Details of the sectors covered by the joint venture, which would be 51 percent owned by EDGE and 49 percent by Leonardo and based in Abu Dhabi, have yet to be announced.

But it will cover a range of Leonardo's solutions "spanning sensors, system integration, and platforms", the Italian group said in a statement.

Leonardo, in which the Italian government holds a 30.2 percent stake, is known for its helicopters and their electronics, as well as for cyber, security and space products.

"By collaborating across several critical domains including air, land, sea, and electro-optics, 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 and chief executive of EDGE Group, said in the statement.

The two companies signed a memorandum of understanding in June and made their latest announcement at the Dubai Airshow.

Leonardo has been active in the UAE for five decades but is seeking to transform "our commercial presence into an industrial one", co-general manager Carlo Gualdaroni told the ANSA news agency.