UAE, Italy ink 3 investment memoranda to facilitate cooperation in pharmaceuticals, minerals, data centers, AI

The UAE Ministry of Investment and the Italian Republic have officially signed three Memoranda of Understanding (MoUs) aimed at strengthening mutual investment and cooperation in the fields of pharmaceuticals, minerals, and data centers and artificial intelligence (AI). According to the Emirates News Agency (WAM), these agreements establish a structured framework for investment cooperation, promoting innovation, knowledge exchange, and the integration of technology and artificial intelligence, thereby driving progress in the life sciences, minerals, and technology value chains of both countries.

These new partnerships are expected to promote the further development of bilateral relations between the UAE and Italy, building on the foundations laid by the 1984 Agreement on Economic, Industrial, Technical and Financial Cooperation and the 1995 Agreement between the Government of the UAE and the Government of Italy on the Promotion and Protection of Investments. These historic agreements provide a solid foundation for future collaboration.

The MoUs were officially signed by Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE, and Adolfo Urso, Italian Minister of Enterprise and Made in Italy. Both ministers expressed positive prospects and high expectations for future cooperation.

Mohamed Hassan Alsuwaidi, Minister of Investment of the UAE, stated: "Our collaboration with Italy underscores the strength of our bilateral relations and our shared commitment to sustainable economic growth. The signing of these three Memoranda of Understanding marks an important milestone in strengthening cooperation in healthcare, energy transition, and digital transformation, and reflects the UAE's commitment to building impactful, forward-looking partnerships to promote shared prosperity while addressing global challenges. Building on decades of strong relations between our countries, we reaffirm our commitment to deepening cooperation in key strategic and innovative areas. We believe that they will not only strengthen economic and technological cooperation, but also bring long-term benefits to the UAE and Italy."

Adolfo Urso, Italian Minister of Enterprise and Made in Italy, commented: "The signing of these three Memoranda of Understanding marks an important step forward in the strong and lasting partnership between Italy and the UAE. By fostering cooperation in pharmaceuticals, minerals, and digital infrastructure, we are creating new opportunities that reflect both countries' commitment to strengthening international cooperation and leveraging shared expertise in cutting-edge industries to drive economic progress. We look forward to the tangible benefits these partnerships will bring, not only to Italy and the UAE, but also to broader global progress."

The investment cooperation agreement in the pharmaceutical field signed by the UAE Ministry of Investment and the Italian Ministry of Enterprise and Made in Italy reaffirms both countries' commitment to advancing cooperation in the healthcare, biotechnology, and pharmaceutical sectors. The two sides will explore opportunities in technology transfer, vaccine production, and regulatory policy development to enhance human and animal health. This partnership will also focus on the research and development of new therapies, capacity building through professional training, and the establishment of strategic alliances with leading institutions and pharmaceutical companies.

Key innovation areas include oncology, cardiovascular and metabolic diseases, immunology, and rare diseases to address critical unmet patient needs. In addition, cooperation will extend to the commercialization of innovative drugs in the UAE and beyond, leveraging existing infrastructure and developing new market pathways. Strategic partnerships with artificial intelligence and technology companies will also be sought to optimize R&D, automate manufacturing processes, and implement forward-looking go-to-market models.

The UAE Ministry of Investment, the Italian Ministry of Enterprise and Made in Italy, and the Ministry of Environment and Energy Security have signed a five-year Memorandum of Understanding to advance cooperation in sustainable mining practices, mineral exploration, extraction, development, processing, marketing, recycling, and workforce development. As part of the cooperation, the UAE and Italy will explore investment opportunities and economic partnerships, leveraging government efforts to connect businesses and promote investment throughout the mineral value chain. The agreement also emphasizes promoting responsible and sustainable mineral sector governance, capacity building through professional training and education, and establishing monitoring and evaluation systems to ensure continuous progress.

The UAE Ministry of Investment and the Italian Ministry of Enterprise and Made in Italy also signed a Memorandum of Understanding to strengthen cooperation and reciprocal investment in the field of digital infrastructure, with a particular focus on data centers and artificial intelligence. The partnership specifically emphasizes advancing the bioeconomy and energy transition, while promoting the exchange of technical knowledge, skills development, and the sharing of expertise. With the UAE's leadership in technological development, MGX and G42's expertise in AI and digital infrastructure investment and operations, and Italy's future AI factory, the two countries will cooperate to drive investment in new data centers, including green data centers with future capacity targets of up to 2 gigawatts.

In addition, the two countries will explore the creation of "virtual data embassies" within each other's territories to ensure digital continuity and enhance secure cross-border data resilience. Leading companies from both countries, such as MGX, G42, Khazna and ENI, will play a key role in developing and operating data center capacity. Further initiatives include attracting major cloud service providers, expanding cloud services in local and regional markets, and enhancing the skills of local talent in artificial intelligence, high-performance computing, and digital education – areas in which MGX and G42 are actively investing. The UAE and Italy will also promote knowledge exchange through scholarship programs, expert exchanges, and educational seminars focused on artificial intelligence and data center technologies.

In addition to the Memoranda of Understanding with Italy, the UAE recently announced a partnership with France in the field of artificial intelligence, with MGX and G42 driving investment in artificial intelligence infrastructure as part of this broader strategic vision, further consolidating the UAE's leadership in this field. These strategic collaborations highlight the commitment of the UAE, MGX and G42 to building strong international alliances and advancing AI-driven innovation globally.

Political cooperation between the UAE and Italy is growing, and economic partnerships are also very strong. Non-oil trade between the two countries has experienced significant growth over the past decade. In 2023, Italian exports to the UAE reached approximately US$7.22 billion, surging 22% in early 2024. Conversely, UAE exports to Italy amounted to US$1.57 billion in 2023.

More than 600 Italian companies operate in the UAE, reflecting the deepening economic ties and commitment to bilateral trade. These figures demonstrate the depth and breadth of economic cooperation between the two countries.

As the UAE and Italy continue to deepen bilateral relations, these agreements will serve as a catalyst for further innovation, economic diversification, and global leadership in healthcare, resource development, and digital transformation. The prospects for cooperation between the two sides are broad and the future is promising.