Saudi Arabia and France sign $2.9bn in investment deals and initial pacts at Paris forum

Agreements cover a range of sectors including clean energy, tourism, manufacturing, defence, health and education

Saudi Investment Minister Khalid Al Falih said the number of French companies operating in Saudi Arabia has increased by 43 per cent since 2020. Reuters

Deals and initial pacts worth $2.9 billion have been signed at the French-Saudi Investment Forum, which brought together policymakers, business leaders and entrepreneurs from both countries this week in Paris.

The two sides signed 24 investment accords covering sectors including clean energy, tourism, manufacturing, defence, health and education, Saudi Arabia's Ministry of Investment said in a statement on Tuesday.

“The potential for greater investment and co-operation between us goes far beyond traditional sectors such as energy but extends to sectors where Saudi Arabia and France are forging ahead including health care, clean energy, hospitality and culture,” said Saudi Minister of Investment Khalid Al Falih.

Among the deals signed is an agreement between Saudi Arabian Military Industries Company (Sami), Saudi Arabian Industrial Investments Company (Dussur) and France’s Figeac Aero to manufacture aircraft parts and components to supply global markets.

A preliminary agreement was also signed between Shurfah Holding Company and Hoffman Green Cement Technologies to design and produce decarbonated cement, while a joint venture between Saudi Arabia’s SmartHealth and France’s Visiomed will set up 40 examination centres across the kingdom.

The deals come as the kingdom sharpens its focus on local manufacturing, the transfer of know-how and upskilling national talent.

The agreements come during a time of increasing trade between France and Saudi Arabia.

In 2022, French-Saudi trade volumes increased by more than 80 per cent to $11.5 billion, while France's foreign direct investment in Saudi Arabia reached nearly $6 billion, according to the ministry.

The number of French companies operating in Saudi Arabia has increased by 43 per cent since 2020.

More than 110 firms currently operate in the kingdom and 360 licences were granted to French wholly owned companies or joint ventures operating in the country, Mr Al Falih told the forum on Monday.

Major French investors operating in the kingdom now include Airbus, Alstom, Credit Agricole, L’Oreal, Sanofi Aventis, Thales, Total and Veolia.

On Monday, Saudi Arabia's discount airline Flynas firmed up an order with Airbus for 30 more A320neo family aircraft worth 14 billion Saudi riyals ($3.73 billion) at list prices during the Paris Air Show.