Italy and UAE Sign $40 Billion Investment Deal to Boost Economic Ties

Image Credits – Shoaib Hassan

Italy and the UAE finalized a landmark $40 billion agreement to strengthen economic ties and reinforce their strategic partnership. This investment plan between Italy and the UAE aims to bolster the economic landscape and solidify its role in key industries such as artificial intelligence, energy, and telecommunications.

Italy-UAE Key Highlights of the Deal

The UAE’s President, Sheikh Mohamed bin Zayed, concluded the $40 billion investment at the Italy-UAE Business Forum in Rome, alongside Italian Prime Minister Giorgia Meloni. According to Meloni, the agreement represents one of the largest foreign investments in Italy’s history, marking a new era of economic and strategic collaboration between the two nations. Since taking office in 2022, Meloni has prioritized enhancing economic relations with Gulf countries, and this first-ever state visit by a UAE president to Italy stands as a significant milestone in bilateral relations.

A core focus of the Italy-UAE $40 billion investment is on future-oriented sectors. Both countries aim to collaborate on advancements in artificial intelligence, digital and energy interconnectivity, advanced manufacturing, critical minerals, and space exploration. Key Italian companies—such as Cassa Depositi e Prestiti, Eni, Enel, Fincantieri, Leonardo, Intesa Sanpaolo, and TIM—are set to play major roles in implementing the agreements.

A strategic partnership on data centers and AI was also established, highlighted by a Letter of Intent (LOI) signed between Italy’s ENI and UAE-based firms MGX and G42. This collaboration emphasizes the commitment to secure, inclusive AI development, data protection, and sustainable innovation.

Italy: UAE’s Top European Non-Oil Trade Partner 

Italy remains the UAE’s leading non-oil trade partner in Europe, with bilateral trade growing from $11.6 billion in 2023 to $14.1 billion in 2024—a 21.1% increase. Italian investment in the UAE has surged by 50% over the past five years, primarily in technology, luxury, and consumer goods. According to OEC 2023 data, Italy’s major exports to the UAE included jewelry ($1.48 billion), suitcases ($416 million), leather footwear ($293 million), and packaged medicaments ($261 million).

There is also a strong demand for Made-in-Italy food products in the UAE. Italy ranks among the top six suppliers of beverages and vinegar, while baked goods and dairy exports grew by 23% and 36%, respectively. At Gulfood 2025, over 200 Italian companies exhibited, further supporting the growth of Italian F&B brands in the UAE market.

Trade Agreements Driving EU-UAE Cooperation

The ongoing Comprehensive Economic Partnership Agreements (CEPA) between Europe and the UAE are fostering a more seamless business environment. These agreements enhance economic collaboration and investment opportunities, contributing to the UAE’s record-breaking foreign trade, which exceeded AED 3 trillion in 2024—a 14.6% increase from 2023. The EU remains the UAE’s second-largest global trade partner, with non-oil trade reaching $69.4 billion in 2024, up 3.6% from the previous year.

The UAE’s strategic location as a gateway to the Middle East and the availability of free zones offering 100% foreign ownership, tax incentives, and simplified immigration make it an attractive hub for European SMEs. Notably, the Dubai World Trade Centre (DWTC) recently announced a new sports and entertainment free zone to attract foreign investors.

In a 2025 survey, the UAE ranked seventh among the top 10 destinations where German millionaires plan to relocate, citing safety, zero income tax, and a business-friendly climate as key drivers. Italians also rank among the top 10 property investors in Dubai, taking advantage of lucrative real estate opportunities.

Global Expansion Opportunities for Italian SMEs

Italian SMEs looking to expand internationally should consider Dubai and the broader UAE market. With its dynamic economy, innovation-driven policies, and commitment to sustainability, the UAE presents a compelling opportunity for Italian businesses aiming for global growth.

Research Konnection – We assist Italian SMEs in successfully entering the UAE market. Get in touch to discover how our customized market entry strategies, in-depth market insights, and business planning services can support your expansion goals.

SVA MidEast DMCC – Our trusted channel partner, an Italian firm operating in the UAE, supports Made-in-Italy through temporary export management, export checkups, digital export solutions, and participation in international trade shows. For consultations, reach out to Illaria Bettiol, Operations Manager, at i.bettiol@svadvisory.com