Saudi Crown Prince Mohammed bin Salman received Italian Prime Minister Giorgia Meloni in Al-Ula during her three-day visit to Saudi Arabia from January 25 to 27, 2025. The historic city, which has emerged as a key diplomatic venue for Saudi Arabia, hosted discussions that signaled a new phase in Saudi-Italy relations. The meeting was marked by mutual understanding and a friendly atmosphere, culminating in the signing of a series of agreements covering various sectors. The visit holds particular significance against the backdrop of evolving regional and global dynamics, as well as the national and foreign policy priorities of both countries. With Saudi Arabia and Italy strengthening their roles as influential players in their respective spheres, their growing ties reflect a broader geopolitical shift. However, translating the visit’s outcomes into concrete results will require sustained efforts and may encounter significant challenges. This report examines the factors driving the visit, its key outcomes, potential impact on both countries and the feasibility of achieving its intended goals.
Saudi-Italy Relations: Realities, Contexts and Further Cooperation
Saudi Arabia and Italy have enjoyed longstanding friendly relations, which have laid the groundwork for key developments in their ties, particularly amid the ambitious agendas pursued by both countries’ leaderships in recent years. Several factors have driven the recent push to enhance cooperation between the two countries, reflecting their shared strategic interests and evolving diplomatic priorities. The following discusses the current state of Saudi-Italy relations and the key factors driving their deepening partnership.
Deep-rooted Relations With Further Scope for Enhancement
Saudi-Italy relations trace their origins to the 1930s, with Italy being among the first countries to establish diplomatic ties with Saudi Arabia by opening a consulate in Jeddah in 1932. These ties steadily expanded through a series of agreements spanning various fields of cooperation, beginning with the signing of a bilateral cooperation agreement in 1933, as detailed in Table 1.
Italy is a key trading partner for Saudi Arabia, ranking as the third-largest economy in the Eurozone, a G7 member, and the seventh-largest destination for Saudi exports. In 2022, Saudi Arabia exported $6.94 billion worth of goods to Italy, primarily crude and refined oil, while Italy’s exports to the kingdom totaled $4.04 billion. Bilateral trade reached approximately $11 billion that year, up from $9.5 billion in 2021. Trade between the two countries continued to expand in 2024, with Saudi exports growing by more than 26% in the first 10 months compared to the same period in 2023, bringing the total trade volume to around $10.8 billion. Italy’s main exports to Saudi Arabia include machinery, electrical equipment, food products and furniture, while Saudi Arabia’s key exports to Italy remain petroleum and its derivatives.
Italy is also a major arms supplier to Saudi Arabia, with Riyadh ranking as the 10th-largest recipient of Italian arms exports in 2019. However, in 2021, Italy suspended arms sales to the kingdom over concerns related to the conflict in Yemen. The ban was lifted two years later, allowing the resumption of defense exports between the two countries.
Table 1: The Agreements Signed Between the Two Countries Between 1932 and 2024
10/2/1932 | Treaty of Friendship |
6/2/1973 | Cultural, Scientific and Technical Cooperation Agreement |
4/3/1975 | Economic, Industrial, Technical and Financial Cooperation Agreement |
1979 | An agreement between Saudi Aramco and Italy’s Eni to supply oil to Italy |
24/11/1985 | Agreement on the Avoidance of Double Taxation on Income and Property in Relation to Aviation |
17/2/1993 | An agreement for cooperation between the defense ministries of the two countries |
16/12/1995 | Memorandum of understanding on Combating Terrorism, Drug Trafficking, Psychotropic Substances and Organized Crime |
1998 | Holding the first meeting of the Security Cooperation Committee between the two countries |
10/9/1996 | A joint agreement to boost and protect investments |
1997 | Memorandum of understanding signed in Rome between the Council of Saudi Chambers of Commerce and Industry and the Italian Industrialists’ Federation |
7/2/2000 | Memorandum of understanding on Bilateral Consultations between the Saudi Ministry of Foreign Affairs and the Italian Ministry of Foreign Affairs |
4/2/2001 | Executive Protocol to the Agreement on Cultural, Scientific and Technical Cooperation |
2005 | Memorandum of understanding between the Saudi and Italian Football Federations |
January 2007 | Agreement for the avoidance of double taxation between the Saudi Arabia and Italy, ratified on 12/1/2009 |
1993 | Renewal of the cooperation agreement between the Italian and Saudi governments in the field of defense. The agreement was renewed on 11/6/2007 and was later ratified |
6/11/2007 | Cooperation agreement between the Italian and Saudi governments on Healthcare |
6/11/2007 | Memorandum of understanding in the field of vocational training between the Ministry of Labor and Social Security in Italy and the Technical and Vocational Training Corporation in Saudi Arabia |
6/11/2007 | Memorandum of understanding in the field of academic cooperation between the Italian Ministry of Universities and Scientific Research and the Ministry of Higher Education in the kingdom |
Priorities and Creating a Conducive Environment for Cooperation
In the period leading up to the visit, both Saudi Arabia and Italy emphasized the importance of strengthening their ties. For the kingdom, a conducive environment for cooperation has been created through Vision 2030, which has opened new opportunities for international partnerships. Launched by Crown Prince Mohammed bin Salman in 2016, Vision 2030 aims to reduce Saudi Arabia’s economic dependence on oil by the end of the decade through major investments in sectors such as green energy, sports, tourism and digitalization. Additionally, the initiative seeks to diversify the kingdom’s international relations, enhance its global role and position it among the world’s emerging and influential powers. This strategic shift has paved the way for stronger cooperation with Italy, aligning their mutual interests on the international stage.
