Following a period of diplomatic recalibration since 2021, Italy and the United Arab Emirates (UAE) have built a reliable partnership grounded in shared strategic interests and a renewed spirit of cooperation. The parties profoundly engaged to enhance their bilateral relations, which were upgraded to a Strategic Partnership level in 2024, while the meeting in Rome in February 2025 has further defined this comprehensive partnership. Italy and the UAE are working to reshape their geopolitical role in a post-oil economic scenario, within which advanced technology, artificial intelligence (AI), clean energy, space missions, and critical minerals will represent key priorities for influence in international relations. In this process of economic diversification, Rome and Abu Dhabi can exploit the existing convergence of interests to achieve their purposes: investments to attract industrial and technological capabilities represent the successful framework of this cooperation. In the coming years, connectivity will be another promising framework of cooperation due to Italy and the UAE’s involvement in the IMEC transport corridor—linking Asian and Indian markets to the EU, crossing the Middle East—within which these countries will play the role of key logistic and trade hubs.
Italy-UAE Forum: A milestone of bilateral cooperation
In February 2025 the first-ever state visit of a UAE president to Italy has further cemented bilateral relations, upgrading the existing strategic partnership: during the Italy-UAE Business Forum in Rome, UAE President H.H. Sheikh Mohamed bin Zayed Al Nahyan and Italian Prime Minister Giorgia Meloni signed a US$40 billion deal that strengthens their bilateral relations, developing a comprehensive strategic partnership focused on cooperation on the most future-oriented sectors of the economy, such as digital and energy interconnections, space, AI, creation of data centers, critical minerals, advanced industry and new technologies. According to the Italian PM, 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.[1]
In this framework, more than 40 new agreements were signed to coordinate their joint commitment to enhance the strategic cooperation across priority areas such as investment, defense, energy, including peaceful nuclear energy, sustainable energy, and energy transition, space and the promotion of cultural heritage. The shared purpose of this renovated partnership is the promotion of economic diversification to pave the way for a post-oil economy (or to reduce the reliance on oil revenues): in 2024, for instance, non-oil bilateral trade reached an impressive US$14.1 billion, a significant 21.1 percent increase from 2023.[2]
UAE diversification toward aerospace, renewable energy, and agribusiness sectors aligns with Italy’s strong industrial and technological capabilities, realizing a convergence of strategic interests. The parties aim to attract and channel investments in key sectors such as AI, data centers, digital connectivity, critical metals, advanced manufacturing and renewable energy, legitimizing the UAE’s position as a global leader in innovation and sustainable development.[3]
There is a concrete political will of both parties to expand cooperation with shared benefits. The current Italian political leadership appears as a reliable partner for the UAE and a promising destination for investments in order to diversify the national portfolio.[4] Italy-UAE trade relations have seen marked improvement in recent years, considering that Italy increased its investments in the Emirates by 50 percent over the past five years. During the meeting, the UAE Minister of State for Foreign Trade, Thani bin Ahmed Al Zeyoudi, remarked on Italy’s relevance as “our largest trade partner in the Eurozone.”[5]
“Made in Italy” goods (fashion, furniture, electrical equipment) have a significant appeal in the UAE markets, considering that export value reached €8 billion in 2024, recording a growth of nearly 20 percent compared to the previous year, while the UAE’s main exports to Italy are metallurgical products, coke and petroleum refining products.[6] From the UAE’s perspective, Italy (which is also a member of the G7) also represents a gateway to the European Union (EU): an improved dialogue based on mutual trust and reliability should create the conditions for demanding the establishment of a Comprehensive Economic Partnership Agreement (CEPA), a bilateral free trade agreement (FTA) with the EU.[7]
Axis of strategic cooperation: Aerospace, defense and renewable energy
Amid this convergence of shared interests that underpins the comprehensive partnership, several key areas of cooperation emerge as particularly significant, given their strategic implications in the evolving geopolitical and geo-economic landscape. Cooperation in advanced science, space, emerging and critical technologies represents a promising framework for collaboration, with the aim of achieving mutual gains by sharing expertise and tailoring investments in key sectors. Both countries are advancing robust legal frameworks and industrial strategies that offer greater certainty to entrepreneurs and investors. Cooperation between their national space agencies is proving mutually beneficial, fostering innovation and long-term strategic collaboration. The majority of Italy’s missions are conducted as part of the European Space Agency (ESA), of which it is a founding member and the third biggest contributor.
