The United Arab Emirates (UAE) will invest $40 billion in Italy under a new agreement aimed at strengthening economic ties between the two nations.
Italian Prime Minister Giorgia Meloni announced the deal after a bilateral summit in Rome. She welcomed UAE President Sheikh Mohammed bin Zayed Al Nahyan on Monday during his first state visit to Italy. Meloni called the agreement “one of the largest foreign investments in Italy’s history” and said it marked a new phase of strategic and economic cooperation.
“We often use the word ‘historic’ too lightly, but today, it is truly appropriate,” Meloni said. “This forum represents a milestone in our bilateral relations, as it coincides with the first-ever state visit of a UAE president to Italy.”
Investment in key sectors
The UAE’s investment in Italy will target sectors such as energy, artificial intelligence, telecommunications and defence. Major Italian companies involved include energy firm Enel, shipbuilder Fincantieri, development bank Cassa Depositi e Prestiti, energy company Eni and lender Intesa Sanpaolo.
UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi said: “Italy holds strategic importance for the UAE, as reflected in our latest trade figures. It is our largest trading partner in the Eurozone.”
The agreement also includes military and cybersecurity cooperation. Other sectors involved are digital and energy interconnectivity, advanced manufacturing and space exploration. Italy will participate in the Emirates mission to asteroids and the Rashid Rover 3 mission.
Concerns over UAE’s human rights record
Opposition politicians criticised the agreement, citing the UAE’s human rights record. Meloni has worked to strengthen ties with the Gulf state since becoming prime minister in 2022. Previous Italian governments imposed arms sales embargoes on both the UAE and Saudi Arabia due to the Yemen war. Meloni lifted these restrictions after taking office.
Economic relations between Italy and the Gulf states have deepened. The UAE is now Italy’s top non-oil trading partner in Europe. Meloni stated: “We have committed to taking our collaboration to an unprecedented level, and today, we have signed over 40 bilateral agreements.”
One month ago, Meloni signed a strategic partnership with Saudi Arabia, which included business deals worth around $10 billion. While in opposition, she criticised former Prime Minister Matteo Renzi for his ties to Saudi Arabia. She condemned the country’s treatment of “marginalised women, persecuted and murdered dissidents, and workers without rights.”
