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Saudi Arabia, Italy to Boost Comprehensive Strategic Partnership

The Saudi-Italian Investment Forum saw the participation of a range of private sector representatives from both nations to explore mutually beneficial investment opportunities. (Saad al-Enezi)
The Saudi-Italian Investment Forum saw the participation of a range of private sector representatives from both nations to explore mutually beneficial investment opportunities. (Saad al-Enezi)
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Saudi Arabia, Italy to Boost Comprehensive Strategic Partnership

The Saudi-Italian Investment Forum saw the participation of a range of private sector representatives from both nations to explore mutually beneficial investment opportunities. (Saad al-Enezi)
The Saudi-Italian Investment Forum saw the participation of a range of private sector representatives from both nations to explore mutually beneficial investment opportunities. (Saad al-Enezi)

Saudi Arabia and Italy underscored on Monday their strategic relations and determination to further expand their economic partnership.

Addressing the Saudi-Italian Investment Forum being in Riyadh, Saudi Finance Minister Mohammad al-Jadaan discussed the national economy and the "enormous" investment opportunities available.

He said his country is going through an economic transformation that creates investment opportunities in many areas in various sectors.

Saudi Arabia is going through an economic transformation with different companies capable of attracting Italian expertise, capabilities, and innovation.

Bilateral trade between the two nations topped $8.6 billion, a 32.9 percent increase in 2020.

Italy is Saudi Arabia's seventh-largest supplier of goods, and the Kingdom ranks 21 in goods supplied to Italy. Saudi Arabia provides approximately 9 percent of Italy's oil imports.

Speaking at the inauguration of the 12th session of the Saudi-Italian Joint Commission, Jadaan explained that Saudi Arabia is undergoing an economic transformation with the diversification of its economy by concentrating more on non-oil sectors.

He explained that the national economic transformation opens horizons for investors and innovative creativity, calling on Italian investors to be part of this.

"Italian investors with expertise, experience, and innovation are invited to be a part of our transformation," the minister added.

Moreover, Jadaan indicated that Saudi Arabia is increasing its renewable energy resources and creating a series of services, creating great investment opportunities in the Kingdom.

Italy is a leading country in energy investment, said the minister, noting that Italian investors have the opportunity to participate in the Saudi economic transformation.

He addressed culture and tourism, noting that Saudi Arabia is making significant efforts to develop the two sectors by encouraging investors and creating long-term opportunities.

Speaking at the event, Italian Minister for Foreign Affairs and International Cooperation Luigi Di Maio stressed that his country is fully prepared to support Saudi Arabia's Vision 2030.

Riyadh and Rome share common interests and strategic priorities that have provided the foundations of a long-term relationship spanning more than nine decades, he remarked.

Italian high-tech companies will contribute to the Kingdom's goals of achieving a more diversified economy, especially in sustainability and energy transition, he continued.

Di Maio acknowledged the Saudi achievements in transforming society and business, asserting that Italy is fully prepared to provide the support the Kingdom needs to implement its reforms.

At the forum, representatives of the private sector emphasized a large number of investment opportunities, leveraging the human and natural resources boasted by their countries and developing programs for partnerships in the economic, commercial, and industrial fields.

Several agreements between Saudi and Italian companies to launch joint businesses were signed at the forum.

Chairman of the Saudi-Italian Business Council, Kamel al-Munajjed, said the efforts made in economic transformation have gone a long way in converting the Saudi economy from an oil-based economy to a prosperous knowledge-based economy.

The economy provided opportunities for millions of Saudi youths, mobilizing untapped potentials in revitalizing the entire society with the dynamism and stimulus the Kingdom's economy enjoys.

Munajjed explained that Vision 2030 contributed to creating innovative job opportunities, placing the Kingdom at the forefront of the green economy countries through the initiatives and renewable energy projects.

He called on Italian investors and companies to double the trade exchange, which ranges from $7 to $8 billion annually, urging the authorities in the two countries to support the partnerships through agreements that prevent double taxation and protect the investment.

He pointed out that Italy is the Kingdom's top partner in the small and medium-sized companies.

Furthermore, he noted that Italy could explore vast potential and opportunities in archaeology and cultural and tourism projects in AlUla.

Italian banks and investment companies are welcome to launch their business in the Saudi market, said Munajjed.

The Saudi-Italian Investment Forum saw the participation of a range of private sector representatives from both nations to explore mutually beneficial investment opportunities.

With a focus on finance, infrastructure and mobility, tourism and culture, and renewable energy, the forum featured interactive presentations spotlighting how a world of opportunity awaits Italian investors as Saudi Arabia's globally recognized reform agenda continues to progress.

The forum concluded with bilateral business meetings and the opportunity for Italian investors to explore the world-leading support services available from Invest Saudi, the Kingdom's investment promotion platform.

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A Century of Partnership: How Oil Forged the US-Saudi Strategic Alliance

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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A Century of Partnership: How Oil Forged the US-Saudi Strategic Alliance

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

Long before the iconic 1945 meeting between King Abdulaziz Al Saud and US President Franklin D. Roosevelt aboard the USS Quincy in Egypt’s Suez Canal, the seeds of a historic partnership had already been planted. More than a decade earlier, American oil experts had landed on Saudi soil, drawn not by diplomacy, but by geology.

