The economic relationship between the UAE and Italy is entering a new phase characterized by significant growth and integration, evidenced by hefty Emirati investments totaling $40 billion across various sectors, including artificial intelligence, renewable energy, and digital infrastructure.
The non-oil trade between the two nations reached $14.1 billion in 2024, underscoring the strength of their economic partnership and a shared vision for an innovative and sustainable economy, with Dubai acting as a vital link connecting Italian businesses to markets in the Middle East, Africa, and Asia. The Italian Ambassador to the UAE, Lorenzo Fanara, discussed these robust trade relations, among other shared economic issues.
At the start of our conversation, Fanara remarked, “The UAE’s investment of approximately $40 billion in Italy is a positive sign reflecting profound trust in the Italian economy. This investment is concentrated in sectors such as artificial intelligence, renewable energy, and data infrastructure, transcending traditional trade concepts to establish long-term industrial partnerships. This commitment will accelerate our shared innovation efforts, open new development channels, and significantly contribute to achieving a better balance in trade flows by enhancing the UAE’s direct presence in Italy’s growth future. We view this investment as a strategic alliance that will ensure both parties benefit from knowledge exchange, technology transfer, and the development of sustainable future industries.”
Global Innovation Hub
The ambassador further noted that the UAE has become a global innovation hub, with artificial intelligence at its forefront. Its bold investments in digital infrastructure and advanced data centers have created a fertile environment for international collaboration. For Italy, this presents an exceptional opportunity, as our companies are leaders in applying AI in energy, manufacturing, and sustainability. Together, Italy and the UAE can shape a shared future.
Italy stands as the top trading partner for the UAE within the European Union, with non-oil trade hitting $14.1 billion in 2024. How can this growth continue in the upcoming years? The ambassador responded, “The figures speak for themselves: $14.1 billion in non-oil trade last year, reflecting a remarkable 21% increase within just one year. This growth not only demonstrates the robustness of our economic ties but also reaffirms the depth of mutual trust between our nations. With the UAE’s economic diversification strategy and Italy’s ability to provide advanced technologies and sustainable solutions, we are confident that this positive trajectory will persist; the UAE is not just a key partner but a vital platform for launching Italian innovation towards Africa, Asia, and other global regions.”
Targeted Growth
On the target growth rate for Italy’s renewable energy technology exports to the UAE in 2025 and 2026, particularly after reaching €130.6 million in the first five months of this year, Fanara explained: “Italy is a reliable partner in the UAE’s transition to clean energy. In the first five months of this year alone, our renewable energy technology exports amounted to €130.6 million, marking a 3% increase from the previous year. Equipment such as pumps, compressors, and water purification systems currently account for over 80% of our specialized exports. However, we also see strong growth opportunities in new fields like solar energy and storage systems. Given the robust trajectory recorded in 2024 of a total of €279.9 million, we are confident in sustaining this growth through 2025 and 2026, thereby reinforcing ‘Made in Italy’ as a crucial element of the UAE’s sustainability journey.”
New Exports
Over 80% of Italy’s exports to the UAE focus on pumps, compressors, and water purification systems. The Italian ambassador stated, “Our current export profile reflects Italy’s global leadership in specialized technologies such as pumps, compressors, and water purification systems. Simultaneously, we’re witnessing accelerated growth in emerging sectors like solar energy solutions, smart batteries, and integrated clean energy systems, which we expect to constitute an increasingly significant portion of Italy’s exports to the UAE over the next three years.” As for our exports to the UAE of industrial machinery and technologies, they reached €1.5 billion in 2024, an increase of 27%, indicating that machinery and industrial technologies are foundational to the success of Italian exports in the Emirati market. By May of the current year, exports amounted to €712.7 million, reflecting an 18% increase over the same period last year. These results confirm that Italian industry is not only highly competitive but also an essential component in supporting the UAE’s industrial growth and its transition toward clean energy.
Global Bridge
Fanara emphasized that Dubai serves as a global bridge connecting Italian companies to markets in the Middle East, Africa, and Asia within the clean energy sector. He added, “The strength of Dubai lies in its role as a communication hub and launchpad for innovation. For our companies in the clean energy sector, establishing a presence in Dubai offers access not just to the Emirati market but also to African and Asian markets and beyond. Dubai boasts world-class logistics infrastructures, a business-friendly regulatory environment, and a clear commitment to sustainability, making it an ideal base for expansion. I anticipate that Dubai will evolve into a global center for Italian companies in the clean energy sector, having already succeeded as a trade and finance hub. For Italian firms, Dubai provides a unique ecosystem combining ambitious government projects, large-scale infrastructure initiatives, and promising international collaboration opportunities. This not only positions Dubai as a business destination but also as a strategic base for innovation, growth, and expanding global presence in the fields of renewable energy and sustainability.