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$19 Billion as a Starting Point: Paris-Riyadh Roundtable Seeks to Expand Investment in the Sectors of the Future

A view of the Saudi-French Business Forum held last year in Riyadh. SPA
A view of the Saudi-French Business Forum held last year in Riyadh. SPA
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$19 Billion as a Starting Point: Paris-Riyadh Roundtable Seeks to Expand Investment in the Sectors of the Future

A view of the Saudi-French Business Forum held last year in Riyadh. SPA
A view of the Saudi-French Business Forum held last year in Riyadh. SPA

An investment base worth €16.3 billion, equivalent to approximately $19 billion (SAR71.5 billion), is serving as a new starting point for Monday’s French-Saudi Roundtable in Paris, where participants are exploring ways to expand economic cooperation into the industries of the future.

This foundation comes at a time when Saudi-French economic relations are broadening beyond traditional investments into sectors more closely aligned with economic transformation goals, particularly technology, artificial intelligence, energy, advanced manufacturing, and infrastructure.

Against this backdrop, both countries have an opportunity to leverage existing investments as a platform for new deals and projects that will strengthen the presence of French companies in Saudi Arabia while simultaneously creating opportunities for Saudi capital to expand into promising sectors in France and across Europe.

French investment in the Kingdom is increasingly targeting new strategic sectors, with French companies entering fields such as artificial intelligence, digital infrastructure, culture and creative industries, and mining.

This expansion builds on a long-established French presence in Saudi Arabia’s energy and industrial sectors, where manufacturing accounts for roughly 60 percent of French foreign direct investment.

A Trillion-Euro Economy

Saudi Arabia combines policy clarity, a stable economic environment, and strong economic fundamentals with a large and rapidly growing market. It is the region’s largest economy, with a GDP of around €1.1 trillion, and is developing new industries as part of its national economic diversification program under Vision 2030.

Its expanding industrial base and growing domestic demand provide significant opportunities for French investors to strengthen their presence in sectors where they already have an established foothold while also entering fast-growing new industries.

French companies continue to deepen their involvement in long-standing sectors ranging from energy and industry to transport, construction, and engineering, while simultaneously moving into emerging fields such as artificial intelligence, digital infrastructure, culture, and mining as the Saudi economy accelerates its growth.

One of the most significant recent milestones in bilateral relations was the signing of the Comprehensive Strategic Partnership at the end of 2024, opening broader avenues for cooperation in new sectors. Bilateral trade reached approximately €10.1 billion in 2025, up 7.2 percent from the previous year.

French President Emmanuel Macron and Saudi Crown Prince Mohammed bin Salman attend the closing ceremony of the Esports World Cup at the Grand Palais in Paris, France, August 23, 2026. Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS

Foreign Direct Investment

France ranks as the fourth-largest source of foreign direct investment in Saudi Arabia, with an investment valued at approximately €16.3 billion in 2024. French businesses hold 651 investment licenses across 18 sectors in the Kingdom.

Manufacturing represents around 60 percent of French FDI, highlighting the industrial strength of the relationship. French companies operating in Saudi Arabia include major investors such as TotalEnergies, Sanofi, Veolia, Suez, Accor, and Schneider Electric, among others.

Growing Saudi Presence in France

Saudi Arabia’s Public Investment Fund (PIF) invested approximately €7.36 billion in France between 2017 and 2024, supporting nearly 29,000 jobs.

In addition, a financing memorandum of understanding between the Saudi sovereign fund and Bpifrance, worth around €8.56 billion, provides a framework for expanded investment cooperation.

The partnership is also taking on a new dimension, as Qiddiya Investment Company and the French government explore a cooperation framework to develop a global destination that combines entertainment, sports, and culture in France.

The initiative would extend Saudi expertise in destination development internationally and reflects the increasingly reciprocal nature of the partnership.

French firms maintain established positions in energy, industry, transport, and hospitality, while simultaneously expanding into new sectors as Saudi Arabia’s economy evolves.

New Agreements Expected

New agreements and memoranda of understanding are expected to reinforce the French presence in sectors where French companies already enjoy a strong foothold.

