With Improved Bilateral Relations, French Investment in Saudi Arabia has Increased by 180%

In his speech at the French-Saudi Economic Roundtable in Paris, Saudi Investment Minister Khalid Al-Falih emphasised the growing strategic partnership between France and Saudi Arabia.

Impressively, he underlined the noteworthy advancements made in promoting bilateral economic cooperation, especially with regard to foreign direct investment.

Strategic Partnership Council: A New Chapter

Economic relations between Saudi Arabia and France are growing; in 2024, non-oil trade will have surpassed SR20 billion ($5.33 billion). Both parties signed a memorandum of understanding creating a Strategic Partnership Council and approved a strategic partnership roadmap during President Emmanuel Macron's visit in December, further solidifying the connection.

Notably, Al-Falih tweeted on his official X account: “I delivered the opening speech at the French-Saudi Economic Roundtable in Paris, in which I spoke about the strategic alignment in visions and the achievements accomplished.”

He additionally stated, “What confirms the strength of our investment relations is the 180 per cent increase in the volume of French direct investments in Saudi Arabia over 5 years, reaching €16 billion ($18.79 billion).”

The boost in French investment comes after a rush of acquisitions and possibilities in a variety of areas. In June, Saudi and French organisations announced plans to invest more than SR10 billion ($2.6 billion) in aviation infrastructure, including airports, air navigation, ground support technology, workforce training, and digital solutions.

Bilateral Trade Milestones: Exceeding €10 billion

Al-Falih pointed out at the December Saudi-French Investment Forum that bilateral trade had surpassed €10 billion, with approximately €3 billion in French investment inflows in 2023, bringing the total amount of French FDI to approximately €17 billion.

Furthermore, this expansion demonstrates the effectiveness of Saudi Arabia's Vision 2030 economic reforms, which have simplified the investment climate and enticed international businesses to expand into the commercial, industrial, and service zones.

Energy, infrastructure, and technology are just a few of the areas in which Saudi Arabia and France collaborate.

Ultimately, during French President Emmanuel Macron's December visit to Riyadh, TotalEnergies and EDF Renewables were notable for receiving large solar energy contracts with a combined capacity of 1.7 gigawatts. The ambitious Saudi Arabian aim of achieving 130 GW of renewable energy capacity by 2030 includes several projects.

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