French President Emmanuel Macron signed a strategic partnership with Crown Prince Mohammed bin Salman to increase relations in defence, energy and artificial intelligence during his three-day visit to the kingdom.
The pact was announced late on Monday in Riyadh by the Elysee after a working dinner between French and Saudi cabinet members presided by the two countries’ leaders. The partnership aims at “multiplying co-operation and concrete achievements in all areas”, it said.
“The two heads of state agreed to work together to prepare the Summit for Action on AI [Artificial Intelligence], which will take place in Paris at the beginning of February,” it said.
France, where the government is facing issues over budget cuts, hopes to boost its business relations with Saudi Arabia.
The Saudi Public Investment Fund (PIF) has said it would reduce investments abroad from 30 per cent to about 18-20 per cent of the $930 billion fund, but advisers to Mr Macron have said that they believe that the PIF’s investment powers “remain colossal”.
FDIs in Saudi Arabia reached $25.6 billion last year – 16 per cent above the Saudi investment ministry’s target after a change in methodology that led to a significant upwards revision in figures.
“France has been trying to relaunch its business relations with Saudi Arabia for several years. So far success has been limited because both sides expect larger investments than what has materialised,” Camille Lons, deputy head of the European Council on Foreign Relations’ Paris office and a Gulf expert, told media.
France is also pushing to sell about 50 Rafale fighter jets, made by Dassault Aviation, to Saudi Arabia, but is facing fierce competition from Germany’s Eurofighter Typhoon jets and US-made Boeing F-15s.
“France is not Saudi Arabia’s main partner. Riyadh has historically strong ties with the US, and the two countries are negotiating a deal involving defence and new technologies such as AI. In this context, Saudis logically prioritise US technologies, which are anyway more advanced than in Europe,” Ms Lons said. “France can’t compete with the US but wants to support Saudi Arabia in its drive to diversify its economy.”
Regional crises in the Middle East were also high on the agenda of discussions between Mr Macron and Prince Mohammed. Their meeting comes one week after France announced with the US a ceasefire in Lebanon.
Their priority is “to establish a ceasefire without further delay in Gaza, in order to free all hostages, protect the civilian populations through the delivery of humanitarian aid and contribute to the search for a political solution based on the two-state solution”, the Elysee said.
Further deals are expected to be signed at a Saudi-French business forum on Tuesday, after which Mr Macron and Prince Mohammed will have a one-on-one dinner. Mr Macron is scheduled to then fly to Al Ula heritage site, which is overseen by a French-Saudi development organisation.
“The unstable situation in France is proving to be an issue for Macron, who is falling back on foreign policy, which has always been his strong point. Appearing active on the Lebanon ceasefire and continuing to invest on powers such as Saudi Arabia is clearly important for him,” Ms Lons said.
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