Italian Insurer Secures $3B Loan for Saudi Neom Mega-Project

In a landmark development, Sace, the Italian state-owned insurance entity, has committed to guaranteeing a $3 billion multi-currency loan to finance Neom, Saudi Arabia's $500 billion mega-project. This bold financial move is part of Italy’s broader strategy to boost economic and diplomatic ties with the Kingdom of Saudi Arabia, especially under the leadership of Prime Minister Giorgia Meloni. This major loan guarantee is not only a reflection of growing cooperation between the two nations but also a strategic partnership aimed at supporting Italy’s exports while contributing to Saudi Arabia’s ambitious Vision 2030 plan.

Strengthening Ties Through Strategic Partnerships

The $3 billion loan guarantee comes amidst an official visit to Saudi Arabia by Prime Minister Giorgia Meloni, during which she and Crown Prince Mohammed bin Salman formalized the Italian-Saudi relations into a strategic partnership. This agreement serves as a stepping stone for enhanced diplomatic and economic collaboration across several high-potential sectors such as technology, infrastructure, renewable energy, and defence. As part of this visit, a total of five significant agreements and memoranda of understanding (MOUs) were signed, valued at $6.6 billion, further enhancing Italy’s involvement in Saudi Arabia’s future development.

One of the most crucial agreements during the visit was the $3 billion loan guarantee by Sace, which is managed under the auspices of Italy’s Ministry of Economy and Finance. The loan, which will finance Italian firms’ involvement in Neom, is earmarked to bolster Italian exports in areas such as infrastructure, construction, and logistics. This commitment underlines Italy’s position as a key player in Saudi Arabia's broader economic diversification strategy and its efforts to position Neom as a global hub for technology and innovation.

Sace’s Role in Supporting Italian Exports to Neom

The Neom project represents one of the most ambitious development plans in the world today. Envisioned by Saudi Arabia as a smart city that blends cutting-edge technology, sustainability, and economic diversification, it seeks to transform the Kingdom into a global hub for trade, innovation, and green energy solutions. As such, Neom is attracting international investors, technology firms, and construction companies to contribute to its development. Italy’s participation, underpinned by the Sace-guaranteed loan, is expected to play a critical role in supplying the city’s infrastructure and advanced technologies.

Sace CEO, Alessandra Ricci, remarked that the agreement aims to not only facilitate exports from Italian companies but also to enhance Italy’s leadership in sectors such as renewable energy, advanced infrastructure, and green technology. Given that Neom is focused on incorporating sustainability and cutting-edge infrastructure into every aspect of its design, Italian companies in the fields of construction, engineering, and logistics stand to benefit from this lucrative opportunity. The financial guarantee provided by Sace ensures that Italian businesses have the backing and confidence to take part in such high-profile international projects.

Key International Banks Support the Loan

The $3 billion loan arranged by Sace comes with the backing of nine prominent international financial institutions, underscoring the scale and importance of the project. These banks include HSBC, Banco Bilbao Vizcaya Argentaria, Bank of China, Crédit Agricole CIB, Agricultural Bank of China, Citibank NA, China Construction Bank, JP Morgan Chase Bank, and Bank of America.

The involvement of global banking giants is a testament to the growing international interest in Saudi Arabia’s transformative economic projects. Neom, with its bold plans for technological innovation, smart infrastructure, and sustainability, presents a prime opportunity for investors and financial institutions to support the development of a new economic ecosystem in the Middle East. The presence of these banking institutions further reinforces the project's global significance and potential for high returns on investment.

A New Era of Italian-Saudi Cooperation

The $3 billion loan guarantee is just one part of the broader relationship between Italy and Saudi Arabia, which continues to evolve through the signing of strategic agreements. The total estimated value of all five agreements signed during Prime Minister Meloni’s visit reached approximately $6.6 billion, with particular focus on areas like green energy, infrastructure, and technological innovation. These deals align with Saudi Arabia’s Vision 2030, which seeks to diversify the country’s economy away from oil dependency by fostering growth in renewable energy, advanced manufacturing, and international partnerships.

One of the most notable agreements signed during the visit includes a non-binding memorandum of understanding (MOU) with the Saudi Electricity Company, aimed at exploring opportunities for joint ventures and investments in renewable energy projects. This MOU complements the growing momentum towards a sustainable energy transition in Saudi Arabia and reinforces the Kingdom’s commitment to the development of green hydrogen and clean energy solutions.

In addition, Sace entered into two agreements with Acwa Power, a Saudi company renowned for its leadership in renewable energy and power projects. The first agreement, a $100 million credit facility, is aimed at funding green energy projects in Central Asia, which highlights the growing international expansion of Saudi green energy initiatives. The second agreement, valued at up to $500 million, focuses on facilitating Italian exports in the renewable energy sector, offering significant opportunities for Italian businesses to grow their footprint in the emerging clean energy market.

Additionally, Acwa Power and Italian natural gas operator Snam have agreed to explore investments aimed at transporting Saudi green hydrogen to Europe, further strengthening ties between the two nations and positioning Saudi Arabia as a leader in the global green hydrogen market.

Related: Saudi Aramco's $9 Billion Localization Push: Transforming Saudi Arabia's Future

The Broader Strategic Partnership: Energy and Infrastructure

Another key development is Italy’s focus on strengthening relations with Africa through the Mattei Plan, a strategy aimed at enhancing energy cooperation and infrastructure development between Italy and African nations. As part of this broader effort, Sace has signed an agreement with the Arab Bank for Economic Development in Africa (BADEA) to support the implementation of Italian energy projects in Africa, particularly in sustainable and renewable energy sectors.

Italy’s strategy to strengthen ties with Africa, combined with its growing presence in the Saudi Arabian market, reflects the country’s broader ambitions to become a leading player in global energy transitions. Italy is leveraging its expertise in infrastructure, renewable energy, and technology to play a central role in shaping the future of energy in the Middle East and Africa.

Future Opportunities and Investments

As the Neom project progresses, Italy’s involvement in shaping its infrastructure and development will continue to provide significant opportunities for Italian businesses across a range of sectors. The strategic partnership between Italy and Saudi Arabia will likely foster long-term growth, positioning both countries at the forefront of the global economic landscape.

The broader $10 billion in deals signed during Prime Minister Meloni’s visit reflects the deepening cooperation between the two countries and opens the door for further partnerships in areas such as energy, defence, and technology. These agreements mark the beginning of a new chapter in the Saudi-Italian relationship and lay the foundation for sustained economic growth and shared prosperity for both nations.