"I am perfectly aware that in Yemen the situation is disastrous," Parly told students at the prestigious Sciences Po university in Paris. ""I'm as horrified as you."
The UN has described the situation as the worst humanitarian crisis in the world, with more than 10,000 killed - most of them civilians - and eight million people on the brink of famine.
But Parly insisted that "To the best of my knowledge, no weapons sold by France are being used against the civilian population."
Hard to monitor arms exports
Saudi Arabia uses French weapons "to defend itself", she said, pointing out that missiles were regularly fired from Yemen towards the kingdom.
But she did concede that it is difficult to monitor the use of arms sold to another country.
"You can't foresee all the dangers so it is important to have a close and healthy dialogue with countries that use these armaments," she said, adding that that is the case with the UAE, where France has an air base and an artillery training base.
"We have the capacity to talk to these countries and we won't fail to do so," she assured her audience.