UAE and Gulf Partners Will Supply 10% of France’s Diesel as Macron Tours the Region
The reported arrangement, channelled through TotalEnergies, would cover about 10% of France's diesel consumption over the coming weeks, though governments have yet to confirm the details.
ABU DHABI — The United Arab Emirates, Saudi Arabia and Bahrain have agreed to sell France the equivalent of about 10% of its diesel consumption over the coming weeks, sources in Paris said, as President Emmanuel Macron toured the Gulf seeking energy supplies and support for reopening the Strait of Hormuz.
The sales will be channeled through TotalEnergies, whose chief executive accompanied Mr. Macron, according to The National, which reported that the arrangement is intended to ease French energy prices and that the president secured much of it during the trip.
The reversal is the story. Europe's second-largest economy arrived in the Gulf this week not as an investor or arms supplier but as a customer for fuel. It came three weeks after President Sheikh Mohamed bin Zayed Al Nahyan pledged €40 billion of investment to Germany during a state visit to Berlin.
Mr. Macron's tour, from Oct. 19 to 21, covers Kuwait, the UAE, Bahrain and Qatar. Its stated aims are additional oil and diesel supplies, closer economic and defense ties, and support for restoring freedom of navigation through Hormuz, where traffic has been throttled since the war with Iran began in February.
The Abu Dhabi deals
Sheikh Mohamed received Mr. Macron on Monday. On Tuesday, Sheikh Khaled bin Mohamed bin Zayed, the crown prince of Abu Dhabi, and Mr. Macron attended a UAE–France business dialogue at Qasr Al Watan, where Emirati and French companies signed memorandums and contracts covering energy, artificial intelligence and advanced technology.
Three of the agreements were with French AI start-up AMI Labs, signed separately with the Mohamed bin Zayed University of Artificial Intelligence, G42 and Analog, covering AI research, cloud computing and robotics. The dialogue also highlighted Campus AI, a project led by Abu Dhabi's MGX with French and international partners to build computing infrastructure in France.
Sheikh Khaled said shifts in the global economy underscored the importance of cooperation on secure, reliable energy supplies and resilient supply chains.
The two governments also moved forward on defense. Mr. Macron visited an industrial site of Edge Group, the Emirati defense conglomerate, and The National reported a deal concerning the Rafale F5, the latest variant of the French fighter jet. The UAE ordered 80 Rafales in 2021.
Values for the agreements signed on Tuesday were not disclosed.
What is not yet clear
The diesel arrangement rests on unnamed sources in Paris. Neither the Emirati, Saudi nor Bahraini government has publicly confirmed volumes, prices or duration, and it is not clear how the roughly 10% is divided among the three suppliers.
The scope of the Rafale F5 agreement — whether it is a new order, an upgrade of existing aircraft or a framework — has not been established.
What to watch
Whether the Gulf governments confirm the diesel deal. An Emirati or Saudi statement with volumes would turn a sourced report into a measurable commitment.
What Qatar adds. Doha is the tour's final stop and a major gas supplier. A liquefied natural gas announcement would extend the arrangement from diesel to power generation.
What the Rafale F5 deal is. A new order would be one of the largest defense transactions of the year. An upgrade program would be a fraction of that.
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