A United Arab Emirates (UAE) investment fund (Mubadala)  has beefed up its stake in Italy-based Piaggio Aero, just as the aeronautics firm gets ready for the debut flight of its P.1HH Hammerhead drone… Mubadala, the US $55 billion fund set up by the Emirate of Abu Dhabi in 2002, increased its stake in Piaggio Aero from 33 to 41 percent on Nov. 12, as part of an equity increase of €190 million (US $255 million).  Also Tata Ltd., a UK offshoot of India’s Tata Group, increase its stake from 33 to 44.5 percent…That means Mubadala and Tata are now the main financial backers of development of the Italian-built Hammerhead, which is an unmanned version of Piaggio Aero’s main seller, the P.180 twin-prop business aircraft….

But the Italian Defense Ministry has not invested in the program, creating an unusual situation in which Indian and Arabian Gulf capital is funding the development of a UAV in which Italy is certifying and showing keen interest….Italy and the UAE have discussed UAV development before. In 2009, the gulf state selected the Italian M-346 jet trainer, but the deal stalled, allegedly over problems related to a side deal on UAVs.  Plans had reportedly been made to co­develop a UAV with specifications that exceeded those set down by the Missile Technology Control Regime, which restricts the sales of missiles and UAVs able to carry a 500-kilogram payload at least 300 kilometers. Italy is a signatory of the treaty.

At the Paris Air Show, Debertolis said Italy would consider arming the Hammerhead, noting that the aircraft was large enough to hold weapons in internal bays and that half of what is cabin space in the manned version would remain unused. But he added that the payload would remain within the 500-kilogram maximum set down by the Missile Technology Control Regime.

Excerpts,Tom Kington UAE Ups Its Stake in Drone-maker Piaggio Aero, Defensenews.com, Nov. 15, 2013