Saudi Arabia’s interest in strengthening cooperation with Italy aligns with its broader strategy of reducing dependence on oil and attracting strong economic partners to support Vision 2030’s goals across economic, technological, cultural and other sectors. As part of this effort, the Saudi Public Investment Fund (PIF), valued at $700 billion, is actively working to diversify its investments.
Italy’s approach toward Saudi Arabia has been shaped by the policies of the Meloni government, which took office in October 2022 with a focus on restoring the country’s international presence and strengthening its economic position, particularly in the southern Mediterranean and Middle East. Recognizing Saudi Arabia’s pivotal role in the region, Italy views cooperation with the kingdom as essential to advancing its strategic interests. Additionally, Rome seeks to promote regional stability and mitigate the negative spillover effects of Middle Eastern conflicts on the Mediterranean and southern Europe, including challenges such as illegal immigration.
Italy’s approach to Saudi Arabia has also been driven by its broader strategy of strengthening ties with energy-rich and financially strong countries in the region, with a particular focus on the Gulf states. As part of this effort, Rome has actively sought Gulf investments in the Made in Italy Fund while exploring opportunities for joint partnerships, particularly in the mining sector — both in Italy and Africa. In this context, the Saudi PIF has been among the key Gulf investment funds that Italy aims to engage.
Expanding Relations
Ahead of Meloni’s visit, relations between Saudi Arabia and Italy had been marked by continuous progress. In September 2023, at the inaugural Italian-Saudi Forum in Milan, the two countries signed a memorandum of understanding aimed at enhancing economic ties and strategic investments. This memorandum is set to last for two years, with an automatic renewal for an additional 24 months unless either party notifies the other of its intention to decline the renewal six months prior to its expiration.
In the same month, Italian Foreign Minister Antonio Tajani visited Saudi Arabia, where he held talks with Saudi Foreign Minister Faisal bin Farhan. Their discussions focused on energy partnerships, combating illegal immigration and strengthening economic cooperation, including support for Saudi Arabia’s Vision 2030 program aimed at reducing dependence on fossil fuels. During his visit, Tajani also met with local business leaders and participated in the inauguration of the third line of the Riyadh Metro, a project involving the Italian company WeBuild Group.
In November 2023, Italian Minister of Industry Adolfo Urso, accompanied by executives from major Italian companies, visited Saudi Arabia to explore joint investment opportunities across several sectors. These included automotive, defense, hydrogen, mining, oil and gas and space sectors. The discussions also focused on developing a regulatory and industrial framework to enhance and accelerate strategic independence in the vital raw materials sector.
As a result of the visit, the Saudi PIF and Pirelli, the Italian multinational tire manufacturer, signed a joint venture agreement in November 2023 to establish a tire manufacturing facility in Saudi Arabia. The PIF will hold a 75% stake in the venture, while Pirelli will own the remaining 25% and provide technical and commercial support for the plant. The facility is expected to begin production in 2026, with an eventual annual production capacity of 3.5 million units.
