Franco-Gulf investment holds firm despite Iran war, French official says
French investors are reallocating capital toward strategic sectors such as artificial intelligence and technology rather than pulling out of the region altogether.
While the Iran war has delayed some French investment decisions in the Gulf, companies are continuing to pursue long-term opportunities in the region in strategic sectors, such as artificial intelligence and technology, according to Axel Baroux, France’s trade and investment commissioner for the UAE and Middle East.
“We're seeing the geopolitical tension slow certain decisions in the short term, but we also see a shift to a more structured, long-term and resilience-driven investment strategy across the region,” Baroux said in an interview with Al-Monitor.
He explained that the war, which had spilled over into attacks on Gulf states, has created short-term uncertainty across business activity, investor sentiment, capital flows and supply chains. But Baroux argued that Gulf economies have shown an ability to weather external shocks.
“The disruption will likely be temporary, while underlying economic fundamentals and long-term strategy remain intact,” Baroux said.
