Italy's Fincantieri FCT.MI signed a memorandum of understanding (MoU) on Tuesday with Barzan Holdings, wholly owned by Qatar's ministry of Defense, for the joint development of a short-range radar program.

The deal is worth about 100 million euros ($108.09 million) excluding the support, training and maintenance services linked to the radars, a source close to the matter said.

"This MoU marks another step in Fincantieri's strategy to consolidate its presence in the Middle East, to strengthen collaboration with Qatar and open up new commercial opportunities in the region", the shipbuilder said in a statement.

The radar, known as Omega360, will be implemented as part of Qatar's national anti-drone system, with its first operational units expected to be produced by the end of 2026.

($1 = 0.9252 euros)

(Reporting by Enrico Sciacovelli, editing by Gavin Jones)