Italy and UAE Strengthen Ties with Historic $40 Billion Investment Deal
ROME :A $40 billion investment deal has been signed between Italy and the United Arab Emirates (UAE), marking the beginning of a new era of strategic and economic partnership.
The agreement, announced during the Italy-UAE Business Forum in Rome, supports Prime Minister Giorgia Meloni’s key goal of deepening trade relations with the Gulf and confirms Italy’s position as the UAE’s leading non-oil trading partner in Europe.
The signing, which Meloni referred to as “one of the largest foreign investments in Italy’s history,” was made noteworthy by the fact that UAE President Mohamed bin Zayed traveled to Italy. Defense, telecommunications, energy and artificial intelligence are some of the many businesses covered by the agreement. Leading Italian companies including Leonardo, Fincantieri, Eni and Enel play key roles.
A partnership aimed at the future, the agreement also places a strong emphasis on space exploration, with Italy joining the UAE’s asteroid exploration program and the Rashid Rover 3 mission. In addition, the countries will strengthen defense ties by creating industrial alliances in addition to military cooperation..
Trade relations between Italy and the UAE have seen substantial growth, with Italy’s investment in the UAE increasing by 50% over the last five years. In 2024, non-oil bilateral trade reached $14.1 billion, a 21.1% rise from 2023, reinforcing the UAE’s strategic importance to Italy’s economy.
Since taking office in 2022, Meloni has actively sought deeper trade ties with Gulf states. He further solidified Italy’s position in the region by signing a $10 billion strategic partnership with Saudi Arabia last month. In addition, his administration reversed sanctions imposed by previous governments on the Yemen conflict by lifting previous embargoes on arms transfers to Saudi Arabia and the United Arab Emirates.
Despite his earlier criticism of former Prime Minister Matteo Renzi for his close ties with Saudi Arabia, citing human rights concerns, Meloni’s current strategy prioritizes economic and geopolitical interests, establishing Italy as a key partner in the Gulf’s changing trade and investment landscape.