Mubadala Investment Company in Abu Dhabi has inked a preliminary deal with Italian shipbuilder Fincantieri to begin possible cooperation in sophisticated technology and services in the naval, marine, and industrial sectors.

They announced on Wednesday that they will collaborate through specialized subsidiaries to develop leading innovation and industrial initiatives.

“Through this agreement, we are committed to advancing the role of energy technology innovation in meeting future energy demand with our partners at Fincantieri and other technology developers, operating companies, and like-minded organizations,” said Abdulla Abdul Aziz Al Shamsi, Mubadala’s head of UAE new initiatives.

“As a responsible long-term investor and an active player in the global energy transition industry, Mubadala has long pioneered and championed a balanced energy mix in the UAE and internationally via a comprehensive and diversified energy portfolio.”

Mubadala’s $243.4 billion portfolio covers six continents and includes investments in a variety of industries and asset types. It is critical to Abu Dhabi’s efforts to diversify its revenue base and produce revenue from sources other than oil.

Aerospace, information and communications technology, semiconductor, metals and mining, oil and gas, renewable energy, and petrochemicals are among the industries in which the firm has a stake.

Other areas of collaboration will be identified by Abu Dhabi’s sovereign wealth fund Mubadala and Fincantieri, such as the creation of integrated industrial services for waste transformation platforms for small and medium commercial and industrial facilities in accordance with the circular economy.

Mubadala will also provide after-sales support for Fincantieri goods through its subsidiary Sanad.

“This is a first step in strengthening our footprint in the UAE,” stated Fincantieri CEO Giuseppe Bono.

“We will use our mutual know-how and investment skills to discover projects of mutual interest in the UAE while also contributing to the advancement of the country’s advanced sectors of technology.”