France received €15 billion ($16.2 billion) in investment commitments amid announcements as companies including Microsoft, Amazon and Pfizer, as well as financial institutions such as JP Morgan and Morgan Stanley, look to boost their presence in EU's second-largest economy.
Foreign direct investment topped the €13 billion in commitments the French economy received from global investors last year as President Emmanuel Macron hosted 180 chief executives at the Chateau de Versailles for the “Choose France” summit.
Corporate leaders and institutional investors, as well as some of the top sovereign wealth funds from the Middle East, were among those that gathered in Paris on Monday.
In its seventh iteration, the summit is part of the French government’s efforts for green re-industrialising and instituting regulatory reforms to bring in more FDI, as France looks to establish itself as centre of commerce and finance in the European bloc.
France has received investment commitments for 56 projects across sectors, which were unveiled by Mr Macron during his keynote address on Monday evening.
“I want to thank you for your trust and for these [investment] decision,” he said. “These projects bring a lot more than just investments in the economy.”
Microsoft led the pack of investors with a €4 billion announcement to develop its artificial intelligence and cloud infrastructure in France.
The company will also help in training a million people and extend support to 2,500 AI start-ups until 2027 in France as part of its investment commitment, it said.
This is the latest AI investment by the US company. This year, Microsoft joined France’s Mistral AI in a €15 billion, multi-year deal to help accelerate its development.
In April, Microsoft also announced a $1.5 billion investment in Abu Dhabi’s AI company G42 to advance its global AI ambitions.
Amazon has also laid out plans to invest €1.2 billion on infrastructure and computing, while pharmaceutical companies Pfizer and Sanofi are also investing €500 million and €1 billion, respectively, the Elysee Palace announced earlier.
Morgan Stanley is also expanding its European campus in the French capital, featuring a global research centre, Bloomberg quoted French Finance Minister Bruno Le Maire as saying on Saturday.
First Abu Dhabi Bank, the biggest UAE bank by assets, and Nigeria’s Zenith Bank are also set to open offices in Paris. The move will help French companies invest in the GCC and in English-speaking Africa, the minister added.
Mr Le Maire also hosted a lunch on Monday with global bankers, including top bosses from JP Morgan, Goldman Sachs and Bank of America, as well as private equity company KKR.
Morgan Stanley, which has already increased its Paris staff to about 400 from 150 since 2021, and will add 100 more people across all of its Paris divisions, including its research and development centre, Bloomberg quoted a Morgan Stanley representative as saying.
The new investment announcements are expected to significantly boost jobs in France; the 28 projects announced last year accounted for more than 8,000.
The Inaugural Choose France summit in 2018 received €2.1 billion in FDI pledges for 10 projects, and even during Covid in 2020, the country received €607 million in FDI commitments.
The scale has risen steadily since to almost €10.8 billion in 2022, according to government data.
France has instituted tax reforms and is pushing to simplify the business environment to attract FDI.
It is focused on re-industrialising the economy, with major investments in making green batteries and hydrogen, as well as artificial intelligence, which are central planks of the country’s innovation policy.
Paris, which is trying to lower national debt and boost growth momentum, is pursuing the France 2030 Investment Plan, an overarching agenda that aims to attract €54 billion in FDI by the end of this decade.
“This is the fifth year we are the number one in terms of attractiveness [for investment in Europe] … because for the first we had to work hard, after that we delivered and then we maintained,” Mr Macron said.
“This is, for me, the best evidence … that our reforms and our agenda are producing results.”
Mr Macron, a former Rothschild investment banker, also held a series of private investment roundtable meetings with chief executives of several private companies on Monday, according to Elysee Palace officials.
One private session focused on the AI and quantum investment opportunities in France, while the other presented investment in the decarbonisation sector to global investors.
Mr Macron also attended a private session with top executives from Indian companies.
He held bilateral meetings with chief executive of Novartis, Vasan Narasimhan, chief executive of Svolt Energy Hongxin Yang, and Lakshmi Mittal, top boss of ArcelorMittal.
Heads of private sector companies, as well as sovereign wealth funds from the broader Middle East, especially the GCC, also have a strong showing at the Chateau de Versailles on Monday.
Chief executives of the Public Investment Fund, Saudi Arabia’s sovereign wealth fund, Qatar Investment Authority, Kuwait Investment Authority, Bahrain’s Mumtalakat, representatives of Mubadala Investment Company in Abu Dhabi and Bahrain-based alternative investment company Investcorp are among those attending the summit, according to the French officials.
They also attended some of the private sessions, including two with Mr Macron on AI and quantum investing as well as in the green energy sector.
France has deep trade, economic and political ties with Arab nations in the broader Middle East and North Africa region, especially with oil-exporting countries in the GCC.
Bilateral trade between the UAE and France reached €7 billion last year and is expected to increase further this year amid the deepening of investment and trade ties between the two countries, France’s Minister of Foreign Trade and Economic Attractiveness, Franck Riester, told The National in February.
The two countries also launched UAE-France Business Council in 2022, which is jointly led by Dr Sultan Al Jaber, managing director and group chief executive of Adnoc and chairman of Masdar, and Patrick Pouyanne, chairman and chief executive of France’s TotalEnergies.
