training in the United States.
AirPro News analysis
Canada’s ongoing review of the F-35 program is highly unusual for a Tier 3 partner at this late stage of procurement. While the physical delivery of AR-1 and AR-2 ensures the RCAF can begin building its fifth-generation institutional knowledge, the potential pivot to a mixed fleet introduces significant logistical and interoperability questions. Operating both the CF-35A and the Saab Gripen E would require maintaining two distinct supply chains, training pipelines, and maintenance infrastructures. We note that these dual-fleet requirements could potentially offset the initial acquisition savings of a split purchase, complicating the RCAF’s transition away from the CF-18 Hornet.
Photo Credit: Royal Canadian Air Force
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