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Delegation representing MEDEF International is on a three-day visit to the kingdom
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French startups and SMEs specializing in high-value technologies keen to gain access to the Saudi market
A French delegation on a three-day trip to Saudi Arabia has said they were convinced that the kingdom has a very promising market for French companies, a local media report said.
With direct investments amounting to more than $4.37 billion, France has become one of Saudi Arabia’s largest investors, the Arab News report pointed out.
“The Saudi economy is robust, and the growth forecast for the next 10 years is very promising,” Laurent Germain, chairman of the MEDEF (Movement of the Enterprises of France) International France-Saudi Arabia Business Council, was quoted as saying during his fourth mission to the Kingdom.
Germain told the newspaper that the digital and healthcare sectors had particularly caught France’s eye, calling it the “new economy” and he said French companies were committed to increasing and diversifying their investment in the Saudi economy.
“We have a lot of startups and SMEs (small and medium-sized enterprises) in France specialized in high-value technologies, and the objective is for them to have more access to the Saudi market,” he added.
Last year, the MEDEF delegation saw the arrival of 100 representatives from 80 French companies, having “solid” expertise in many sectors, including tourism, healthcare, and entertainment.
This year’s delegation, spearheaded by Germain, was received by Dr. Khaled Al-Yahya, secretary-general of the Council of Saudi Chambers (CSC), on a three-day trip to meet with Saudi ministries, government entities, and French companies based in the Kingdom.
Germain told the newspaper that from his discussions with Saudi counterparts, it was clear that all ministries now have a clear strategy and clear targets.
For example, he said, the ministry of tourism has a target of 100 million visitors (by 2030) and the energy ministry plans 50 percent of the energy produced through renewables.
“And what we discussed is how the French firms can help the different ministries in order to achieve these goals,” he reportedly said.
The CSC has been working alongside MEDEF International — a French non-profit organization — toward enhancing the role of the foreign private sector by developing its strategies in line with Vision 2030.
In April this year, the Ministry of Investment of Saudi Arabia (MISA) and MEDEF International signed a framework cooperation agreement for promoting the French private sector internationally, which will focus on enhancing bilateral investment relations and support long-term partnerships in emerging sectors.
Germain had then told the media that the agreement will serve as an important step in deepening Saudi-French economic ties.
France ranks third among countries investing in Saudi Arabia and more than 80 French companies are operating in the Kingdom today, while bilateral trade between the two nations is over $9 billion.
The two countries also signed a partnership in 2018 to establish the French Agency for AlUla Development (AFALULA) to support in developing AlUla, a UNESCO World Heritage Site, into a global tourism destination.
On French-Saudi ties being possibly affected by the French elections next year, Germain told Arab News, “France recognizes all the potential that Saudi Arabia has in the region, but also in the world.
“It is very much aware that Saudi Arabia is now a key player of the G20, that the growth forecast in Saudi Arabia is very strong, that there is political will in the diversification of the economy of Saudi Arabia, that thitoendous opportunity for French companies, and that’s why there will be a continuity whoever wins the presidency.”