Italy and the United Arab Emirates have finalised a $40 billion deal that strengthens their strategic relationship and Italy's role as the UAE's top non-oil trading partner in Europe, adding to Meloni's ongoing commitment to strengthening economic ties with the Gulf states.

UAE President Mohamed bin Zayed travelled to Italy to finalise a deal valued at $40 billion with Prime Minister Giorgia Meloni, with both announcing the deal at the Italy-UAE Business Forum in Rome.

The agreement is “one of the largest foreign investments in Italy’s history” and marks the beginning of a new era of economic and strategic cooperation between the two countries, said Meloni.

“We often use the word ‘historic’ too lightly, but today, it is truly appropriate. This forum represents a milestone in our bilateral relations, as it coincides with the first-ever state visit of a UAE president to Italy. We have committed to taking our collaboration to an unprecedented level, and today, we have signed over 40 bilateral agreements,” said Meloni.

The multi-sector investment plan aims to boost Italy's economic landscape and strengthen its position as a key player in sectors such as energy, artificial intelligence, telecommunications and defence.

Major Italian companies such as Eni, Enel, Cassa Depositi e Prestiti, Fincantieri, Leonardo, Intesa Sanpaolo and TIM will play a key role in these agreements.

One of the most notable aspects of the agreement is its focus on forward-looking industries. Italy and the UAE will collaborate on artificial intelligence, digital and energy interconnectivity, advanced manufacturing, critical minerals and space exploration.

Two important agreements were signed in the space sector, with Italy joining the Rashid Rover 3 mission and the Emirates mission to asteroids, reflecting both countries' ambitions to push the boundaries of technological innovation.

Defence cooperation has also been strengthened, going beyond military cooperation to include industrial partnerships. Discussions also included the development of an economic corridor linking India to Europe via the Middle East, a project that is expected to significantly reduce trade transit times.

Trade relations between the two nations have recently seen remarkable growth, with Italy increasing its investment in the UAE by 50% over the past five years.

"Italy holds strategic importance for the UAE, as reflected in our latest trade figures. It is our largest trading partner in the Eurozone," UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi told the forum in Rome.

"In 2024, non-oil bilateral trade reached an impressive $14.1 billion, a significant 21.1% increase from 2023. By bringing together leaders from both our public and private sectors today, we can not only sustain this trajectory but accelerate it even further," he added.

Since taking office in 2022, Meloni has actively sought closer ties with the Gulf states, prioritising economic and strategic interests over human rights concerns raised by political opponents.

Last month, Meloni further deepened Italy's commitment to the region by signing an enhanced strategic partnership with Saudi Arabia, a deal that includes business agreements worth around $10 billion.

Her government has since reversed previous partial restrictions on arms exports to the UAE and Saudi Arabia in 2023, lifting embargoes imposed by previous administrations in response to the war in Yemen.

While in opposition, however, Meloni was a vocal critic of former Prime Minister Matteo Renzi for his close ties with Saudi Arabia. She condemned the kingdom's human rights record in the strongest terms, arguing that it was not a model to be admired given its treatment of “marginalised women, persecuted and murdered dissidents, and workers without rights".