IRIA News

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Italy has signed agreements worth approximately $10 billion with Saudi Arabia, signaling a deepened strategic partnership between the two nations. Italian Prime Minister Giorgia Meloni announced the deals after meeting Saudi Crown Prince Mohammed bin Salman in Al Ula during her to the Kingdom on January 27, 2025.

Meloni stated during a press conference, “There is enormous potential in our cooperation, and my wish is that this visit can open a new phase in our partnership,” adding, “This is what the joint declaration we signed today foresees. It declares that our two nations can broaden their horizons and explore many new opportunities together.”

The agreements reflect a strengthening of ties between Italy and Saudi Arabia, with both nations leveraging their respective strengths to foster economic growth and innovation. For Italy, the partnership offers access to Saudi Arabia’s ambitious Vision 2030 projects and its burgeoning markets, while Saudi Arabia gains access to Italian expertise in energy, defense, and infrastructure.

Italian Prime Minister Visits Hegra, Historical Landmarks in AlUla.https://t.co/r35mFQ5ARR#SPAGOV pic.twitter.com/hRVs9PORtr

— SPAENG (@Spa_Eng) January 27, 2025

With agreements spanning green energy, defense, and urban development, the $10 billion deals signed this week underscore the importance of international collaboration in tackling global challenges and shaping the future of innovation and sustainability.

As Meloni aptly put it, this visit is poised to “open a completely new phase” in the partnership between Italy and Saudi Arabia, one that could redefine the dynamics of cooperation in the years to come.

Vision 2030 and NEOM’s

Central to these agreements is Saudi Arabia’s Vision 2030, a transformative economic plan spearheaded by Crown Prince Mohammed bin Salman. The vision aims to diversify Saudi Arabia’s economy by reducing its reliance on oil and fostering growth in areas like technology, green energy, and tourism. At the heart of this ambitious plan is NEOM, a futuristic city and industrial development along the Red Sea.

NEOM is a megaproject nearly the size of Belgium, designed to house approximately nine million residents while emphasizing sustainability and innovation. It includes groundbreaking developments such as The Line, a linear city free from cars and emissions, which has garnered global attention for its ambitious scope and cutting-edge design.

As part of the deals signed, Italy’s export credit agency SACE committed to providing $3 billion in loan guarantees for the NEOM project, a move that highlights Italy’s confidence in Saudi Arabia’s transformative vision. The loan guarantees were initially reported in November but have now been solidified, underscoring the growing economic ties between the two nations.

Expanding cooperation

The agreements extend beyond NEOM, reflecting a comprehensive strategy to strengthen bilateral relations. SACE also signed a Memorandum of Understanding (MoU) with Saudi Electricity Company to provide credit guarantees for green projects and engineering, procurement, and construction activities. This marks a significant step in promoting sustainable energy initiatives, a key focus for both countries.

Italian energy giant Snam entered a partnership with Saudi Arabia’s ACWA Power to explore joint investments in green hydrogen supply to Europe. Green hydrogen, often considered a cornerstone of the clean energy transition, could play a crucial role in reducing carbon emissions in Europe while fostering collaboration between Saudi and Italian industries.

On the defense front, Italian defense group Leonardo inked an MoU to enhance cooperation with Saudi partners in aerospace and defense. The agreement highlights the mutual interest in bolstering security and technological advancements, areas where both countries see significant potential for collaboration.

Meloni emphasized the broad scope of future opportunities: “Infrastructure, energy, defense, sport, entertainment, and tourism are areas where bilateral cooperation could become stronger, more effective, and deeper.”

Ukraine, Gaza, and more

Beyond economic partnerships, Meloni and Crown Prince Mohammed bin Salman also tackled pressing geopolitical issues during their discussions. These included fostering a “just and lasting peace in Ukraine,” consolidating the ceasefire in Gaza, supporting post-war reconstruction in Syria, and assisting Lebanon in overcoming its ongoing political and economic crises.

The discussions signal both countries’ desire to play constructive roles in addressing regional and global challenges. Italy, a key European power, and Saudi Arabia, a major player in the Middle East, share overlapping interests in promoting stability and development in these conflict-ridden areas.

GCAP fighter program

Another critical development discussed during Meloni’s Middle East trip was Saudi Arabia’s potential involvement in the Global Combat Air Program (GCAP), a cutting-edge jet fighter initiative currently involving Italy, Britain, and Japan. Speaking from Bahrain on January 27, Meloni expressed her support for Saudi Arabia joining the program, though she noted that such a move would take time to materialize.

The inclusion of Saudi Arabia in the GCAP program could further solidify the growing defense partnership between Italy and Saudi Arabia, offering both economic and strategic benefits.