The Visit’s Outcomes and Dimensions
Meloni’s visit marked the culmination of the developments in the relationship between the two countries over the past three years since she took office in Italy. The visit resulted in several key outcomes, the most significant of which are:
Bilateral Understandings and Enhancing Relations
The meeting between the Saudi crown prince and the Italian prime minister demonstrated a high level of understanding and rapprochement between the two countries. Their discussions led to the elevation of bilateral relations, with both leaders signing a joint statement to establish the Saudi-Italian Strategic Partnership Council. As part of this initiative, the two sides agreed to initiate organized cooperation, including the organization of a sectoral business forum in the coming months and the creation of an action plan with shared priorities. Meloni also participated in a roundtable with public and private sector representatives from both countries, where several agreements were signed at both governmental and private levels. These agreements primarily focus on the economic sector and the preservation of cultural heritage.
Consensus on Common International Issues
During their meeting, both leaders addressed a range of significant global and regional issues, particularly in the context of EU-GCC relations. Their discussions included efforts to find a just and lasting peace in Ukraine, consolidating the ceasefire in Gaza and resuming the political process toward a two-state solution, supporting a comprehensive political process in Syria along with reconstruction efforts and facilitating Lebanon’s transition to sustainable energy. Additionally, they focused on developing data centers and joint initiatives aimed at achieving sustainable progress in Africa.
Drawing the Kingdom’s Support for the Mattei Plan in Africa
During the visit, private sector agreements were signed for cooperation in Africa, aligned with Italy’s Mattei Plan, which was introduced at the Italy-Africa Summit on January 28, 2024. The plan aims to boost investments, offer vocational training and ensure food and energy security in Africa. Additionally, it seeks to curb migration flows across the Mediterranean by fostering a stable economic environment in Africa. However, due to insufficient funding, Italy sought support from Saudi Arabia to help achieve the plan’s objectives on the continent.
Strategic Cooperation
According to Meloni, Italy is expected to explore opportunities for cooperation with Saudi Arabia in military-related domains, allowing both countries to strengthen military relations and strategic positions. This would happen through participation in major projects, with each country leveraging its capabilities and resources.
Cultural Partnership
This visit demonstrated the shared commitment to broadening cultural cooperation, including the development of Al-Ula, which is emerging as a contemporary tourism and arts hub centered around its exceptional archaeological heritage. The visit opened the door for potential cooperation on several joint cultural projects.
Multiple Investment Agreements and Deals
The two sides signed numerous agreements valued at approximately 10 billion euros, involving several key Italian companies, both public and private, and Saudi companies. The most significant agreements, totaling 6.6 billion euros, were made through SACE, the insurance and public finance company supporting Italian investments abroad. These agreements aim to promote exports and investments by Italian companies in Saudi Arabia. Other major Italian companies, including Leonardo, Fincantieri, Pirelli and Joyce, also finalized agreements with Saudi companies (see Table 2).
Table 2: Agreements Signed by Saudi Arabia and Italy During the Visit of Meloni in January 2025
A letter of intent was signed between the Saudi Red Sea Authority and the Italian shipbuilding company Fincantieri, focusing on sustainable development, maritime security and infrastructure. |
A memorandum of understanding was signed between the Italian company De Nora, specializing in electrochemical industries, and the Saudi energy company ACWA Power, to study the efficiency of water treatment systems. |
Another memorandum of understanding was signed with the Saudi Water Authority, focusing on water treatment and hydrogen extraction from water. |
Saudi Arabia’s planned mega-city, Neom, secured a $3 billion export credit from Italian insurer SACE. |
ACWA Power signed two agreements with SACE to explore renewable energy business opportunities in Central Asia and Africa. The deal includes a $100 million credit line from SACE to the company, as well as a commitment to explore up to $500 million in support for Italian exports. |
A memorandum of understanding was signed between Italian energy company Snam and ACWA Power to explore the green hydrogen and ammonia supply chain from Saudi Arabia to Europe. |
A memorandum of understanding was signed between Saatchi and the Saudi Electricity Company to facilitate investment opportunities, particularly in renewable energy projects. |
A memorandum of understanding was signed between the Saudi Fund for Development and the Italian National Promotion Agency, a state-owned body that supports the Italian economy, to enhance bilateral economic cooperation. |
A memorandum of understanding was signed between Leonardo SpA, the leading Italian company in the military and aerospace sector, with the aim of discussing, developing, and evaluating a series of investments and opportunities to further expand cooperation in the aerospace and defense sectors. |
Fincantieri, a public company operating in the shipbuilding sector, signed agreements with Saudi Arabia. According to available information, these agreements concern the civil shipbuilding sector and the development of cybersecurity in the maritime sector. |
Follow-up on the memorandum of understanding for cooperation in the field of culture between the Italian Ministry of Culture and the Ministry of Culture of the Kingdom of Saudi Arabia, signed in Venice in May 2023, and agreement on cooperation projects in the city of Al-Ula. |
Results
Meloni’s visit is of particular importance to both the kingdom and Italy, given several considerations, and the two sides’ aspiration to achieve strategic advantages in light of regional and international changes. The benefits for both countries from this cooperation can be explained as follows:
Potential Benefits for the Kingdom
Crown Prince Mohammed bin Salman’s careful and purposeful actions serve the greater goal of advancing the kingdom’s Vision 2030. An aspect of this vision is to develop a strategic approach to diplomacy, hence, Meloni’s reception is positioned as part of the kingdom’s nuanced and highly calculated diplomatic strategy.
