Summary:

On 16 November 2024, the Minister of Economy and Planning, Samir Abdelhafidh, and the Saudi Minister of Investment Khalid Al-Falih signed a Memorandum of Understanding (MoU) outlining cooperation intended to encourage direct investment by Saudi Arabian firms and funds in Tunisia. 

The MoU includes enhancing coordination between Tunisia and Saudi Arabia and exchanging data related to the development of business and the investment climate. The MoU also outlines plans to increase the organization of events and visits between private companies from the two countries.  

The agreement followed a meeting between the Al-Falih and President Kais Saied. The Saudi Minister expressed his satisfaction with Tunisia’s stability and his country’s support for Tunisia, especially in the sectors of renewable energies, green hydrogen, tourism, logistics and real estate.  

The meeting between Al-Falih and Saied came after the Crown Prince and Prime Minister of Saudi Arabia, Mohammed Bin Salman, held a call with President Kais Saied a week prior during which they discussed strengthening bilateral relations and exploring new areas of cooperation. 

The two countries previously signed seven agreements across industry, tourism, climate, scientific research, water resources and employment sectors in December 2023. Earlier this year, Saudi Arabia’s Islamic Trade Finance Corporation extended a 1.2 billion dollar loan to Tunisia to help cover imports by state-owned enterprises. 

Outlook: 

The recent agreements and discussions between Tunisian and Saudi officials point to the ongoing intent of both countries to keep the relationship on good terms. Saudi Arabia continues to show signs of support to the Tunisian regime by providing financial aid in addition to direct investment in new projects in Tunisia.  

This financial and economic support undergirds the political support offered by the Saudi Minister, which was expressed by affirming Tunisia’s stability following President Saied’s re-election. This will help solidify Tunisia’s position in the region as a more attractive target for investments and tourists.  

Saudi interest in Tunisia is a reflection of its agenda to assert itself as a regional leader in the Arab and Islamic world, including the Maghreb where opposing Gulf countries are also maintaining influence, especially Qatar and Iran. 

While this support is helping Tunisia’s reach its economic goals, it may limit the scope of its foreign policy, potentially obliging Tunisia to align implicitly with the Saudi agenda on the issue of normalization with Israel that will likely be reintroduced during the second Trump Administration in the United States.  

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