An Economic Partnership Deepens As Saudi And French Investments Flow Both Ways

PARIS: Saudi-French economic ties are evolving from a relationship centered largely on French investment in the Kingdom into an increasingly reciprocal partnership, as Saudi capital and expertise find new opportunities in France.

The transformation comes as the two countries mark a century of diplomatic relations dating back to 1926, with investment becoming an increasingly important pillar of their broader strategic partnership.

France remains one of Saudi Arabia’s most significant investment partners. French FDI stock in the Kingdom stood at approximately €16.3 billion in 2024, making France the fourth-largest source of foreign direct investment stock in Saudi Arabia. French investors hold 651 licenses across 18 sectors.

But capital is increasingly flowing in the opposite direction.

Saudi Arabia’s Public Investment Fund invested approximately €7.36 billion in France between 2017 and 2024, supporting an estimated 29,000 French jobs, according to the briefing note. An approximately €8.56 billion financing memorandum of understanding between PIF and Bpifrance also provides a framework for further investment cooperation.

A potentially significant new dimension is destination development.

Qiddiya Investment Company and the French government are exploring a framework for cooperation to develop a world-class destination bringing together entertainment, sport and culture in France.

Such cooperation would mark more than another Saudi investment abroad. It could provide a platform for Saudi Arabia to export expertise accumulated through the development of major destinations and entertainment projects at home, highlighting the increasingly reciprocal nature of the relationship.

That reciprocity is developing alongside a substantial and diversified French corporate presence in Saudi Arabia.

French companies are active across energy, water, transport, logistics, construction, hospitality and healthcare. TotalEnergies and EDF have established energy positions, while Alstom and RATP Dev are involved in the Riyadh Metro. Veolia and Suez operate in water and environmental services, CMA CGM in ports, Egis in project and program management, Accor in hospitality and Sanofi in pharmaceuticals.

The relationship is increasingly being supported at the government-to-government level.

During the December 2024 state visit, the two countries signed a Comprehensive Strategic Partnership and established the Strategic Partnership Council, opening additional avenues for cooperation. Bilateral trade subsequently reached approximately €10.1 billion in 2025, up 7.2 percent year on year.

For Saudi Arabia, the relationship offers access to French expertise in industries ranging from energy and transport to technology, tourism and culture. For France, it provides access to investment from one of the world’s largest sovereign investors and to a Saudi economy undergoing rapid diversification.

The result is a relationship increasingly defined not simply by who invests where, but by how Saudi and French capabilities can be combined across both markets.