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Saudi Arabia and Italy sign $10 billion in strategic agreements
Among the agreements, Italy’s credit export agency SACE revealed it would loan $3 billion for Saudi Arabia’s NEOM real estate project.
In its push to diversify its economy and foster innovation, Saudi Arabia is strengthening ties with key global players. On Monday, Italy and the kingdom signed agreements valued at around $10 billion, marking a deepened strategic partnership, as announced by Italian Prime Minister Giorgia Meloni after meeting with Saudi Crown Prince Mohammed bin Salman.
One key agreement saw Italy’s credit export agency, SACE, committing to provide $3 billion in loan guarantees for Saudi Arabia’s NEOM real estate project, a deal initially reported in November.
NEOM, a vast urban and industrial development along the Red Sea, is expected to house around nine million people and is a key element of Crown Prince Mohammed bin Salman’s Vision 2030 plan, which aims to diversify Saudi Arabia’s economy away from oil. Following discussions in Al-Ula, a city oasis in Saudi Arabia, on Sunday, Italian Prime Minister Giorgia Meloni emphasized areas for enhancing cooperation, including infrastructure, energy, defense, sport, entertainment, and tourism. She noted that these sectors could become “stronger, more effective, and deeper” through bilateral collaboration.
In addition, SACE signed a Memorandum of Understanding (MoU) with Saudi Electricity Company to provide credit guarantees for green projects, while also supporting engineering, procurement, and construction activities.
Additionally, Italian gas grid operator Snam reached an agreement with ACWA Power to explore partnerships and joint investments aimed at supplying green hydrogen to Europe. Italian defense company Leonardo also signed a Memorandum of Understanding (MoU) with Saudi partners to strengthen cooperation in aerospace and defense.
Industrie De Nora, an Italian manufacturer of electrodes, announced a deal with ACWA Power to explore, develop, and implement new technologies for water desalination. De Nora also secured an agreement with the Saudi Water Authority to launch three pilot projects.
Meloni and bin Salman also discussed various topics, including “a just and lasting peace in Ukraine,” reinforcing the Gaza ceasefire, supporting Syria’s post-war reconstruction, and assisting Lebanon, as outlined by Meloni’s office.
In her remarks made on Monday from Bahrain, Meloni expressed support for Saudi Arabia’s potential involvement in the GCAP jet fighter program, though she acknowledged that this would take time to materialize.
