Italy and the United Arab Emirates announced a landmark $40 billion investment commitment as part of a new “Comprehensive Strategic Partnership,” according to Reuters.
The pledge was unveiled during a bilateral summit in Rome, where Italian Prime Minister Giorgia Meloni welcomed UAE President Sheikh Mohammed bin Zayed Al Nahyan on a state visit.
The investment, which spans key sectors such as renewable energy, artificial intelligence, space research, and rare earths, is expected to bolster Italy’s economy and strengthen its ties with the Gulf region.
While no specific time frame was provided for the investment, the two governments confirmed the signing of “more than 40 new agreements” involving major Italian companies.
The list of businesses includes energy giant Eni, lender Intesa Sanpaolo, telecoms operator Telecom Italia, arms manufacturer Leonardo and shipbuilder Fincantieri.
Key agreements and collaborations
Eni, Italy’s state-controlled energy group, signed a deal with UAE companies MGX and G42 to develop data centres in Italy powered by natural gas plants equipped with carbon capture technology.
Additionally, Eni secured a renewable energy agreement with UAE firms Masdar and Taqa Transmission, positioning itself as the “preferred off-taker” of renewable energy produced in Albania under a trilateral deal announced earlier this year.
Intesa Sanpaolo, Italy’s largest bank, inked a memorandum of understanding with Masdar to explore mergers and acquisitions in international renewable energy markets. Meanwhile, Leonardo, Italy’s leading defence contractor, expanded its collaboration with UAE’s EDGE Group, building on a partnership agreement announced last week.
Strengthening ties with the Gulf
Since taking office in 2022, Meloni prioritised strengthening Italy’s relationships with Gulf nations, despite criticism from political opponents over human rights concerns. Under her leadership, Italy lifted arms sales embargoes previously imposed on the UAE and Saudi Arabia due to their involvement in the Yemen conflict.
Meloni described the UAE investment as a “historic day” and a “milestone” in bilateral relations.
The choice we made was to focus this partnership on strategic axes, such as artificial intelligence, data centres, space research, renewable energy and rare earths.
The joint statement also highlighted plans for enhanced military and security cooperation, including joint production, technology transfer, and the development of defense manufacturing facilities. The two nations agreed to conduct joint cybersecurity exercises and strengthen collaboration on ransomware threats, with a focus on working alongside global partners such as the United States.
The UAE investment follows last month’s announcement of a strengthened strategic partnership between Italy and Saudi Arabia, which included business deals worth approximately $10 billion.
Meanwhile, the $40 billion pledge marks a significant step in Italy’s efforts to attract foreign investment and diversify its economic partnerships.
