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More Saudi-French Investments Expected in Renewable Energy

Saudi and French officials meet to discuss bolstering energy relations. (SPA)
Saudi and French officials meet to discuss bolstering energy relations. (SPA)
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More Saudi-French Investments Expected in Renewable Energy

Saudi and French officials meet to discuss bolstering energy relations. (SPA)
Saudi and French officials meet to discuss bolstering energy relations. (SPA)

Business experts expected Saudi-French investments in renewable energy to increase in light of the joint statement issued by Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz and French Minister of Energy Transition Agnes Pannier-Runacher that underlined efforts to enhance energy efficiency and cooperation in peaceful nuclear power.

Dr. Mohamed Ben Laden, president of the Saudi-French Business Council, told Asharq Al-Awsat that the volume of trade exchange between the two countries was expected to increase, in view of the alignment of Saudi Vision 2030 and France 2030 strategy, in terms of hydrogen and the reduction of carbon emissions.

Ben Laden noted that the strategic partnership included cooperation in mega structural projects worth billions of euros, stressing that the council would continue to assume its role in attracting more French investments to the Saudi market by promoting the incentives offered by the Kingdom and all available opportunities.

Eng. Majid Refae, Chairman of the Board of Directors of the Saudi Polytechnic Institute for Renewable Energy and CEO of Desert Technologies for Industry, told Asharq Al-Awsat that the two countries have developed relations in the field of energy, represented in many projects in oil refining, petrochemical production, electricity and renewable energy.

Refae highlighted the increase in the number of French companies investing in the Kingdom from 259 in 2019 to 336 last year. He added that Saudi Arabia and France have worked to strengthen bilateral investment relations and build long-term partnerships between their private sectors.

He underscored the presence of many Saudi-French joint projects, including SATORP, one of the world’s most efficient integrated refining and petrochemicals platforms – an alliance between Saudi Aramco and Total Energies.

“The visit of the Saudi Crown Prince to France and his participation in the Summit for a New Global Financing Pact reflected the depth of these relations and the Kingdom’s leading role, position and global influence,” Refae said.

He also stressed the two countries’ aspiration to benefit from the opportunities offered by the Kingdom’s vision and the economic plan of France 2030 to develop and strengthen economic partnership in the areas of mutual investment, especially in the field of energy.

According to the joint Saudi-French statement, the two parties agreed to make efforts to enhance energy efficiency and cooperation in the field of nuclear energy, within a peaceful and safe framework, manage radioactive waste and nuclear applications, and develop human capabilities.

They acknowledged the importance of advancing the implementation of the United Nations Framework on Climate Change (UNFCCC) and the Paris Agreement.

“Addressing climate change and promoting secure, reliable, affordable and sustainable supplies of energy are shared strategic priorities of Saudi Arabia and France,” the statement read.

It added: “Moreover, the two countries recognize that clean hydrogen is an essential fuel to reach the shared objective of promoting a sustainable economic development while mitigating the impact of climate change.”

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Business

Saudi Non-Oil Sector Grows at Seven-Month High in September

The Saudi capital, Riyadh (SPA)
The Saudi capital, Riyadh (SPA)
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Saudi Non-Oil Sector Grows at Seven-Month High in September

The Saudi capital, Riyadh (SPA)
The Saudi capital, Riyadh (SPA)

Saudi Arabia's non-oil private sector recorded significant acceleration in September 2026, as the Riyad Bank Purchasing Managers’ Index (PMI), seasonally and economically adjusted and compiled by S&P Global, rose to 55.3 percent, up from 53.8 percent in August. This increase reflects the highest level for business conditions since February, surpassing the 50 percent neutral mark that separates growth from contraction.

Record Rise in New Orders

Report data showed that the sector's growth was primarily supported by a sharp rebound in new orders, which recorded their fastest rate of increase since last February, amid improving market conditions, increased domestic spending, and customer demand.

In response to this influx of orders, companies bolstered their operational and investment capacities, driving employment activity to accelerate to its highest level in seven months. Recruitment efforts specifically targeted supporting technical staff and expanding sales teams. Purchasing activity also saw robust growth, with purchases of production inputs recording their highest increase in seven months.

Decline in Foreign Sales

Despite the domestic rebound, the report indicated continued weakness in foreign demand, with new orders from international clients declining for the seventh consecutive month due to supply chain disruptions and regional geopolitical tensions.

Supply chain data also showed only a slight improvement in supplier delivery times, and at the slowest pace in five months. These delays and rising costs contributed to a slowdown in production growth to its lowest level in five months, coupled with an increase in backlogs for the first time since May.

Cost Pressures and Rising Selling Prices

Companies reported a continued sharp increase in input prices due to elevated material and transportation costs. To protect profit margins, establishments raised selling prices to customers at a high rate, marking the second fastest increase in over six years.

Regarding the outlook, the Future Output Index showed a decline in business optimism for the coming year to its lowest level since March, amid the prevailing uncertainty caused by regional disruptions and supply chains.

