Riyadh: French President Nicolas Sarkozy on Monday hailed progress in improving freedom of speech and women's rights in Saudi Arabia, though he said movement on both issues has been slow.

He also offered to help Saudi Arabia develop nuclear energy for peaceful purposes at the start of a Gulf tour he hopes will secure billions of dollars in contracts for French firms, French officials said.

Sarkozy was speaking before Saudi Arabia's Consultative Council, an all-male council that proposes laws and follows a fundamentalist interpretation of Islam.

"On the condition of women and freedom of expression, Saudi Arabia has also taken action - slowly, it's true, but who would not be impressed by the changes that have taken place over the past few years?"

Sarkozy asked the Consultative Council. Six women were appointed to the Council's advisory board in June 2006. They are, however, not considered members of the group.

Technology offer

Sarkozy said the appointments "represent a change, the importance of which I am well aware of and which I would like to hail."

The French president also expressed his country's keenness to develop the Saudi oil industry.

Speaking during a meeting with Saudi and French businessmen in Riyadh yesterday, Sarkozy reiterated Saudi Arabia's key role in maintaining peace in the region, adding that the world is looking to Saudi Arabia with respect.

He urged Saudi businessmen to invest in his country.

"Oil producing countries like Saudi Arabia are in need of long-term investments and France welcomed these investments," he said.

He added that France is reforming its investment regulations, which will create new partnerships with foreign investors. He revealed that 47 per cent of properties in France belong to foreign investors. Sarkozy expressed concern over the rising oil prices and called on Saudi Arabia to use its influence in Opec to curb prices.

The French president invited Saudis to benefit from France's oil technologies to upgrade and develop their oil fields. He said that his country has allocated 30 per cent of tax revenues for developing scientific and technological researches.

- With inputs from agencies