Saudi-France economic partnership in focus

Saudi Arabia’s Crown Prince Mohammed bin Salman’s visit to Paris comes at a significant moment in the evolving relationship between the Kingdom and France.

The crown prince’s third visit to the French capital, following trips in 2022 and 2023, comes less than two years after President Emmanuel Macron’s state visit to Riyadh in December 2024. That visit produced a roadmap for a strategic partnership and a memorandum of understanding establishing the Saudi-French Strategic Partnership Council. The council is meeting for the first time today under the joint chairmanship of the two leaders.

The timing is significant

The talks are taking place against a highly volatile regional backdrop. According to the Elysee Palace and diplomatic sources, the agenda includes the repercussions of the US war on Iran, the closure of the Strait of Hormuz and efforts to restore freedom of navigation in the Bab Al-Mandab Strait, alongside developments in Gaza, Lebanon and Syria. The French presidency has described Saudi Arabia as a “central link in supply routes between Europe and the Middle East.”

That security dimension has a direct economic consequence. A ministerial meeting on Monday is expected to examine ways to diversify energy transportation and logistics routes, including maritime alternatives, pipelines and regional railway projects. For Paris, the priority is greater resilience in energy and supply chains. For Riyadh, the crisis presents an opportunity to strengthen its position as a strategic partner in European energy security rather than simply as an oil supplier.

The economic agenda extends well beyond energy. The French presidency has identified transport, energy and healthcare as sectors likely to produce a “large number” of agreements, with AI, digital infrastructure, industrial partnerships and aviation also high on the agenda.

From Vision 2030 to France 2030

The convergence between Saudi Arabia’s Vision 2030 and France 2030 offers a natural framework for expanding the relationship.

Saudi Arabia is seeking industrial and technology localization, stronger supply chains and access to advanced expertise. France, meanwhile, wants Saudi investment and opportunities for its companies in renewable energy, transport, healthcare and defense.

The opportunity is therefore larger than a conventional investment relationship. It lies in creating industrial and technological partnerships that generate value in both countries.

The PIF factor

The Public Investment Fund is likely to be central to that effort. The fund has established an office in Paris as part of its broader European expansion. It has invested around $9 billion in France out of approximately $85 billion invested across Europe between 2017 and 2024. It plans to increase its total European investments and purchases to around $170 billion by the beginning of the next decade.

The CEOs’ session on Monday will focus on PIF projects and major industrial ventures, underscoring the fund’s growing role in the bilateral economic relationship.

For France, however, attracting Saudi capital is only part of the equation. French companies are also seeking a larger role in Saudi Arabia’s transformation, particularly in sectors where their expertise can complement the Kingdom’s localization ambitions.

Beyond traditional sectors

Defense remains an important pillar of Saudi-French relations, but the economic relationship is becoming broader.

Aviation, aircraft maintenance and logistics offer opportunities to combine French expertise with Saudi localization goals. Healthcare, AI and digital infrastructure point toward a partnership increasingly shaped by technology and services rather than traditional trade alone.

Entertainment is another emerging area. French reports have discussed a potential major entertainment city inspired by “Dragon Ball” northwest of Paris, potentially involving several billion euros in Saudi investment if an agreement is reached.

For Macron, the visit is also an opportunity to attract more Saudi investment into France. The Elysee has described the crown prince’s choice of Paris as an “important signal,” given his relatively infrequent foreign travel, and has indicated that France wants to encourage greater Saudi investment.

Trade no longer tells the whole story

Trade between the two countries has grown steadily, but remains below the political weight of their relationship.

According to a report by the Saudi-based Gulf Research Center, Saudi Arabia is France’s second-largest trading partner in the Gulf.

Saudi exports remain concentrated in fuels, mineral oils and machinery, while French exports include machinery and equipment, pharmaceuticals, perfumes and cosmetics. The non-oil trade balance favors France, reflecting the differing structures of the two economies.

But trade is increasingly only one measure of the relationship. French foreign direct investment stock in Saudi Arabia rose from around $7.49 billion in 2015 to approximately $18.52 billion in 2024, an increase of nearly 147 percent. Around 170 French companies operate in the Kingdom across energy, water, transport, aviation, defense, construction and engineering, while around 30 have obtained licenses for regional headquarters.

The next phase is likely to involve a stronger flow in the opposite direction: Saudi capital entering France through the PIF and major Saudi companies, particularly in clean energy, data, industry and tourism.

The real test

The significance of the visit will ultimately be measured by what follows it. 

Can the Strategic Partnership Council turn the political framework established in 2024 into a mechanism for sustained implementation?

Can Riyadh and Paris transform the current energy and shipping disruptions into lasting cooperation on supply routes and logistics?

And can investment grow in line with the ambitions of Vision 2030 and France 2030, rather than remain anchored to annual trade of around $12 billion?

The answers will not lie in official photographs or the number of agreements signed. They will be evident in what those agreements produce: factories, transport networks, healthcare partnerships, localized technologies and clearly defined PIF investments in both countries.

Paris is looking for a Gulf partner capable of contributing to energy security and long-term investment. Riyadh, meanwhile, is seeking a European industrial and technology partner that can contribute to its transformation without reducing the relationship to oil, arms or traditional commerce.

The foundations are strong. The political commitment is clear. The economic potential is substantial.

The real question is whether this visit can convert that potential into durable, measurable results.

That is the partnership now being tested in Paris.

• Mohammed Al-Bishi is Al-Eqtisadiyah editor-in-chief.