Saudi-French trade reaches €10.1bn as investment expands into AI and mining

Trade between Saudi Arabia and France increased by 7.2 per cent in 2025 to reach about €10.1 billion, as French investment expanded beyond traditional industries into artificial intelligence, digital infrastructure, culture and mining.

The two countries are building on diplomatic relations established in 1926.

Their economic partnership gained a new framework following the French state visit in December 2024, which established the Comprehensive Strategic Partnership and Strategic Partnership Council.

French investment expands

France is Saudi Arabia’s fourth-largest source of foreign direct investment stock, with about €16.3 billion invested across 18 sectors and 651 active investment licences.

Manufacturing accounts for about 60 per cent of this investment.

However, the French commercial presence is increasingly extending into technology and other emerging sectors.

French investment stock in the Kingdom has doubled over the past three years. Saudi authorities issued 90 new licences to French investors in 2024 and another 127 in 2025.

Vision 2030 opportunities

Saudi Arabia’s economy is valued at €1.1 trillion, with foreign exchange reserves of €421.5 billion.

S&P affirmed the Kingdom’s A+ sovereign credit rating in March 2026.

Under the National Investment Strategy, Saudi Arabia aims to attract and generate €2.74 trillion in total investment by 2030.

Updated regulations provide equal treatment for foreign investors, protect the repatriation of capital and offer tax incentives through Special Economic Zones and the Regional Headquarters Program in Riyadh.

The headquarters program has attracted 39 French multinational offices.

Energy and utilities

TotalEnergies is expanding its Saudi industrial presence through the Amiral venture.

EDF, SLB, TechnipFMC, Vallourec and Schneider Electric are also involved in projects covering power and renewable energy.

French-led energy commitments in Saudi Arabia exceed €16.3 billion, including solar consortium projects with a combined capacity of 11 gigawatts.

Veolia, Suez and Saur remain involved in municipal infrastructure, water services and recycling projects.

Transport, logistics and defence

Alstom, RATP Dev and Systra are participating in public transport infrastructure projects, including the Riyadh Metro.

CMA CGM is involved in port operations, while Crédit Agricole provides aviation financing and La Poste operates in the logistics sector.

DHL is also investing €120 million in a logistics hub at the airport’s Special Integrated Logistics Zone.

In defence, KNDS and the Saudi General Authority for Military Industries are evaluating opportunities to manufacture French artillery systems locally.

Healthcare, tourism and heritage

Accor is expanding its hospitality presence in Saudi Arabia, while Sanofi maintains operations in the local pharmaceutical sector.

Egis is involved in large-scale program management projects.

The French Agency for AlUla Development, known as AFALULA, has mobilised €1.6 billion and generated more than 170 contracts for French companies.

AI and digital infrastructure

Saudi Arabia is working to develop up to three gigawatts of artificial intelligence infrastructure by 2030.

The Kingdom is also expanding its data-centre capacity to 440 megawatts, supported by €3.85 billion in investment.

More than €19.7 billion in Saudi-French AI partnerships has been announced.

The technology sector accounted for 16 per cent of Saudi Arabia’s gross domestic product in 2024, providing further opportunities for French technology and infrastructure companies.

Industrial expansion

Saudi Arabia’s industrial base reached 12,946 factories by the end of 2025, supported by €17.1 billion in new industrial licences.

Schneider Electric and Vallourec are among the French companies expanding their manufacturing activities in the Kingdom.

Tarkett has also launched a production joint venture in Jeddah.

Investors have access to 36 dedicated industrial cities and financing of up to 75 per cent through the Saudi Industrial Development Fund.

Saudi Arabia is also offering incentives intended to raise conversion-industry capacity from 2.7 million tonnes to 11.5 million tonnes by 2035.

Saudi investment in France

Investment is also moving in the opposite direction.

Saudi Arabia’s Public Investment Fund invested about €7.36 billion in France between 2017 and 2024, supporting an estimated 29,000 jobs.

The relationship is expected to expand under an €8.56 billion financing memorandum of understanding between the PIF and French public investment bank Bpifrance.

Qiddiya Investment Company is also working with the French government to explore entertainment, sports and cultural projects in France.