RIYADH, 17 May 2004 — The French are coming. French investment in the Kingdom is estimated at $1.2 billion, making France the third largest investor in Saudi Arabia. Late last year, a consortium led by Total of France and Royal Dutch-Shell signed a landmark agreement with the Kingdom for gas exploration and production in Rub Al-Khali (or Empty Quarter).
Now French Foreign Trade Minister Francois Loos, leading a 30-member business delegation, has been here to drum up even more business.
The Accor Group has signed an agreement for construction of a series of hotels in the Kingdom, Loos told Arab News here on Saturday. According to the agreement, a 200-room Novotel hotel in Riyadh and a 230-room Sofitel Hotel in Alkhobar will be ready for operations by 2006.
Then there is French banking giant BNP Paribas, which is getting ready to take advantage of the liberalization of the Kingdom’s banking sector and is expecting a license “soon”, according to Loos.
Nor is it the private sector alone. France’s state railway is expected to sign an agreement to construct railway lines here.
Three months ago, Finance Minister Dr. Ibrahim Al-Assaf signed a contract with a consortium of Saudi, French and Canadian companies to conduct a feasibility study for the establishment of a 1,600-km railway to link the northern region with the eastern region via the capital.
“France is the world leader in the field of roadways, water distribution, manufacture of automobiles and telecommunications, and we would like to exchange experience with the Kingdom’s private sector,” the minister said. A similar Saudi delegation will visit Paris in September this year and more deals are expected then.
Loos said the current EU meeting in Brussels is discussing a free trade agreement with the GCC, which could trail any number of political agreements and trade accords in its wake.
