Italy, UAE finalize $40 billion investment partnership

Italy and the United Arab Emirates (UAE) have signed a $40 billion deal that strengthens their strategic relationship and Italy’s role as the UAE’s largest non-oil trading partner in Europe.

UAE President Mohammed bin Zayed traveled to Italy to finalize a deal worth $40 billion with Italian Prime Minister Giorgia Meloni, with both announcing the agreement at the Italy-UAE Business Forum in Rome.

Meloni said the deal is ‘one of the largest foreign investments in Italy’s history’ and marks the beginning of a new era of economic and strategic cooperation between the two countries.

“We usually use the word ‘historic’ very lightly, but today, it is really appropriate. This forum represents a milestone in our bilateral relations as it coincides with the first state visit of a UAE president to Italy. We have committed to taking our cooperation to an unprecedented level and today we have signed over 40 bilateral agreements,” he said.

The multi-sector investment plan aims to strengthen Italy’s economic outlook and reinforce its position as a key player in sectors such as energy, artificial intelligence, telecommunications, and defense.

Major Italian companies such as Eni, Enel, Cassa Depositi e Prestiti, Fincantieri, Leonardo, Intesa Sanpaolo, and TIM will play a key role in these deals.

One of the most striking aspects of the agreement is its focus on forward-looking sectors. Italy and the UAE will cooperate in artificial intelligence, digital and energy connectivity, advanced manufacturing, critical minerals, and space exploration.

Two important agreements were signed in the space sector, Italy’s participation in the Rashid Rover 3 mission and the UAE’s mission to asteroids, reflecting the willingness of both countries to push the boundaries of technological innovation.

Defense cooperation was also strengthened to go beyond military cooperation to include industrial partnerships. The talks also include the development of an economic corridor linking India to Europe via the Middle East, a project expected to significantly reduce trade transit times.

Trade relations between the two countries have shown remarkable growth recently, with Italy increasing its investments in the UAE by 50% in the last five years.

Speaking at the forum in Rome, Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, said: ‘Italy is of strategic importance to the UAE, as reflected in our latest trade figures. It is our largest trading partner in the Eurozone,’ he said.

In 2024, non-oil bilateral trade reached $14.1 billion, an increase of 21.1% compared to 2023.

Since taking office in 2022, Meloni has been actively seeking closer ties with Gulf countries.

Last month, Meloni further deepened Italy’s commitment to the region by signing an enhanced strategic partnership agreement with Saudi Arabia, which includes business deals worth around $10 billion.

His government reversed partial restrictions on arms exports to the UAE and Saudi Arabia imposed in 2023, lifting embargoes imposed by previous administrations in response to the war in Yemen.

While in opposition, Meloni sharply criticized former Prime Minister Matteo Renzi for his close ties with Saudi Arabia.