From procurement to propulsion: Edge buys into Italy’s CMD, as the UAE localizes more of the defense supply chain

Edge is buying deeper into Europe’s defense-industrial supply chain as the UAE pushes to localize more of its critical defense stack. The Abu Dhabi defense conglomerate signed an agreement to acquire a controlling stake in Italian propulsion systems manufacturer CMD, state news agency Wam reports. The size and value of the stake were not disclosed.

The target: CMD designs and develops propulsion systems and precision engine components for automotive, marine, and aeronautical applications.

The acquisition gives Edge a stronger foothold in another part of the defense supply chain, this time in advanced propulsion, which will help it build a “European propulsion hub,” CEO and Managing Director Hamad Al Marar said. It’ll also accelerate the development of export-ready aerospace, marine, and automotive products as well as scale up CMD’s production capabilities.

What happens next: The acquisition remains subject to regulatory approvals and is expected to close by year-end. CMD will continue operating independently under its current management team until completion. Afterward, Edge and existing shareholders — who will retain a minority stake — will jointly oversee integration plans.

Why it matters: The acquisition lands amid a much wider UAE push toward sovereign industrial and defense capabilities as geopolitical tensions and repeated supply-chain disruptions reshape procurement priorities. While the terms of the acquisition don’t mention any plans to bring CMD to Abu Dhabi or localize its propulsion systems here, it will give it access to CMD’s tech stack and IP as the UAE pushes towards managing the end-to-end supply chain for defense, as analysts previously told us.

Edge itself has been particularly active in the localization push, signing agreements around Make it in the Emirates (MIITE) 2026 spanning:

Chiplet manufacturing with Lockheed Martin ;
An AED 200 mn cable harness production agreement between the subsidiary Halcon and Emirates Cable Corporation Interconnect;
An agreement with France-based Icape to localize printed circuit boards and electronic components;
Separately, ahead of MIITE, a USD 1.5 bn pipeline agreement with Spain-based EM&E Group to localize weapons production and related defense manufacturing capabilities.