RIYADH, 3 April 2006 — France will step up its export-promotion drive by opening branches and distribution channels for French companies.
French Minister of Foreign Trade Christine Lagarde told newsmen that her country would also promote “Made in France” labels to project the country as a producer of quality goods. The presence of French hypermarkets in the Kingdom could serve as a launching pad for such products.
The minister was holding the press conference after her talks with Minister of Transportation Jobara Al-Suraisry, Minister of Commerce and Industry Hashim Yamani and Amr Abdullah Al-Dabbagh, governor of the Saudi Arabian General Investment Authority (SAGIA). French Ambassador to the Kingdom Charles-Henri D’Aragon, members of her delegation and embassy officials were also present.
Lagarde, who was here recently as a member of French President Jacques Chirac’s high-level delegation to the Kingdom, is leading a delegation of large-medium- and small-scale companies as part of a trade mission to promote business opportunities for the French firms.
Providing an overview of her talks with the ministers of transportation, commerce and industry, Lagarde said the main focus of her discussion was identifying the scope for the export of French products. To this end, they have agreed that the starting point of the exercise should be the opening of branch offices and agencies of French companies.
“The message from the Saudi side was clear. They welcome French products and technology leading to the transfer of this technology in the Kingdom, which is seeking new markets away from the traditional ones.”
Asked if France would consider going into a tie-up with China or India in order to bring down the cost of production, the minister said France “is not here to compete with the Chinese who are cutting the legs of everyone. We would like to compete on the basis of quality. And quality comes at a price.”
Despite the cost component, it is pointed out that the bilateral trade increased from SR1.13 billion in 1998 to SR1.82 billion in 2004. According to Jean-Claude Daupeyroux, who was also present, French exports to the Kingdom surged by 26 percent last year.
Lagarde said a new element in their strategy to further boost French exports would involve promoting French labels as a hallmark of quality goods. The promotional drive could be spearheaded through various avenues, including the sprawling French hypermarket chain.
According to Abdullah Al Ahmed, Carrefour’s vice-president responsible for business development and public relations, Carrefour has finalized 10 sites in several regions, including Jeddah, Riyadh, Tabuk, Madinah, Makkah, Taif, Abha, Buraidah and in the Eastern Province. The company plans to open three more stores this year, with 18 more stores planned under a phased program.
On her talks with Transportation Minister Al-Suraisry, the French minister said they discussed the Saudi land bridge and railroad projects linking Jeddah with the holy cities of Makkah and Madinah.
Under the government’s plan, two railroad stations will be built in Jeddah’s new King Abdul Aziz International Airport to help facilitate the flow of pilgrims between Jeddah and the holy cities of Makkah and Madinah to ease traffic congestion.
