Italy and Bahrain sign €1bn trade and investment agreement

Rome has sought closer ties with Gulf states under Prime Minister Meloni

Italian Prime Minister Giorgia Meloni receives Bahrain's Crown Prince Salman bin Hamad Al Khalifa at Chigi Palace in Rome. Reuters

Italy and Bahrain have announced the signing of an agreement worth more than €1 billion ($1.2 billion) aimed at enhancing investment and trade ties between the two nations.

The deal was unveiled after a meeting in Rome on Monday between Italian Prime Minister Giorgia Meloni and Crown Prince of Bahrain Salman bin Hamad Al Khalifa.

It will “enhance economic relations and increase trade and investments” in sectors such as energy and defence, the two countries said in a statement.

“Italy and Bahrain committed to reinforcing their existing vital defence partnership, both at the military and industrial levels,” the statement read. “Italy expressed its gratitude to Bahrain for hosting the Italian Navy Contingent within the Combined Maritime Forces.”

The Italian contingent of the US-led Combined Maritime Forces, based in Bahrain, contributes to multinational efforts to ensure maritime security, fight piracy and protect global trade routes in the Red Sea, Gulf of Aden, Arabian Sea and Gulf.

Italy regularly sends naval officers to the CMF’s headquarters and has provided ships to support its task forces.

The two countries called for an end to the war in Gaza, the unimpeded entry of humanitarian aid to the enclave and the release of all Israeli hostages held by Hamas. They also condemned “any unilateral or violent action in the West Bank” and confirmed their support for a two-state solution.

Italy and Bahrain will also increase their "co-operation in the construction, transport, tourism and smart cities fields, including housing and urban planning, with the aim of exploring additional opportunities for Italian firms to contribute to the development and expansion of Bahrain’s state of the art infrastructure", the statement added.

Since Ms Meloni's government took office, Rome has sought to boost trade with Gulf states and secure Italy’s energy supply, while attracting investment from the region to support Italian businesses.

President Sheikh Mohamed visited Rome this year. During his trip, the UAE announced a commitment to invest $40 billion across vital sectors in Italy. More than 40 agreements were signed in fields including economy and investment, defence, space, cultural heritage and energy – including nuclear and sustainable energy and the energy transition.

In January, Ms Meloni visited Saudi Arabia for talks with Crown Prince Mohammed bin Salman. The two countries signed agreements worth about $10 billion in sectors such as water treatment, renewable energy and maritime infrastructure.