EDGE Group has agreed to acquire an 80% stake in Italian propulsion systems manufacturer Costruzioni Motori Diesel as the Abu Dhabi-based defence conglomerate accelerates its expansion across Europe.
The transaction marks another strategic move by the Emirati defence giant to deepen its industrial and technological presence in European defence and aerospace markets.
According to the companies, CMD will continue operating from Southern Italy while benefiting from additional capital investment and broader access to regional and international markets through EDGE’s global network.
Financial details of the EDGE CMD acquisition were not disclosed. The companies said the transaction is expected to close before the end of 2026 and will be funded through EDGE’s internal resources.
Existing CMD shareholders are expected to retain a significant minority stake and continue holding key management positions after the deal is completed.
CMD specializes in advanced propulsion systems for automotive, marine and aeronautical applications, making it strategically valuable for EDGE’s growing defence manufacturing ambitions.
EDGE Managing Director and CEO Hamad Al Marar described the acquisition as a major step toward building a European propulsion hub integrated into the group’s broader industrial strategy.
“By entering into this agreement with CMD, we are taking an important step in building a highly capable European propulsion hub that will complement and reinforce EDGE’s global industrial footprint,” Al Marar said.
The company indicated that its immediate priority will focus on aero engines, where CMD’s piston engine expertise aligns closely with EDGE’s existing aerospace and unmanned systems portfolio.
EDGE also signaled plans to expand cooperation into military vehicle propulsion systems and marine technologies, suggesting future joint development programs are already under consideration.
The acquisition comes as Gulf defence companies increasingly pursue international expansion, technology transfer and advanced manufacturing partnerships to strengthen domestic industrial capabilities and reduce reliance on foreign suppliers.
Founded in 2019, EDGE has rapidly emerged as one of the Middle East’s largest defence and advanced technology groups. The company produces drones, missiles, armored vehicles, naval systems, radar technologies, electronic warfare platforms and cybersecurity solutions.
The Emirati group is wholly owned by the Abu Dhabi government and has aggressively expanded through international partnerships and acquisitions in recent years.
EDGE already maintains strategic ties with major Italian defence firms, including joint ventures with Fincantieri and announced cooperation initiatives with Leonardo.
Analysts say the EDGE CMD acquisition reflects a broader trend of Gulf sovereign-backed defence firms seeking European manufacturing expertise and access to NATO-aligned industrial ecosystems.
The move also comes amid rising global defence spending driven by geopolitical instability, military modernization programs and growing demand for unmanned systems and advanced propulsion technologies.
Italy has increasingly become a strategic gateway for Gulf investment into Europe’s aerospace and defence industries because of its strong engineering capabilities and established industrial supply chains.
Industry observers expect additional acquisitions and partnerships between Gulf and European defence firms as competition intensifies around aerospace technologies, autonomous systems and military manufacturing capacity.
Why This Matters
The EDGE CMD acquisition strengthens the UAE’s long-term defence manufacturing ambitions while giving EDGE deeper access to European propulsion expertise and industrial networks.
What Happens Next
Regulatory approvals and transaction completion are expected later this year. Analysts will watch closely for future joint projects involving aerospace engines, military vehicles and naval propulsion systems.