Aerospace
Italy’s advanced technological expertise can meaningfully contribute to the UAE’s ambitious space exploration agenda. Building on the success of the 2020 Emirates Mars Mission (Hope Probe), the Arab world’s first mission to Mars,[8] Rome and Abu Dhabi are now collaborating on the Emirates Mission to the Asteroid Belt, the Emirates Lunar Mission, and the Rashid Rover project. In February 2025, the Italian Space Agency (ISA) signed two Memoranda of Understanding (MoUs) with the UAE Space Agency (UAESA) and the Mohammed Bin Rashid Space Centre (MBRSC) to undertake future space explorations through the enhancement of international cooperation. ISA will support MBRSC to develop Rashid Rover 3 (which is part of the Emirates Lunar Mission started in 2020) to build rovers to explore the Moon’s southern section. ISA will make a significant contribution by providing the Moon Infrared Spectrometer for improving data collection. Moreover, ISA and UAESA will jointly work on the Emirates Mission to Asteroids to implement scientific and technological activities: ISA will provide technical and scientific support, contributing to the design and implementation of the mission, through Italian expertise in advanced space technology.[9]
Other Italian companies are involved in this effort to promote UAE space exploration programs: Thales Alenia Space (a French-Italian joint venture within which the Italian company Leonardo holds a 33 percent share) is a strategic partner for the UAE space industry as a leading company in satellite systems and earth observation. Leonardo—Italy’s biggest aerospace, defense and security company with recently renewed capabilities in satellite and space systems manufacturing—is a long-term partner for Abu Dhabi as a technology provider for the Emirate defense sector. AVIO (a developer of launcher systems), Telespazio, a provider of mid- and downstream services, and OHB Italia (a developer of complex space systems) are also involved in this wider framework of cooperation.[10]
Defense
Strengthening bilateral cooperation in defense and cybersecurity reflects the need to counteract the current global challenges, traditional and hybrid threats, which could undermine stability and affect the trade and energy supply chain. Critical underwater infrastructures have become sensitive targets for disrupting threats, while the security of the sea lines of communication and trade remains a global priority to preserve.
During the meeting, both leaders stressed the importance of enhancing military and security cooperation to boost defense capabilities and promote regional stability, even if these countries and national companies have been committed to a long-standing collaboration in this sphere. Defense technology and military industry are the privileged areas of bilateral cooperation, supporting research and development, technical expertise exchange, as well as promoting joint production, technology transfer, and the development of defense manufacturing facilities. Furthermore, cooperation on counterterrorism and cybersecurity essentially bolsters information and intelligence-sharing mechanisms as well as coordinated responses to strengthen global resilience against the emerging cyber threats, which could affect critical infrastructures and the digital economy: the UAE and Italy reaffirmed their commitment to joint cybersecurity exercises such as GISEC and CyberQ 2024.
The cooperation between the Italian company Fincantieri (one of the world’s leading groups in high-complexity shipbuilding) and the Emirati company EDGE (one of the world’s leading advanced technology and defense groups) has already achieved significant results. Fincantieri has been operating in the UAE since 2008: in 2013 the state-controlled company delivered three ships (one corvette and two patrol vessels) ordered by the UAE and built in the Italian shipyards,[11] while in 2021 they signed an MoU with Mubadala Investment Company (an Emirati Sovereign Wealth Fund) to cooperate on advanced technologies concerning the naval and maritime sectors.
