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Saudi Arabia has been courting a growing number of foreign investors, offering abundant opportunities for the Gulf’s largest economy and complicating its diplomatic allegiances.
French President Emmanuel Macron was in Saudi Arabia Wednesday for his first visit in six years, sealing deals and deepening ties. Specifically on the agenda was energy, with Saudi officials signing 25-year agreements with French companies TotalEnergies and EDF Renewables to build three solar parks, as well as defense: Macron confirmed progress on selling Rafale fighter jets to Saudi Arabia, calling it a “major change in the bilateral relationship.”
However, Macron’s trip coincided with political turbulence in Paris — his prime minister will face a no-confidence vote within hours, complicating the logistics, and tone, of his visit.
Meanwhile, China has also become a major foreign investor. Beijing’s green tech exports to the kingdom are nearing a record high — signs that ties between the two nations are eclipsing those with Saudi’s traditional partners, the US and France. Between 2021 and October this year, Chinese greenfield investment in Saudi Arabia totaled $21.6 billion, compared to $12.5 billion from the US.
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China’s growing footprint aligns with the kingdom’s diversification plans. However, the relationship is not without uncertainty: Riyadh faces a delicate balancing act when US President-elect Donald Trump — who promised to be tough on China — takes office. The US is Saudi Arabia’s most valued military partner, and the kingdom has so far managed to stave off Washington’s concerns by limiting trade with China in industries such as defense and artificial intelligence, Saudi officials told the Financial Times.