By Francesca Landini and Giuseppe Fonte
MILAN (Reuters) -Italy and Saudi Arabia signed an agreement on Monday to boost economic relations and investments deemed of strategic importance, with an initial focus on developing projects in the energy sector.
Since taking office last October, Prime Minister Giorgia Meloni has sought to forge closer ties with the Gulf countries, shrugging off the concerns of previous coalitions over human rights in the region. She has already lifted an embargo on arms sales to Saudi Arabia and United Arab Emirates.
The Memorandum of Understanding (MoU), seen by Reuters, lasts two years and will automatically be renewed for a further 24 months unless one of parties notifies the other of its intention to decline renewal six months before the expiry date.
Saudi Arabia will focus on energy, sustainability, supply chains and sport to expand its presence in Italy, Investment Minister Khalid al-Falih said on Monday at an event in Milan to promote the partnership.
Under Meloni, Italy sees itself playing an increasing role in linking the European Union with energy suppliers in the Middle East and North Africa as the EU cuts its with Russia.
At the Milan event, leading Italian energy company Eni and Saudi Acwa Power agreed to jointly develop a green hydrogen project in the Middle East and Africa.
Acwa Power also struck a separate MoU with regional utility A2A and electrodes maker De Nora to cooperate on green hydrogen.
In addition, Italy is courting sovereign wealth funds from the Gulf to invest in a new fund to provide resources to firms operating in strategically important sectors and boost procurement and reuse of critical raw materials.
Industry Minister Adolfo Urso told the event that Rome could appoint special commissioners to take all necessary steps to help implement foreign investment programmes in Italy worth at least 1 billion euros ($1.1 billion).
($1 = 0.9267 euros)
(Reporting by Giuseppe Fonte in Rome and Francesca Landini in MilanWriting by Keith WeirEditing by Angus MacSwan)
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