Saudi Arabia and Italy strengthened bilateral ties with the signing of 26 memoranda of understanding worth approximately $10 billion between public and private sector entities.
The agreements were finalized during a high-level roundtable meeting in AlUla on January 26, attended by Italian Prime Minister Giorgia Meloni, who arrived in Saudi Arabia for a three-day official visit the day before. The roundtable discussions focused on key challenges in global financial markets, with a particular emphasis on developing innovative solutions to strengthen economic ties.
Saudi Crown Prince Mohammed bin Salman welcomed Italian Prime Minister Giorgia Meloni in AlUla, where they explored opportunities to strengthen ties.
This follows a notable surge in economic ties between Saudi Arabia and Italy, with Italian exports to the Kingdom increasing by over 26% in the first 10 months of 2024 compared to the same period in 2023.
“We held a meeting that included officials and representatives of several major companies in the Kingdom and Italy. We talked about investment opportunities in the two countries and the investment opportunities provided by Saudi Vision 2030,” Saudi Arab’s Minister of Investment, Khalid Al-Falih, posted on his X account.
Saudi Arabia and Italy sign 26 agreements
Falih added that 26 memoranda of understanding were signed between public and private sector institutions of the two countries. Among notable deals, Italy’s export credit agency, SACE committed $3 billion in loan guarantees to support infrastructure, urban development, and transport projects under Saudi Arabia’s NEOM initiative. The agreement backed by international banks like HSBC and BBVA, also includes an MoU with Saudi Electricity Co. to support green projects and related engineering, procurement, and construction activities.
ACWA Power signed five agreements with Italian firms, including Cassa Depositi e Prestiti, De Nora, Ansaldo Energia, and SACE. These deals focus on project financing, technology transfer, and supply chain collaboration across regions like Africa, Central Asia, and the Far East.
The partnerships aim to bolster EU-MENA cooperation in green energy, enhancing ACWA Power’s role in the global energy transition, according to the company.
“The opportunities of cooperation between Saudi and Italian companies are immense in the sphere of supply, localization, financing and energy,” said Marco Arcelli, CEO of ACWA Power.
“We believe that bringing together our competences and resources will significantly advance the energy transition and water security, promoting sustainable infrastructure developments not only in our countries but also in Africa, Central and Southeast Asia and the rest of the Middle East,” he added.
SACE also signed agreements worth $6.6 billion with key Saudi financial and business partners to enhance Italian exports and further strengthen trade ties.
“We are proud and honored to stand alongside players of primary standing in Saudi Arabia to facilitate Italian exports and develop win-win trade and investment relations between our two countries,” said Alessandra Ricci, CEO of SACE.
In other agreements Italian gas grid operator Snam signed an agreement with ACWA Power to explore joint investments in green hydrogen projects aimed at supplying Europe. Meanwhile, Italian defense firm Leonardo entered a memorandum of understanding to strengthen collaboration with Saudi entities in the aerospace and defense sectors.
Separately, Saudi Fund for Development’s CEO Sultan bin Abdulrahman Al-Marshad and CEO of Italy’s National Promotional Institution, Dario Scannapieco, signed an agreement to boost social and economic development cooperation between Saudi Arabia and Italy.