Saudi-France renewable energy pact: Investment Minister Al-Falih highlights green collaboration during Macron’s visit

Saudi Arabia is solidifying its position as a global leader in green energy by partnering with France on three transformative renewable energy projects. Speaking at the Saudi Green Initiative Forum in Riyadh during COP16, Minister of Investment Khalid Al-Falih revealed that these projects will be officially announced by Saudi Energy Minister Prince Abdulaziz bin Salman, with French President Emmanuel Macron in attendance.

“I don’t know if the news is out, but I’ll break it in,” Al-Falih said with a grin. “There will be three major renewable projects announced and signed in the presence of President Macron.” The announcement underscores Saudi Arabia’s ambition to drive the global transition to sustainable energy, with significant contributions from French expertise and investment.

Beyond the renewable projects, Al-Falih stressed the growing importance of green finance, calling it essential for future global investment. He noted that vast sums are now directed towards sustainable projects, with the global pool of green capital already at $3 trillion. “What’s even more astonishing,” he added, “is that it’s expected to grow sevenfold by 2033.”

Saudi Arabia is positioning itself as a central hub for these investments, offering stability and predictability to attract private capital. Al-Falih emphasised the critical role of government in de-risking investments. “It needs to go to a place where there is demand,” he explained. “Saudi Arabia is that place, with systems investors can trust.”

The Kingdom’s efforts extend beyond financing. It has already made substantial advances in renewable energy, particularly in solar and wind power. Describing these sectors as a “win, win, win” for the country, Al-Falih highlighted how green electricity not only supports sustainability but also strengthens Saudi Arabia’s export potential. “We’re displacing liquids that can be exported to places in need of hydrocarbons,” he said, underscoring the economic value of green energy.

France’s involvement is significant, as it bolsters Saudi Arabia’s growing reputation in the global green economy. The collaboration coincides with Saudi Arabia’s rapid expansion in venture capital, where it now leads the Middle East. “Our venture capital market has grown by a factor of 21,” Al-Falih noted, crediting initiatives like Biban and LEAP for nurturing a vibrant startup ecosystem.

These initiatives are supported by the Ministry of Investment’s efforts to grant premium residencies to international entrepreneurs, creating a welcoming environment for global talent. “We’re licensing startups from around the world,” Al-Falih explained, highlighting how international conferences like LEAP have attracted thousands of innovators to Saudi Arabia.

The forum also showcased Saudi Arabia’s ambitious plans to develop as a centre for sustainable finance. “The future of finance is green,” Al-Falih declared, “and Saudi Arabia will be the hub for that investment.” He believes that as the hub for green finance, the Kingdom will naturally attract the flow of global funds towards sustainable development.

Saudi Arabia’s collaboration with France signals more than just another energy partnership. It reflects a broader strategy to transform the Kingdom into a cornerstone of the global green economy, leveraging both its natural resources and strategic location. As Al-Falih concluded, “Green is the colour of our flag and the future of global finance. Saudi Arabia will be at the heart of it all.”