In energy, companies such as TotalEnergies, EDF, SLB, and Schneider Electric have significant operations in the Kingdom across oil and gas, power generation, and energy infrastructure.

French firms also play major roles in water and environmental services, transport and logistics, construction and consulting, hospitality, and healthcare.

Saudi Arabia offers a stable regulatory, economic, and financial environment that supports major capital commitments. Clear development strategies provide investors with greater visibility regarding the economy’s future direction, while strong fundamentals support long-term implementation.

Meanwhile, Vision 2030 firmly positions economic diversification as a long-term national priority. The National Investment Strategy seeks to stimulate investment, while sector-specific strategies create opportunities throughout value chains.

Ongoing regulatory reforms continue to open new opportunities and improve the investment climate. Updated investment laws provide equal treatment for investors and strengthen investor protections, including safeguards against expropriation and clear mechanisms for the repatriation of funds.

Creditworthiness and Economic Stability

Saudi Arabia holds an A+ sovereign credit rating with a stable outlook, reaffirmed by S&P Global Ratings in March. The Kingdom’s total reserve assets reached approximately €421.5 billion in June 2026.

Over several decades, Saudi Arabia has invested heavily in infrastructure and operational capabilities that support sustained economic and commercial activity.

The International Monetary Fund has cited low government debt, substantial reserves, and the size of the sovereign wealth fund as key strengths, while identifying the fixed exchange-rate regime as a reliable anchor of monetary stability.

Opportunities are no longer limited to individual projects. Saudi Arabia is expanding integrated economic sectors, generating growing demand across value chains, and building the infrastructure, financing systems, and operating environment companies need to grow.

Investment opportunities now span more than 15 sectors, many of which already feature strong French participation.

The Saudi Industrial Development Fund provides financing of up to 75 percent of eligible project costs, alongside industrial incentives of up to 35 percent. Special Economic Zones offer targeted incentives in strategic industries, while the Regional Headquarters Program provides companies with a platform for regional expansion.

Artificial Intelligence

Saudi Arabia continues to strengthen its position as a regional hub for artificial intelligence and technology through substantial investments in digital infrastructure. The Kingdom ranked first globally in the 2025 ICT Development Index issued by the International Telecommunication Union.

The ICT market grew by 89 percent compared with 2017, while the digital economy accounted for approximately 16 percent of GDP in 2024.

Saudi Arabia aims to develop 3 gigawatts of AI infrastructure capacity by 2030. Data center capacity has reached 440 megawatts, nearly six times the 2017 baseline, supported by investments exceeding €3.85 billion.

Announced AI partnerships exceed €19.7 billion in value. Cloud regions operated by Oracle and Google Cloud are already operational, while cloud regions developed by AWS and Microsoft are expected to become operational during 2026.

Energy

The energy sector remains one of the most important pillars of French investment in the Kingdom and offers significant growth prospects. French companies are involved in energy projects in Saudi Arabia worth more than €16.3 billion, while consortia led by French firms participate in solar projects with a combined capacity of 11 gigawatts.

Opportunities span renewable energy, energy storage, hydrogen, and grid infrastructure.
In tourism, French companies enjoy a strong presence in a rapidly expanding market. Saudi Arabia recorded approximately 123 million visits in 2025, generating nearly €69.3 billion in tourism spending. The Kingdom aims to attract 150 million visits annually by 2030.

A Platform for Regional Growth

More than 750 companies have established regional headquarters in Riyadh under Saudi Arabia’s Regional Headquarters Program, including 39 French companies operating across eight sectors.

The program offers qualifying companies a 30-year exemption from corporate income tax and withholding tax, giving French firms with extensive operations in the Kingdom a strategic base from which to manage and expand their activities across the region.

