RIYADH, 27 June 2003 — Two major French hypermarkets have been licensed to operate in the Kingdom from April next year.
This is the first major French investment following the signing of a bilateral agreement to protect and promote investments between the two countries on June 26 last year.
France is the fourth biggest investor in the Kingdom with direct investments amounting to $381 million.
Christian Bodin, economic and commercial counselor at the French Embassy, told Arab News that investment projects had been delayed due to the Iraq war.
Referring to the hypermarket projects, Bodin said Geant and Carrefour together would open four hypermarkets with new concepts in merchandising. The products will be available from France and other European countries. Carrefour has already established its presence in Muscat (Oman).
Bodin welcomed the opening up of the aviation sector and said it could pave the way for new investment avenues leading to sourcing of aircraft from Europe.
Currently, Saudi Arabian Airlines buys only 11 percent of its aircraft from Airbus Industrie. French companies are waiting for the details of the privatization program before they take any action.
The National Company for Aviation Services, a Saudi enterprise, has announced that it will set up a private airline to operate domestic flights. It will be a joint stock company and shares will be floated for public subscription.
Pointing out that French investors have also invested in the Kingdom’s telecommunications sector, he said new opportunities would be available next year when the Kingdom launches the second phase of its mobile telephone network expansion.
“French companies have shown interest in this project either as investors or service providers,” he said.
He also said a major construction project involving Bouygues was in progress in Jeddah. It will be a $100 million state-of-the-art Equestrian Club near the Jeddah Corniche to be constructed on a build, operate, transfer basis.
The French company has already finalized the funding mechanism in collaboration with the Saudi American Bank. Besides the equestrian club, other facilities will include a hotel and separate clubs for men and women.