During the meeting, these companies signed an MoU to upgrade the former deal signed in November 2024, collaborating to develop underwater technologies, supporting the UAE in becoming a regional pioneer in underwater technology innovation. EDGE and Fincantieri’s cooperation will be focused on the design, development, and creation of unmanned systems for critical underwater infrastructure protection and seabed mapping, next-generation submarines, drone-carrier ships, and lightweight torpedoes.[12] One week before the meeting, through their joint venture called Maestral, Fincantieri and EDGE had obtained a €500 million contract from the UAE to carry out maintenance and upgrades for its naval fleet. Maestral’s task will be to oversee “comprehensive maintenance management of the UAE Navy to meet key operational and logistic needs” and support the UAE Navy’s “transformation journey to new levels of performance.”[13] In 2024, after the creation of the joint venture Maestral, the parties announced a large order by the UAE Coast Guard Forces for 10 technologically advanced 51m Offshore Patrol Vessels valued at €400 million.[14]
Energy
Cooperation on energy is the expression of the shared commitment to address climate change and to successfully achieve a green energy transition. The UAE has engaged in implementing a strategic shift from a fossil fuel-based energy system to a clean electricity and renewables-based one. As an international recognition of its efforts, the UAE hosted the United Nations Climate Change Conference (COP28) in 2023, also announcing the commitment to become the first Middle Eastern country to achieve climate neutrality, or zero emissions, by 2050. In 2017, the UAE published the Energy Strategy 2050, which aims to increase the share of clean energy (composed of renewables and nuclear) in the energy mix from 25 percent to 50 percent by 2050: as a result, this future energy mix is expected to be composed of 44 percent renewables, 38 percent gas, 12 percent clean coal and 6 percent nuclear. Furthermore, the UAE authorities are ready to use their enormous financial capacity to achieve the goals, with the commitment to invest US$163 billion by 2050 to achieve climate goals, increasing the production of renewables, reducing and abating emissions, and boosting energy efficiency.[15]
In January 2025, on the sidelines of the Abu Dhabi Sustainability Week, UAE, Italy, and Albania signed a Tripartite Strategic Partnership Framework based on advancing renewable energy cooperation, including large-scale solar and wind projects, to attain climate energy goals. This partnership aims at the construction of an underwater power line that will cross the Adriatic Sea (from Vlora to Puglia), transporting 1 GW of clean electricity, produced from renewable sources (photovoltaic and wind) in Albania. In addition to the Italian company Terna and the energy companies of Tirana, this project also involves Masdar, the UAE’s flagship renewable energy company, and TAQA, which could share its expertise in high-voltage transmission infrastructures, integrating ENI’s initiatives to enhance national and European energy security.[16] During the meeting in February, Emirate and Italian companies signed the framework agreement for this clean energy project.
Moreover, as a part of the above-mentioned cooperation on advanced technology and AI, the Italian company ENI signed a Letter of Intent with MGX (a leading Emirati investment fund focused on AI and advanced technology investment) and G42 (a globally leading AI-focused group based in Abu Dhabi) to develop state-of-the-art data centers in Italy to store, process, and manage large amounts of data, with a planned IT capacity of up to 1 GW. The innovative dimension in this agreement is linked to the energy aspect, because these facilities will be fully powered by blue power, a low-carbon energy source generated by natural gas power plants, using the CCS (Carbon Capture and Storage) technology. ENI has already opened a CCS hub in Ravenna in 2024—a facility set to become one of the world’s largest CO2 storage sites and the largest in the Mediterranean—which captures over 90 percent of the CO2 from the power plant’s emissions.[17] The first planned project is in the municipality of Ferrera Erbognone, which hosts the ENI’s Green Data Center, and will be developed in two phases of up to 500 MW of IT capacity, equal to Italy’s current installed capacity.[18]
ENI has been in Abu Dhabi since 2018, mainly in the oil & gas sector, within which ADNOC (Abu Dhabi National Oil Company) is its main partner: ENI operates Blocks 1, 2, and 3 with 70 percent interest in the exploration phase offshore Abu Dhabi. Moreover, ENI also holds a 25 percent interest in the Ghasha offshore concession, in the development phase, which covers a strategic relevance considering that Ghasha could meet over 20 percent of the country’s gas demand and enhance Emirati energy security by reducing imports from Qatar via the Dolphin pipeline. ENI also holds a 20 percent stake in ADNOC Refining, which operates in the Ruwais and Abu Dhabi areas, with an overall refining capacity of more than 900,000 barrels a day. The Ruwais complex is fourth in the world in terms of production.[19]
The perspective of development in the UAE has pushed ENI to expand its vision: since 2021 Mubadala Petroleum, a wholly owned subsidiary of Mubadala Investment Company, and ENI signed an MoU aimed at identifying cooperation opportunities in the energy transition sector, including the fields of hydrogen and carbon capture, utilization and storage, that align with their respective decarbonization targets. Finally, ENI and ADQ, a global sovereign investor based in Abu Dhabi with a focus on critical infrastructure and supply chains, signed an MoU to collaborate on the research and development of critical minerals. The agreement aims to strengthen the security and resilience of the critical minerals supply chain for both Italy and the UAE.[20]
Conclusion
In today’s global landscape, marked by economic uncertainty and geopolitical turbulence, Italy-UAE cooperation offers both countries an opportunity to recalibrate their roles within a fragmented multilateral system. Abu Dhabi and Rome share common priorities in sustainability and innovation, which can serve as a foundation for advancing shared ambitions in critical areas such as the green energy transition, global connectivity, supply chain security, sustainable development, and digital integration. If cooperation in the defense and industrial sectors appears strongly consolidated and mutually beneficial, it is observable that there are new fields that are currently explored, envisaging the achievement of important results, such as Carbon Capture and Storage (CCS) technology, production of green hydrogen, and critical minerals.