This visit marks a significant moment in Saudi-Italy relations, fostering deeper cooperation, particularly in the economic domain. Economic cooperation is based on enhancing trade and investment between the two countries while also expanding opportunities in Central Asia and Africa. If the agreements take effect, both Riyadh and Rome stand to benefit from strengthened ties and mutual growth.
For the kingdom, this partnership offers a valuable ally in its efforts to diversify its strategic relationships with major global powers. Italy, as a significant industrial player, will provide crucial support to Saudi Arabia’s ambitions. Cooperation in defense industries will bolster the kingdom’s defense capabilities, enhance self-defense strategies and offer key expertise in military manufacturing, aligning with the objectives of Vision 2030. Additionally, deepening ties with Italy will reinforce Saudi Arabia’s influence in Europe, considering Italy’s prominent position within the European continent.
Additionally, these agreements will provide the kingdom with significant backing for its efforts to diversify income sources beyond oil. Vision 2030 will receive robust support from Italy, a strong economic partner, helping to drive forward the kingdom’s development plans. The Saudi PIF will also gain valuable opportunities to expand and diversify its economic partnerships, which will contribute to fortifying Saudi Arabia’s economic interests and safeguarding it from the vagaries of regional and international developments.
While the United States has shown less interest in transitioning to renewable energy, particularly under President Donald Trump, who is encouraging the drilling of oil, Saudi Arabia is keen on developing a clean energy transition as part of its Vision 2030. In this context, a partnership with Italy could play a crucial role in helping the kingdom achieve its next revolution in the energy sector, leveraging Italy’s expertise in renewable energy and sustainable development.
Moreover, strategic projects and agreements on regional and international issues will strengthen the kingdom’s vision on the global stage and enhance its regional position. Italy aligns with Saudi Arabia on the settlement of the Palestinian issue, which is central to achieving stability in the Middle East. As a result, the kingdom may draw Italy closer to its vision for resolving this issue, emphasizing the priority of comprehensive peace rather than yielding to pressures for normalization or attempts to bury the Palestinian cause.
The visit also offers Saudi Arabia an additional opportunity to strengthen its influence and impact in Africa and Central Asia, advancing its goals in these regions and gaining further momentum in its relations with African partners. Through participation in the Mattei Plan, the kingdom can achieve its objectives in these regions, which hold significant importance within its broader regional strategy and plans.
On the other hand, through these investments and advanced relations, including cooperation in culture and antiquities, the kingdom will enhance its soft power and position as a global tourist destination. The visit to the historic Al-Ula region was arranged to promote this aspect. Additionally, these diverse interests will provide crucial resilience against fluctuations in Italian politics and US pressures, such as during the period when Italy suspended arms exports to the kingdom.
Potential Benefits for Italy
Like the kingdom, Meloni has adopted a pragmatic approach in her foreign policy, focused on advancing Italy’s interests. She articulated this by stating, “As always, these are not simply courtesy visits; they are opportunities for us to work towards concrete results for Italy.” The visit proved to be largely successful in this regard, and its outcomes are sure to positively influence the Meloni government.
Italy has strengthened its relations with a regional powerhouse and an emerging international force. Through its partnership with the kingdom, Italy can solidify its regional presence and implement its ambitious projects in Africa and Central Asia, thereby restoring and reinforcing Rome’s position on the international stage, after having been overshadowed by other powers in Europe over the years.
In addition, the kingdom has the potential to revitalize its peace initiative in Ukraine, an issue of urgent concern for all European parties weary from the war, including Italy. This is especially crucial given the stagnation of the peace process and the lack of alternative mediating powers, with the kingdom being one of the few actors possessing positive relations with both sides of the conflict, as well as the trust and influence necessary to facilitate meaningful talks.
