Italy and Saudi Arabia have signed significant agreements valued at approximately $10 billion, marking a strengthened strategic partnership between the two nations.
The announcement came following a meeting between Italian Prime Minister Giorgia Meloni and Saudi Crown Prince Mohammed bin Salman. The deals between Italy and Saudi Arabia span various sectors including infrastructure, energy, defense, sport, entertainment, and tourism. A notable component is the involvement of Italy’s export credit agency SACE, which will provide $3 billion in loan guarantees for Saudi Arabia’s ambitious NEOM project. This development is a cornerstone of the Vision 2030 initiative, aiming to diversify Saudi Arabia’s economy beyond oil dependence.
A significant focus of these agreements is on green projects. SACE signed a Memorandum of Understanding with the Saudi Electricity Company to provide credit guarantees for green energy and infrastructure projects. Italian gas grid operator Snam will collaborate with ACWA Power to explore green hydrogen supply opportunities to Europe. Additionally, Italian defense group Leonardo is set to enhance aerospace and defense cooperation with Saudi partners.
Italian company Industrie De Nora has established a partnership with ACWA Power to develop innovative solutions for water desalination. De Nora will also work alongside the Saudi Water Authority on three pilot projects aimed at improving water sector solutions.
Beyond economic matters, Meloni and Crown Prince bin Salman discussed crucial international issues in their talks. These included the quest for peace in Ukraine, stabilizing the ceasefire in Gaza, supporting reconstruction in Syria, and aiding Lebanon. Furthermore, Meloni expressed support for Saudi Arabia’s involvement in the GCAP jet fighter program, though she acknowledged that it would entail some time to materialize.
In addition to the Italy-Saudi deals, the Saudi NEOM Green Hydrogen Company announced progress in creating the world’s largest green hydrogen plant. This project is a significant step in Saudi Arabia’s energy transition strategy. ACWA Power and Snam have signed an MoU to explore the creation of a green hydrogen and ammonia supply chain from Saudi Arabia to Europe.
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