During President Sheikh Mohamed’s visit to Rome, the UAE announced a $40 billion investment in Italy across vital sectors like energy, AI, and high-tech, cementing ties as both countries look to expand global connectivity and economic partnerships.
The UAE has pledged to invest $40 billion in Italy, focusing on an array of sectors ranging from energy and artificial intelligence to infrastructure, agritech, and education. The announcement came during President Sheikh Mohamed’s state visit to Rome, where he met with Italy’s Prime Minister Giorgia Meloni. The two nations signed 40 new agreements, aiming to broaden cooperation and bolster bilateral trade.
Connectivity, high-tech industries, SMEs, and water technologies also feature prominently in the deal. Both sides highlighted their shared vision of fostering modern, sustainable economies that can serve as hubs bridging Europe, the Middle East, and Asia. Wam, the Emirati state news agency, reported they will also explore opportunities for collaboration in Africa.
Non-oil trade between the UAE and Italy reached $11.7 billion in 2023. Italy has raised its investment in the UAE by 50% over the past five years, indicating a robust trading relationship. The latest move is expected to further diversify trade flows and leverage each country’s logistic capacities. The two nations see themselves as key connectors linking Europe and Asia, particularly in the context of the India-Middle-East-Europe Economic Corridor (IMEC), announced at the G20 summit in 2023.
The $40 billion investment underscores the strategic importance of energy and AI collaboration, reflecting current global trends for cleaner, more efficient technologies. Projects may include renewable energy development, advanced AI applications for data-driven solutions, and sovereign cloud computing capabilities. Both countries also referenced potential expansions into Africa, with shared interest in accelerating green initiatives and industrial innovation.
In line with this goal, Abu Dhabi’s sovereign investor ADQ and Italian energy firm Eni signed a preliminary agreement to strengthen supply chains for critical minerals, targeting regions such as Africa, North America, and Central Asia. They will explore establishing refining and processing facilities in the UAE and Italy, underscoring a broader commitment to secure essential resources for advanced manufacturing.
Prime Minister Meloni and President Sheikh Mohamed discussed the UAE’s aspiration to deepen its presence in European markets via bilateral free trade agreements (FTAs) like the Comprehensive Economic Partnership Agreement (Cepa). Cepas already play a pivotal role in driving the UAE’s non-oil foreign trade, which reached a record of Dh3 trillion in 2022, up 14.6% year-on-year.
Beyond the Middle East and Europe, the two countries are seeking to expand cooperative ties in Africa, acknowledging the continent’s growing significance for both trade and energy projects. This expansion complements recent ventures such as subsea cable infrastructure for renewable power exports from Albania to Italy.
During President Sheikh Mohamed’s visit, the countries reinforced their roles as vital logistics hubs with strategic positions bridging continents. By collaborating in critical areas such as artificial intelligence, infrastructure, high-tech manufacturing, and energy, both Italy and the UAE aim to elevate their competitive edge, promote sustainable economic growth, and encourage knowledge exchange. With potential tie-ups under the IMEC framework, the initiative is set to integrate Asia, the Middle East, and Europe through more efficient shipping corridors and robust supply chains.
The $40 billion investment signals a milestone in UAE-Italy relations, opening new pathways for technology, sustainability, and energy partnerships. As IMEC gains traction and potential Cepa talks with the EU advance, both countries are poised to expand their influence in global trade routes, reduce barriers to market entry, and invest in cutting-edge innovations that shape the future of interconnected economies.
