Arab News, Wednesday, Apr 7, 2021 | Shaaban 24, 1442
French companies committed to increase, diversify investments in Saudi Arabia
Saudi Arabia:
With direct investment amounting to more than €3.7 billion ($4.37 billion),
France is one of the largest investors in Saudi Arabia. Projects relating to the
Vision 2030 program to diversify the Saudi economy offer yet more opportunities
for strengthening the bilateral partnership. France is keen to share its
expertise in such fields as energy, water, transport, new technology, and
aerospace.
For Saudi investors, France’s innovation ecosystem and location make it an ideal
gateway for trade with the EU. Franck Riester, French minister delegate for
foreign trade and economic attractiveness, touched on these issues and more
during an exclusive interview with Arab News.
In particular, the minister said French companies are committed to increasing
and diversifying their investments in the Saudi economy and have already
identified significant opportunities, from renewable energy to healthcare to
tourism.
Q.
What are the key objectives of your current visit to Saudi Arabia?
A. France
and Saudi Arabia have a long history of rich and fruitful cooperation, which we
wish to further develop. I first visited the Kingdom in 2019 as minister of
culture for the launch of the breathtaking AlUla project, highlighting the
exceptional heritage of Saudi Arabia and the partnership with French cultural
organizations.
I am here in Riyadh today to develop the economic relationship between France
and Saudi Arabia, especially in the framework of the partnership agreed between
President Emmanuel Macron and Crown Prince Mohammed bin Salman during his
official visit to France on April 18, 2018.
Our two countries share the same ambition in key sectors such as the ecological
transition and technological revolution. This common ground provides for
concrete business opportunities. Together with my counterpart, Khaled Al-Falih,
with whom I have had the pleasure to exchange regularly, we aim to give shape to
the economic component of this partnership by discussing shared investment
opportunities in both countries.
My current visit is another step forward in our enduring and flourishing
economic relationship, and I already hope to come back to the Kingdom to fully
grasp its beauty and potential.
Q.
France is one of the largest investors in Saudi Arabia, with direct investment
amounting to more than €3.7 billion. Do you see room for growth as Saudi Arabia
diversifies its economy under Vision 2030?
A. French
companies are committed to increasing and diversifying their investment in the
Saudi economy, in line with the priorities of the Vision 2030 especially in
renewable energy, hydrogen, water and environment, healthcare, digital economy,
smart cities, and of course tourism services and infrastructure.
French companies are renowned all over the world for their know-how and
expertise, which make them ideally suited to meet the high expectations of the
Vision 2030 program. That includes the tech sector: I am well aware that the
French tech ecosystem is not always well identified in the Middle East. And yet,
our striving tech scene is one of the most innovative and dynamic in Europe and
in the world, now counting 10 “unicorns” and aiming for 25 by 2022.
Q.
At a time when many governments are tightening their belts, Saudi Arabia has
launched projects across sectors in recent months totaling trillions of dollars.
Do you see big opportunities for French companies?
A. Saudi
Arabia has made the right call: The time to invest and prepare for the
post-COVID19 world is now. France is on the same page. We have launched a €100
billion recovery and investment plan to support the long-term economic
development of our companies, including the green and digital transitions.
I note that France and Saudi Arabia have made the same choices for the future:
Our priorities are aligned. Hence, French companies will find huge investment
opportunities in those sectors in the Saudi economy.
Q.
Will French companies be investing in some of these projects, such as The Line
in Neom, or do they primarily see themselves as bidders and executors of project
contracts?
A. French
companies have great ambition to be major partners in the giga-projects, among
them, Neom, and more broadly the Red Sea Project, Amaala, Qiddiya, and AlUla
projects. Unique in their scope, these projects act as a catalyst for French
investments across many areas, covering new technology and innovative solutions,
tourism and entertainment, arts, and culture. The unmatched track records of our
industrial and technological flagships speak for themselves. Our companies offer
a full array of expertise, from the early stages of any given project to its
final implementation. They are used to partnering with foreign companies. I am
therefore highly confident in their ability to meet the expectations of the
Kingdom.
Q.
The recently announced Saudi Green and Middle East Green initiatives call for
cooperation to tackle the environmental challenges facing Saudi Arabia and the
wider region. As a minister of a country that facilitated the landmark Paris
Climate Agreement, what is your take?
A. We
welcome and support the crown prince’s initiative. It is essential that Saudi
Arabia becomes a regional and global beacon in the fight against climate change.
The Green initiative sends a very positive signal in the perspective of the
upcoming COP26. In recent years, France has been strongly committed to making
globalization more sustainable. I believe that greening international trade is
key to reach this goal, hence the need to put environmental considerations at
the heart of the multilateral rules which organize trade. It is a priority we
defend at the WTO with our European partners.
Q.
According to the UN Development Program’s top energy expert, Saudi Arabia could
be the leader of the energy revolution of tomorrow. Do you see any role for
French expertise and knowhow in such a revolution?
A. Absolutely.
The French-Saudi partnership in the energy sector is deep-rooted and mutual
trust in terms of expertise and innovation is high. French companies and
researchers are working hard to develop with their partners the energy
technologies of tomorrow, which will enable us to put the energy transition at
the core of the world economic recovery, of our industrial diversification and
our common strategies for massive decarbonization of our energy mixes.
For example, French firms have already had great success in accompanying Saudi
Arabia with ambitious plans to massively develop renewable energies. Many more
concrete joint projects are to come in the field of decarbonized energies, as we
are allocating massive means in France to green our economy.
Q.
Not many countries have a minister delegate for foreign trade and economic
attractiveness. What do you consider to be the highlights of France’s economic
attractiveness?
A. Foreign
trade and economic attractiveness are two sides of the same coin: It means we
implement a pro-business agenda making our economy, and the companies based in
our country, more competitive, innovative, and ready to take on the world. This
strategy is already bearing tangible results: In 2019, France became the leading
country in Europe for inbound foreign investment, for the first time ever — and
stayed strong in 2020 despite the global shock on foreign direct investment (FDI).
Investors choose France because of its core assets: A central geographical
situation within the EU, a highly qualified workforce, world-class
infrastructure, available and cheap energy, and a strong internal market. France
is the number one country in Europe for FDI in research and development and in
the industrial sector. The €100 billion “France Relance” stimulus package will
make it the first green economy and innovation ecosystem in Europe. We work hard
to make Saudi companies willing to expand to Europe elect France as their HQ and
production hub.
Q.
French expertise has traditionally been in such sectors as energy, water,
transport, innovation, new technology, and aerospace. Are we missing out
anything that Saudi Arabia could benefit from?
A. I
am convinced that French expertise in healthcare and the dynamism of the
health-tech ecosystem could greatly contribute to the Kingdom’s ambitious goals
regarding the health sector, and set the foundations for a sustainable
relationship between our countries. I know our companies are willing to go in
that direction.
France is also one of the world’s leading agrifood exporters. Our products are
renowned for their high quality, in both taste and health, as well as for their
traceability. Finally, regarding Saudi Arabia’s strong ambitions in terms of
urban development, France would be keen to offer more of its proven expertise
and best technologies to design, build, and manage smart and sustainable cities,
while meeting high environmental and quality standards.