RIYADH: Saudi Arabia’s Public Investment Fund and Bpifrance Assurance Export have signed a memorandum of understanding valued at $10 billion to enhance financial cooperation between the two nations.
The agreement, announced in a press release, will provide financing support to PIF and its portfolio companies over the next five years.
This collaboration is aimed at advancing sectors central to Saudi Arabia’s Vision 2030, which seeks to diversify the Kingdom’s economy and reduce reliance on oil. The deal also underscores PIF’s ongoing efforts to strengthen its international financial partnerships and expand its investment footprint globally.
“As a key driver of Vision 2030 and a leading global investor, PIF is mandated to transform and diversify the Saudi economy,” the press release noted.
Rasees Al-Saud, head of Financial Institutions and Investor Relations at PIF, called the MoU a crucial step in fostering international financial collaboration.
“This MoU marks another significant milestone in PIF’s strategy to deepen its relationships with leading global financial institutions and export credit agencies. It will open new doors for French and Saudi companies to collaborate, exchange expertise, and achieve mutually beneficial outcomes.”
Denis Le Fers, director general of Bpifrance Assurance Export, shared a similar sentiment, emphasizing the potential benefits for both countries.
“This agreement will strengthen Franco-Saudi commercial ties, increase trade flows, and create opportunities for French companies to form new partnerships. It will also contribute to the realization of Saudi Vision 2030.”
The deal highlights PIF’s growing role as a global investment catalyst and aligns with its objective to stimulate economic growth and job creation. Since its establishment in 2017, PIF has launched 99 companies, continuing to drive the Kingdom’s economic transformation through strategic partnerships.
This MoU comes on the heels of a state visit by French President Emmanuel Macron to Saudi Arabia in early December. Macron’s visit, which followed an invitation from Crown Prince Mohammed bin Salman, underscored the deepening bilateral ties and mutual commitment to enhancing cooperation across sectors, in line with both Saudi Vision 2030 and France 2030.
The number of French companies operating in Saudi Arabia has risen by more than 43% since 2020. Major French investors in the Kingdom include Air Liquide, Airbus, L'Oréal, and Total, spanning industries from energy to cosmetics.
During his visit, Macron also signed executive programs with French cultural institutions in Saudi Arabia to foster collaborations in areas such as heritage preservation, museums, libraries, and film. These initiatives will include artist training, archaeological surveys, educational workshops, and other cultural activities.
This growing partnership between France and Saudi Arabia signals a shared ambition to foster economic growth and cultural exchange in the years ahead.
