Sarkozy Launches Gulf States Tour

World | January 14, 2008, Monday // 00:00

French President Nicolas Sarkozy started Sunday a three-day Middle Eastern visit to boost energy and defense contracts and discuss regional political matters, Bloomberg reported.

Sarkozy's trip began in Saudi Arabia and will continue in Qatar and the United Arab Emirates.

France's head of state and Saudi King Abdullah bin Abdelaziz al-Saud signed an oil and gas cooperation agreement and an education accord.

Sarkozy said France could do "much better" at gaining more market share in the region where it lags behind countries including the US, China and Germany.

"The interest of this visit is political, economic, cultural and military," Sarkozy told reporters after signing the agreements with King Abdullah. He will deliver a speech later in the day at the kingdom's Consultative Council and address French and local businessmen.

France is due to announce a series of agreements and contracts by the end of the official visit on January 15.

Gaz de France SA will sign an agreement with Qatar Petroleum, chief executive officer Jean-Francois Cirelli said. Areva SA, the world's biggest producer of nuclear reactors, may sign an electricity engineering contract in Qatar for an estimated EUR 500 M.

Total SA, Suez SA and Areva put together a proposal to Abu Dhabi, one of the United Arab Emirates, to be part of a project for a civil nuclear cooperation agreement, to be signed on January 15. The offer by the three companies may include Areva's main product - two European pressurized reactors.

The French president has also urged Saudi Arabia to consider creating a civil nuclear sector in the country.

The French and Saudi leaders talked about defense contracts for French companies as well. Among the bids they discussed was one for a security contract set at EUR 10 B euros to monitor Saudi Arabia's 6,500-kilometer border.

Sarkozy is to meet Monday Crown Prince Sultan bin Abdelaziz al- Saud, the Saudi defense minister.

On the Gulf states visit, Sarkozy also plans to discuss regional issues involving Iran, Iraq, Lebanon, Syria and the Israel-Palestine conflict.

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