The Saudi Public Investment Fund (PIF) has signed a memorandum of understanding (MOU) with the Italian Export Credit Agency (SACE) (under Italy's Ministry of Finance and Economy) aimed at enhancing Italian companies' operations in Saudi Arabia.

Under the agreement, the Italian agency will provide additional financing support worth €3bn (SAR11.25bn) to benefit Italian exports for projects implemented by the PIF and its portfolio companies related to Vision 2030 objectives, Al-Eqtisadiah reported on March 5.

The PIF is one of the world's largest and most influential sovereign wealth funds, chaired by Saudi Crown Prince Mohammed bin Salman. It aims to support economic diversification efforts in Saudi Arabia, while Italy under the Meloni government has signed a raft of deals internationally as part of her foreign policy.

Rasees Al Saud, Director of Investor Relations and Financial Institutions at PIF, said: "The memorandum of understanding contributes to providing more opportunities for cooperation and exchange of knowledge and expertise between Italian and Saudi companies, which aligns with the fund's strategy to launch investments that make a positive transformation at both local and international levels."

The Saudi sovereign fund plays a major role in driving the Kingdom's economic transformation and diversification, while contributing to shaping the future of the global economy. The fund has established more than 103 companies since 2017.

Alessandra Ricci, CEO of the SACE, said: "Cooperation with PIF facilitates Italian exports and strengthens trade and investment relations between Riyadh and Rome."

"With support from the agency, the partnership will provide an opportunity for Italian companies, especially small and medium-sized ones, to enhance their position as reliable suppliers," she added.

Earlier local website Nemnna reported that the funding was destined for Saudi Arabia's futuristic city NEOM, "NEOM is committed to working with global partners who share our passion for visionary projects and initiatives that will advance human progress," acting CEO Aiman Al-Mudaifer said in a press release, it said.

In January, Ricci expressed enthusiasm about the partnership, stating: "We are glad to play our part alongside NEOM in this cutting-edge project, which generates opportunities in a wide range of sectors for Italian SMEs and supply chains."

The PIF is rated Aa3 by Moody's Credit Rating Agency with a stable outlook, and A+ by Fitch Credit Rating Agency with a stable outlook.