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Business

Saudi Arabia Offers 100% Social Insurance Debt Waiver to Businesses That Have Exited Market

Officials from the General Organization for Social Insurance at an earlier meeting with businessmen and businesswomen at the Riyadh Chamber (SPA)
Officials from the General Organization for Social Insurance at an earlier meeting with businessmen and businesswomen at the Riyadh Chamber (SPA)
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Saudi Arabia Offers 100% Social Insurance Debt Waiver to Businesses That Have Exited Market

Officials from the General Organization for Social Insurance at an earlier meeting with businessmen and businesswomen at the Riyadh Chamber (SPA)
Officials from the General Organization for Social Insurance at an earlier meeting with businessmen and businesswomen at the Riyadh Chamber (SPA)

Saudi Arabia's General Organization for Social Insurance (GOSI) has made businesses that have ceased operations and exited the Saudi market eligible for a 100% waiver of outstanding social insurance debts, subject to approved conditions, Asharq Al-Awsat has learned.

The move aims to address accumulated financial obligations, help businesses settle their accounts and close outstanding cases, and support stability in the Kingdom's private sector while resolving financial difficulties faced by companies that have left the market.

The measure is part of a broader package of improvements GOSI is implementing to enhance services for employers and businesses, in response to feedback and suggestions gathered during direct meetings with officials and business owners, in cooperation with chambers of commerce.

Taking Economic Conditions into Account

The initiative has economic and regulatory implications beyond debt relief, seeking to address financial and administrative liabilities left behind by businesses that have exited the market and facilitate the formal closure of their records in accordance with regulations.

Its main significance lies in striking a balance between protecting the rights of the social insurance system and its contributors, on the one hand, and taking into account the economic circumstances of businesses that have ceased operations, on the other.

It also reinforces regulatory flexibility in the business environment, ensuring that accumulated obligations do not become a permanent obstacle to the settlement of financial and administrative affairs.

Enhancing Market Attractiveness

The initiative reflects a more flexible approach to dealing with business distress, focusing on resolving outstanding liabilities rather than allowing them to remain a continuing burden on business owners.

This approach is expected to strengthen confidence in regulatory procedures and enhance the attractiveness of Saudi Arabia's business environment.

The move is particularly significant given the changing nature of the business sector, with new companies entering the market each year while others cease operations because of competition, rising costs, or shifting market conditions.

Settling the social insurance accounts of businesses that have exited the market could ease the administrative and financial burden on their owners, help them reorganize their financial affairs and potentially pave the way for a return to commercial activity in the future, without old liabilities remaining an obstacle, subject to applicable regulations.

According to information obtained by Asharq Al-Awsat, GOSI has notified all companies and establishments of improvements introduced to its business services, including the debt waiver.

The measure is designed to enable businesses that have ceased operations to resolve their outstanding social insurance obligations and complete the regulatory procedures associated with closing their operations, easing the financial burden on owners whose businesses are no longer active.

Service Improvements

In a related development, GOSI's improvements include upgrades to services for registering businesses, terminating their activities and managing ownership records, alongside efforts to resolve recurring technical problems and improve the quality of digital services.

The changes are intended to improve the user experience and accelerate transaction processing.

GOSI has also expanded electronic payment options through its GOSI Business app, allowing employers to pay amounts exceeding 30,000 Saudi riyals ($8,000) in multiple installments.

The measure aims to make it easier for businesses to meet their financial obligations while providing greater payment flexibility.

The updates also include measures to increase transparency in transaction processing by clarifying the reasons for rejecting occupational injury claims and contributor-related transactions.

Notifications have also been introduced through the GOSI Business and Tawakkalna apps to inform users when applications are received, accepted, returned, or rejected.

Together, the improvements reflect GOSI's efforts to modernize its digital services, simplify procedures for employers and improve the management of social insurance obligations.

The measures are also intended to support the business environment and help resolve outstanding financial and administrative matters involving businesses.

Business

From Aramco's Profits to State Budget Revenue: How Do Oil Proceeds Reach Government Coffers?

A general view shows Ras Tanura's oil production plant near Dammam in Saudi Arabia's Eastern Province (AFP)
A general view shows Ras Tanura's oil production plant near Dammam in Saudi Arabia's Eastern Province (AFP)
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From Aramco's Profits to State Budget Revenue: How Do Oil Proceeds Reach Government Coffers?

