How does Yaarub Al Dagither, Director of the International Office of Saudi Arabia's Ministry of Investment, organize European FDI in the Kingdom?
Basile Marin: You are the Director of the International Office of the Saudi Arabian Ministry of Investment in France. Your Office is both a regulator of foreign investment in Saudi Arabia and an advisor to foreign companies. All of southwestern Europe is under your responsibility: the Netherlands, Belgium, Luxembourg, France, Italy, Spain and Portugal. What are the prerogatives of your Office and how do you identify, advise and regulate foreign investors in Saudi Arabia?
Yaarub Adagither: We have several offices around the world, France being one of them. We have four offices in Europe, the one in Paris covers the countries you mentioned. We are the entry point for foreign investors in Saudi Arabia. In order to work closely with investors, the Ministry of Investment has set up a whole structure to meet the requirements of these investors. Once you come to our office, you will not only work with its manager, but also with people from other Ministries, with whom we are in contact and exchange information. For example, if a renewable energy investor wants to invest in Saudi Arabia, the Ministry of Energy will also be involved. We will help you get all the information you need to formulate your strategy and establish your operations in Saudi Arabia. The information we provide is always of the highest quality, and that's something our partners really appreciate. We help you put together a package to help you establish yourself in Saudi Arabia, but we will also continue to support you with strategic advice after your operations have been established. More importantly, we are in charge of providing the license to foreign companies who want to expand in Saudi Arabia. This is an important part of what we do, and this function of the Office helps to ensure that foreign investment in Saudi Arabia is of the highest quality and can be trusted by private actors in the country. We provide a complete package to investors, from the moment they express their interest until they establish their businesses. France is the largest European foreign investor in Saudi Arabia, ahead of the United Kingdom and Germany. We have 297 French companies that have invested an estimated amount of 18.4 billion Saudi riyals (4.1 billion euros). France has a proven track record in Saudi Arabia and French entrepreneurs are highly respected. Saudis appreciate the knowledge and know-how of French companies. The French have a lot to offer the Saudi economy. For example, EDF operates one of the largest renewable energy projects in Saudi Arabia, at Dawmat Aljandal. As part of the 2030 vision, 30% of Saudi Arabia's energy needs will be met by renewable energy, whether wind or solar. EDF is one of the big players in this field and they have won some of the best contracts available.
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BM: If you are a French industrialist and you want to invest in Saudi Arabia, and you already have a partner in Saudi Arabia which is a private company, do you still have to go through your office? What is the relationship between your Office, private Saudi companies and French investors?
YA: We are here to advise you. If a foreign investor is looking for a Saudi partner, we help them find a suitable partner. By the way, it is entirely up to them whether to represent themselves fully in Saudi Arabia or set up a joint venture, with whatever percentage they prefer. This is a business decision, and we have no say in it. Saudi Arabia is very open to foreign investment. However, even if the foreign company has already found a suitable partner, they still have to come to us to obtain the license. Everything we do is in the interests of the foreign investor, and everything is free, from the strategic advisory work to the incentive package and their business case. Since it's free, why not use it?
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BM: Crown Prince Mohammed bin Salman envisioned a grand future for Saudi Arabia, called “Saudi Vision 2030”. This initiative aims to diversify the Saudi economy beyond oil, strengthen entrepreneurship, develop scientific research and technology. What transfers of knowledge and technology from French companies are today the most desired by Saudi Arabia to achieve its Vision 2030? What would the Saudis give back in terms of investments or other benefits?
YA: Saudi Arabia has big ambitions. We seek to diversify away from the oil-based economy. Saudi Arabia and France have a long-standing relationship, which dates back decades and is based on mutual respect and mutual interests. When looking at the opportunities for French companies in Saudi Arabia, they are very attractive. As I mentioned earlier, French companies have a lot of know-how and knowledge that can help Saudi Arabia implement this shift in its economy. There are several key sectors for us: renewable energies, where France is the leader, but also the tourism sector, where France is also the leader, culture, health, and the financial sector. For example, Saudi Arabia has one of the highest diabetes rates in the world. Most of our insulin comes from large French companies. French companies don't just supply drugs, they also help run hospitals, amid increasing privatization of the Saudi health sector. There are many exciting new projects coming up, and this is where MISA (Saudi Arabia's Ministry of Investment) can provide key assistance in guiding you through the Saudi economy to find you opportunities. opportunities with high profits on both sides.
