عربي English Türkçe اردو فارسى
Logo
Latest News
Business

France Deepens Investment in Saudi Mega-Projects as Partnership Moves Beyond Oil

A group photo of the participants in the French-Saudi Investment Roundtable Meeting. (SPA)
A group photo of the participants in the French-Saudi Investment Roundtable Meeting. (SPA)
TT
TT

France Deepens Investment in Saudi Mega-Projects as Partnership Moves Beyond Oil

A group photo of the participants in the French-Saudi Investment Roundtable Meeting. (SPA)
A group photo of the participants in the French-Saudi Investment Roundtable Meeting. (SPA)

Saudi-French ties are entering a new phase that extends beyond traditional energy cooperation, with Paris seeking a deeper role in the major development projects underpinning Saudi Arabia’s Vision 2030.

During the visit by Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, to Paris, the two countries signed more than 21 agreements and memorandums of understanding backed by credit lines and financing facilities worth billions of dollars.

They cover infrastructure, transportation, healthcare, electricity, aviation, tourism, entertainment, artificial intelligence, and research and development.

The deals signal a French push to embed its companies more deeply in Saudi project value chains rather than simply supplying goods, using financing and credit guarantees to broaden their involvement.

Financing major projects

A key component is a $5 billion credit line to finance contracts carried out by French companies, alongside facilities of up to $3 billion to support electricity projects.

The Saudi Finance Ministry and Bpifrance Assurance Export issued a joint statement on completing operational arrangements for a credit line to finance and refinance existing and future contracts undertaken by French companies in the Kingdom, particularly in infrastructure, urban development, transportation and healthcare.

Saudi Arabia’s National Development Fund also reached an understanding with French public investment bank Bpifrance to explore joint financing and investment opportunities, exchange expertise in development finance, and strengthen institutional and human capabilities.

Energy and technology

Saudi Aramco procurement agreements worth $3.7 billion mark another significant expansion of French involvement in the energy sector, particularly drilling and pipes.

The package also includes cooperation between Aramco Digital and Dassault Systèmes on artificial intelligence, highlighting a shift toward using technology to boost efficiency and productivity.

In aviation, the Saudi Export-Import Bank, Saudia Group and Crédit Agricole signed a three-way memorandum to arrange financing for the group’s acquisition of new Airbus aircraft, combining French financing with Saudi credit support to facilitate the national carrier’s expansion.

France is also seeking a greater role in Saudi Arabia’s growing tourism, entertainment and cultural sectors. Qiddiya Investment Company and the French government agreed to explore the development of a mixed-use, entertainment-focused destination in France, potentially worth about €6 billion over its development period.

The Saudi-French partnership on AlUla was meanwhile extended until 2030, encompassing archaeology, heritage and culture.

The two sides agreed to broaden healthcare cooperation, covering public health, health security, healthcare governance, quality of care, digital health, AI, research and development, innovation, clinical trials and pharmaceuticals.

Saudi Arabia’s National Institute of Health separately reached an understanding with French pharmaceutical group Sanofi to support research, innovation, clinical studies and the development of promising treatments.

Broader investment partnership

Shura Council member and economic adviser Fadl bin Saad Al-Buainain told Asharq Al-Awsat that the Crown Prince’s visit came as the region faced geopolitical challenges and the global economy grappled with shifts affecting energy security and supply chains.

He described the focus on economic cooperation as evidence of a clear strategic approach aligned with Saudi interests, while the credit facilities underscored France’s drive to build a sustainable investment partnership.

The arrangements would help Saudi Arabia advance development projects and the Kingdom’s Vision 2030 while generating returns for French companies, he added.

“The agreements are no longer linked to selling products or oil, but are increasingly tied to economic development, infrastructure, tourism and entertainment, artificial intelligence, research and other important sectors,” Al-Buainain underlined, adding that they would create value and strengthen local content.

He singled out cooperation on AlUla and Qiddiya for their potential impact on culture, tourism and entertainment, sectors Riyadh is seeking to expand as contributors to gross domestic product.

Al-Buainain added that Saudi Arabia was no longer simply seeking economic partnerships, but had become a market that countries were increasingly eager to engage with.

France’s push for closer ties with Riyadh through projects supporting Vision 2030 reflected that shift, he noted.

Commercial law professor and adviser Osama bin Ghanem Al-Obaidy told Asharq Al-Awsat the agreements highlighted the depth of bilateral economic ties, with France ranking as the Kingdom’s fourth-largest investor.

More than 650 French companies operate in Saudi Arabia across transportation and logistics, energy, telecommunications, industry, healthcare, technology, mining, aviation and aerospace, culture and entertainment, digital infrastructure and AI.