The visit also fostered consensus and alignment with the Saudi leadership on regional stability, which Italy seeks. There is now common ground regarding the resolution of crises and the end of regional chaos, with both Italy and the kingdom positioning themselves as international mediators. This cooperation could enhance Italy’s aspirations and its new strategy to promote stability in the broader Mediterranean region, including in Syria, Lebanon and Libya. In these countries, the kingdom plays a pivotal role in advancing the political process and helping them overcome internal divisions and the threat of civil war, which negatively impacts European security, Italy’s security, and its vital interests. This cooperation also supports the broader peace process and efforts to address regional issues.
Moreover, Italy has secured a powerful financier in the kingdom, which can inject additional investments into its local market and projects, enhancing its position as a leading global industrial power. This strengthens the national economy with long-term impacts, especially as Italy seeks to diversify its economic alliances and reduce its dependence on international powers like China. Additionally, Italy can count on the kingdom to finance its cross-border projects in Africa and Central Asia aimed at enhancing its geopolitical presence in the international arena.
There is no doubt that by deepening the partnership, the two countries are laying a solid foundation on the map of global corridors, particularly those originating from Southeast Asia and crossing the Middle East toward Europe. This strengthens both sides’ aspirations for a significant presence in the global trade scene, promoting pioneering projects and ensuring the stability of supply chains. The partnership also enhances their influence on the global stage, as Italy aims to fortify its relations with India, while the kingdom seeks to strengthen its economic ties with Europe. The kingdom’s strategic location, crucial in international transport routes, is also vital for important international waterways that are key to Italy and Europe. Moreover, the partnership with the kingdom offers Italy a gateway to expand its relationships with other Gulf countries and the broader Arab world. Finally, there is a significant opportunity for fruitful strategic cooperation in the energy sector, aligning with Italy’s long-term plans to secure energy and gas supplies. Following the shift in European countries’ energy strategies due to the Russian war on Ukraine, many have turned their attention to the Global South to compensate for the disruption in gas and oil supplies from Russia. Saudi Arabia, one of the world’s leading oil exporters, boasts vast reserves of natural gas, and Italy seeks to diversify its energy sources beyond Africa.
Potential Challenges
The competition between global powers and the positions of the two countries on the world stage present certain challenges to their relationship. The kingdom has managed to maintain strong ties with both the East and the West, including China and Russia. In contrast, the Meloni government has taken a more cautious stance toward China and adopted a hostile approach toward Russia, aligning with the United States’ policies on these two countries. This divergence in foreign policy may create challenges in the relationship with Riyadh and could potentially hinder the ambitious goals of their partnership.
Additionally, the kingdom is known for the stability of its policies, which are closely tied to the stability of its government and its solid relations with international powers, all grounded in international principles and law. In contrast, Italy’s political system is a broad coalition, often marked by excessive partisanship that can affect the stability of its governments. This partisanship can have negative repercussions in terms of maintaining consistent policies and honoring agreements. Furthermore, differing positions on relations with the kingdom between the Italian left and right, which alternate in power, could complicate the continuity of the partnership.
It is important to note that Italy, along with some other influential European powers, maintains a strong commitment to US positions. This alignment could potentially influence the relationship between Riyadh and Rome, as it introduces the possibility of external factors affecting bilateral ties. A clear example of this was when Italy suspended its arms exports to the kingdom, adhering to the Western stance led by the United States, which had raised concerns about the kingdom’s involvement in the war in Yemen.
Moreover, the kingdom’s oil policy, which is shaped through its role in OPEC+ and is centered around achieving a balance in the oil market to benefit both producers and consumers, may not align with the aspirations of Italy and other Western powers. These countries tend to favor lower global oil prices to support their national economies.
Additionally, there are regional powers vying for influence in the region, which could introduce challenges into the relationship between Rome and Riyadh. Italy may, in turn, see this competition as an opportunity to maximize its economic advantages, enhance its regional influence, and further its international projects.
Conclusion
Meloni’s visit underscores the growing awareness between both parties of their expanding interests. The agreements signed in Al-Ula, which covered multiple sectors, indicate a desire to open a new chapter for an organized and sustainable strategic partnership. This partnership aligns with the geopolitical and geoeconomic aspirations of both countries and will undoubtedly enhance their regional and global standing, as well as support their internal projects. Despite the challenges, they appear unlikely to hinder the relationship from reaching the level both countries envision, especially given their mutual needs and determination to follow a cooperative roadmap that has already begun to be put into action during the visit.