Macron: Saudi Arabia is a Cornerstone for Accessing Gulf, Arab, and African Markets

French President Emmanuel Macron speaks during the Saudi-French Business Forum during an official visit in Riyadh on December 3, 2024. JEANNE ACCORSINI / AFP
French President Emmanuel Macron speaks during the Saudi-French Business Forum during an official visit in Riyadh on December 3, 2024. JEANNE ACCORSINI / AFP
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Macron: Saudi Arabia is a Cornerstone for Accessing Gulf, Arab, and African Markets

French President Emmanuel Macron speaks during the Saudi-French Business Forum during an official visit in Riyadh on December 3, 2024. JEANNE ACCORSINI / AFP
French President Emmanuel Macron speaks during the Saudi-French Business Forum during an official visit in Riyadh on December 3, 2024. JEANNE ACCORSINI / AFP

French President Emmanuel Macron has encouraged French entrepreneurs to invest in Saudi Arabia, describing the Kingdom as a cornerstone for accessing markets across the Gulf, Arab countries, and Africa. At the same time, he invited Saudi companies to invest in Paris, highlighting France’s position as the top destination for investments over the past five years and emphasizing its role as a gateway to European Union markets.

Speaking at the Saudi-French Investment Forum on Tuesday in Riyadh, Macron described the two nations as reliable partners amid global fragmentation. He referred to his recent conversation with Saudi Crown Prince and Prime Minister Mohammed bin Salman, where they discussed several geopolitical issues and stressed the importance of balance and peace.

Macron noted the participation of 145 French companies at the event, underscoring France’s commitment to the Kingdom. He pointed out that his country is Saudi Arabia’s second-largest foreign investor and that French companies employ approximately 12,000 people in the Kingdom.

The president highlighted the key sectors of bilateral investment partnerships, including energy, water, environment, tourism, sports, healthcare, food, space exploration, and aviation.

In addition, Macron emphasized France’s interest in supporting Saudi Arabia’s carbon reduction goals through innovation and new transportation technologies, including renewable energy and green hydrogen. He also noted the Kingdom’s significant investments in artificial intelligence (AI) and pointed out the potential for collaboration, leveraging France’s expertise in training talent and developing AI solutions that integrate climate considerations.

The French president further highlighted Paris’ aspiration to collaborate on Saudi Arabia’s Vision 2030 mega-projects, including NEOM, AlUla, and Qiddiya, as well as participate in Expo 2030 and the FIFA World Cup 2034. He stressed the importance of knowledge and technology transfer to support the organization of such large-scale events.

He also proposed leveraging French expertise to enhance Saudi Arabia’s cultural heritage sites and museums by introducing innovative experiences and bringing together experts from both nations to develop these sites.

Riyadh Metro Project

Saudi Minister of Investment Khalid Al-Falih affirmed the progress in Saudi-French economic cooperation, describing the forum as an opportunity to align efforts in various fields, including innovation and technology. Al-Falih revealed that Saudi Arabia hosts approximately 500 French companies, with 30 of them having established regional headquarters in Riyadh.

The minister also announced three major renewable energy projects in partnership with French private-sector companies and highlighted the Riyadh Metro Project as a model of successful collaboration between French and Saudi firms, paving the way for further expansion. Additionally, Al-Falih mentioned a partnership with Airbus, which recently secured the largest aircraft order of 2024.

For his part, Laurent Germain, head of the French side of the Saudi-French Business Council and president of MEDEF, described Saudi Arabia as a key partner for French companies. He identified three main factors driving French investment in the Kingdom: strong political vision, the presence of large-scale projects, and access to financing. Germain also noted the participation of a French company in the Riyadh Metro Project and emphasized Riyadh’s growing significance as a global hub for major events.

Meanwhile, Wouter Van Wersch, Executive Vice President of Airbus, revealed to Asharq Al-Awsat that the company operates around 200 commercial aircraft in Saudi Arabia and has future orders for an additional 300 planes. He added that Airbus also manages over 120 helicopters, approximately 80 military aircraft, and a number of satellites in the Kingdom.

Van Wersch reaffirmed Airbus’ commitment to supporting Vision 2030, noting significant opportunities in the transportation sector, as Saudi Arabia aims to triple the number of incoming travelers by 2030. He also highlighted the Kingdom’s potential in sustainable aviation fuel and possibly hydrogen, opening new avenues for collaboration between the two sides.



EUROPE GAS-Prices Continue to Decline

Model of natural gas pipeline and Gazprom logo, July 18, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
Model of natural gas pipeline and Gazprom logo, July 18, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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EUROPE GAS-Prices Continue to Decline

Model of natural gas pipeline and Gazprom logo, July 18, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
Model of natural gas pipeline and Gazprom logo, July 18, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

Dutch and British wholesale gas prices continued to declined on Tuesday morning on milder weather forecasts for next week, high wind speeds and stable supply.

The benchmark front-month contract at the Dutch TTF hub was down 0.61 euros at 46.65 euros per megawatt hour (MWh) at 0947 GMT, according to LSEG data.

The contract for March was down 0.52 euro at 46.63 euros/MWh.

In Britain, the front-month contract fell by 2.04 pence to 116.76 pence per therm.

In north-west Europe, although another cold snap is forecast from Friday over the weekend, the latest forecasts are showing milder temperatures than yesterday from Jan. 15, according to LSEG data, Reuters reported.

Wind speeds are expected to remain quite strong today, limiting gas demand.

However, in north-west Europe, gas-for-power demand is expected 36 million cubic metres (mcm) per day higher at 78 mcm/day on the day-ahead.

"Wind speeds are expected still high today, before dropping sharply tomorrow with the cold spell arriving," said LSEG gas analyst Saku Jussila.

In Britain, Peak wind generation is forecast at around 15.1 gigawatts (GW) today and 14.7 GW tomorrow, Elexon data showed.

Analysts at Engie EnergyScan said EU net storage withdrawals have slowed due to a more comfortable spot balance but the storage gap compared to last year remains high. On 5 January, EU gas stocks were 69.94% full on average, compared to 84.96% last year.

Looking further ahead, analysts at Jefferies expect a tight year for global gas markets due to project delays and higher-than-expected demand.

"European and Asian LNG spot gas prices in 2025 could surpass those of 2024, driven by Europe's increased gas injection needs and the loss of Russian exports outpacing the expected growth in global LNG supply," they said.

"Post 2025, the market is expected to loosen with an additional 175 million tonnes of new supply coming online between 2026 and 2030, primarily from the US and Qatar," they added.

In the European carbon market, the benchmark contract was down 0.91 euro at 73.45 euros a metric ton.