RIYADH: The EU is keen to expand its cooperation with Saudi Arabia in the energy sector as the world increasingly shifts toward green energy, according to a senior EU official.
In an interview with Arab News on the sidelines of the World Investment Conference, Christophe Farnaud, the EU ambassador to Saudi Arabia, emphasized that the EU possesses significant expertise in the green energy sector, which could help accelerate Saudi Arabia’s clean energy transition, as well as support the broader Gulf Cooperation Council region.
Saudi Arabia, with its ambitious initiatives such as the world’s largest green hydrogen plant in NEOM, is leading the energy transition in the region, aiming for net-zero emissions by 2060.
“One of the many sectors where we are investing and what the partnerships are developing is the energy sector. It comes against the backdrop, not just of the regional needs, but also with this view of facing the green transition that we committed worldwide, not just as the Europeans, but also the Saudi government. This is where can make a difference,” said Farnaud.
He added: “The EU has a strong expertise in that field (green energy). And the energy sector has been in many ways a key factor in the development of the Kingdom. So we already have relationships, between EU companies and Saudi Arabia. But now we will have a stronger focus on energy transition.”
Farnaud noted that European firms have significant opportunities to collaborate in Saudi Arabia’s expanding renewable energy sector, particularly with the Kingdom’s substantial investments in solar power and green hydrogen projects. He also mentioned that European energy companies could work with Saudi energy giants like ACWA Power to help speed up the green energy transition.
In addition to energy, Farnaud pointed out that there are numerous other areas where Saudi Arabia and the EU could strengthen cooperation, including transport, machinery for emerging industries, entertainment, and tourism.
“Machinery is currently already a key sector for the exchanges between the EU and the Kingdom. But I also wanted to insist on the fact that even the new sectors for the Kingdom, like entertainment, tourism, which are a major asset for the coming years, and the EU has a well-known competence and expertise in these industries,” he said.
The EU ambassador also noted that European companies are increasingly aware of the transformation taking place in Saudi Arabia and are eager to explore new opportunities in the Kingdom.
“We had the first ever EU-Saudi investment forum last year in October. We had around 1,400 companies registered and it shows the strong interest from them. It shows also the commitment by the Saudi government and EU to promote these exchanges,” said Farnaud.
He added that the EU is also helping small and medium-sized enterprises in Europe understand the potential of the Saudi market, and highlighted how the Kingdom’s updated investment law could benefit firms entering the country.
Saudi Arabia’s revised investment law, introduced in August, promises enhanced protections for international investors, including adherence to the rule of law, fair treatment, property rights, and stronger safeguards for intellectual property, while facilitating smooth fund transfers.
Wider EU-GCC cooperation
Farnaud also discussed broader EU-GCC relations, noting that the EU-GCC Summit held in October underscored the importance of “partnership in the economic field,” with energy cooperation identified as a key area for strengthening ties.
“The EU and GCC have very dynamic economic relations. And it is not just about Saudi Arabia and the EU, where already the investment stocks from EU in the Kingdom is above €31 billion ($32.58 billion) which is quite significant. But if you enlarge the picture to the GCC as a whole, we are above €215 billion,” he told Arab News.
During a panel discussion on the second day of the World Investment Conference, Farnaud highlighted that European companies are playing an active role in most of Saudi Arabia’s major “giga-projects,” including NEOM, Qiddiya, and AlUla.
He also emphasized that Europe offers an open market with a highly skilled workforce, which countries in the GCC, including Saudi Arabia, can tap into to accelerate their economic diversification efforts.
Regarding foreign investments, Farnaud said: “Investment is a two-way thing, and it is a question of trust and mutual knowledge. It is not just us going to the GCC, which is important, it is also GCC countries coming to Europe. In that way, they are already doing it. About 50 percent of foreign investments of GCC countries go to Europe.”
Progress on Vision 2030
During the same panel, Prince Sultan bin Khalid Al-Saud, CEO of the Saudi Industrial Development Fund, highlighted Saudi Arabia’s socio-economic progress since the launch of Vision 2030. He described the Kingdom as unique, thanks to its “positive energy and optimism.”
The SIDF CEO stressed that Vision 2030 is designed to benefit both current and future generations of Saudis, with a particular focus on investing in people.
“For Saudi Arabia, development starts with investing in people. No matter how you look at Vision 2030, or how you slice it, it’s all about the people—it’s about investing in them, trusting their abilities, and empowering them to create something not just for this generation of Saudis, but for all future generations,” he said.
Affirming the growth of the startup ecosystem in Saudi Arabia, the SIDF chief said that venture capital in Saudi Arabia has grown at a compound annual growth rate of 86 percent in the last five years.
He also added that Saudi Arabia’s women participation in the workforce is higher than that of Western Europe.
According to the latest report by the General Authority for Statistics, unemployment among Saudi nationals fell to 7.1 percent by the end of the second quarter, a quarterly drop of 0.5 percentage points and an annual decline of 1.4 percentage points.
The report added that the unemployment rate among Saudi females also witnessed a sharp quarterly decline of 1.4 percentage points at the end of the second quarter reaching 12.8 percent.
