Italy’s Synapsia has finalized a $2.5 billion contract with UAE’s Bold Technologies to deliver AI-powered city management services for Abu Dhabi.

The Italian firm will develop advanced technology aimed at resolving urban challenges, including issues related to transport, parking, and emergency disaster response. Marinelli described the initiative as a “cognitive city project,” which he stated is an evolution of the smart city concept.

The agreement, signed on March 3, stipulates that Bold Technologies will disburse the $2.5 billion in five installments over an 18-month period, contingent upon reaching specific milestones. Both companies emphasized that integrating Synapsia’s AI will enable cities to transform from inefficient data silos to autonomous, self-learning urban networks that can optimize infrastructure, transportation, and energy usage in real time.

Furthermore, Marinelli noted that the two companies plan to establish a new entity named My Aion Inc. This venture aims to go public on the Abu Dhabi stock exchange, with an initial public offering anticipated between 2027 and 2029.

Under the leadership of Prime Minister Giorgia Meloni, Italy is actively seeking to strengthen its economic relationships with Gulf nations, despite facing criticism from political opponents regarding human rights concerns. In a bilateral summit held in February, Meloni announced that the United Arab Emirates had committed to investing $40 billion in Italy, although a specific timeline for this investment was not disclosed.

The UAE, recognized as a wealthy oil producer, is striving to become a leader in artificial intelligence amidst growing competition from neighboring countries such as Qatar and Saudi Arabia.