Development Of Trade Relations Between Italy And The UAE In The Energy Sector

Interview with Valerio Soldani, Commissioner – Italian Trade Agency, Dubai – UAE ADIPEC 2024

1. Italy has achieved a notable 10% share in the UAE’s oil and gas equipment market. How does ADIPEC 2024 serve as a strategic platform for Italy to further expand this share and strengthen trade ties with the UAE?

ADIPEC 2024 is a crucial opportunity for us to showcase Italy’s advanced technologies and solutions directly to key players in the UAE and broader Gulf region. Italy’s share in the UAE’s oil and gas equipment market reached 10% this year, translating to substantial exports and growing demand for Italian expertise in areas such as industrial machinery, pipeline infrastructure, and LNG facilities. Our goal is to leverage this 10% share as a foundation for growth, expanding Italy’s footprint by promoting innovations that align with the UAE’s strategic energy vision. With 28 Italian companies at ADIPEC, we’re positioning Italy as a premier partner in the UAE’s journey toward sustainable and efficient energy solutions.

2. What unique advantages and innovations are Italian companies bringing to ADIPEC this year, particularly in the midstream and infrastructure segments, that address both regional needs and global energy trends?

Italy’s presence at ADIPEC highlights our country’s leadership in midstream technologies, essential for transporting, storing, and processing hydrocarbons. Our focus on state-of-the-art pipeline systems, advanced LNG infrastructure, and energy-efficient storage solutions speaks to the region’s needs. With investments in Italy’s own energy sector, Italian companies bring proven expertise to the UAE. Italy’s midstream innovations are also well-aligned with the UAE’s ambition to develop resilient, efficient energy infrastructure and support regional exports, particularly as LNG demand continues to grow.

3. The Italian Trade Agency has long supported Italian businesses entering the UAE market. What specific initiatives or partnerships are in place to ensure Italian companies continue to thrive within the UAE’s dynamic oil and gas sector?

The Italian Trade Agency (ITA) has made substantial investments to establish Italy as a key trade partner in the UAE’s oil and gas sector. Our initiatives include trade missions, sector-specific events, and partnership-building programs designed to connect Italian firms with UAE companies. For instance, Italian exports of industrial technology to the UAE surged by 36% year-on-year in the first seven months of 2024, reflecting the growing demand for Italian technology and innovation. In addition, ITA is working with major Italian industry associations like ANIMP and ANIE to provide ongoing support to Italian companies, ensuring they have the resources and market access needed to navigate and grow within the UAE’s dynamic market.

4. As the energy industry moves toward cleaner solutions, how are Italian oil and gas companies adapting their technologies to align with the UAE’s focus on sustainability and renewable energy integration?

Italy has long been a leader in the transition toward cleaner energy solutions, and this aligns with the UAE’s own sustainability goals. Italy is among the leading countries in the EU in sourcing its energy from renewables, with a constantly increasing share in the energy mix, powering the 2nd European manufacturing economy with a strongly export-oriented industrial ecosystem already leading the way in terms of circular economy and reuse of waste materials into the industrial process. Italian firms are integrating energy-efficient technologies across oil and gas operations, with renewable solutions such as hybridised power systems for offshore installations, reducing emissions while maintaining production efficiency. Italian companies are also involved in projects like the Ravenna-Chieti pipeline upgrade, a 175 km project aimed at improving energy distribution and reducing carbon output across our supply chains. These sustainable innovations brought to ADIPEC are tailored to support the UAE’s vision for a low-carbon future, and many of our companies are also already delivering cutting edge AI and tech solutions for the energy industry and tapping into the water management industry as well.

5. Looking to the future, what potential opportunities or challenges do you foresee for Italy’s energy trade relationship with the UAE, especially given the rapid advancements in energy technology and the increasing global focus on energy transition?

The UAE and Italy share a strategic partnership that grows stronger each year. With Italian exports to the UAE totalling €4.5 billions in the seven months of 2024 alone—a 22% increase over the previous year—we see significant opportunity to deepen our trade relations across the spectrum of the made in Italy exports, the famous four Fs: Food, Fashion, Furniture and…. Factory, with all the innovation-focused and sustainability-first solutions. However, as the global energy sector transitions, we also anticipate that Italian companies will need to continuously innovate to meet the UAE’s high standards for sustainable development. Italy’s expertise in both conventional and renewable technologies positions us well to support the UAE’s dual goals of energy security and sustainability. Our approach will focus on investing in R&D, maintaining a consistent presence in the UAE, and fostering collaborations that benefit both Italian firms and UAE counterparts.