France's Sovereign Wealth Fund Invests in Saudi Firm

By Stacy Meichtry

PARIS--France's sovereign wealth fund and a host of French companies became some of the first foreign players to invest in Saudi Arabia's tightly regulated stock market Friday.

France's Caisse des Depots et Consignations joined several French firms--including insurer AXA SA (CS.FR) and telecoms operator Orange SA (ORA.FR)--in investing $150 million in Kingdom Holding Company, or KHC, its chairman Prince Alwaleed Bin Talal Al Saud said at a news conference flanked by French Foreign Minister Laurent Fabius.

KHC and Caisse Des Depots et Consignations are also teaming up to create a $400 million fund to invest in small and medium-sized Saudi firms, Prince Alwaleed said, adding the investments aimed to "strengthen further the alliance between France and Saudi Arabia."

Prince Alwaleed noted the French investments in KHC marked the first time foreign entities were investing in a firm traded on Saudi Arabia's stock market since it was opened to foreign investors.

The investments follow a spree of deals and trade accords signed by France and Saudi Arabia this week, ranging from aerospace to waste management.

Write to Stacy Meichtry at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires