Saudi Arabia and Italy Sign 26 Agreements at AlUla Economic Roundtable

Italian Prime Minister Giorgia Meloni joined Saudi Minister of Investment Khalid Al-Falih and senior business leaders in AlUla on January 26, 2025, for a high-level roundtable that culminated in the signing of 26 memoranda of understanding. The event, held in the historic desert region of AlUla, underscored the rapidly deepening economic partnership between the Kingdom of Saudi Arabia and the Italian Republic, with agreements spanning construction, renewable energy, cultural exchange, and advanced technologies.

Context and Background

The roundtable, officially reported by the Saudi Press Agency (SPA), brought together CEOs and private sector representatives from both nations to explore collaborative opportunities in green energy, automotive manufacturing, infrastructure development, tourism, and agrifood. Italian businesses highlighted their aim to capitalize on an estimated SAR11.8 trillion in Saudi inward investment expected over the next six years, a figure that reflects the Kingdom’s ambitious economic transformation under Vision 2030. The meeting also emphasized sustainable tourism and heritage preservation, with AlUla itself serving as a model for cultural and eco-tourism development in the region.

Key Details

The 26 MOUs signed at the roundtable include specific agreements in solar and wind energy projects, sustainable tourism initiatives, and advanced construction technologies. In 2024, Saudi Arabia granted 63 investment licenses to Italian firms—a 110% increase over the previous year—indicating rising Italian interest in advanced manufacturing, construction, and renewable energy sectors. Bilateral trade data from 2023 shows Saudi exports to Italy reached SAR18.5 billion, driven primarily by mineral fuels and petrochemicals, while imports from Italy totaled SAR22 billion, reflecting strong demand for Italian machinery, pharmaceuticals, and advanced engineering solutions.

Implications and Impact

Heritage tourism emerged as a key focus, with participants noting Italy’s renowned expertise in cultural preservation and Saudi Arabia’s ambition to become a leading global travel destination. As the Kingdom plans to create 1.6 million tourism jobs by 2030, Saudi-Italian partnerships are poised to drive skills development, promote sustainable tourism, and expand opportunities in the private sector. The roundtable also signals growing confidence among European investors in Saudi Arabia’s business environment, supported by regulatory reforms and investment facilitation measures under the Saudi Investment Ministry.

Vision 2030 Alignment

The outcomes of the AlUla roundtable directly support Vision 2030’s goals of economic diversification, renewable energy deployment, and human capital development. By strengthening ties with a key European partner like Italy, Saudi Arabia is building bridges to international expertise, technology, and investment that will accelerate the realization of a vibrant, sustainable, and globally integrated economy. The agreements signed in AlUla lay a strong foundation for long-term collaboration that benefits both nations, with Saudi Arabia positioned as a reliable hub for innovation, tourism, and clean energy in the region.

20 Questions

Q1. What was the purpose of the Saudi-Italian high-level roundtable in AlUla?

A1. The roundtable aimed to strengthen economic ties between Saudi Arabia and Italy, resulting in the signing of 26 memoranda of understanding covering key industries such as construction, renewable energy, and cultural exchange.

Q2. Who were the notable participants at the AlUla roundtable?

A2. The event included Italian Prime Minister Giorgia Meloni, Saudi Minister of Investment Khalid Al-Falih, CEOs, private sector leaders, and representatives from major companies of both countries.

Q3. How many memoranda of understanding were signed at the roundtable?

A3. A total of 26 memoranda of understanding were signed, focusing on sectors including construction, renewable energy, cultural exchange, and advanced technologies.

Q4. What sectors are highlighted in the new Saudi-Italian agreements?

A4. The agreements cover green energy, automotive manufacturing, infrastructure development, tourism, agrifood, solar and wind energy projects, sustainable tourism initiatives, and advanced construction technologies.

Q5. What is the estimated value of Saudi inward investment over the next six years?

A5. Italian businesses highlighted their aim to capitalize on an estimated SAR11.8 trillion in Saudi inward investment expected over the next six years, driven by Vision 2030 projects.

Q6. How many investment licenses were granted to Italian firms in Saudi Arabia in 2024?

A6. In 2024, 63 investment licenses were granted to Italian firms in the Kingdom, representing a 110% increase over the previous year.

Q7. What was the value of Saudi exports to Italy in 2023?

A7. Saudi exports to Italy reached SAR18.5 billion in 2023, driven primarily by mineral fuels and petrochemicals.

Q8. What was the value of Saudi imports from Italy in 2023?

A8. Imports from Italy totaled SAR22 billion in 2023, reflecting strong demand for Italian machinery, pharmaceuticals, and advanced engineering solutions.

Q9. How does the AlUla roundtable support Saudi Arabia’s tourism goals?

A9. Heritage tourism was a key focus, with Saudi Arabia planning to create 1.6 million tourism jobs by 2030. Italian expertise will help drive skills development and promote sustainable tourism.

Q10. What role did AlUla play in the roundtable?

A10. AlUla served as the host location, representing Saudi Arabia’s commitment to cultural heritage and eco-tourism development as part of the Kingdom’s broader tourism strategy.

Q11. Why is Italy considered a key partner for Saudi Arabia?

A11. Italy brings expertise in renewable energy, advanced manufacturing, engineering, and cultural preservation, aligning with Saudi Arabia’s Vision 2030 goals for economic diversification and sustainable development.

Q12. What renewable energy projects were discussed at the roundtable?

A12. Participants discussed collaborative prospects in solar and wind energy projects, consistent with Saudi Arabia’s goal to generate 50% of its energy from renewables by 2030.

Q13. How does the roundtable reflect Saudi Arabia’s investment climate?

A13. The 110% increase in Italian investment licenses demonstrates growing investor confidence in Saudi Arabia’s business-friendly reforms and regulatory improvements under the Investment Ministry.

Q14. What is the significance of the 26 MOUs signed?

A14. The MOUs represent concrete steps toward deepening bilateral cooperation across multiple industries, creating a framework for long-term economic and cultural exchange between the two countries.

Q15. How does the roundtable align with Vision 2030?

A15. The agreements directly support Vision 2030’s goals of economic diversification, renewable energy deployment, human capital development, and global integration through international partnerships.

Q16. What types of Italian companies are investing in Saudi Arabia?

A16. Italian firms active in advanced manufacturing, construction, renewable energy, pharmaceuticals, and engineering solutions are among those seeking opportunities in the Saudi market.

Q17. How does heritage tourism benefit from Saudi-Italian collaboration?

A17. Italy’s world-renowned expertise in cultural preservation and tourism management will help Saudi Arabia develop its heritage sites, including AlUla, into world-class travel destinations.

Q18. What was the role of the Saudi Press Agency in reporting this event?

A18. The Saudi Press Agency (SPA) provided the official report on the roundtable, ensuring transparent and accurate communication of the agreements and outcomes to the public.

Q19. How might the roundtable affect bilateral trade between Saudi Arabia and Italy?

A19. The roundtable is expected to further increase bilateral trade, which in 2023 stood at SAR18.5 billion in Saudi exports and SAR22 billion in imports, by opening new investment and collaboration avenues.

Q20. What is the long-term vision for Saudi-Italian economic relations?

A20. The long-term vision is to create a sustainable, diversified partnership that leverages Italy’s industrial strengths and Saudi Arabia’s strategic investments, contributing to mutual prosperity and regional stability.

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