The existing threats of disruptions, which affect the global supply chain of critical minerals, represent a dangerous vulnerability that the main economies are trying to address. Following the recent agreement, Italy and the UAE could contribute to creating a reliable supply chain, including exploration, refining process and export of these strategic commodities, which are also fundamentals for the success of their bilateral cooperation. Indeed, critical minerals are key components of green technology, such as solar panels and batteries for electric vehicles, or defense and aero-spatial industries, such as radar systems, drones, and AI: security of supply chains will allow the UAE and Italy to better achieve the results of their strategic partnership.
This growing relevance of the Italian-Emirati cooperation could, however, trigger a kind of competition within the EU, challenging the role of France as the main partner of Abu Dhabi. At present, France remains the main beneficiary of Gulf investments (UAE, Saudi Arabia, and Qatar) and recently signed a €50 billion deal with the UAE for the advancement of its AI sector. Moreover, France moved earlier than Italy to appoint a special envoy for the India-Middle East-Europe Corridor (IMEC) project, also advancing the candidature of Marseille as the main European terminal for IMEC despite the potential candidacy of Italy’s Trieste port.[21] The shared goal to enhance supply chain resilience—avoiding dangerous disruptions—through the implementation of alternative East-West trade corridors (in order to reduce the dependence on the Chinese-backed Belt and Road Initiative) will raise IMEC’s strategic relevance, so pushing countries to cooperate for its successful achievement. In this framework, Italy and the UAE are already jointly cooperating to promote digital connectivity, green energy and economic integration, which are the main targets of this connectivity project. Given their geographic position, the UAE and Italy are natural logistic hubs along the IMEC planned route—the UAE will link India with the Middle East, while Italy and France will link IMEC to the European markets,[22] contributing to the economic diversification and becoming key linchpins in the global connectivity architecture.
References
[1] Italian Government Presidency of the Council of Ministers, “President Meloni meets with the President of the United Arab Emirates,” February 24, 2025, https://www.governo.it/en/articolo/president-meloni-meets-president-united-arab-emirates/27731.
[2] “Government of UAE, Government of Italian Republic issue joint statement,” Emirates News Agency (WAM), February 24, 2025, https://www.wam.ae/en/article/bid42c2-government-uae-government-italian-republic-issue.
[3] Pascal Carlucci, “The Road to Long-Term Stability in UAE-Italy Relations,” AGDA Insight, April 2025, https://www.agda.ac.ae/research/publications-multimedia-events/publication-details/the-road-to-long—term-stability-in-uae—italy.; Ebtesam AlKetbi, “The UAE and Italy: Deepening Strategic Partnership in a Turbulent International Landscape,” Emirates Policy Center, March 3, 2025, https://epc.ae/en/details/brief/the-uae-and-italy-deepening-strategic-partnership-in-a-turbulent-international-landscape.
[4] “The Italy-UAE Partnership: A Bridge to Europe,” ISPI-Med This Week, February 27, 2025, https://www.ispionline.it/en/publication/the-italy-uae-partnership-a-bridge-to-europe-201818.
