RIYADH, 15 July — The year 2000 was excellent for Saudi-French relations. French exports to the Kingdom soared to SR4.6 billion (15.2 percent up over 1999), while its imports from Saudi Arabia shot up to SR11.3 billion (85 percent up) during the year. This was announced by French Ambassador Bernard Poletti on the occasion of France’s National Day yesterday.
“Thanks to the good trend in the Saudi economy and despite the European slowdown, we have reasons to think that 2001 will be a good year (as well) for bilateral trade,” said Poletti.
The ambassador said France now ranked the third largest foreign investor in Saudi Arabia after the US and Japan. In the past, Britain was placed in the third slot. He said the presence of TotalFina-Elf in the Kingdom’s gas initiative was another positive signal for potential French investors.”
Describing bilateral relations as excellent, the ambassador said the recent visits of Crown Prince Abdullah, deputy premier and commander of the National Guard, Prince Sultan, second deputy premier and minister of defense and aviation, and Riyadh Governor Prince Salman highlighted the strategic partnership between the two countries.
“The visits ... helped to turn our economic relations toward partnership involving French investments in Saudi Arabia along with technology, vocational training and Saudization. These visits were paid while the Kingdom of Saudi Arabia was carrying on important economic structural changes that have been welcomed in France. These changes will contribute to the development of our commercial and economic relations as well as French investments in the Kingdom,” Poletti said.
He referred to the acquisition of 50.1 percent shares worth SR500 million in Al-Safi Food Est. by the Danone Group of France. He said the deal, which also involves transfer of technology and training program, had given a major boost to French investments in the Kingdom.
Asked to comment on a Saudi businessman’s complaint against France’s taxation policy, the ambassador said that in every country tax regulations apply both to citizens and expatriates. “The French Embassy in Riyadh tries naturally to help whenever problems arise in this field. The complaint of this Saudi businessman is still under examination by French fiscal administration and I hope that this case will be solved as soon as possible.”
On the reported dumping of French poultry products in the Saudi market, the ambassador said: “The word ‘dumping’ is utterly inappropriate. Anyway, local producers supply about 50 percent of the Saudi poultry market and this impressive share is increasing on a market that is expanding. So, there is room enough for local and imported products. The final decision belongs to Saudi consumers.”
Referring to the situation in the Middle East, Poletti said last month’s visit to France by Crown Prince Abdullah was a landmark event in Franco-Saudi relations. The talks between French President Jacques Chirac and Crown Prince Abdullah reflected “the large convergence of views between our countries on the main issues of common interest, be it the current Middle East crisis, the situation in the Gulf area, or the Iraqi issue.”
He said France was “determined to work along with its EU partners for achieving a just and lasting peace in the Middle East based on the UN Security Council resolutions and on the rejection of unilateral actions and ‘faits accomplis’, particularly, such as the Israeli settlements in the Palestinian occupied territories.
