UAE and Italy Strengthen Trade and Investment Collaboration

The United Arab Emirates (UAE) and Italy are taking significant steps to strengthen trade and investment collaboration in 2025. Both nations aim to build a stronger economic partnership that leverages their respective strengths, boosting growth across sectors such as technology, renewable energy, healthcare, and infrastructure. This collaboration marks an important chapter in bilateral relations, focusing on strategic investments and private sector engagement.

Growth in Bilateral Trade

Trade between the UAE and Italy has grown steadily in recent years, reflecting a mutual interest in strengthening economic ties. In 2024, non-oil bilateral trade reached approximately USD 14 billion, marking a nearly 20% increase from the previous year. The upward trend has continued in 2025, with trade in the first half of the year already totaling USD 7.9 billion, representing a 14.6% year-on-year increase compared to the same period in 2024.

Italy has emerged as the UAE’s leading trade partner among European Union countries and ranks 12th globally in terms of the UAE’s total global trade, accounting for around 1.7% of all trade. This growth reflects the increasing importance of both nations as trade and investment hubs, creating opportunities for businesses and investors on both sides.

Key Areas of Collaboration

Technology and Artificial Intelligence

One of the cornerstones of UAE-Italy collaboration is the field of technology, particularly artificial intelligence (AI). A new initiative involves establishing a major AI hub in Italy, led by G42, an Abu Dhabi-based AI company, in partnership with Italian technology firm iGenius. This hub aims to become Europe’s largest AI computing infrastructure.

The collaboration is expected to accelerate technological innovation, strengthen research and development capabilities, and create new opportunities in the digital economy. Both countries are focused on integrating AI solutions across sectors such as finance, healthcare, and logistics, demonstrating a shared commitment to advancing technological development.

Renewable Energy and Sustainability

Sustainability is another major focus of the UAE-Italy partnership. Earlier in 2025, the UAE, Italy, and Albania signed a clean energy cooperation agreement. This deal aims to produce renewable energy, including solar and wind power, in Albania with UAE expertise. Some of this energy will be transferred to Italy through an underwater cable system, helping Italy diversify its energy sources and reduce reliance on fossil fuels.

This collaboration aligns with Italy’s ongoing efforts to meet its energy demand while transitioning to a sustainable, low-carbon economy. By combining UAE technological expertise and Italian infrastructure capabilities, the initiative represents a model for regional clean energy projects and international cooperation.

Infrastructure and Connectivity

The UAE and Italy are also working together to enhance infrastructure and connectivity. A major focus is the India-Middle East-Europe Economic Corridor (IMEC), designed to improve trade and logistics routes between Asia, the Middle East, and Europe. The corridor strengthens transport and communication networks, offering opportunities for businesses to expand across continents.

Through this initiative, the UAE and Italy are positioning themselves as critical hubs for global trade, facilitating the movement of goods, services, and investments. The collaboration is expected to create efficiencies, reduce costs, and enhance economic competitiveness for both nations.

Private Sector Engagement

Private sector participation is a central component of the UAE-Italy trade and investment collaboration. Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, recently met with the Italian Business Council in the UAE to explore opportunities for greater cooperation.

The discussions highlighted strategies to strengthen private sector engagement in technology, renewable energy, healthcare, and infrastructure. Both sides agreed to identify and support collaborative projects that can benefit businesses and investors, create jobs, and stimulate economic growth.

By involving private companies in joint ventures, partnerships, and investments, the UAE and Italy aim to create a sustainable foundation for long-term trade relations. This approach emphasizes innovation, market access, and the transfer of knowledge and expertise between both countries.

Historic Investment Deal

In February 2025, the UAE and Italy signed a landmark $40 billion investment agreement covering several strategic areas, including AI, data centers, space research, renewable energy, and rare earth resources. Italian Prime Minister Giorgia Meloni described this agreement as a milestone in Italy’s relationship with the UAE, highlighting its potential to transform industries and create new economic opportunities.

The deal reflects both nations’ commitment to investing in high-growth sectors and strengthening collaboration across research, technology, and infrastructure. It also provides a framework for future projects, ensuring that both countries benefit from mutual expertise and resources.

Benefits of the Collaboration

The strengthened UAE-Italy collaboration offers numerous benefits:

Economic Growth: By fostering trade and investment in strategic sectors, both nations can boost GDP growth and increase employment opportunities.
Technological Advancement: Joint AI projects and innovation hubs accelerate research, development, and application of advanced technologies.
Sustainable Development: Renewable energy initiatives promote environmental sustainability and energy security.
Infrastructure Enhancement: Improved transport, logistics, and trade routes create efficiencies for businesses and investors.
Private Sector Opportunities: Increased collaboration allows companies to explore joint ventures, partnerships, and investment opportunities across borders.

Future Outlook

Looking ahead, the UAE and Italy are committed to further strengthening trade and investment ties. Plans include expanding AI infrastructure, scaling renewable energy projects, enhancing transport connectivity, and promoting private sector collaboration.

Both nations are also exploring new sectors such as healthcare innovation, digital finance, and space research, which hold significant potential for growth. By building a robust framework for collaboration, the UAE and Italy are setting the stage for a sustainable and prosperous partnership.

This strengthened relationship not only benefits both countries economically but also contributes to global trade stability and regional development. As businesses and governments continue to work together, the UAE-Italy partnership is expected to serve as a model for international collaboration in trade, investment, and innovation.

Conclusion

The UAE and Italy are entering a new era of trade and investment collaboration, marked by ambitious projects and strategic investments. Through technology, renewable energy, infrastructure development, and private sector engagement, both nations are building a partnership that promises long-term economic growth and mutual prosperity.

By focusing on innovation, sustainability, and global connectivity, the UAE-Italy collaboration demonstrates how countries can leverage their strengths to create new opportunities for businesses and citizens alike. As this partnership continues to grow, it is likely to have a lasting impact on the economic landscape of both nations and beyond.

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