France, Saudi Arabia deepen alliance with 10B euros in deals

Manuel Valls the Prime Minister announced the multiple deals with a few still not completely finalized.

The two sides also signed deals in Riyadh for $2 billion worth of Saudi public investment in French private funds with a focus on renewable energy and signed a letter of intent for cooperation in that sector.

Other deals under discussion could cover telecommunications and surveillance satellites, urban transport and energy.

According to a triangular agreement, Saudi Arabia committed in November 2014 to buy weapons and military equipment from France for three billion dollars to deliver them to the armed and security forces of Lebanon to face the threat of extremist groups.

“France is now the third largest investor in Saudi Arabia”, said Valls, “and there are opportunities for development for Saudi companies in France”, he added.

During Deputy Crown Prince and Defense Minister Mohammed bin Salman’s trip to Paris in June, the two governments signed contracts worth billion, including the sale of 23 Airbus helicopters, and agreed to undertake feasibility studies for the construction of two Areva nuclear reactors.

Chaussade said SMEs would play a significant part in developing these relations, and this was demonstrated by the large number of owners of such businesses from France who had come to the forum and were able to discover the Saudi market for the first time.

And intensifying turmoil in the Middle East means wealthy Saudi Arabia will be a big customer for France throughout the foreseeable future.

The agreements come one week after Amnesty urged the USA and United Kingdom to halt sales of arms to Saudi Arabia, arguing that they were facilitating “serious violations” of worldwide humanitarian law in Yemen.

Valls on Monday night opened the Saudi-French Business Opportunities Forum to promote commercial ties between firms from the two countries.

Five juveniles have now been sentenced to death in Saudi Arabia in 2015.

Al-Rabiah said bilateral trade exchange is estimated at 12 billion euros and French investments in Saudi Arabia had reached 14 billion euros.

About 200 French companies also attended the forum, seeking contracts with the kingdom.

Both France and Saudi belong to the US-led coalition that has bombed ISIS which has also claimed responsiblity for attacks in the kingdom this year.

The strong alliance between France and Saudi Arabia was highlighted in May when French President Francois Hollande met with the heads of state of the six-nation Gulf Cooperation Council in Riyadh for a meeting in his honor.

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A deal estimated at one billion euros in Riyadh alone.