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Saudi Economic Growth Draws Foreign Investment

Saudi Arabia and France strengthened cultural cooperation through nine executive programs during the French president’s visit in December 2024. (SPA)
Saudi Arabia and France strengthened cultural cooperation through nine executive programs during the French president’s visit in December 2024. (SPA)
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Saudi Economic Growth Draws Foreign Investment

Saudi Arabia and France strengthened cultural cooperation through nine executive programs during the French president’s visit in December 2024. (SPA)
Saudi Arabia and France strengthened cultural cooperation through nine executive programs during the French president’s visit in December 2024. (SPA)

French President Emmanuel Macron described the visit of Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, to France as an important milestone in bilateral relations.

“The Saudi Crown Prince’s visit to France marks an important stage,” Macron wrote on X ahead of his meeting with the Crown Prince. “Faced with the challenges in the region, France and Saudi Arabia have always worked together to promote peace and stability and will continue their consultations to this end.”

Macron said the partnership was rooted in action, spanning major projects, advanced technologies, investment and international events, including the Esports World Cup held in France this summer. “We have achieved a great deal together, and we want to go further,” he added.

In a second post, Macron said France was proud to have hosted the Esports World Cup “at Saudi Arabia’s request,” describing its success as the product of a shared ambition to develop talent and bring the two countries closer.

Shared economic ambitions

Macron’s remarks reflect not only the state of Saudi-French relations, but also their ambitions. Data from both countries show that economic ties, broadly encompassing trade, investment and other commercial activities, are expanding, with both sides seeking further growth.

One aim of the Crown Prince’s visit is to accelerate those ambitions. The Crown Prince and Macron chaired the first meeting of the Saudi-French Strategic Partnership Council, established in late 2024, at the Élysée Palace on Monday.

Saudi Arabia, which is moving rapidly into new strategic sectors, is seeking partnerships that build on decades of cooperation. Artificial intelligence, digital technologies, innovative and low-carbon industries and environmental sustainability are among the areas at the heart of Vision 2030.

France, meanwhile, is seeking to align its economic agenda with Saudi Arabia’s and participate in the Kingdom’s major development projects.

The ‘new economy’

A briefing by the Saudi Ministry of Investment highlighted the Kingdom’s economic strengths and the incentives it offers investors seeking access to the region’s largest economy.

Bilateral trade reached €10.1 billion last year, up 7.2% from the previous year. French direct investment in Saudi Arabia exceeded €16 billion in 2024, spread across 18 sectors and 651 licenses.

Macron has repeatedly encouraged Saudi investment in France while urging French companies to pursue opportunities in the Kingdom.

French presidential sources said the planned opening of a Saudi Public Investment Fund (PIF) office in Paris could help increase the Kingdom’s still relatively modest investment in France.

Paris, for its part, pointed to France’s record in attracting foreign investment. EY’s 2026 European Attractiveness Survey ranked France first in Europe for international investment projects for a seventh consecutive year, with 852 projects last year, ahead of the United Kingdom with 730 and Germany with 548. Europe’s 47 countries attracted a combined 5,026 projects.

Growth attracts investment

The French-Saudi Investment Roundtable held in Paris on Monday focused on investment and new opportunities, bringing together executives from major companies in both countries.

French businesses have traditionally concentrated on energy, water, transport, logistics, construction, hospitality and health care in Saudi Arabia. That footprint is now expanding into AI, digital infrastructure, culture, creative industries and mining.

Available figures show that the PIF invested about €7.36 billion in France between 2017 and 2024, supporting some 29,000 jobs. A financing memorandum between the PIF and state-backed Bpifrance also established a framework for €8.56 billion in new investment.

Laurent Germain, CEO of engineering and infrastructure consultancy at Egis, said he attended the forum to meet clients who had traveled to Paris for the occasion and to explore opportunities for new projects.

Egis has generated €300 million from its Saudi operations and employs 1,700 people there, most of them Saudis, in line with the government’s Saudization drive.

