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
TT

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.



Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
TT

Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo

The US dollar charged ahead on Thursday, underpinned by rising Treasury yields, putting the yen, sterling and euro under pressure near multi-month lows amid the shifting threat of tariffs.

The focus for markets in 2025 has been on US President-elect Donald Trump's agenda as he steps back into the White House on Jan. 20, with analysts expecting his policies to both bolster growth and add to price pressures, according to Reuters.

CNN on Wednesday reported that Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries. On Monday, the Washington Post said Trump was looking at more nuanced tariffs, which he later denied.

Concerns that policies introduced by the Trump administration could reignite inflation has led bond yields higher, with the yield on the benchmark 10-year US Treasury note hitting 4.73% on Wednesday, its highest since April 25. It was at 4.6709% on Thursday.

"Trump's shifting narrative on tariffs has undoubtedly had an effect on USD. It seems this capriciousness is something markets will have to adapt to over the coming four years," said Kieran Williams, head of Asia FX at InTouch Capital Markets.

The bond market selloff has left the dollar standing tall and casting a shadow on the currency market.

Among the most affected was the pound, which was headed for its biggest three-day drop in nearly two years.

Sterling slid to $1.2239 on Thursday, its weakest since November 2023, even as British government bond yields hit multi-year highs.

Ordinarily, higher gilt yields would support the pound, but not in this case.

The sell-off in UK government bond markets resumed on Thursday, with 10-year and 30-year gilt yields jumping again in early trading, as confidence in Britain's fiscal outlook deteriorates.

"Such a simultaneous sell-off in currency and bonds is rather unusual for a G10 country," said Michael Pfister, FX analyst at Commerzbank.

"It seems to be the culmination of a development that began several months ago. The new Labour government's approval ratings are at record lows just a few months after the election, and business and consumer sentiment is severely depressed."

Sterling was last down about 0.69% at $1.2282.

The euro also eased, albeit less than the pound, to $1.0302, lurking close to the two-year low it hit last week as investors remain worried the single currency may fall to the key $1 mark this year due to tariff uncertainties.

The yen hovered near the key 160 per dollar mark that led to Tokyo intervening in the market last July, after it touched a near six-month low of 158.55 on Wednesday.

Though it strengthened a bit on the day and was last at 158.15 per dollar. That all left the dollar index, which measures the US currency against six other units, up 0.15% and at 109.18, just shy of the two-year high it touched last week.

Also in the mix were the Federal Reserve minutes of its December meeting, released on Wednesday, which showed the central bank flagged new inflation concerns and officials saw a rising risk the incoming administration's plans may slow economic growth and raise unemployment.

With US markets closed on Thursday, the spotlight will be on Friday's payrolls report as investors parse through data to gauge when the Fed will next cut rates.