Italy and Saudi Arabia sign partnership agreements worth $10bln

One of the key agreements involves Italy’s export credit agency, SACE

Italy has signed agreements valued at approximately $10 billion with Saudi Arabia, marking a strengthened strategic partnership, Italian Prime Minister Giorgia Meloni announced after meeting with Saudi Crown Prince Mohammed bin Salman.

One of the key agreements involves Italy’s export credit agency, SACE, which will provide loan guarantees worth $3 billion for Saudi Arabia’s NEOM real estate project. This Red Sea urban and industrial development, designed to house around nine million people, is a cornerstone of the Crown Prince’s Vision 2030 initiative to diversify the Saudi economy beyond oil. The NEOM deal had been previously reported in November.

Following discussions in the Saudi oasis city of Al-Ula, Meloni highlighted infrastructure, energy, defense, sport, entertainment, and tourism as key areas for deeper bilateral cooperation.

SACE also signed a Memorandum of Understanding (MoU) with Saudi Electricity Company to provide credit guarantees for green projects, as well as engineering, procurement, and construction activities. Additionally, Italian gas grid operator Snam entered an agreement with ACWA Power to explore partnerships and investments in supplying green hydrogen to Europe.

In the defense sector, Italian firm Leonardo signed an MoU to enhance collaboration with Saudi partners in aerospace and defense. Meanwhile, electrode manufacturer Industrie De Nora inked agreements with ACWA Power to develop solutions for water desalination and with Saudi Water Authority to work on three pilot projects.