Germain described the Saudi economy as highly attractive, citing growth of around 4%, above global rates.

Egis intends to expand its investment in the Kingdom and continue supporting Saudi Vision 2030, launched a decade ago, he revealed.

The company has worked on projects, including Qiddiya, Diriyah, AlUla and the Riyadh Metro.

Florence Verzelen, executive vice president at Dassault Systèmes, similarly highlighted Saudi Arabia’s economic growth as a key attraction, saying it was among the highest in the Gulf region and globally.

The €5 billion company focuses on digitalization and AI, using virtual modeling to help accelerate the transition to real-world production. Its technologies are used in aircraft and electric vehicle manufacturing, infrastructure and nuclear projects, as well as pharmaceuticals.

Its Saudi clients include Aramco, railway operators, NEOM, AlUla and food producers, while it also has activities in the defense sector.

Verzelen highlighted Saudi Arabia’s recognition of the importance of the digital economy and its potential for practical applications.

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Business

IMF's Georgieva Urges Member Countries to Act Swiftly on Debt, Inflation

IMF Managing Director Kristalina Georgieva during the annual meetings of the Fund and the World Bank in Bangkok (Reuters)
IMF Managing Director Kristalina Georgieva during the annual meetings of the Fund and the World Bank in Bangkok (Reuters)
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IMF's Georgieva Urges Member Countries to Act Swiftly on Debt, Inflation

IMF Managing Director Kristalina Georgieva during the annual meetings of the Fund and the World Bank in Bangkok (Reuters)
IMF Managing Director Kristalina Georgieva during the annual meetings of the Fund and the World Bank in Bangkok (Reuters)

The International Monetary Fund is urging its member states to act swiftly if they see inflation rising and to work on reducing large deficits, IMF Managing Director Kristalina ‌Georgieva said ‌on Monday, ‌noting stubborn ⁠inflation fueled by ⁠AI investments.

Georgieva told a panel at the annual meetings of the IMF and World Bank ⁠in Bangkok that sharp ‌increases ‌in defense spending were also ‌pushing inflation higher ‌after the energy shock of the war in the Middle East, which ‌in turn was putting pressure on central banks ⁠to ⁠raise interest rates, reported Reuters.

But that had consequences for developing countries and emerging markets, which she said were now "becoming victims of the increase in yields in advanced economies," she said.

Business

Miras: Energy Security, Sustainability, or Affordability Cannot Be Sacrificed

Pedro Miras addresses attendees as the 25th WPC kicks off in Riyadh (Asharq Al-Awsat)
Pedro Miras addresses attendees as the 25th WPC kicks off in Riyadh (Asharq Al-Awsat)
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Miras: Energy Security, Sustainability, or Affordability Cannot Be Sacrificed

Pedro Miras addresses attendees as the 25th WPC kicks off in Riyadh (Asharq Al-Awsat)
Pedro Miras addresses attendees as the 25th WPC kicks off in Riyadh (Asharq Al-Awsat)

Pedro Miras, President of WPC Energy, affirmed that the world needs more energy from multiple sources to keep pace with population and economic growth, emphasizing the necessity of balancing supply security, affordability, sustainability, and economic development, without sacrificing any of these priorities.

In his speech at the opening of the 25th WPC in Riyadh, Miras stated that Riyadh is the most suitable place to host the conference, noting the pivotal role Saudi Arabia plays in the global energy system, and its continued leadership in investments, innovation, and technological advancement in the sector.

He added that the conference, which gathers government and industry leaders, academics, technology experts, financiers, and international institutions over four days, serves as a platform to discuss ways to meet the world's increasing energy needs, while supporting prosperity, sustainability, and security for future generations.

He pointed out that the world is undergoing a period of profound transformations, significant challenges, and exceptional opportunities, with the global population expected to approach 10 billion by mid-century, accompanied by increased energy demand resulting from population growth, urbanization, and improved living standards.

