Saudi Arabia, France deepen strategic ties through major agreements

PARIS, France (MNTV) — Saudi Arabia and France have expanded their strategic partnership through a series of agreements covering defense, artificial intelligence, investment, infrastructure, energy, tourism and culture, as both countries seek to deepen economic ties and broaden cooperation across emerging industries.

The agreements were announced Monday during Saudi Crown Prince Mohammed bin Salman’s visit to Paris and the first meeting of the Franco-Saudi Strategic Partnership Council.

The two countries agreed to extend their cooperation on the development of AlUla until 2035, opening additional opportunities in archaeology, cultural preservation, tourism, training, innovation and sustainable development.

Riyadh and Paris also signed a letter of intent to strengthen defense cooperation, including work on emerging military technologies, cybersecurity, artificial intelligence, training and military education.

Another major agreement concerns a planned Qiddiya development in Cergy-Pontoise near Paris. The project is expected to attract about €6 billion in investment and create approximately 22,000 jobs through the development of leisure and entertainment parks, hotels, restaurants and residential facilities.

Saudi Arabia and France also established a framework for cooperation in artificial intelligence, quantum technology and other emerging technologies, reflecting Riyadh’s drive to diversify its economy and strengthen its technological capabilities.

The agreements extended into major infrastructure projects. CMA CGM and Red Sea Gateway Terminal signed a contract involving €434 million to develop Terminal 4 at Jeddah port, which is expected to handle up to 2.6 million twenty-foot equivalent units annually.

French transport company Alstom also secured a €500 million contract to supply additional trains for Riyadh Metro lines 3 and 6. The company agreed separately to support the establishment of a Saudi-based assembly facility for trains serving the planned Line 7, with the project aimed at expanding local industrial capabilities and developing technical skills.

French nuclear-fuel company Orano and Saudi mining giant Maaden signed an agreement covering technological development and strategic cooperation, while French AI company Mistral AI and Saudi technology firm HUMAIN agreed to establish a long-term partnership involving computing infrastructure, AI model development and commercialization.

Financial cooperation was another major component of the partnership. French state-backed financing arrangements include up to $3 billion for Saudi Energy, while a separate financing package of about $5 billion is being considered for projects involving Riyadh Metro, the Sharaan Hotel in AlUla and railway equipment ahead of Riyadh Expo 2030 and the 2034 FIFA World Cup.

Saudia Group, Saudi EXIM Bank and Crédit Agricole CIB also agreed on financing arrangements connected to the acquisition of four Airbus aircraft by Saudia.

The countries are seeking to expand cooperation in international events, with Atout France and Expo 2030 Riyadh Company agreeing to exchange expertise in preparation for the global exhibition.

French water-services company SAUR and Saudi contractor Nesma & Partners also agreed to establish a joint venture to compete for a contract covering two wastewater treatment plants linked to a major Saudi leisure development. The proposed project is valued at about $150 million.

The two governments are simultaneously seeking to facilitate greater private-sector investment. Saudi Investment Minister Fahad bin Abduljalil Al-Saif and French Economy Minister Roland Lescure signed an agreement designed to increase direct investment by sharing information on strategic projects, investment opportunities and regulatory developments.

French businesses are increasingly viewing Saudi Arabia not simply as a large domestic market but as a potential manufacturing, technology, logistics and regional management base.

Saudi Arabia, the largest economy in the Middle East, is using its Vision 2030 program to expand beyond oil and develop industrial, technological, tourism and logistics sectors. The Kingdom had 12,946 factories by the end of 2025, while 1,660 new industrial licenses were issued that year, representing investments of approximately €17.1 billion.

The country has also developed 36 industrial cities and more than 700 ready-built factories. Its Special Economic Zones offer qualifying investors tax incentives, while the Saudi Industrial Development Fund can finance a significant portion of eligible industrial projects.

French companies including Schneider Electric, Vallourec and Tarkett are already expanding their industrial presence in the Kingdom, with Tarkett establishing a manufacturing joint venture in Jeddah.

Saudi Arabia is also seeking to establish itself as a regional export and logistics hub. Non-oil exports, including re-exports, reached approximately €83.4 billion in 2025 and reached more than 180 countries.

The Kingdom plans to invest heavily in transportation and logistics infrastructure through 2030, benefiting from its position between major markets in Asia, Africa and Europe.

Riyadh is also attracting multinational companies through its Regional Headquarters Program. More than 750 companies have established regional headquarters in the Saudi capital, including 39 French firms across eight sectors.

French investment in Saudi Arabia has expanded rapidly, reaching approximately €16.3 billion across 18 sectors and 651 investment licenses in 2024. That figure represents roughly twice the level recorded five years earlier, making France one of the Kingdom’s largest sources of foreign investment.

Manufacturing accounts for around 60 percent of French investment stock in Saudi Arabia, but the relationship is increasingly expanding into artificial intelligence, digital infrastructure, finance, gaming, tourism, healthcare, mining and renewable energy.

Bilateral trade reached approximately €10.1 billion in 2025, increasing 7.2 percent from the previous year.

Saudi officials say the Kingdom’s economy has undergone substantial expansion under Vision 2030, with non-oil activities now accounting for more than half of economic output. Foreign investment inflows reached approximately €6.1 billion during the first quarter of 2026.

Technology has emerged as a particularly important area of cooperation. Saudi Arabia is targeting substantial AI infrastructure capacity by 2030, while its data-center sector continues to attract billions of euros in investment.

International technology companies including Oracle and Google Cloud have established cloud regions in the Kingdom, while Amazon Web Services and Microsoft are expected to expand their operations there.

French companies are also pursuing opportunities in energy. French-led projects in Saudi Arabia exceed €16.3 billion, while French consortia are participating in solar developments with a combined capacity of about 11 gigawatts.

Potential cooperation is expanding into renewable energy, energy storage, hydrogen and electricity-grid infrastructure, alongside established French involvement in oil, gas and petrochemicals.

Tourism and cultural projects are another major component of the relationship. French companies have secured more than 170 contracts connected to the AlUla development program, while hospitality group Accor continues to expand across the Kingdom.

Saudi investment in France has also grown significantly. The Public Investment Fund invested approximately €7.36 billion in France between 2017 and 2024, supporting an estimated 29,000 French jobs.

A memorandum between the PIF and Bpifrance, worth approximately €8.56 billion, provides a framework for additional investment cooperation, while the establishment of a PIF office in Paris is intended to encourage further Saudi investment in the French economy.

The expanding economic relationship is underpinned by a century of diplomatic ties between Riyadh and Paris. The two countries established a Comprehensive Strategic Partnership and Strategic Partnership Council during a Saudi state visit to France in December 2024.

French officials have described Saudi Arabia as an increasingly important partner for energy and logistics security, while Saudi officials see French expertise in technology, finance, industry and innovation as complementary to the Kingdom’s Vision 2030 ambitions.

The two governments are now seeking to transform the relationship from one based largely on traditional trade and energy cooperation into a broader partnership involving defense, advanced technology, industrial production, investment, infrastructure and regional economic development.