Italian companies are at the forefront of sustainable innovation in the energy sector, and we see a clear alignment between Italy’s approach and the UAE’s sustainability goals, Valerio Soldani tells OGN

Italy has firmly established itself as a key player in the UAE’s oil and gas sector, securing a 10 per cent share of the market.

This impressive standing is a result of Italy’s commitment to delivering high-quality, technologically advanced solutions tailored to the UAE’s unique energy landscape.

At the heart of Italy’s success in the UAE is the active role played by the Italian Trade Agency (ITA), which supports Italian companies through strategic trade missions, industry partnerships, and market insights.

Speaking exclusively with OGN energy magazine, Valerio Soldani, Commissioner ITA, Dubai, said Italian companies have become trusted partners, particularly in critical areas such as midstream infrastructure, valves, turbines, and LNG storage.

Below are excerpts from the interview.

Italy currently holds a 10 per cent share in the UAE’s oil and gas equipment market. What do you attribute this success to?

The Italian Pavilion at Adipec

Italy’s 10 per cent share in the UAE’s oil and gas equipment market reflects our unwavering commitment to delivering high-quality, technologically advanced solutions tailored to the region’s specific needs.

Italian companies are known for their innovation and reliability, particularly in critical areas like midstream infrastructure, valves, turbines, and LNG storage solutions.

This reputation, combined with Italy’s support for sustainable practices and energy efficiency, has helped us establish Italy as a trusted partner within the UAE market.

Can you provide an overview of Italy’s market value in the UAE’s oil and gas sector and its growth trajectory?

Italy’s export of industrial goods and machinery to the UAE reached €4.5 billion ($6.6 billion) in the first half of 2024 alone, marking a growth of 22 per cent over the previous year.

This increase highlights the UAE’s strong demand for Italian expertise across the energy value chain.

Italy’s robust performance in the UAE oil and gas market shows steady upward momentum, with continued growth expected as we focus on expanding our presence in high-demand segments like LNG infrastructure and digital energy solutions.

How does Italy’s market share in the UAE compare with other regions?

In the UAE, Italy is the third-largest supplier of oil and gas components, commanding nearly 10 per cent of the market share a position that reflects the country’s commitment to technological excellence.

Italy’s market share in the UAE is higher than in many other regions, due to a focused effort by Italian companies to address the UAE’s evolving energy needs.

The UAE is one of Italy’s key trade partners in the Gulf region, and we aim to expand this share further by continuing to support sustainable energy initiatives and developing long-term partnerships.

What role does the Italian Trade Agency (ITA) play in supporting Italian businesses in the UAE oil and gas sector?

ITA’s mission is to create sustainable opportunities for Italian companies within the UAE and beyond.

We actively support Italian businesses through trade missions, facilitating connections with UAE industry leaders, and providing insights into regional market trends.

At ADIPEC 2024, for example, we featured 28 Italian companies, emphasising innovation and sustainability, two areas where Italy excels.

ITA’s initiatives are designed to ensure Italian companies remain competitive and aligned with the UAE’s strategic energy goals.

The UAE has ambitious goals for sustainable energy. How are Italian companies contributing to these goals?

Italian companies are at the forefront of sustainable innovation in the energy sector, and we see a clear alignment between Italy’s approach and the UAE’s sustainability goals.

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 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.

Italy has established a strong presence in the UAE midstream segment. What specific innovations are Italian companies introducing in this area?

Italy’s midstream segment expertise is critical to our success in the UAE, where infrastructure like pipelines and LNG storage facilities are in high demand.

Italian companies are introducing high-efficiency, advanced pipeline systems, LNG terminals, and state-of-the-art storage solutions that ensure secure and efficient transport.

With Italy’s long history in engineering and infrastructure, our companies deliver solutions designed for resilience and sustainability, crucial for the UAE’s midstream needs.

Many of our companies are also delivering innovation-intensive products and services, like digital twins for AI-driven real time remote monitoring to address all the specific needs of customers and partners bringing efficiency and cost-effectiveness thanks to unique R&D advanced solutions.

What impact has the Italian energy sector had on the UAE’s oil and gas landscape?

Italy’s contributions have greatly influenced the UAE’s oil and gas landscape, especially in advancing technology and operational efficiency.

Italian companies’ expertise in industrial components and engineering solutions has provided the UAE with robust, efficient infrastructure.

The Italian approach to balancing traditional energy with sustainable solutions has also supported the UAE’s goals of transitioning to cleaner energy, showcasing Italy’s impact on both the industry’s infrastructure and its shift toward a sustainable future.

How is Italy addressing the UAE’s growing demand for LNG and other alternative energy sources?

Italy has responded proactively to the UAE’s demand for LNG and alternative energy sources.

Italy’s LNG imports surged over 50 per cent in 2022 as part of a strategic shift to cleaner energy.

Italian companies offer the UAE sophisticated LNG solutions, from terminals to storage infrastructure. By bringing this experience to the UAE, Italy is well-equipped to support the region’s energy transition, ensuring efficient energy production and distribution systems that align with the UAE’s long-term sustainability objectives.

Looking forward, what challenges and opportunities do you foresee for Italian companies in the UAE’s oil and gas sector?

Opportunities for Italian companies in the UAE are vast, especially in the areas of digitalisation, renewable integration, and infrastructure development.

However, with the industry’s shift toward renewable energy, Italian companies will need to innovate continually to meet the UAE’s standards for low-carbon solutions.

This shift also brings challenges, as competition in the sustainability segment increases.

However, Italian companies’ dedication to high-quality engineering, combined with their adaptability and commitment to sustainability, will allow them to thrive in this competitive landscape.

What are Italy’s strategic goals for expanding its market share in the UAE oil and gas sector over the next five years?

Our strategic goals in the UAE include increasing Italy’s market share by focusing on sustainable solutions, LNG infrastructure, and digital technologies that enhance operational efficiency.

Over the next five years, Italy aims to build upon its 10 per cent share by fostering long-term partnerships in both the oil and renewable energy sectors.

ITA will continue to support Italian companies through trade initiatives and collaborative projects, positioning Italy as an essential partner in the UAE’s pursuit of energy innovation and sustainability.

By Abdulaziz Khattak