Diplomatic ties between Monaco and Saudi Arabia set to boost respective economies

Monaco and Saudi Arabia have recently signed a joint statement to establish diplomatic relations between the two countries. The move is aimed at strengthening relations and expanding cooperation between the two countries in various fields.

The statement was signed on behalf of the Kingdom by Ambassador to France, Fahd Al-Ruwaili, and on behalf of the Principality of Monaco by its Ambassador to France, Christophe Steiner.

Bilateral impact

The two ambassadors have affirmed that the signing of the statement comes within the framework of strengthening bilateral relations, achieving the aspirations of their peoples, and expanding horizons of cooperation and friendship in various fields.

This development is significant for both countries and has the potential to impact their economies. Monaco is a small city-state that is heavily reliant on its financial and tourism sectors. Its economy is dominated by the service sector, which accounts for almost 90% of its GDP.

The country’s strategic location on the French Riviera has made it a popular destination for tourists and high-net-worth individuals, and its banking and finance industry is also a major contributor to its economy.

On the other hand, Saudi Arabia is a major oil producer and exporter, with oil accounting for more than 90% of its exports and about 42% of its GDP. The country has been diversifying its economy away from oil in recent years, with a focus on developing other sectors such as tourism and technology.

Economic cooperation

The establishment of diplomatic relations with Monaco could potentially provide Saudi Arabia with new opportunities for investment and economic cooperation in these areas.

Moreover, the two countries could also collaborate in the field of renewable energy. Saudi Arabia has set ambitious targets for developing its renewable energy sector, and Monaco has already made significant progress in this area. The country has invested heavily in solar and wind power, and has also set a target to reduce its greenhouse gas emissions by 50% by 2030.

Overall, the establishment of diplomatic relations between Saudi Arabia and Monaco has the potential to create new opportunities for economic cooperation and investment between the two countries. It could also provide a boost for Monaco’s tourism and financial sectors, and help Saudi Arabia in its efforts to diversify its economy away from oil.