The relationship between Saudi Arabia and France is witnessing significant growth in opportunities in different areas, including tourism, technology, and clean energy.
The French-Saudi Investment Forum, which kicked off on June 19, addresses the significant issues in different sectors to strengthen cooperation between the two countries.
The partnership between both countries is undergoing a historic change following the launch of Vision 2030, with France being one of the top investors, investing approximately €15 billion.
The French-Saudi Investment Forum in Paris brings together Saudi Arabian and French government officials and private-sector businesses to focus on the progress made in carrying out economic development plans.
Saudi Minister of Investment Khalid al-Falih expressed his gratitude to France's Minister Delegate for Foreign Trade, Economic Attractiveness and French Nationals Abroad, Olivier Becht, for extending an invitation to the Saudi delegation to visit France, particularly Paris.
Al-Falih's visit to France comes six months after Becht's visit to Saudi Arabia, during which they had productive meetings and explored the significant cultural, heritage, and tourism destination of AlUla.
During his remarks, al-Falih thanked Business France for partnering with Invest Saudi to organize the forum and the Saudi French Business Council, recognizing their 20th anniversary.
The gathering timing coincides with the visit of His Royal Highness, the Crown Prince, and Prime Minister Mohammed bin Salman to France, which al-Falih sees as symbolic.
Al-Falih highlighted the upcoming summit for a new global financial pact and the General Assembly for Expo 2030, where Saudi Arabia aspires to secure the candidacy to host the Expo. He emphasized that the accomplishments of Vision 2030, Saudi Arabia's ambitious National Transformation Program, will bear the imprints of French-Saudi partnerships.
The minister pointed out that 2026 will mark the celebration of 100 years of diplomatic relations between France and Saudi Arabia, underscoring the long-standing ties between the two nations. Al-Falih expressed confidence in the ability of both countries to realize their aspirations under their respective leaderships.
He also drew attention to France's economic prowess, highlighting its position as the world's seventh-largest economy and the European Union's preferred Foreign Direct Investment (FDI) destination.
He revealed that bilateral trade between the two countries reached 11 billion euros in 2022, representing a remarkable year-on-year growth of 47 percent.
France is the third-largest foreign investor in Saudi Arabia, with investments amounting to approximately 15 billion euros. French companies operating in Saudi Arabia have expanded by 43 percent since 2020, with over 110 companies actively present.
Speaking on Saudi Arabia's economic performance at the midway point of Vision 2030, al-Falih emphasized impressive milestones.
The nation's GDP has grown by two-thirds, non-oil revenues have surged by 120 percent, and Foreign Direct Investment (FDI) has quadrupled. Notably, unemployment has dropped to 8 percent, and women's participation in the workforce has more than doubled, showcasing the country's progress.
Al-Falih outlined several sectors of the Saudi economy primed for joint investments, including tourism, the digital economy, mobility and transportation, aviation and aerospace, energy, and finance.
He highlighted successful collaborations between Saudi Arabia and French companies such as Alstom, Airbus, and Figeac Aero across various sectors.
The minister also mentioned Saudi Aramco's plans to construct the world's largest blue hydrogen system and the world's largest green hydrogen plant at NEOM, a mega-project on the Red Sea coast.
Furthermore, he congratulated Saudi Aramco and TotalEnergies on their recent announcement of the final investment decision for the Amiral petrochemical joint venture project.
Al-Falih acknowledged the investment made by French banks, including BNP Paribas, Credit Agricole, Natixis, and Credit Mutuel, in Environmental, Social, and Governance (ESG) financing.
In closing, al-Falih expressed his gratitude to the hosts and attendees of the event and extended an invitation for all to seize the abundant opportunities available in Saudi Arabia.
In turn, Minister Delegate for Foreign Trade, Economic Attractiveness and French Nationals Abroad, Olivier Becht, delivered a speech at the French-Saudi Investment Forum, expressing gratitude towards the Saudi Ministry of Investment, ADF International, and other contributing institutions for making the event possible.
In his address, Becht highlighted the recent success of the Vision Golfe Forum, which he sees as a symbol of the growing commercial ties between France and the Gulf region, particularly Saudi Arabia.
Underscoring the significance of this event, Becht expressed his hope for the Vision Golfe Forum to become a regular gathering for business communities, emphasizing its potential to foster stronger connections between the two regions.
He also reiterated that Saudi Arabia stands as France's most important trading partner in the Gulf region, a sentiment echoed by French President Emmanuel Macron and Crown Prince Mohammed bin Salman.
Both France and Saudi Arabia share a common goal of strengthening bilateral ties in all dimensions. Notably, the economic relations between the two countries have flourished, with trade reaching a record level of nearly 11 billion euros in 2022, effectively overcoming the adverse effects of the COVID-19 pandemic on bilateral trade.
Moreover, cross-investments have played a significant role, with Saudi Arabia serving as a prominent destination for French direct investments within the Gulf region. Presently, over 130 French companies are operating in Saudi Arabia.
However, the relationship between France and Saudi Arabia extends beyond economic matters. It encompasses diplomatic coordination, regional security, energy and climate change, academia, and culture.
The ongoing dialogue between the two nations is evident through official meetings and ministerial visits. The two countries have enjoyed fruitful cooperation, particularly in the transport and energy sectors.
As both France and Saudi Arabia face global challenges such as energy, climate change, and digital transition, significant investments are required.
In their capacity as G20 nations, they share a responsibility to contribute to the fight against climate change. An upcoming milestone in this effort is the New Global Financial Pact summit in Paris, which will be co-chaired by the French President and Crown Prince.
This summit holds great importance as sustainable cities stand as a major objective of Saudi Arabia's Vision 2030 program, presenting partnership opportunities between France and Saudi Arabia. France possesses an advanced ecosystem in sustainable cities, making it well-positioned to offer an integrated solution.
Furthermore, France plays a unique role in supporting Saudi authorities in the development of their cultural, historical, and natural heritage.
The two countries are striving to bring their entrepreneurial ecosystems closer together, fostering a positive dynamic. Saudi investments in strategic sectors within France, such as technology, are deemed essential.
Meanwhile, France's own program, France 2030, focuses on innovation and energy transition, prioritizing investments in decarbonized hydrogen, the decarbonization of industries, electric mobility, and new technologies. In 2022, France ranked as Europe's leading country for foreign investment projects for the third consecutive year.
France would warmly welcome the establishment of an office for the Public Investment Fund in Paris, demonstrating the alignment of visions between the two countries and the unparalleled opportunities to enhance mutual investments while sharing expertise and knowledge.
Becht concluded his address by reaffirming his commitment to supporting projects that will benefit both nations.