He explained that energy consumption and human development have gone hand-in-hand throughout modern history, as the availability of energy has contributed to improving health, education, and living standards, emphasizing that continued human progress requires more energy.

He noted that oil and gas still provide a significant share of the world's energy needs, despite decades of innovation and growth in new technologies, considering this an affirmation of the scale of the upcoming challenge and the need to utilize multiple energy sources.

Four Pillars for the Future of Energy
Miras stressed that the challenge is no longer about choosing between energy security, affordability, and sustainability, but rather about achieving progress in these areas in parallel with economic development.

He stated that billions of people around the world aspire to improve their living conditions, access better health and education services, and broader economic opportunities, all of which require reliable energy availability and continued investment in its system.

He added that countries differ in their circumstances, resources, priorities, and developmental stages, which necessitates adopting diverse paths to achieve the future of energy and utilizing a wide range of technologies and solutions, noting that this diversity represents a source of strength.

He affirmed that technological neutrality remains one of the fundamental principles of the WPC, allowing various energy sources and technologies to contribute to building a secure, affordable, and sustainable system.

Innovation Alone Is Not Enough Without Investment and Partnerships
Regarding technological developments, Miras said that artificial intelligence, digitalization, advanced materials, new fuels, hydrogen, and carbon capture, utilization, and storage technologies, along with other technologies, are reshaping the global energy landscape.

However, he stressed that technology alone is not enough to achieve the desired transformation, as it requires effective policies, stable and predictable regulatory frameworks, long-term investments, and enhanced international cooperation.

He explained that energy security remains essential for economic growth, social stability, and human well-being, and that a successful energy sector transformation cannot be achieved without ensuring supply security. Furthermore, the long-term sustainability of this security requires sufficient investments across various components of the energy system.

He added that no single country, company, or technology can address global energy challenges alone, emphasizing the importance of partnerships among governments, industry, academia, and international institutions.

Riyadh: A Platform for Global Dialogue
Miras expressed his appreciation to the Kingdom, the Minister of Energy, and the Saudi Minister of Industry and Mineral Resources, Prince Abdulaziz bin Salman, for their efforts in organizing and hosting the conference in Riyadh.

He stated that for over 90 years, the WPC has provided a platform bringing together governments, industry, academia, and international institutions to exchange ideas, deepen understanding, and explore practical solutions for sector challenges.

He noted that the importance of dialogue and cooperation is increasing amid the uncertainty and fragmentation the world is experiencing, expressing his hope that the conference discussions will contribute to developing partnerships and exploring innovations that will shape the future of energy.

He concluded by affirming that the goal is to build an energy future that leaves no one behind, achieving progress in supply security, affordability, sustainability, and economic development, based on innovation, cooperation, and mutual respect.

Business

Saudi Energy Minister: No Room for Fear in Our Vocabulary … No Wasted Opportunities to Realize Our Vision

Saudi Energy Minister Prince Abdulaziz bin Salman speaks at the opening of the WPC Energy Congress (Asharq Al-Awsat)
Saudi Energy Minister Prince Abdulaziz bin Salman speaks at the opening of the WPC Energy Congress (Asharq Al-Awsat)
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Saudi Energy Minister: No Room for Fear in Our Vocabulary … No Wasted Opportunities to Realize Our Vision

Saudi Energy Minister Prince Abdulaziz bin Salman speaks at the opening of the WPC Energy Congress (Asharq Al-Awsat)
Saudi Energy Minister Prince Abdulaziz bin Salman speaks at the opening of the WPC Energy Congress (Asharq Al-Awsat)

Saudi Energy Minister Prince Abdulaziz bin Salman said there was “no room for fear in the vocabulary of Saudis,” stressing that the resilience of the kingdom’s energy system and the determination of its people strengthened its ability to weather crises, ensure uninterrupted supplies and continue its transformation drive toward the goals of Vision 2030.

