Italy and Saudi Arabia inked a raft of agreements worth USD 10 bn during Italian Prime Minister Giogria Meloni’s trip to the Kingdom, Reuters reports. The two sides signed 26 MoUs across sectors including construction, renewable energy, cultural exchange and digital technologies, at a roundtable meeting attended by government officials and private sector players, state news agency SPA reports.

SACE SIGNS A RAFT OF AGREEMENTS

Italy’s state export credit agency Sace signed agreements worth USD 6.6 bn, to facilitate bilateral trade and investment, according to a statement.

#1- Sace signed a USD 3 bn multi-currency facility agreement with Neom, backed by nine international banks including HSBC, Banco Bilbao Vizcaya Argentaria, Bank of China, Crédit Agricole CIB, Agricultural Bank of China, Citibank, China Construction Bank, JP Morgan Chase and Bank of America. The partnership will allow Neom to leverage services from Italian firms for its infrastructure, urban development, construction and transport projects.

REMEMBER- Sace had previously pledged USD 3 bn in loan guarantees to Neom — paving the way for Italian firms to win development contracts for the megaproject.

#2- Acwa Power signed multiple agreements with Sace to provide a USD 100 mn credit line to Acwa Power in exchange for promoting Italian businesses. Up to USD 500 mn in support to facilitate exports from Italy is also in the cards.

ALSO- Acwa Power signed an MoU with Italian natural gas operator Snam to explore collaboration on a green hydrogen supply chain from Saudi Arabia to Europe, according to a statement. The two sides will be “evaluating the development of an ammonia import terminal in Italy to facilitate the delivery of green hydrogen through the SoutH2 Corridor.”

#3- Sace also signed an MoU with the Saudi Electricity Company (SEC) to explore credit guarantees to SEC for new sustainable projects to develop the Saudi electricity system in collaboration with Italian EPC and O&M service providers, according to a press release.

#4- The Arab Bank for Economic Development in Africa will collaborate with Sace to identify prospects for the development of partnerships and joint initiatives in Africa.

ALSO FROM THE ROUNDTABLE-

#1- A new Strategic Partnership Council: Meloni and Crown Prince Mohammed bin Salman signed an agreement to establish a new Strategic Partnership Council to strengthen ties between the two countries, state-press agency SPA reports.

#2- Development cooperation: Saudi’s Fund for Development also signed an MoU with Italy’s National Promotional Institution to enhance social and economic development cooperation, and develop sectors contributing to sustainable development goals, SPA reports.

#3- Aerospace and defense: Italian multinational security firm Leonardo inked an MoU with the Investment Ministry and the General Authority for Military Industries to “discuss, develop and evaluate” investments and partnerships in the aerospace and defense sectors, according to a press release.

Future cooperation: Solar and wind energy, sustainable tourism, and advanced construction techniques were highlighted as sectors for future cooperation during the roundtable discussion. Italian companies also discussed their interest in ramping up their investments in the Kingdom, contributing to total foreign investments in Saudi projected to reach SAR 11.8 tn over the next six years, SPA reported. Meloni also cited defense, energy cooperation and sport among the sectors set to see further cooperation, and expressed support for the Kingdom joining the GCAP fighter jet program.

Strong ties: Italy ranked as Saudi’s second-largest European trade partner in 2023 and tenth overall, with USD 10.8 bn in trade volumes, Asharq Alawsat reports. Saudi imports from Italy stood at USD 5.78 bn, while exports to the country were valued at USD 4.92 bn — including USD 737 mn in non-oil exports, the outlet said.

Tags: