The deal is the largest signed by the company to date as it continues to expand its order book
Abu Dhabi Ship Building (ADSB), which is part of defence conglomerate Edge, has signed its largest defence export contract to date, worth €1 billion ($1.06 billion), to supply three 71-metre corvettes and other vessels to the Angolan Navy.
The BR71 MKII corvette now on order is fitted with systems including 3D radar, electronic warfare, secure communications, a 76mm main gun, and surface to-surface and surface-to-air missile systems, ADSB said in a statement on Monday to the Abu Dhabi Securities Exchange, where its shares are traded.
It is a version of the French CMN-designed Baynunah corvettes commissioned into the UAE Navy between 2011 and 2017.
The deal “represents a momentous achievement for Edge as well as ADSB”, Khalid Al Breiki, deputy chairman of ADSB and president of Edge platforms and systems cluster, said.
The move “demonstrates our strategic approach and steadfast commitment to increasing national exports”, he added.
The announcement came as Edge revealed a line-up of 11 unmanned and autonomous products and systems during the opening day of the International Defence Exhibition and Conference (Idex 2023) on Monday, in line with the UAE’s expanding manufacturing sector.
ADSB manufactures corvettes, offshore patrol vessels and fast patrol boats. It also offers a full range of maintenance, repair and refit, upgrade and conversion of vessels.
In 2021, the company won a Dh3.5 billion ($950 million) contract to build new patrol vessels for the UAE Navy.
“We look forward to fulfilling the Angolan Navy’s operational requirements and strengthening their naval capabilities while expanding ADSB’s export order book,” David Massey, chief executive of ADSB, said.
The latest deal comes as the UAE forges ahead with its Operation 300bn strategy, which seeks to increase the contribution of the local industrial sector to the country’s gross domestic product to Dh300 billion by 2031, from Dh133 billion in 2021.
In June, the UAE’s Ministry of industry and Advanced Technology, Emirates Development Bank and Edge Group signed an agreement to boost manufacturing in the defence sector.
Under the agreement, EDB will provide financing of up to Dh1 billion to accelerate the industrialisation of Edge’s offerings, while the ministry will support Edge to expand exports of more than 40 domestically manufactured products and services.
Set up in 2019, Edge specialises in building advanced technology for weapons systems, cyber protection and electronic warfare, with more than 25 companies under its umbrella.
The group has been expanding its portfolio as the UAE, the Arab world’s second-largest economy, focuses on boosting its local defence manufacturing capabilities and diversifying its economy away from oil.
Updated: February 20, 2023, 1:34 PM