The UAE is to invest $40 billion in key sectors of Italy’s economy as the two countries strengthen ties.
Italy and the UAE signed over 40 new agreements covering sectors including economy and investment, defence, energy and space during President Sheikh Mohamed's state visit to Rome on Monday.
Connectivity, infrastructure, high-tech industry, artificial intelligence, water technology, information and communication technology, SMEs and start-ups, agriculture, civil aviation, education, culture and health care were the other areas of mutual interest for the two countries, Emirati state news agency Wam reported on Monday.
The two countries are also aiming to explore opportunities for co-operation with other partners, particularly in Africa.
The announcements came as the two countries continue to bolster their trade ties, with non-oil trade reaching $11.7 billion in 2023. Italy has increased investment in the UAE by 50 per cent in the last five years.
Sheikh Mohamed held talks with Italy’s Prime Minister Giorgia Meloni on Monday and the two leaders discussed the UAE's goal of enhancing its presence in European markets with Italy’s support, particularly by “pursuing negotiations for market liberalisation through a Comprehensive Economic Partnership Agreement [Cepa], a bilateral free trade agreement, with the European Union", Wam reported, citing a joint statement issued by the two countries.
Cepas are playing a key part in boosting the UAE's non-oil foreign trade, which hit a record Dh3 trillion ($816.7 billion) last year − up 14.6 per cent year-on-year.
The two countries also highlighted Italy’s and the UAE’s roles as logistic hubs and stepping stones in global connectivity, strengthening trade and investment ties between Europe and Asia.
“This collaboration underscores the importance of Italy and the UAE as strategic partners for innovation, sustainable economic development and technological exchange, fostering deeper ties between Europe, the Middle East and Asia, also in the framework of IMEC [The India-Middle-East-Europe Economic Corridor],” the statement said.
The IMEC announced during the G20 summit in 2023, consists of an eastern route connecting India to the Gulf and a northern pathway connecting the Gulf to Europe.
The cross-border, ship-to-rail transit corridors are expected to reduce shipping costs across the network and support trade in goods and services to, from and between the UAE, Saudi Arabia, India and Europe.
The UAE, Italy and Albania last month announced a partnership to build a subsea interconnector for exporting renewable energy across the Adriatic Sea.
As part of the deal, green power produced in Albania will be exported to Italy through an undersea cable, Italian Prime Minister Giorgia Meloni told the World Future Energy Summit in Abu Dhabi in January.
Also on Monday, Abu Dhabi sovereign investor ADQ signed an initial agreement with Rome-based energy company Eni to identify potential strategic areas of co-operation aimed at strengthening supply chains for critical minerals.
The collaboration will prioritise potential investment in regions such as Africa, North America and Central Asia. They will explore synergies across the entire critical and strategic minerals value chain, from mining to refining, processing and downstream applications, the companies said.
The companies will also assess the feasibility of establishing refining and processing facilities in the UAE and Italy.