Al-Obaidy said the latest deals would reinforce strategic ties and help transform the partnership into a more diverse and sustainable portfolio of projects.

Most Viewed

 
 
Business

Oil Prices Fall $2 on Iran-Oman Talks to Reopen Strait of Hormuz

A worker rests next to an oil pump on a sunny day in Baku, Azerbaijan, June 16 , 2015. (Reuters)
A worker rests next to an oil pump on a sunny day in Baku, Azerbaijan, June 16 , 2015. (Reuters)
TT
TT

Oil Prices Fall $2 on Iran-Oman Talks to Reopen Strait of Hormuz

A worker rests next to an oil pump on a sunny day in Baku, Azerbaijan, June 16 , 2015. (Reuters)
A worker rests next to an oil pump on a sunny day in Baku, Azerbaijan, June 16 , 2015. (Reuters)

Oil prices fell more than $2 a barrel on Wednesday as talks between Iran and Oman revived hopes that the Strait of Hormuz could reopen and remove shipping constraints affecting supply in the key Middle East region.

Brent crude futures fell $2.30, or 2.6%, to $86.28 a barrel by 0447 GMT, earlier dropping to their lowest since August 13. US West Texas Intermediate crude futures were down $2.08, or 2.53%, at $80.29, earlier sinking to their lowest since August 10.

Both benchmarks fell more than ‌3% on Tuesday.

"The ‌market continues to react to developments surrounding navigation through ‌the ⁠Strait of Hormuz, ⁠and hopes for progress in talks between Iran and Oman have triggered selling," said Mitsuru Muraishi, an analyst at Fujitomi Securities.

"That said, uncertainty over the outlook has prompted bargain buying, limiting further losses, and prices are likely to remain range-bound for the time being," he added.

Iran said it had restarted talks with Oman to manage the strait as it faces heightened economic pressure from US President Donald Trump.

Iran and Oman ⁠have been in on-and-off talks for weeks about controlling traffic ‌through the waterway, which handled one-fifth of global ‌oil and liquefied natural gas shipments before the US-Israeli war against Iran began in February.

The ‌two countries said on Tuesday that they discussed "a joint temporary navigational corridor" ‌through the strait and agreed to clear it of mines.

Amid the talks, ship traffic through Hormuz remains lower. Only five commodity vessels — two liquefied petroleum gas tankers and a bitumen tanker exiting and two empty product tankers — transited the waterway on Tuesday, preliminary data from shiptracker Kpler ‌showed, down from the 10-day average of 15 and well below pre-war levels.

Talks on an overall end to the ⁠conflict also ⁠continue. Pakistan and Iran made "significant progress" in talks that focused on the US-Israeli war on Iran and a path to peace, Pakistan's interior minister said on Tuesday, at the end of a visit to Tehran.

On Monday, Washington expanded sanctions aimed at cutting off Iran's economic lifeline, threatening to punish countries that continue to do business with Tehran, though it said it would not impose penalties immediately.

In the US, the American Petroleum Institute reported crude oil inventories rose by about 4.2 million barrels in the week ended August 21, market sources said.

Analysts polled by Reuters estimated crude oil stockpiles would rise by about 600,000 barrels on average. Official data from the EIA, the statistical arm of the US Department of Energy, are due at 10:30 a.m. ET (1430 GMT) on Wednesday.

Business

Canada Unveils Counter Tariffs of 15% to 50% on US Goods

Canadian flag is pictured across the Detroit River in Windsor, Ontario, Canada, 25 August 2026. EPA/ARI SAPERSTEIN
Canadian flag is pictured across the Detroit River in Windsor, Ontario, Canada, 25 August 2026. EPA/ARI SAPERSTEIN
TT
TT

Canada Unveils Counter Tariffs of 15% to 50% on US Goods

Canadian flag is pictured across the Detroit River in Windsor, Ontario, Canada, 25 August 2026. EPA/ARI SAPERSTEIN
Canadian flag is pictured across the Detroit River in Windsor, Ontario, Canada, 25 August 2026. EPA/ARI SAPERSTEIN

Canada on Tuesday announced counter-tariffs on US goods ranging between 15 percent and 50 percent, intensifying the trade war between the historically close allies.

Ottawa's retaliation takes effect September 8, a timeframe earlier outlined by Prime Minister Mark Carney after US President Donald Trump's 50-percent duties on Canadian products came into place Saturday.

In detailing Ottawa's response, officials said Tuesday that its duties will match US levels. These impact industries like steel, dairy and electronics.

Canada's government also announced a $5.4 billion (CA$7.5 billion) aid package for impacted firms and workers.