Their presence in the eastern province of Saudi Arabia, on the shores of the Arabian Gulf, gave rise to a new chapter in international relations. From modest beginnings, the Saudi-American partnership evolved into one of the most significant bilateral relationships in the modern Middle East, anchored in energy cooperation, reinforced through political trust, and tested across decades of global and regional upheaval.

Oil First: The 1933 Concession Agreement

The turning point came just a year after the unification of the Kingdom of Saudi Arabia in 1932. On May 29, 1933, King Abdulaziz authorized his Minister of Finance, Abdullah Al-Sulaiman, to sign an oil exploration concession with the Standard Oil Company of California (Socal), now known as Chevron. Represented by Lloyd Hamilton, the company created a subsidiary - the California Arabian Standard Oil Company (CASOC) - to manage operations within the Kingdom.

The 60-year concession marked the beginning of a partnership that would transform both nations. After decades of exploration and expansion, the Saudi government began acquiring stakes in the company, starting with 25% in 1973, increasing to 60% in 1974, and culminating in full ownership in 1980. Eight years later, the company was renamed the Saudi Arabian Oil Company - Aramco.

American Presence in Dhahran

While American missionary efforts in the Gulf dated back to the late 19th century, particularly in Bahrain and Kuwait, Saudi Arabia remained largely untouched by these early religious and medical missions. The true bridge between the US and Saudi Arabia came through oil.

Following the 1933 agreement, American geologists and engineers arrived in the eastern city of Dhahran. Initial drilling in the mid-1930s was unsuccessful, until Socal’s chief geologist Max Steineke led an operation that resulted in the discovery of commercial oil in 1938. This breakthrough transformed the region and the bilateral relationship.

A pivotal moment in the history of Saudi Arabia - and in the global oil industry - occurred on March 4, 1938, when oil first flowed from the initial test well in Dhahran, known as Dammam Well No. 7. This event established Saudi Arabia as the country with the largest oil reserves and one of the world’s most important energy sources. The well, drilled to a depth of 1,441 meters, is located on the hill known as Jabal Dhahran and later became famously known as “Prosperity Well” (Bi’r Al-Khair).

Marking the beginning of a new era, King Abdulaziz embarked on a historic journey in the spring of 1939. Accompanied by a large delegation, he crossed the red sands of the Dahna Desert to reach the eastern part of the Kingdom on the Arabian Gulf. His visit coincided with the completion of the pipeline stretching 69 kilometers from the Dammam oil field to the port of Ras Tanura.

There, a symbolic moment took place: King Abdulaziz personally turned the valve to load the first shipment of Saudi crude oil onto a tanker. Thus, on May 1, 1939, Saudi Arabia exported its very first barrel of crude oil to the world.

The Quincy Meeting and the Birth of a Strategic Partnership

As World War II drew to a close, global attention turned to energy. The United States, anticipating a post-war recovery and growing energy needs, saw in Saudi Arabia a stable, resource-rich partner with vast oil reserves. At the same time, the Kingdom, newly unified and eager for development, welcomed American expertise and investment.

On February 14, 1945, just 82 days before the war officially ended in Europe, President Roosevelt met King Abdulaziz aboard the USS Quincy at the Great Bitter Lake. The meeting, now known as the “Quincy Summit,” laid the foundations for a strategic partnership that extended beyond oil. It recognized Saudi Arabia as a key geopolitical player and spiritual heart of the Islamic world, and cemented the United States as its primary global partner.

Soon, Dhahran became home to a growing American community. Workers lived in self-contained compounds that included Western-style homes, schools, shops, recreational clubs, and even small churches. Though initially isolated from Saudi society, this community played a significant role in introducing new technologies, industrial practices, and modern urban planning to the Kingdom.

By 1938, Aramco employed 2,745 people, including 236 Americans and more than 100 other expatriates. The arrival of American families, including the wives of engineers and executives, signaled the beginning of deeper cultural exchange. In 1937, two of the first American women, Annette Henry and Nellie Carpenter, arrived in the Eastern Province. To accommodate the growing expatriate presence, Aramco shipped the first mobile, air-conditioned homes to the desert.

Strengthening Ties Through Crises

Over the following decades, the US-Saudi relationship deepened. As Aramco expanded, the American community grew, spreading across eastern cities like Ras Tanura, Abqaiq, and Jubail. The bonds formed in the workplace gradually extended to neighborhoods and schools. Although cultural differences remained, trust and mutual respect grew.

In 1973, the October War and subsequent Arab oil embargo shocked global markets and sent fuel prices soaring. While the embargo strained relations, it also underscored Saudi Arabia’s central role in global energy stability. From then on, Washington viewed Riyadh not just as an oil supplier, but as a geopolitical partner essential to maintaining balance in the Middle East.

The Cold War further strengthened the relationship. Saudi Arabia’s moderate policy and anti-communist stance made it a dependable ally. The partnership was tested and reinforced through regional crises, including the Iranian Revolution (1979), the Iran-Iraq War (1980–1988) and Iraq’s invasion of Kuwait (1990).