Italy & UAE Sign Historic $40 Billion Investment Deal for Economic Growth

Photo: Reuters

Italy and the United Arab Emirates (UAE) have officially signed a massive $40 billion investment agreement, strengthening their economic and strategic partnership. This deal also reinforces Italy’s role as the UAE’s top non-oil trading partner in Europe. It is part of Italian Prime Minister Giorgia Meloni’s ongoing efforts to build stronger ties with Gulf nations.

UAE President Mohamed bin Zayed visited Italy to finalize the agreement with Meloni. Both leaders announced the deal at the Italy-UAE Business Forum held in Rome. According to Meloni, this investment is "one of the largest foreign investments in Italy’s history" and marks a new phase of cooperation between the two countries.

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“People often use the word ‘historic’ too easily, but today, it is truly fitting. This forum is a milestone in our relationship, coinciding with the first-ever state visit of a UAE president to Italy. We have agreed to take our partnership to a whole new level, and today, we have signed over 40 agreements,” Meloni said.

The investment plan covers multiple sectors, aiming to boost Italy’s economy while also strengthening its presence in key industries like 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 an important role in implementing these agreements.

One of the most remarkable parts of this deal is the focus on advanced industries. Italy and the UAE will collaborate in areas like artificial intelligence, digital and energy interconnectivity, advanced manufacturing, critical minerals, and space exploration.

The space sector is particularly significant in this partnership. Two key agreements were signed—Italy will now be involved in the UAE’s Rashid Rover 3 mission as well as the Emirates mission to asteroids. This shows both countries’ ambition to push forward in space technology and innovation.

Defense ties between the two nations have also deepened. This collaboration goes beyond just military cooperation—it includes industrial partnerships. During discussions, leaders also talked about developing a trade route linking India to Europe through the Middle East. This corridor is expected to reduce the time it takes to transport goods between these regions.

Trade relations between Italy and the UAE have been growing steadily. Over the past five years, Italy has increased its investments in the UAE by 50%.

"Italy is a key partner for the UAE, which is reflected in our trade numbers. Italy is our biggest trading partner in the Eurozone," said UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi at the forum in Rome.

“In 2024, non-oil trade between our countries reached an impressive $14.1 billion, marking a 21.1% rise compared to 2023. By bringing together leaders from both the public and private sectors today, we can continue to grow this relationship even further,” he added.

Since becoming Prime Minister in 2022, Meloni has focused on strengthening Italy’s economic and strategic ties with Gulf nations, despite criticism from political opponents over human rights concerns.

Just last month, Meloni took another step in deepening Italy’s connection with the region by signing a strategic partnership with Saudi Arabia. That agreement included business deals worth around $10 billion.

In 2023, her government lifted previous restrictions on arms exports to the UAE and Saudi Arabia, reversing embargoes put in place by earlier administrations due to the war in Yemen.

However, before becoming Prime Minister, Meloni had strongly criticized former Prime Minister Matteo Renzi for his close relationship with Saudi Arabia. At the time, she condemned the country’s human rights record, saying it was not a model to follow because of its treatment of women, suppression of dissidents, and poor conditions for workers.

This $40 billion deal between Italy and the UAE marks a major shift in Italy’s foreign policy, highlighting Meloni’s focus on economic partnerships over past political disagreements.

Feb. 25, 2025 4:55 p.m. 572

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