French Ambassador to Saudi Arabia Ludovic Pouille said that his country was seeking to build a strategic partnership with the Kingdom that includes several vital sectors, including aviation and energy.
“The strategic partnership that we intend to build with the Kingdom is twofold, as our ambition is not only to increase the presence of French companies in the Saudi market, but we also want our Saudi partners, whether public institutions or private companies, to explore the richness and plurality of investment opportunities in the French economy,” Pouille told Asharq Al-Awsat.
Referring to figures published by Eurostat – a dissemination database that provides official statistics on the European Union, EU member states and sub-state regions – Pouille said that the Kingdom owned 25 percent of French companies in the Middle East.
He added that the number of subsidiaries in the Kingdom controlled by French companies was 135, equivalent to 40% of the subsidiaries controlled by European companies. Those employ more than 13,300 workers and generate nearly 4 billion euros.
Pouille explained that French companies were implementing important and large projects in the Kingdom, especially in the sectors of energy, water, waste treatment, transportation, aviation and construction, noting that large French groups enjoy a particularly good position in the field of renewable energies and the water sector.
With regards to large projects such as NEOM, the Red Sea, Qiddiya and AlUla, the French ambassador noted that French companies would work on basic infrastructure, airports, roads, bridges and roads leading to different sites, with funding from the Public Investment Fund.
He added that public-private partnerships were proposed through tenders to develop income-generating facilities in terms of electricity, water, waste and communications.
According to Pouille, many French companies, whether large groups or small and medium-sized companies, are participating in the construction and operation of future accommodation and catering facilities, leisure and entertainment amenities, cultural spaces and commercial areas.
Pointing to figures released by the Bank of France, the diplomat said that the balance of French direct investment in Saudi Arabia amounted to nearly 3 billion euros, according to data in early 2021, mainly concentrated in the energy sector.
This represents 25 percent of French foreign direct investment in the Middle East, he underlined.
Meanwhile, Pouille said that the balance of Saudi foreign direct investment in France amounts to only 600 million euros, which is equivalent to 4.5 percent of FDI by Middle Eastern countries in France. Qatar accounts for 53 percent and the UAE 19 percent, with investments mainly focusing on real estate and the hotel sector.
“We believe that these mutual investment volumes are below their capacity, and that they should grow in the coming years, especially in the context of the strategic partnership between our two countries,” he stated.
