Italy and Saudi Arabia have solidified their bilateral relationship with a series of agreements worth $10 billion, spanning infrastructure, energy, defense, and technology sectors, Italian Prime Minister Giorgia Meloni announced following her talks with Saudi Crown Prince Mohammed bin Salman in Al-Ula on Sunday.
Key Deals and Collaborations
- NEOM Financing:
Italy’s export credit agency, SACE, will provide $3 billion in loan guarantees for Saudi Arabia’s flagship NEOM development project. NEOM is a critical component of Saudi Arabia's Vision 2030 strategy to diversify its economy beyond oil, aiming to house around nine million people in a futuristic Red Sea urban and industrial hub. - Green Energy and Hydrogen:
Italian gas grid operator Snam signed a deal with ACWA Power to explore partnerships in green hydrogen production and its supply to Europe, signaling closer collaboration in renewable energy projects. - Defense and Aerospace:
Italian defense firm Leonardo inked a Memorandum of Understanding (MoU) to enhance cooperation with Saudi partners in aerospace and defense technologies. - Water Desalination:
Industrie De Nora, an Italian electrode manufacturer, partnered with ACWA Power to develop innovative desalination technologies. It also signed agreements with the Saudi Water Authority to pilot three water projects. - Credit for Green Projects:
SACE also signed an MoU with Saudi Electricity Company to provide credit guarantees for green initiatives and infrastructure projects.
Speaking from Bahrain on Monday, Meloni voiced support for Saudi Arabia joining the Global Combat Air Programme (GCAP), a European collaborative jet fighter initiative involving Italy, the UK, and Japan. However, she noted that Saudi Arabia’s involvement would require time to materialize.
The agreements mark a significant milestone in Italy-Saudi relations, signaling a deepened partnership that aligns with both nations' strategic goals. Italy’s involvement in NEOM and other green projects highlights its commitment to advancing sustainable technologies and energy transition, while Saudi Arabia continues to attract global partnerships for its ambitious Vision 2030 agenda.