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BM: In 2017, Crown Prince Mohammed bin Salman announced an unprecedented 500 billion dollar smart city project, whose ambition is to be the most technological, the most ecological and the most fiscal paradise in the world. planet for revolutionary entrepreneurs. Have French companies operated in NEOM so far, and if so, which ones? What are the advantages in terms of access to the Saudi market (and the UAE), tax breaks and trade and labor regulations that will convince them to come and settle in NEOM?
YA: NEOM is a revolutionary project. He is visionary and very innovative. This is one of the mega-projects that we present to the world. NEOM requires global inputs: Saudi Arabia cannot do it alone. We plan to build a futuristic city entirely based on renewable energies. NEOM is located in a beautiful part of the country, near Egypt and Jordan. We are looking for companies capable of thinking outside the box, designing and implementing cutting-edge technologies. NEOM has attracted a lot of attention internationally due to the scale of its project, not only in France, but in the whole world. Companies willing to provide new green energy solutions, new transport solutions, advanced technologies in water treatment, in internet connectivity, lifestyle, have expressed their interest in coming to NEOM. French companies have had great success at NEOM so far. Their integration into the NEOM ecosystem was also one of the main topics discussed during the last visit to Saudi Arabia by Minister of Culture Franck Riester.
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NEOM enables companies around the world to test and showcase their latest game-changing technologies to the world. We are very flexible when it comes to benefits. We sit down with each company and discuss in depth a customized package based on their individual needs.
Opportunities in the culture-related industry, which Culture Minister Franck Riester also discussed at length during his trip to Saudi Arabia, are also very lucrative. NEOM is very close to AlUla, which is the largest open music museum in the world, and the result of Franco-Saudi cooperation. It is also one of the largest and oldest archaeological sites in the world, with ruins dating back 600 BC. It is a question of developing archaeological sites, developing museums, developing tourist infrastructures but also protecting these sites from commercial overexploitation, by evaluating the maximum number of visitors without damaging the site. .
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NEOM is an incredibly exciting project that will generate significant demand for international expertise and experience – and French companies will be very well placed to meet this.
BM: Since 2016, Saudi Arabia has been striving to create multidisciplinary civil cooperation with France, promoting tourism in Saudi Arabia and fostering exchanges at the level of universities and research centers. The Saudi Embassy, for example, organizes cultural and artistic events mixing the cultures of the two countries, launching the first MISK Art exhibition at Unesco in October 2017 and the Saudi art exhibition at the YIA art fair. What are the opportunities for French entrepreneurs to discover Saudi Arab culture and the business environment?
YA: Saudi Arabia has an extensive program to share our rich culture with the world. We plan to design and build museums, but also cinemas, music concerts, sporting events, Formula 1, the Dakar rally. All these events attract visitors to Saudi Arabia. All of these changes are part of a bigger change, which is the opening of Saudi Arabia to the world. The ease of obtaining visas, including the introduction of the new e-visas, the increase in cultural events, are all signs of this great and exciting change in the politics of our country.
BM: Crown Prince Mohammed Bin Salman has enacted a number of laws aimed at reducing inequality between Saudi men and women. Saudi women can now open their own businesses and travel abroad without a man's permission. French businesswomen are very present in the fashion and luxury sectors, which are products to which the Saudi elite aspires. What message are you sending them to convince them to come and do business in Saudi Arabia?
YA: No nation can prosper by discarding half of its population. For a nation to be prosperous, one hundred percent of the people must participate in the development and building of that nation. Saudi Arabia has a very young population. 50% of the population is under 25 years old. All we do is give the right place to Saudi women in Saudi society. These 50% are highly educated, highly motivated, highly skilled, and they have a lot to contribute to Saudi society. We want to unlock the economic potential of half of our population. We see a lot of emerging businesses in Saudi Arabia, like luxury goods and fashion. French entrepreneurs and major fashion brands can help us develop these key sectors where Saudi women are most employed and start businesses. We no longer have a distinction based on gender. Any perception you have of Saudi Arabia that would have been quite true a few years ago is no longer valid. We want to open up, we want to do business, and we don't care about your gender. All investment decisions made by our Office are gender neutral. I would like to invite all women who want to invest in Saudi Arabia to come and visit the country, and check for themselves the new laws, the regulations on the protection of the female gender that we have now. The Saudi people are a welcoming people, and distinctions based on gender no longer have their place.
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