"This is an unprecedented challenge imposed on Canada. But Canada will meet the moment," AFP quoted Canada's Finance Minister Francois-Philippe Champagne as saying.

"I think what Canadians can see this morning is that we stand united. We stand united in our response," he added.

The steep US tariffs hit about $20 billion in Canadian goods -- about 5.5 percent of its exports to the United States -- after trade negotiations collapsed at the eleventh hour.

Under Canada's planned response, US steel and aluminum products previously subject to a 25-percent duty will soon face 50-percent tariffs.

Goods facing 25-percent tariffs will include appliances, dairy products like cheese, as well as certain steel and aluminum derivative products.

A small category will see a 15-percent duty, including electric equipment and tools.

Overall, these form about 7.3 percent of Canada's imports from the United states.

But analysts warn of tit-for-tat escalation.

Already, Trump additionally pledged Monday to double tariffs on Canadian autos starting next year, up to 50 percent from the current 25 percent for non-US content.

Ontario Premier Doug Ford criticized Trump's threat on autos, saying he could "kiss my ass" and threatening an electricity export surcharge.

A freighter travels along the Detroit River in Detroit, Michigan, USA, 25 August 2026. EPA/ARI SAPERSTEIN

In an earlier phase of the dispute, Ontario imposed a temporary 25-percent surcharge on electricity exports to three US states.

Trump lashed out at Ford, warning of "far worse" consequences. He also referred to Carney as a "governor," re-upping his inflammatory push for Canada to become the 51st US state.

Highlighting the animosity, Trump said Tuesday he was considering renaming Lake Ontario as "Lake America," as he did last year with the Gulf of Mexico, which he said should now be called the "Gulf of America."

Trump's latest tariffs do not exempt products covered by the US-Mexico-Canada free trade agreement (USMCA). They raise the US effective tariff rate on Canadian exports to 6.9 percent from 5.1 percent, Oxford Economics estimates.

Tariffs on plastics, electrical machinery, and wood and paper products contribute most to the increase.

"Manufacturers in Quebec, New Brunswick, and Ontario will be affected the most," Oxford Economics said.

Over the weekend, Carney said US negotiators sought restrictions on Canadian trade deals with other countries at the last minute.

US officials made unacceptable "threats" to the French language and "Quebec culture" too, he added, referring to eastern Canada's French-speaking province.

But Trump pushed back Tuesday, saying on Truth Social that he would "never interfere with Canadians speaking French!"

"This lie was made up by a weak and ineffective Prime Minister in an attempt to gain political support," Trump charged.

The United States is Canada's biggest trading partner, with Canadian exports to its neighbor representing 70 percent of its overall total.

Canada is the second biggest US trading partner in goods this year, behind Mexico.
Polling released Sunday by the Angus Reid Institute showed Canadian broadly support Carney's move to walk away from talks, but some fear economic repercussions.

The White House had alleged "discriminatory treatment" by Canada against US alcohol, automobile and dairy products in rolling out new tariffs.

Trump delayed their implementation, but both sides failed to reach an agreement after hours of talks.

Beyond tariffs, Washington and Ottawa also have to agree on revisions to the USMCA, which Trump declined to renew in its current form.

Business

French Entrepreneur: Saudi Arabia is a Launchpad for Technology into Global Markets

The Biban Forum in Riyadh, specializing in startups (SPA)
The Biban Forum in Riyadh, specializing in startups (SPA)
TT
TT

French Entrepreneur: Saudi Arabia is a Launchpad for Technology into Global Markets

The Biban Forum in Riyadh, specializing in startups (SPA)
The Biban Forum in Riyadh, specializing in startups (SPA)

French entrepreneur and investor Julie Barbier does not see Saudi Arabia merely as a promising market for technology companies, but as a global launchpad that enables the testing, development, and scaling of breakthrough technologies.

The founder and CEO of Merit believes that the Kingdom's combination of digital infrastructure, capital availability, execution speed, and broad customer base makes it an attractive environment for building technology products that can subsequently expand into regional and international markets.

In an interview with Asharq Al-Awsat, Barbier said that the economic transformation driven by Vision 2030 has created a highly ambitious business environment that is quick to embrace new ideas, alongside the restructuring of major sectors including finance, tourism, transportation, trade, logistics, and government services.

She cited the experience of Merit, a global company specializing in engagement and incentive technologies, whose Saudi team achieves innovation efficiency levels 59 percent higher than the company's internal innovation benchmark and generates about eight innovation initiatives each week.

Barbier said Saudi Arabia has become one of the world's most attractive environments for launching, validating, and scaling new technologies, benefiting from high rates of digital adoption, a willingness among major institutions to collaborate with innovative solutions, abundant capital, and the simultaneous transformation of entire economic sectors.