A general view shows Ras Tanura's oil production plant near Dammam in Saudi Arabia's Eastern Province (AFP)
A general view shows Ras Tanura's oil production plant near Dammam in Saudi Arabia's Eastern Province (AFP)

Saudi Aramco's financial results and Saudi Arabia's third-quarter budget performance report, released on the same day, revealed a divergence between the company's rising profits and declining government oil revenue recorded in the state budget.

While Aramco's net income rose 34.2% during the first nine months of 2026 to SAR 380.6 billion ($101.5 billion), government oil revenue fell 1.3% over the same period and declined approximately 23% in the third quarter alone.

Comparing the two indicators does not necessarily imply a direct relationship between the company's profits and the revenue flowing into government coffers. Corporate earnings are recognized under different accounting principles from those governing the calculation and collection of government revenue.

The financial relationship between Aramco and the government also involves multiple channels, including taxes, royalties, dividends and offsetting settlements, each with its own payment and collection schedule.

Aramco's Profits and Cash Flows

Aramco reported net income of SAR 380.6 billion ($101.5 billion) for the first nine months of 2026, compared with SAR 283.6 billion ($75.6 billion) in the corresponding period last year, an increase of 34.2%.

Adjusted net income reached SAR 368.9 billion ($98.4 billion), up from SAR 302.3 billion ($80.6 billion) a year earlier.

However, the increase in earnings was not accompanied by a comparable rise in cash generated by the company's operations, according to its financial report.

Cash flow from operating activities totaled SAR 355.8 billion ($94.9 billion), compared with SAR 357.6 billion ($95.4 billion) in the same period last year, remaining largely unchanged.

Aramco attributed this to changes in working capital, which refers to funds tied up in day-to-day operations, including outstanding sales receivables, inventories and amounts owed to or by the company.

These movements limited the extent to which higher earnings translated into operating cash flow.

Meanwhile, free cash flow increased to SAR 221.6 billion ($59.1 billion), compared with SAR 217.3 billion ($57.9 billion) a year earlier.

This metric measures the cash remaining after capital expenditures are deducted from operating cash flow. It benefited from a reduction in capital expenditures to SAR 134.2 billion ($35.8 billion), from SAR 140.3 billion ($37.4 billion) in the comparable period.

Oil Revenue in the State Budget

On the other side of the equation, Aramco's earnings growth was not mirrored by a corresponding increase in government oil revenue.

Ministry of Finance data showed that oil revenue fell 23% year on year in the third quarter to SAR 116.5 billion ($31.1 billion), compared with SAR 150.8 billion ($40.2 billion) in the same period last year.

Over the first nine months of 2026, oil revenue totaled SAR 446.3 billion ($119 billion), down from SAR 452.4 billion ($120.6 billion) in the corresponding period of 2025, representing a relatively modest decline of approximately 1.3%.

By contrast, non-oil revenue increased 8% during the nine-month period to SAR 412.5 billion ($110 billion), helping lift total budget revenue by 3% to SAR 858.9 billion ($229 billion).

In the third quarter alone, non-oil revenue rose 20% to SAR 142.6 billion ($38 billion).

The growth in non-oil revenue therefore helped cushion the impact of declining oil revenue on the government's overall income.

Third-quarter expenditure totaled SAR 343.4 billion ($91.6 billion), against revenue of SAR 259.1 billion ($69.1 billion), resulting in a quarterly budget deficit of approximately SAR 84.3 billion ($22.5 billion).

Why Don't the Figures Move in the Same Direction?

Part of the divergence between Aramco's financial results and government budget revenue stems from the different nature of the figures themselves.

The company's profits are recognized according to its accounting results, while budget figures reflect government revenue actually collected during the reporting period.

Moreover, the government's financial returns from Aramco's operations flow through several channels, including taxes, royalties and dividends, with differences in when these amounts become due and when they are paid.

Accounting profits do not necessarily translate into cash inflows during the same period. Liquidity is affected by the timing of receivables collection, inventory movements and operating payments.

