AI close to the heart of UAE-Italy $40 billion investment deal

UAE-Italy deal includes AI, data centres, space research and renewable energy

Chigi Palace, Rome (Image credit: DellaGherardesca, CC BY 4.0)

#Italy #UAE #bilateral - The United Arab Emirates has committed to invest $40 billion in Italy, with artificial intelligence, advanced technologies, space exploration and renewable energy high on the list of priorities for a strengthened strategic partnership. UAE President Highness Sheikh Mohamed bin Zayed Al Nahyan and Italian Prime Minister Her Excellency Giorgia Meloni agreed to significant cross-border collaboration during high-level talks in Rome, witnessing the signing of more than 40 agreements across multiple sectors with technology and AI development emerging as key priorities.

SO WHAT? - This massive $40 billion investment represents one of the largest single-country commitments to Italy in recent years and follows hot on the heels of the signing of a wide-ranging agreement in Paris, which could see the Emirates investing €30-€50 billion in France. The UAE now seems to include a framework for collaboration on cutting-edge technologies including AI, quantum computing, and space science, routinely in such bilateral deals. The presence of MGX and G42 in the signing ceremonies signals both the high priority given to AI, and the intention to move forward with plans at digital speed.

Here are some significant details of the UAE-Italy bilateral accord:

• UAE President Highness Sheikh Mohamed bin Zayed Al Nahyan and Italian Prime Minister Her Excellency Giorgia Meloni witnessed the signing of more than 40 agreements across multiple sectors with AI and advanced technologies spacetech, and renewable energy emerging as key priorities.

• The Emirate’s planned $40 billion investment spans multiple sectors beyond technology, including economy, defense, energy (including peaceful nuclear applications), sustainable energy transition, and cultural heritage preservation.

• The UAE Ministry of Investment and the Italian Ministry of Enterprises and Made in Italy signed an MoU for reciprocal investments in the digital infrastructure sector, with a particular focus on data centres and AI. Plans include building an ‘AI Factory’ in Italy.

• Abu Dhabi government’s AI and advanced technology fund MGX and UAE AI powerhouse G42 Group and G42’s data centre joint-venture Khazna, and Italy's integrated energy company ENI will play a key role in developing and operating data centre capacity with a target of building out 2 GW in capacity.

• MGX, G42 Group and ENI also signed a Letter of Intent to establish a strategic partnership focused specifically on data centres and AI infrastructure, aiming to expand the country’s digital capacity and integrate sustainable energy solutions.

• Both nations explicitly committed to advancing international cooperation on AI, building upon discussions from Italy's G7 Presidency in 2024 and emphasizing human-centered, ethical approaches to AI development and deployment.

• Italian and Emirati leaders agreed to collaborate on educational and research initiatives with particular focus on emerging and critical technologies including quantum computing, cryptography, artificial intelligence, and space science.

• The extend of the technology partnership extends beyond AI to include joint space exploration ventures, building on existing collaboration on the Emirates Mission to the Asteroid Belt, Emirates Lunar Mission, and Rashid Rover.

• Digital resilience forms a key component of the agreement, with both nations pledging to enhance cross-border security frameworks as they develop integrated AI systems and data infrastructure.

• The commitment builds upon three previous visits by Prime Minister Meloni to the UAE and represents what Italian officials describe as the dawn of a new era in bilateral relations between the two nations.

ZOOM OUT - It would be easy to assume that, given the increasing frequency of significant UAE bilateral deals that these are being proposed and formed hastily. In fact, the UAE government has been working on defining and negotiating Comprehensive Economic Partnership Agreements with key trade partners around the world for some years. The UAE’s trade negotiation processes have also become more agile over the past 10 years as the country positions itself to move quickly to seize global opportunities. In the field of technology the government now has a broad range of policy, investment, R&D and delivery resources to help it fast-track bilateral opportunities from initial agreement through to final delivery of digital infrastructure and cutting edge solutions.

Updated 25-Feb-25

[Written and edited with the assistance of AI]

Read about other recent UAE bilateral agreements with an AI component:

• France, UAE deal to build 1 Gigawatt AI data centre (Middle East AI News)

• Microsoft & G42 announce $1 billion investment in Kenya (Middle East AI News)

• UAE could invest billions of dollars in overseas data centres (Middle East AI News)