[5] Alessia Peretti, “Italy and the UAE sign historic $40 billion investment deal,” Euractiv, February 25, 2025, https://www.euractiv.com/section/politics/news/italy-and-the-uae-sign-historic-40-billion-investment-deal/.
[6] Italian Government, “Italy-UAE trade exchanges,” InfoMercatiEsteri, https://www.infomercatiesteri.it/scambi_commerciali.php?id_paesi=102#.
[7] “Government of UAE, Government of Italian Republic issue joint statement,” Emirates News Agency (WAM), February 24, 2025, https://www.wam.ae/en/article/bid42c2-government-uae-government-italian-republic-issue.
[8] Michele Scataglini and Edoardo Mancini, “Italy-UAE: A Multi-Dimension Approach to Space Cooperation,” ISPI Commentary, November 24, 2024, https://www.ispionline.it/en/publication/italy-uae-a-multi-dimension-approach-to-space-cooperation-191420.
[9] Italian Space Agency, “Italy and the UAE strengthen space cooperation with two new agreements,” February 24, 2025, https://www.asi.it/2025/02/litalia-e-gli-emirati-arabi-uniti-rafforzano-la-cooperazione-spaziale-con-la-firma-di-due-nuovi-accordi/.
[10] Michele Scataglini and Edoardo Mancini, “Italy-UAE: A Multi-Dimension Approach to Space Cooperation.”
[11] “Fincantieri delivers two naval vessels for the UAE Navy,” Avio News, January 8, 2013, https://www.avionews.it/item/1148784-fincantieri-delivers-two-naval-vessels-for-the-uae-navy.html
[12] “EDGE and Fincantieri Sign MoU to Pioneer Underwater Solutions through MAESTRAL Joint Venture,” EDGE, February 24, 2025, https://edgegroup.ae/news/edge-and-fincantieri-sign-mou-pioneer-underwater-solutions-through-maestral-joint-venture.
[13] Tom Kington, “Fincantieri, Edge nab $500M-plus maintenance deal for UAE Navy fleet,” Defense News, February 17, 2025, https://www.defensenews.com/industry/2025/02/17/fincantieri-edge-nab-500m-plus-maintenance-deal-for-uae-navy-fleet/.
[14] “EDGE Group and Fincantieri Formalise Shipbuilding Joint Venture, MAESTRAL, and Announce 400 Million Euro Order for 10 Naval Vessels,” EDGE, May 20, 2024, https://edgegroup.ae/news/edge-group-and-fincantieri-formalise-shipbuilding-joint-venture-maestral-and-announce-400.
[15] “UAE announces Net Zero by 2050 strategic initiative,” Emirates News Agency (WAM), October 7, 2021, https://www.wam.ae/en/details/1395302978138.
[16] “Masdar, TAQA, and Eni Sign Agreement to Support the Tripartite Initiative,” Masdar, February 25, 2025, https://masdar.ae/en/news/newsroom/masdar-taqa-and-eni-sign-agreement-to-support-the-tripartite-initiative.
[17] “Ravenna CCS,” ENI, https://ravennaccs.com/en-IT/project/ravenna-hub.
[18] “Eni expands collaboration with the UAE in data centres, electricity interconnections and critical minerals,” ENI, February 24, 2025, https://www.eni.com/en-IT/media/press-release/2025/02/pr-eni-expands-collaboration-with-uae-in-data-center.html.
[19] “Our activities in the United Arab Emirates,” ENI, https://www.eni.com/en-IT/actions/global-activities/united-arab-emirates.html.
[20] “Eni expands collaboration with the UAE in data centres, electricity interconnections and critical minerals,” ENI, February 24, 2025, https://www.eni.com/en-IT/media/press-release/2025/02/pr-eni-expands-collaboration-with-uae-in-data-center.html.
[21] “The Italy-UAE Partnership: A Bridge to Europe,” ISPI-Med This Week, February 27, 2025, https://www.ispionline.it/en/publication/the-italy-uae-partnership-a-bridge-to-europe-201818.
[22] Pascal Carlucci, “The Road to Long-Term Stability in UAE-Italy Relations.”
