French FDI in Saudi Arabia Doubles to €16.3 Billion

French foreign direct investment stock in Saudi Arabia has reached SR63.9 billion (€16.3 billion) in 2024, more than doubling from its 2021 level. This development makes France the Kingdom’s fourth-largest source of FDI, as stated by Investment Minister Fahad Al-Saif during the Saudi-French Investment Roundtable in Paris. The event was part of Crown Prince and Prime Minister Mohammed bin Salman’s state visit to France and aimed to explore investment opportunities and deepen private-sector partnerships.

Al-Saif highlighted the century-long Saudi-French relations and the alignment between French capabilities in technology, industry, finance, and innovation with Saudi Vision 2030. French investors currently hold 651 investment licenses across 18 sectors in Saudi Arabia, reflecting their growing presence in the market. The economic transformation under Vision 2030 has created opportunities for French companies, particularly in energy, financial services, digital infrastructure, advanced manufacturing, transportation, logistics, gaming, and tourism.

Saudi-French cooperation extends across conventional energy and petrochemicals, with French companies also playing a role in Saudi Arabia’s transition toward cleaner energy. Financial services were identified as a major area for cooperation, with the Saudi Exchange being the largest and most liquid equity market in the Middle East and North Africa. The gaming and esports industry in Saudi Arabia also presents significant opportunities, with average revenue per player about 7% above the global average.

For a developer: The doubling of French FDI in Saudi Arabia signifies a robust international confidence in the Kingdom's economic transformation and growth potential. This influx of investment can lead to increased opportunities in various sectors, including technology, energy, and financial services, offering a fertile ground for developers and investors looking to capitalize on the expanding market.