Commenting on these results, Dr. Naif Alghaith, Chief Economist at Riyad Bank, affirmed that September's results are consistent with the overall picture of the Saudi economy; where domestic consumption, investment activity, government projects, in addition to Public Investment Fund projects, and credit availability, continue to provide fundamental support for non-oil activity.

Alghaith added: “The increase in unfinished work, coinciding with the acceleration in employment and purchasing to a seven-month high, indicates that companies are building their operational capacities to meet sustained demand and expand their production capabilities, rather than merely offering temporary responses.”

Business

Egypt Non-oil Downturn Deepens in September as Orders Slump

Part of the New Administrative Capital east of Cairo (New Capital Company)
Part of the New Administrative Capital east of Cairo (New Capital Company)
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Egypt Non-oil Downturn Deepens in September as Orders Slump

Part of the New Administrative Capital east of Cairo (New Capital Company)
Part of the New Administrative Capital east of Cairo (New Capital Company)

Egypt's non-oil ‌private sector contracted at a faster pace in September as output and new orders fell sharply amid inflation and geopolitical disruptions, a business survey showed on Monday, Reuters reported.

* The seasonally adjusted S&P Global Egypt Purchasing Managers' Index (PMI) fell to 47.2 in September from 49.6 in August, a survey by ‌S&P Global ‌showed. The 50-mark separates growth ‌from ⁠contraction.

* Output and ⁠new business both declined at faster rates in September. Firms cited weaker market conditions, ongoing geopolitical disruptions and strong inflationary pressures.

* Export sales also fell, though at a ⁠marginal pace that was the ‌joint-slowest in ‌the current seven-month decline.

* Employment rose for ‌a second straight month, the ‌first back-to-back increase in staffing in more than a year, although the pace slowed from August and remained slight.

* Output ‌price inflation eased slightly from August but remained steep and ⁠well ⁠above the historical trend, while input cost inflation rose to a three-month high.

* The survey said firms remained optimistic that output would rise over the coming 12 months.

* "All this suggests that Egyptian firms remain hopeful about the future in spite of the economic challenges they face," said David Owen, Principal Economist at S&P Global Market Intelligence.

Business

Mideast Oil Exports Exceeded Pre-Iran War Levels despite Hormuz Disruptions

FILE PHOTO: Vessels at the Strait of Hormuz, as seen from Musandam, Oman, October 2, 2026. REUTERS/Stringer/File Photo
FILE PHOTO: Vessels at the Strait of Hormuz, as seen from Musandam, Oman, October 2, 2026. REUTERS/Stringer/File Photo
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Mideast Oil Exports Exceeded Pre-Iran War Levels despite Hormuz Disruptions

FILE PHOTO: Vessels at the Strait of Hormuz, as seen from Musandam, Oman, October 2, 2026. REUTERS/Stringer/File Photo
FILE PHOTO: Vessels at the Strait of Hormuz, as seen from Musandam, Oman, October 2, 2026. REUTERS/Stringer/File Photo

Middle East oil exports, excluding Iran, surpassed their pre-war levels last week, despite attacks on ships in the Strait of Hormuz, according to data from the maritime tracking firm Kpler.

For the first time since the US and Israel launched their offensive against Iran at the end of February, the weekly average of shipments rose for several days above the pre-conflict average of 18 million barrels per day, said AFP.

Crude oil exports reached pre-war levels in September, with at least 16.5 million barrels leaving the region excluding Iran, Kpler said on Wednesday.

"Forty percent now bypass Hormuz, and most crude crossing the strait changes tankers offshore," Kpler said, adding that most of the oil flowed through Saudi and United Arab Emirates pipelines.

These figures include flows via the Red Sea, a route increasingly used to bypass the blockade Iran is attempting to impose on Hormuz -- where around a fifth of the world's petroleum supplies crossed before the conflict.

Iran still claims control over the strait, and ships without its authorization risk coming under attack, but more and more are making it out, and alternative routes meant to bypass the waterway are operating at full capacity.

Despite the rebound, experts stressed that the situation was far from normal, and Iran remains deprived of a large share of its own exports by a US counterblockade of its ports.

Saudi Arabia is benefiting from the reactivation of its East-West pipeline, which links the kingdom's main oil fields in the east to its Yanbu terminal on the Red Sea, allowing it to bypass Hormuz.

Shut down on September 11 after being hit by strikes launched from Iraq, the pipeline resumed operations on September 22, Amena Bakr, an analyst at Kpler said last week.

The United Arab Emirates is also able to bypass Hormuz thanks to its pipeline linking Abu Dhabi's fields to Fujairah, a terminal just outside the strait on the Gulf of Oman.

Around 0310 GMT on Monday, Brent North Sea crude for December delivery fell 0.79 percent to $101.44 a barrel.

Its US counterpart, West Texas Intermediate for November delivery, dropped 1.20 percent to $90.02.