She explained that these conditions provide entrepreneurs with access to real-world use cases and serious customers, allowing them to launch and test new products at scale before rapidly refining and adapting them for expansion into other markets.

In her view, the Kingdom's pace of transformation also encourages a greater willingness to challenge traditional methods, a critical factor when developing new solutions.

For Merit, which selected Riyadh as its regional headquarters, Barbier said the company's presence in Saudi Arabia gives it direct access to customers and partners while enabling it to develop and test products before introducing them internationally.

"That is why I see Saudi Arabia not simply as a technology market, but as a launchpad for companies with regional and global ambitions," she said.

French entrepreneur and investor Julie Barbier (Asharq Al-Awsat)

Vision 2030: From Ambition to Rapid Execution

Barbier said one of Vision 2030's most significant contributions has been providing the Kingdom with a clear direction and a high level of ambition shared by government institutions, businesses, investors, and entrepreneurs.

"In a transformation of this scale, it is natural for some goals to progress faster than others, but the direction is clear and the momentum is strong," she said.

She believes that the clarity of ambition across the business ecosystem directly influences how new ideas are received. Decisions are made more quickly, experimentation is encouraged, and companies become more willing to adopt new ways of working.

Barbier likened Vision 2030 to a wave pushing the entrepreneurial ecosystem forward. Entrepreneurs and companies operating in the Kingdom are not merely benefiting from this momentum, she said; they are also helping to create it and moving in the same direction.

Merit's experience reflects that transformation. Although the company operates through approximately eight offices and employs staff from 24 nationalities, its Saudi team performs 59 percent better on the company's internal innovation index and launches around eight innovation initiatives each week.

According to Barbier, these figures are a practical demonstration of Vision 2030's impact.

"It is not simply a government strategy," she said. "It creates an environment that encourages people to work harder, experiment more, move faster, and think on a larger scale."

She added that this momentum has become part of Merit's strategic advantage: "We benefit from it and contribute to strengthening it."

A Digital Environment that Shortens the Path from Idea to Execution

Discussing her experience as a French entrepreneur and investor leading a global technology company from Riyadh, Barbier said what distinguishes Saudi Arabia's business environment is the speed with which decisions move from ambition to implementation, something entrepreneurs notice in their daily operations.

She noted that a wide range of services have become digital, from government services, digital identity, and payments to banking and business management. Many procedures that once required paperwork, appointments, or multiple intermediaries can now be completed digitally with increasing ease.

Barbier believes this digital transformation is not simply changing service delivery but is also reshaping the business mindset itself by raising expectations regarding execution speed and customer experience, while a broad technology infrastructure continues to be built across the Kingdom.

In this context, she highlighted the role of Saudi companies in strengthening the ecosystem. She noted that HUMAIN is developing capabilities in data centers, cloud infrastructure, models, and applications, while the government-owned company Elm serves as an example of how deeply technology has become integrated into sectors such as government services, finance, logistics, and business services.

Regarding Merit's decision to establish its regional headquarters in Riyadh, Barbier said the Kingdom's importance to the company extends beyond market size to include the environment it offers for product development, testing, and expansion.

"That is why we chose Riyadh as our regional headquarters," she said, "while continuing to develop products and technologies from Saudi Arabia that target global markets."

French entrepreneur and investor Julie Barbier at the Biban Forum in Riyadh (Asharq Al-Awsat)

The Future of Female Entrepreneurship in Saudi Arabia

Asked about the future of female entrepreneurship in the Kingdom, Barbier said: "I witnessed tremendous passion for entrepreneurship during my recent participation in the Saudi Unicorns Forum in Abha, where I met several female founders. What stood out was not only their ability to build companies, but also their level of ambition, commitment, and desire to expand and grow."

She noted that Saudi women are already active as founders, chief executives, investors, and decision-makers. What further strengthens their role, she said, is the growing entrepreneurial support ecosystem, which includes business leaders, investors, and experienced mentors who open doors, share expertise, and support the next generation of female entrepreneurs.

"I would also like to mention Princess Reema bint Bandar, the Custodian of the Two Holy Mosques' Ambassador to the United States, whose leadership and support have helped create more opportunities and support for the next generation of Saudi female entrepreneurs," she said.

Barbier added that Merit has witnessed similar progress internally across areas including product management, design, and marketing, where women directly influence the products the company develops, the decisions it makes, and the way it grows.

"Therefore, I do not believe the question today is whether Saudi women participate in entrepreneurship," she added. "They are already present and playing an active role. The next step is enabling more founders to scale by expanding access to capital, mentorship, and international networks, helping them build companies capable of growing regionally and globally."