Saudi Arabia’s Public Investment Fund has raised loans backed by Italy’s Sace, equivalent to $3B, as both economies and entities deepen ties.
Sace is an Italian insurer and export credit agency.
Dual tranche loan
The loans, equivalent to $3B, comprise of a $1.8B portion and a $1.2B green tranche raised from a syndicate of 25 international banks citing a PIF statement released on Tuesday.
History of cooperation
Both the PIF and Sace signed a MoU last year to strengthen cooperation between both firms after Prime Minister Giorgia Meloni traveled to the Kingdom.
GCC states and Italy have engaged in rounds of bilateral and multilateral diplomacy in 2026, citing energy security and defence as the main mutual avenues of trade.
The UAE’s EDGE Group has deepened cooperation with Italy’s Leonardo under Meloni while UAE entities have deepened logistics connectivity along the India-Middle East-Corridor connecting India and the UAE to mainland Europe via Mediterranean economies.
Implications of Saudi rollback for Sace
Previously, Sace guaranteed a $3B loan to the Kingdom’s megaproject Neom before the onset of the Iran war.
However, part of Neom is under review as Saudi Arabia reprioritises large scale projects including real estate and logistics over mega-projects.
Export credit agencies have been key to the Kingdom’s diversification agenda under Vision 2030.
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