France signs deals worth 10bn with Saudi Arabia


(MENAFN- The Peninsula)French Prime Minister Manuel Valls (C-L) and Saudi Defence Minister Mohammed bin Salman bin Abdul Aziz (C-R) arrive for a meeting in the Saudi Capital Riyadh on October 13 2015.

RIYADH: France on Tuesday announced a series of deals worth 10 billion euros ($11.4 billion) with Saudi Arabia reinforcing growing ties between the two countries.

Prime Minister Manuel Valls announced the deals on Twitter during a visit to Riyadh saying they showed his government was "mobilised for our companies and employment".

The deals include contracts and letters of intent between the two countries whose economic and political ties have been strengthening under President Francois Hollande.

There were few significant details immediately available on the deals though one of the agreements was a Saudi order for 30 patrol boats.

The deals cover energy health food satellites and infrastructure according to the prime minister's office.

The announcement came during the third high-level visit by French officials to the world's biggest oil exporter this year.

France has been reinforcing links with the Kingdom -- the Arab world's largest economy.

For Saudi Arabia expanding ties with France are part of an effort to build alliances beyond its traditional defence partner the United States to counter Riyadh's regional rival Iran.

Valls late on Monday opened a forum to promote commercial ties between firms from France and Saudi Arabia.

He is on a regional tour which earlier took him to Jordan and Egypt along with Defence Minister Jean-Yves Le Drian.

Foreign Minister Laurent Fabius was also in Riyadh.

Valls's office said additional negotiations had begun for potential agreements in telecommunications and surveillance satellites.

Hollande came to Riyadh in January to pay his respects after the death of king Abdullah.

In May he returned to become the first Western leader to attend a Gulf Cooperation Council summit.

The order for patrol boats is the latest in a series of weapons deals Paris has made in the region this year.

'Common enemy'

On Saturday Egypt signed a deal with France to buy two Mistral warships originally ordered by Russia.

According to French government sources Egypt will pay 950 million euros with "significant" financing from Saudi Arabia.

France this year also sold 24 of its Rafale warplanes to Egypt and Qatar.

In Cairo Valls said highlighted joint efforts against extremism saying: "We all have a common enemy -- Daesh."

He was using an Arabic acronym for the Islamic State group which has seized territory in Syria and Iraq where it has carried out widespread atrocities and inspired attacks elsewhere.

Both France and Saudi belong to the US-led coalition that has bombed IS which has claimed responsiblity for attacks in the kingdom this year.

Riyadh accuses their regional rival Iran of meddling in Iraq Syria Lebanon and Yemen.

Since March the kingdom has led an Arab coalition backing local Yemeni forces first with air strikes and now also with ground troops against Iran-supported Huthi rebels who seized much of Yemen.

French aid agency Action Against Hunger (ACF) on Monday said Valls's visit seemed to favour the negotiation of contracts notably military ones "with a powerful economic ally" instead of looking for diplomatic solutions to the war in Yemen from which civilians are suffering.

AFP


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