The United Arab Emirates (UAE) has announced plans to invest $40 billion in Italy, marking a historic milestone between the two nations. This development follows UAE President Sheikh Mohamed bin Zayed Al Nahyan’s inaugural state visit to Rome, which took place on February 24, 2025.
Italian Prime Minister Giorgia Meloni characterized the visit as pivotal for future relations, stating, "Today is a very important day, another starting point in our bilateral relationship." This sentiment captures the essence of the UAE's commitment to forging strong ties with Italy.
The investment will predominantly focus on key sectors such as artificial intelligence (AI), data centers, renewable energy, and rare earths, signifying both countries' aspirations to expand cooperation beyond traditional commerce. Meloni emphasized, "The choice we made was to focus this partnership on strategic axes, such as artificial intelligence, data centres, space research, renewable energy and rare earths." This approach indicates the intent to not only deepen economic ties but also to pioneer advancements in technology and sustainable energy.
During the discussions, more than 40 agreements were ratified, encompassing various areas including economic cooperation, investment disciplines, and cultural heritage. Notably, Italian energy giant Eni has engaged with UAE firms to develop data centers powered by carbon capture technology, underscoring the emphasis on innovative energy solutions.
These agreements come against the backdrop of heightened relations between Italy and Gulf nations. Since taking office, Meloni has sought to strengthen ties with Gulf countries, disregarding concerns related to human rights often voiced by her political opponents. For example, after rescinding former arms sales embargoes, Meloni has positioned Italy as a key player within Gulf cooperative frameworks.
Trade between Italy and the UAE has witnessed substantial growth, with non-oil trade reaching $14.1 billion, reflecting a 21.2% increase from 2023. This figure highlights the mutual interests shared by both nations, particularly with respect to sustainable and innovative sectors. Sheikh Mohamed bin Zayed noted the importance of these relations, highlighting their historical depth, stating, "The UAE-Italy relations date back to the first year of the UAE’s founding as a nation and have grown over the years…"
Security and military cooperation is another significant component of the newly forged agreements. The bilateral talks included discussions about joint production and technology transfer, as well as collaborative initiatives to combat cybersecurity threats, which are becoming increasingly important globally. This partnership across various fields aims to bolster national security and safeguard interests against modern threats.
At the Italy-United Arab Emirates Business Forum, Meloni encapsulated the essence of this strategic partnership, dubbing it "a historic day, another milestone in our relationship." The past interactions have paved the way for this collaborative approach, ensuring both nations align on future goals, from innovation to security.
These developments have the potential to significantly shape Italy's role within the Gulf Cooperation Council, with expectations of increased trade and cooperation. The synergies created by combined resources and expertise could carve new pathways for both nations, fostering sustainable growth and diversification of economies.
Sheikh Mohamed also underlined the hope for the investment to positively impact both countries, expressing commitment to nurturing the comprehensive strategic partnership formed. He stated, "The UAE’s announced USD 40 billion investment will contribute to the development and prosperity of both countries and their peoples." His optimism reflects the broader scope of collaboration aimed not just at economic gain, but also at cultural and technological exchange.
Looking forward, the anticipated growth stemming from this partnership combines Italy's rich heritage and innovation potential with the UAE's vast investment capabilities and strategic foresight. It is poised to redefine the fabric of UAE-Italy relations, unlocking new future possibilities.