The crown prince is in Paris to boost Saudi-French ties

Saudi Arabia and France are expected to ink several bilateral agreements this week as part of Crown Prince Mohammed bin Salman’s meeting with French President Emmanuel Macron, Bloomberg reports. Bin Salman, who is visiting France for the first time since 2023, will also meet separately with Prime Minister Sebastien Lecornu on Monday at the Hôtel National des Invalides.

The meeting’s agenda in a nutshell: The two parties will sign agreements involving technology, transport, energy, and health at the Franco-Saudi Strategic Partnership Council. The leaders will also discuss diversifying maritime transport routes, alternative logistics routes around Hormuz, and regional rail projects, as well as conflicts involving Israel, the Palestinians, Lebanon, and Syria.

Why it matters: European partnerships can help strengthen Saudi supply chains, while alternative routes like regional rail networks can reduce the risks to oil and non-oil exports from disruptions in the Red Sea and Strait of Hormuz.

Alternative routes and logistical solutions are a priority at the moment: Saudi companies, especially Aramco, are searching for the safest paths to avoid Houthi Red Sea threats and Iran’s attacks on the Strait. Some companies, including Sinokor Group, are helping Saudi Arabia reroute crude through the northern Red Sea to avoid the Houthis, while Egypt’s Sidi Kerir is becoming an increasingly important alternative for shipments.

REMEMBER- Saudi Arabia strengthened its defense and economic ties with Europe this year. It has formed a strategic council with Spain to cooperate in security, defense, trade, and investment. The Kingdom also joined a GCC-UK freetrade agreement and expanded its defense cooperation with Italy, with over 400 Italian air force personnel deployed across the GCC, including Eurofighter jets, air-defence radars, and counter-drone capabilities.

Investments on the way.

The Global Investment Summit is expected to result in USD 28.59 bn in European investment flows into GCC countries, alongside 15 joint projects and eight strategic partnerships during its first year, B&S Investments, the Saudi investment group organizing the summit, told Al-Eqtisadiah. It is targeting initial GCC investments of USD 3.5 bn in investment-ready projects, alongside expected transactions worth more than SAR 950 mn.

What will the summit involve? Paris will host the summit on 1-2 September, with day one focusing on renewable energy, industrial transformation, the circular economy, infrastructure and AI, while day two will cover tourism, hospitality, creative industries, biotechnology and healthcare.

Where will the money go? The summit aims to direct 25% of investments towards modern technologies and apply environmental, social and governance standards to 55% of targeted projects, supporting more efficient and sustainable investments.

Foreign investors are displaying trust in the GCC’s long-term potential: These sizable investment targets show Saudi Arabia and the wider GCC’s ability to maintain foreign investor confidence in their returns and stability despite the ongoing geopolitical volatility. The distribution of this capital, placing 25% into deep tech and setting a 55% ESG bar, signals focus on long-term infrastructure and clean energy rather than short-term yield.

IN OTHER DIPLO NEWS

Saudi Arabia and Lebanon have resumed Lebanese exports to the Kingdom through the Al Masnaa border crossing, Al Arabiya reports. A new border-crossing center is also in the works.

REMEMBER- The Kingdom lifted a ban on Lebanese imports in June, which was first imposed in 2021 over the smuggling of illicit substances among legitimate cargo. The decision to resume trade came in response to requests from Lebanese President Joseph Aoun and Prime Minister Nawaf Salam and is expected to help revive the Lebanese economy.