This distinction is also evident in financial transactions between Aramco and the government, which are not limited to direct cash payments but include the settlement of certain mutual obligations through offsets.

For example, Aramco's cash income tax payments fell to SAR 2.8 billion (approximately $747 million) in the third quarter, compared with around SAR 51 billion ($13.6 billion) in the second quarter, as amounts due to the company from the government were settled by offsetting them against its tax obligations.

Under this mechanism, amounts owed to one party are deducted from what that party owes the other, rather than transferring the full amount in cash.

Such offsets affect both the volume of cash payments and the timing of financial transfers between Aramco and the government.

Consequently, government oil revenue does not necessarily move in the same direction as Aramco's financial results, since each is influenced by different factors and accounting mechanisms.

While the company's profits reflect its financial performance during a given period, government revenue recorded in the budget depends on the taxes, royalties and dividends due to the state, as well as the timing of their collection and settlement.

Aramco's profits may therefore increase during a period when government oil revenue is declining.

Overall, the results demonstrate Aramco's continued ability to generate strong profits and maintain substantial cash flows, supporting its capacity to sustain investment and distribute dividends to shareholders, foremost among them the Saudi government.

At the same time, growth in non-oil revenue underscores the importance of diversifying budget income sources to mitigate fluctuations in oil revenue, broaden the sources supporting public finances and advance the Kingdom's economic transformation.

Business

Crypto Dips on Democrat Midterm Wins, Binance Hack Dents Optimism

Representation of cryptocurrencies are seen in this illustration taken September 10, 2025. (Reuters)
Representation of cryptocurrencies are seen in this illustration taken September 10, 2025. (Reuters)
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Crypto Dips on Democrat Midterm Wins, Binance Hack Dents Optimism

Representation of cryptocurrencies are seen in this illustration taken September 10, 2025. (Reuters)
Representation of cryptocurrencies are seen in this illustration taken September 10, 2025. (Reuters)

Cryptocurrencies briefly dipped on Wednesday as Democrats won majorities in both the Senate and House in the US midterm elections, a potential blow to an industry that has pushed for faster deregulation for digital assets.

The sector has spent more than $300 million backing crypto-friendly Democrats and Republicans in roughly equal measure during the current and previous election cycles, hoping to pass legislation US crypto companies say will ‌put them on ‌a solid legal footing and allow them to thrive.

Bitcoin ‌briefly ⁠touched a six-week ⁠low before recovering to trade roughly flat by 0715 GMT at $78,070. Ether traded at $2,292, up just 1%.

Bitcoin has fallen by around 41% since hitting record highs above $122,000 in October 2025, bringing the value of the broader crypto market to around $2.61 trillion, according to CoinMarketCap.

The market has lost some $300 billion in value in the last month alone, as deepening concern about future returns from AI and the ⁠strain of rising borrowing costs pushed investors into less risky ‌assets such as government bonds and ‌safe-haven currencies.

Sentiment has also been hurt by the $6 billion hack of the Binance platform last ‌week, the largest heist in history.

On Tuesday, Binance customers had withdrawn ‌a net $4.72 billion from the world's largest cryptocurrency exchange since it reopened following the hack at the weekend.

"The market may be re-evaluating the risk-reward profile of crypto assets. On one hand, the string of security incidents is forcing investors to re-examine the ‌industry's security infrastructure and custody risks," Tim Sun, senior researcher at HashKey, said.

"On the other hand, potential shifts in ⁠the US political landscape ⁠could stall the progress of structural crypto legislation and institutional framework development. All of these factors leave the crypto market facing strong headwinds," he said.

US President Donald Trump, who vowed to make the United States the "crypto capital of the world" during his 2024 presidential campaign, has made his own forays into digital assets, with the launch of his "Trump" meme coin, plus his family's World Liberty Financial crypto platform, among other ventures.

The sector has seen sweeping reforms in the almost two years since Trump returned to office, including lighter enforcement and the creation of a strategic bitcoin reserve.

Washington has also allowed for easier access to banking and exchange-traded products and passed a federal stablecoin law that could help these assets move into the mainstream payments and money transfer systems.