Saudi Arabia's sovereign wealth fund PIF and French state investment bank Bpifrance signed a memorandum of understanding (MOU) on December 5 to provide financing support of up to $10bn for PIF and its portfolio companies.

The five-year agreement, signed at a ceremony in Riyadh with the French Treasury office, aims to strengthen bilateral cooperation and support companies working toward Saudi Vision 2030 objectives, the PIF said in a statement.

This non-binding agreement aligns with PIF's strategy to enhance global financial cooperation and develop long-term partnerships with international institutions, marking a significant expansion of Saudi-French economic ties.

"This memorandum represents an important step in PIF's strategy to build strong relationships with leading international financial institutions," said Rasis Al Saud, Head of Investor Relations and Financial Institutions at PIF.

"The agreement will create new opportunities for French and Saudi companies to collaborate and exchange knowledge for mutual benefit," it added.

The deal comes as Saudi Arabia continues to strengthen its economic partnerships with France, focusing on investments that support the kingdom's economic diversification goals under Vision 2030.

Bpifrance, which specialises in supporting French exports, will work with PIF to identify and finance projects that benefit both countries' economic interests, according to the agreement terms.

The partnership is expected to facilitate increased business cooperation between French and Saudi companies across various sectors aligned with Saudi Arabia's development priorities.