Italy and Saudi Arabia have solidified a significant strategic partnership by signing agreements worth $10 billion. The announcement came after Italian Prime Minister Giorgia Meloni met with Saudi Crown Prince Mohammed bin Salman in AlUla, Saudi Arabia.

One of the key deals involves Italy’s credit export agency, SACE, which committed to providing $3 billion in loan guarantees for NEOM, Saudi Arabia’s ambitious real estate megaproject. NEOM, a cornerstone of Saudi Arabia’s Vision 2030, aims to create a futuristic urban and industrial hub that could house nine million residents.

According to Zawya, Meloni expressed optimism about the growing ties, stating, “There is enormous potential in our cooperation,” and emphasized that the agreements mark a new phase for the two nations. She highlighted infrastructure, energy, defence, sport, entertainment, and tourism as key areas for deeper collaboration.

SACE also signed a memorandum of understanding with Saudi Electricity Company to back green projects and related construction activities. Additionally, Italian gas operator Snam partnered with ACWA Power to explore investments in green hydrogen supply for Europe. Italian defence company Leonardo joined the efforts by signing an agreement to enhance aerospace and defence collaboration with Saudi firms.

The discussions extended beyond economic matters, covering global issues such as peace in Ukraine, post-war reconstruction in Syria, and support for Lebanon. Meloni also voiced her support for Saudi Arabia joining the GCAP fighter jet programme, an initiative currently involving Italy, Britain, and Japan. However, she noted this would require time to finalize.

This partnership highlights the growing economic and diplomatic alignment between the two nations, paving the way for future collaboration across multiple sectors.