Leonardo’s €320M Combat Systems Deal Powers Kuwait’s Falaj‑3 Missile Boat Fleet

The €320 million Leonardo subcontract

Leonardo signed a contract with Abu Dhabi Ship Building (ADSB)—EDGE Group’s naval shipbuilding arm—to supply advanced naval combat systems for Kuwait’s new vessels under the Al Dorra programme. The deal is valued at approximately €320 million (about $371 million).

These systems will be installed on Falaj‑3 configuration missile boats being built for the Kuwait Navy.

The agreement also strengthens an existing industrial partnership between Leonardo and ADSB/EDGE, which has already collaborated on more than 25 naval vessels delivered through previous programmes.

What systems Leonardo is supplying

Public information about the contract describes Leonardo’s role as delivering “next‑generation naval combat systems” for the Falaj‑3 vessels.

A naval combat system typically integrates the technologies that allow a warship to detect threats, coordinate weapons, and manage battlefield information. Leonardo is widely known for developing integrated naval systems that combine sensors, command‑and‑control software, and mission electronics into a single operational architecture.

However, the available reporting on the Kuwait contract does not publicly specify the exact subsystems included in the €320 million package—such as particular radar models, fire‑control components, or combat‑management software. The confirmed scope is limited to the integrated combat‑system layer destined for the Falaj‑3‑based vessels.

How the subcontract fits inside the $2.45 billion EDGE deal

The Leonardo contract is only one component of a much larger naval programme.

In June 2025, EDGE Group signed a $2.45 billion agreement with Kuwait’s Ministry of Defence to supply Falaj‑3 62‑metre missile boats. Under this deal, EDGE acts as the prime contractor, overseeing the programme’s design, construction, trials, and delivery.

The wider contract also includes:

• Integrated logistics support and in‑service support
• Ammunition supply
• Sea trials and delivery of the vessels

The programme is considered the largest naval shipbuilding export in the region, demonstrating the UAE defence sector’s growing role in international shipbuilding.

Within this structure:

• EDGE / ADSB handle ship design, construction, and programme management
• Leonardo provides the integrated combat‑system technologies installed on the vessels

This layered model—prime contractor plus specialist system suppliers—is common in modern naval procurement, where shipbuilders integrate mission electronics from global defence companies.

What the partnership reveals about Gulf–European defence ties

The programme also illustrates a broader trend in international defence cooperation.

Historically, Gulf states often purchased fully built platforms directly from Western manufacturers. Increasingly, however, regional defence companies act as prime contractors, building platforms locally or within the region while sourcing advanced subsystems from European or international partners.

In this case:

• EDGE Group leads the programme and manages shipbuilding
• ADSB provides the naval construction capability
• Leonardo supplies high‑end combat‑system technology

This structure allows Gulf defence industries to expand their manufacturing and export capabilities while still relying on established European companies for advanced mission systems and electronics.

A layered defence‑industry model

The Al Dorra missile boat programme therefore demonstrates how modern naval procurement often works as a multi‑company ecosystem:

• National defence ministries define capability requirements
• Regional prime contractors deliver platforms and manage programmes
• International suppliers contribute specialised technologies

Leonardo’s €320 million contract represents the combat‑systems core of Kuwait’s new Falaj‑3 missile boats—an essential layer that turns a hull and propulsion system into a fully operational naval combat platform.