How Saudi Arabia and France aligned national visions for prosperity at Riyadh investment forum

RIYADH: The Saudi-French Investment Forum that took place in Riyadh on Tuesday marked an important milestone in bilateral relations, with the signing of multiple memorandums of understanding and investment agreements worth billions of dollars.

Held to coincide with the state visit of French President Emmanuel Macron, the event brought together officials, policymakers, and business leaders from both nations, aiming to align their national visions for a prosperous future.

In his opening remarks, Saudi Minister of Investment Khalid Al-Falih welcomed French stakeholders, emphasizing the strong ties between the two countries. He lauded Macron as a “good friend of the Kingdom, leading a strong delegation.”  

Al-Falih highlighted the enduring economic partnership, the breadth of sectors covered, and the presence of French companies in Saudi Arabia. “Every time there is an event involving Saudi Arabia and France, there is a special magic and attraction,” he said, noting France’s early support for Riyadh’s bid to host EXPO 2030.

Among the agreements signed were collaborations with French oil giant TotalEnergies and Al Jumeih Energy and Water for the Rabigh 2 solar power plant. Additionally, power purchase agreements for the Al Masa’a and Al Hnakia 2 solar projects involved EDF, SPIC, and the Saudi Power Procurement Company.  

Another major deal involved the Public Investment Fund, Saudi Investment Recycling Company (SIRC), and Veolia, focusing on waste management and recycling initiatives in the Kingdom.  

In his own remarks at the Forum, Macron highlighted opportunities for collaboration in clean energy, mobility, technology, culture, and artificial intelligence, noting the synergy between Saudi Vision 2030 and France 2030.

“For all the French business-people and investors, I want to encourage them to invest more in this country because investing here is investing in the cornerstone of the whole region,” he said.

On Monday, Macron and Crown Prince Mohammed bin Salman signed a strategic partnership aimed at boosting cooperation in defense, energy, and AI. 

The partnership aims at “multiplying co-operation and concrete achievements in all areas,” the Elesee Palace said in a statement. It also includes plans to co-host a Summit for Action on AI in Paris in February, according to the Elysee.

Tuesday’s Forum built on a long history of cooperation, highlighted by reciprocal delegations at major events like VivaTech in Paris and Saudi Arabia’s LEAP conference. Al-Falih emphasized the shared history, values, and mutual respect underpinning the partnership.

“Saudis love anything French — French design, French furniture, French technology,” he said.  

Al-Falih noted that Saudi Arabia, the Gulf Cooperation Council’s fastest-growing economy, achieved 3 billion euros in French investment in 2023. France is the Kingdom’s second-largest foreign investor.

“We are ahead of targets in overall investment, and (France) was a significant part in achieving our targets,” said Al-Falih.

“The value of our trade relations exceeded 10 billion euros last year; and with roughly 3 billion euros of French investment into the Kingdom in 2023, and the nation’s accumulated foreign direct investment in Saudi Arabia reached 17 billion euros.”

He added: “We are proud to be hosting in Saudi Arabia close to 500 leading French companies. Significantly, around 30 of these companies have established their regional headquarters here in Riyadh because their target is not just the Saudi market but to use Saudi Arabia as a platform to reach further beyond.

“We stand today as the world is changing so fast in a new era of partnership. There is alignment of our interests and complementarity in our capabilities. And we also have shared worldviews that are lifting this partnership to a new height, culminating in the signing of our strategic partnership.”

Green energy was a central theme, with agreements supporting renewable energy projects and emphasizing sustainability’s role in economic growth. French biopharma leader Sanofi also signed agreements to expand its healthcare projects in Saudi Arabia.  

French expertise continues to play a significant role in Saudi Arabia’s development, from Riyadh Metro to the innovative tram systems in AlUla. The historic region, home to Saudi Arabia’s cherished heritage sites, is set to welcome Macron on Wednesday, reflecting ongoing cultural cooperation led by the French Agency for AlUla Development (Afalula).

French experts have been deeply involved with development in the historic region of northwestern Saudi Arabia. “Sharaan” by Jean Nouvel and Villa Hegra by Lacaton and Vassal are just two examples of cultural and heritage cooperation.

Tuesday’s Forum hosted six panels, featuring 50 keynote speakers, and facilitated hundreds of bilateral meetings. Themes included net-zero policies, urbanization, technology, entertainment, and fostering innovation.

French Minister Delegate for Industry Marc Ferracci underscored the Forum’s importance in strengthening ties amid Saudi Arabia’s unprecedented transformation.

“The Kingdom is undergoing one of the biggest transformations in recent history,” Ferracci told the Forum. “And as the second largest investor in the Kingdom, France supports the Kingdom in different sectors.

“Saudi Vision 2030 and France 2030 are transformative blueprints designed to tackle the challenges of our time, creating sustainable growth for the future, and the development of smart inclusive cities,” he added.

The objectives of France’s National Vision include achieving carbon neutrality and cooperation on green energy.

Ferracci added that France views Saudi Arabia as a vital partner, emphasizing shared goals of carbon neutrality and innovation. “The forum is a testament to our economic relationship and an opportunity to shape the future of our partnership,” he said.  

The French economy is viewed as a gateway, offering access to the wider European market, making it an attractive investment destination.

“The relationship between Saudi Arabia and France is not new, rather dates back to centuries not decades,” Prince Faisal bin Abdulaziz bin Ayyaf, the mayor of Riyadh, told the Forum.

He highlighted historical milestones, including the meeting between Saudi King Faisal and French President Charles de Gaulle in 1967, which marked the debut of stronger ties, evolving through personal contacts and visits at the highest levels.

King Khalid visited France in 1978 and 1981, and King Fahd visited twice when he was crown prince, in 1975 and 1981.

“Saudi Arabia’s Vision 2030 represents an ambitious roadmap towards a more prosperous and sustainable future,” said Prince Faisal. 

“Riyadh, as the capital of the Kingdom, plays a pivotal role in achieving that Vision. The city is undergoing an unprecedented economic developmental transformation. The city today stands as a workshop … the future is greater than what we can imagine.”

Prince Faisal highlighted the examples of King Salman Park, which aspires to be the largest urban park in the world, and New Murrabbaa, which is set to become the world’s largest urban development.

“It’s not our journey alone,” said Prince Faisal. “We invite everyone to join.”