Strengthening the economic and investment partnership between Saudi Arabia and Italy through two new agreements

Riyadh and Rome are pushing their economic relations to a more practical path, with an approach to joint work in third markets, in addition to expanding channels of cooperation between Saudi and Italian companies, especially small and medium-sized companies.

This came with the signing of two agreements by the Italian National Development Finance Corporation (CDP) in Riyadh. One is with the Saudi National Development Fund, and the other is with the Federation of Saudi Chambers, with the aim of expanding financing and investment cooperation and facilitating companies’ access to opportunities in the two countries.

A high-ranking Italian official told Asharq Al-Awsat that cooperation between Riyadh and Rome is not limited to the Saudi and Italian markets, but rather extends to working together in “third markets,” indicating that the diversification of the Saudi economy provides a wide scope for Italian companies, in light of Italy’s possession of a diverse industrial base and expertise in multiple sectors.

The Federation of Saudi Chambers and the CDP signed, on Wednesday, in Riyadh, an agreement aimed at activating the Saudi-Italian strategic partnership that was launched in Al-Ula, opening financing channels for joint projects, and integrating small and medium-sized companies into cooperation between the two countries, in addition to strengthening the role of the Federation as an institutional representative of the Saudi private sector in cooperation with the Italian side.

The agreement provides a practical framework to enhance partnerships between the business sectors of the two countries, by supporting a business matching platform that links Saudi companies with their Italian counterparts, introducing projects and investment opportunities, in addition to establishing communication channels that help Italian companies explore the Saudi market and facilitate their entry procedures.

The CDP is linked to the Saudi-Italian strategic partnership that was launched in AlUla, while the agreement allows the Federation of Saudi Chambers and its Saudi-Italian Business Council to play a greater role in activating cooperation between the private sectors in the two countries and transforming partnership opportunities into joint projects and businesses.

Joint strategic cooperation

Dario Scannapico, President of the Italian National Development Finance Corporation (CDP), told Asharq Al-Awsat that cooperation between Italy and Saudi Arabia “is not limited to enhancing rapprochement between the two countries or working within the Saudi market, but also includes cooperation in other countries and third markets.”

He explained that the Italian delegation’s visit to Riyadh aims to achieve several goals, most notably meeting investors and enhancing cooperation with Saudi institutions, noting that the meeting with the National Development Fund was “very fruitful” and paved the way for broad cooperation in a number of fields.

He added that the agreement signed with the Federation of Saudi Chambers represents an “additional step” towards moving from institutional cooperation to more practical cooperation, by helping Italian small and medium companies wishing to explore Saudi market opportunities, providing direct communication channels and facilitating their access to the market.

Scannapico pointed out that CDP is working on launching and updating a business matching platform, which aims to link Italian small and medium-sized companies with their Saudi counterparts, allowing the discovery of new business opportunities and partnerships.

He stated that the agreement focuses on three main tracks: The first is to enhance the business matching platform, allowing small and medium-sized companies in the two countries to be linked and to identify potential partners.

The second path, according to Scannapico, is to identify selected projects in Saudi Arabia and provide the opportunity for Italian companies to learn about them and explore opportunities to participate in them, noting that “Expo 2030 Riyadh” represents one of the areas in which Italian companies can participate.

The third path is to establish a direct point of contact between the two institutions to push cooperation forward and provide practical support to Italian companies wishing to enter the Saudi market, including helping them identify the required permits and procedures.

He said that the aim of this is to “facilitate access to Saudi Arabia” for Italian companies and to transform cooperation between the two sides into a practical path that allows companies to explore opportunities and enter the market more effectively.

Scannapico said that there are broad opportunities to enhance cooperation between the two countries, including through “Cassa Depositi e Prestiti”, the Italian national institution concerned with development and economic support, noting that “CDP” is working to strengthen these partnerships and expand their fields.

Regarding the role of Saudi-Italian cooperation in vital sectors, in light of the challenges that may arise in the region, Scannapico said that Italy has a very diverse industrial base and produces a wide range of products, noting that his country occupies, according to a classification he referred to, third place globally in the diversity of the industrial sector after China and the United States.

He added that this diversity allows Italian companies to provide specialized technical expertise and contribute as a partner in efforts to diversify the Saudi economy, saying that Italian companies can be a “high-value partner” in this path.

He pointed out that the next stage requires expanding the presence of the Italian business sector in Saudi Arabia, explaining that a number of major Italian companies are already present in the Kingdom, while the next step is to allow small and medium-sized companies to expand outside Italy and enter the region’s markets, thus expanding the base of economic cooperation between the two countries.

The Saudi-Italian partnership is moving into implementation

For his part, Kamel Al-Munajjid, Chairman of the Saudi-Italian Business Council, told Asharq Al-Awsat that the agreement comes as a direct extension of the meeting that was held in Al-Ula in January 2025 between Prince Mohammed bin Salman, Crown Prince and Prime Minister, and Italian Prime Minister Giorgia Meloni, which raised relations between the two countries to the level of a strategic partnership, and made economic relations one of its main axes.

He added that the agreement signed on Wednesday between the CDP and the Federation of Saudi Chambers represents a practical step to enhance cooperation between the business sectors of the two countries, and provides a new channel for transforming existing relations into partnerships and commercial and investment projects.

Al-Munajjid explained that the agreement strengthens the partnerships built by the Saudi-Italian Business Council with Confindustria and CNA, through delegations, forums and direct business meetings, noting that the capabilities of the CDP and the scope of work of the Federation of Saudi Chambers will help transform these links into more sustainable business opportunities.

He said that the agreement provides two main advantages, the first of which is the “CDP” business matching platform, which allows Saudi and Italian companies to enter information about their capabilities and business interests, and then identify potential partners whose needs match those capabilities.

He explained that the platform could shorten the path for companies to reach suitable partners. For example, a Saudi industrial company searching for Italian technology can identify companies that can meet its needs, and an Italian company wishing to enter the Saudi market can search for a local partner. He added that the Federation and the Business Council will work to encourage companies to use the platform and pursue cooperation opportunities that arise through it.

The second advantage, according to Al-Munajjid, is the strengthening of cooperation with SIMEST, a subsidiary of the CDP Group, whose presence in Riyadh and its support for the international expansion of Italian companies can contribute to helping more companies, especially small and medium-sized ones, to establish their businesses and expand their activity in Saudi Arabia.

He added that the joint channel provided by the agreement will allow Saudi companies wishing to trade, invest or work in Italy to reach suitable Italian partners and learn about new opportunities, calling on the Saudi business sector to benefit from this partnership and work to transform it into sustainable projects and joint growth opportunities.

Al-Munajjid pointed out that Italian companies have specialized expertise in engineering, technology, and manufacturing, while Saudi companies provide knowledge of the local market and the ability to expand, indicating that cooperation opportunities extend to the sectors of trade, infrastructure, communications, industry, energy, tourism, and others.

He added that “Expo 2030 Riyadh” represents an important opportunity to combine these capabilities and open new fields for companies in the two countries, stressing that the priority now is to move to implementation by attracting companies to the platform, identifying priority sectors, setting clear points of contact, and following up on promising opportunities until they turn into actual projects.