Italy's Synapsia has signed a$2.5 billion agreement with UAE's Bold Technologies to provide AI-powered city management solutions for Abu Dhabi.

The partnership aims to enhance urban infrastructure, transportation, and emergency response through AI. Payments will be made in five instalments over 18 months, subject to project milestones.

The initiative, described as a 'cognitive city project,' will use AI to improve efficiency by integrating real-time data across various sectors.

As part of the deal, the companies will establish a new entity, My Aion Inc., which is expected to launch an initial public offering on the Abu Dhabi stock exchange between 2027 and 2029.

Italy has been strengthening economic ties with Gulf nations under Prime Minister Giorgia Meloni, with the UAE pledging to invest$40 billion in Italy.

The agreement also highlights the UAE's ambition to position itself as a leader in AI, competing with regional players such as Qatar and Saudi Arabia.