He also highlighted the importance of long-term investment in infrastructure, developing supply chains and localizing industries to help Saudi Arabia navigate global challenges and changes while preserving opportunities for future generations in a more sustainable future.

Prince Abdulaziz made the remarks in his opening address at the 25th WPC Energy Congress, held as part of Riyadh Energy Week on Monday, in the presence of a large number of ministers, officials and industry leaders.

He said recent experiences had demonstrated the importance of advance preparedness and building an energy system capable of adapting to different circumstances. Resilience, he added, was measured not only by a system’s ability to withstand disruptions, but also by its capacity to repair damage, restore operations and continue meeting market needs.

Prince Abdulaziz stressed that energy system resilience and reliable supplies were fundamental to addressing global challenges and changing conditions. He said the kingdom would continue investing in energy infrastructure, developing supply chains and strengthening human capabilities and modern technologies to ensure uninterrupted supplies under all circumstances.

He said the conference was being held at a pivotal moment for the global energy sector, adding that Saudi Arabia’s hosting of participants in its capital reflected the kingdom’s commitment to providing a safe environment and that the safety of its guests was a top priority.

The meeting, he said, embodied a commitment to prudent decision-making, practical cooperation and a shared sense of responsibility within the energy community, as the sector faces mounting challenges related to energy security and supply stability that are testing the resilience and adaptability of countries and economic systems.

Prince Abdulaziz said Saudi Arabia had invested over the years in developing infrastructure, improving supply chain efficiency and building human capabilities to ensure the energy system was prepared to cope with exceptional circumstances.

He cited the East-West oil pipeline as a key example of infrastructure that provides alternative routes for transporting oil to markets, strengthening the kingdom’s ability to manage risks that could disrupt traditional supply routes.

These capabilities, he said, had not been developed overnight, but were the result of years of planning, development and operational experience, supported by Saudi Aramco’s technical and operational expertise, industrial capabilities and transportation and supply networks, which help ensure business continuity under varying conditions.

Localizing supply chains

Prince Abdulaziz bin Salman stressed the importance of localizing supply chains and increasing local content, describing them as strategic objectives for Saudi Arabia. He cited Saudi Aramco’s announcement that it had achieved a 70% local content rate, a milestone reflecting the growing capabilities of national industries and their role in strengthening the sector’s resilience.

The minister said the value of these investments becomes more apparent when global supply chains are disrupted, as advanced systems and domestic capabilities help address gaps and mitigate the impact of interruptions, supporting energy system stability and ensuring continued operations.

He said resilience depends on skilled personnel, technical expertise and rapid response, enabling critical facilities to recover from damage and maintain services.

The energy minister reaffirmed the kingdom’s commitment to continued investment across the energy sector, developing new technologies and reducing emissions, while also investing in national talent and preparing future generations.

Implementing the vision

Prince Abdulaziz bin Salman said Saudi Arabia aims to build an energy system capable of sustained success and adapting to changing circumstances while safeguarding the security and sustainability of supplies.

He stressed that the kingdom has the resources needed to sustain economic growth and pursue its development vision, supporting the prosperity of its people and strengthening international partnerships.

While no one can predict when current conditions will end, recent experience underscores the importance of preparing for the future, developing solutions before they are needed and strengthening the ability to respond to rapidly changing demands, he said.

Prince Abdulaziz called for Riyadh to serve as a platform for deeper cooperation and translating international partnerships into practical action, with discussions focused on meeting global energy needs, reducing emissions and strengthening resilience to crises and challenges.

He said the world needed reliable partners and leaders willing to make long-term strategic decisions, reaffirming that Saudi Arabia would continue to play its role in the energy sector through an approach based on prudence, openness and expanding international partnerships.

He concluded by welcoming participants to Riyadh and calling for joint efforts to build a secure and resilient energy future that ensures reliable supplies and meets the needs of societies and economies worldwide.