The council is made up of 18 chief executives selected for their interest in strengthening investments between the two countries and held its second meeting this year in Paris.
Beyond the UAE, Paris has also managed to secure investment commitments from other GCC countries including Qatar and Saudi Arabia.
On Monday, QIA announced its intent to “anchor” an investment commitment in Ardian Semiconductor, reflecting the goal of enhancing the semiconductor industry in France and Europe.
“This investment demonstrates QIA’s position as the financial partner of choice in key technology sub-sectors, including semiconductor and semiconductor supply chain,” QIA said in a statement.
In February, Qatar announced more than $10 billion in investments in French start-ups and investment funds.
Last year, Saudi Arabia and France also signed 24 agreements worth $2.9 billion at the France-Saudi Investment Forum in sectors including clean energy, manufacturing, aviation, energy and health care, the state-owned Saudi Press Agency said at the time.
Citizenship-by-investment programmes
United Kingdom
The UK offers three programmes for residency. The UK Overseas Business Representative Visa lets you open an overseas branch office of your existing company in the country at no extra investment. For the UK Tier 1 Innovator Visa, you are required to invest £50,000 (Dh238,000) into a business. You can also get a UK Tier 1 Investor Visa if you invest £2 million, £5m or £10m (the higher the investment, the sooner you obtain your permanent residency).
All UK residency visas get approved in 90 to 120 days and are valid for 3 years. After 3 years, the applicant can apply for extension of another 2 years. Once they have lived in the UK for a minimum of 6 months every year, they are eligible to apply for permanent residency (called Indefinite Leave to Remain). After one year of ILR, the applicant can apply for UK passport.
The Caribbean
Depending on the country, the investment amount starts from $100,000 (Dh367,250) and can go up to $400,000 in real estate. From the date of purchase, it will take between four to five months to receive a passport.
Portugal
The investment amount ranges from €350,000 to €500,000 (Dh1.5m to Dh2.16m) in real estate. From the date of purchase, it will take a maximum of six months to receive a Golden Visa. Applicants can apply for permanent residency after five years and Portuguese citizenship after six years.
“Among European countries with residency programmes, Portugal has been the most popular because it offers the most cost-effective programme to eventually acquire citizenship of the European Union without ever residing in Portugal,” states Veronica Cotdemiey of Citizenship Invest.
Greece
The real estate investment threshold to acquire residency for Greece is €250,000, making it the cheapest real estate residency visa scheme in Europe. You can apply for residency in four months and citizenship after seven years.
Spain
The real estate investment threshold to acquire residency for Spain is €500,000. You can apply for permanent residency after five years and citizenship after 10 years. It is not necessary to live in Spain to retain and renew the residency visa permit.
Cyprus
Cyprus offers the quickest route to citizenship of a European country in only six months. An investment of €2m in real estate is required, making it the highest priced programme in Europe.
Malta
The Malta citizenship by investment programme is lengthy and investors are required to contribute sums as donations to the Maltese government. The applicant must either contribute at least €650,000 to the National Development & Social Fund. Spouses and children are required to contribute €25,000; unmarried children between 18 and 25 and dependent parents must contribute €50,000 each.
The second step is to make an investment in property of at least €350,000 or enter a property rental contract for at least €16,000 per annum for five years. The third step is to invest at least €150,000 in bonds or shares approved by the Maltese government to be kept for at least five years.
Candidates must commit to a minimum physical presence in Malta before citizenship is granted. While you get residency in two months, you can apply for citizenship after a year.
Egypt
A one-year residency permit can be bought if you purchase property in Egypt worth $100,000. A three-year residency is available for those who invest $200,000 in property, and five years for those who purchase property worth $400,000.
Source: Citizenship Invest and Aqua Properties
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Overview
What: The Arab Women’s Sports Tournament is a biennial multisport event exclusively for Arab women athletes.
When: From Sunday, February 2, to Wednesday, February 12.
Where: At 13 different centres across Sharjah.
Disciplines: Athletics, archery, basketball, fencing, Karate, table tennis, shooting (rifle and pistol), show jumping and volleyball.
Participating countries: Algeria, Bahrain, Comoros, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Saudi Arabia, Sudan, Syria, Tunisia, Qatar and UAE.
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
UAE currency: the story behind the money in your pockets
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
Safety 'top priority' for rival hyperloop company
The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.
He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.
“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.
“Only once the system has been certified and approved will it move people,” he said.
HyperloopTT has begun designing and engineering processes for its Abu Dhabi projects and hopes to break ground soon.
With no delivery date yet announced, Mr de Leon said timelines had to be considered carefully, as government approval, permits, and regulations could create necessary delays.
Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Essentials
The flights
Return flights from Dubai to Windhoek, with a combination of Emirates and Air Namibia, cost from US$790 (Dh2,902) via Johannesburg.
The trip
A 10-day self-drive in Namibia staying at a combination of the safari camps mentioned – Okonjima AfriCat, Little Kulala, Desert Rhino/Damaraland, Ongava – costs from $7,000 (Dh25,711) per person, including car hire (Toyota 4x4 or similar), but excluding international flights, with The Luxury Safari Company.
When to go
The cooler winter months, from June to September, are best, especially for game viewing.
The Written World: How Literature Shaped History
Martin Puchner
Granta
