Made in Germany

The size and strength of Germany’s industrial and manufacturing industries and its competitiveness as an exporter means it is logical that the country should target such a fast-growing region as the GCC.

For many years Europe’s largest economy has found the six countries a fertile market for business across a number of sectors, and this has grown in line with the overall drive in the region towards economic diversification.

The country was the largest trade partner with GCC in 2009, with exports valued at EUR13.5bn, though this fell from EUR17.288bin the previous year, according to Eurostat.

It is also the biggest trade partner with the UAE, with EUR7.58bn flowing into the country in 2010, according to statistics from AHK. Further, Dr Eckart Woertz at the Gulf Research Centre estimated in 2008 that the Germany accounted for around 6% of the UAE’s imports.

Story continues below

Advertisement

FEATURED COMMENT Please click here to comment on this article

In the construction industry, the business ties are extensive. Exhibitions such as The Big 5 in Dubai and Project Qatar in Doha showcase a burgeoning section of German companies as a permanent fixture, all under the ubiquitous ‘made in Germany’ banner.

Companies such as BASF have developed extensive production facilities in the region for their construction- and climate-specific products.

German consultants are involved with, or are bidding for, some of the biggest infrastructure projects in the Gulf.

Last month, the Abu Dhabi Department for Economic Development and the German Federal Ministry of Transport, Building and Urban Development signed a letter of intent at the Hannover Messe to co-operate on development, promotion and operation of Khalifa Industrial Zone Abu Dhabi (Kizad) and Khalifa Port.

HE Mohammed Omar Abdullah, Abu Dhabi Department of Economic Development (DED) Undersecretary, commented that “it is the formation of partnerships like this that highlight the development in the relationship between the UAE and Germany.”

Khaled Salmeen Al Kawari, executive vice-president of Kizad, added: “We are very keen on growing the trade relations with Germany and the UAE.”

German Railway Consult is another example of the focus that Germany has on the region.

The company is a consortium of four German engineering firms specially formed to bid to consult Qatar Railway Development Company on the tendering for the separate packages for the construction of the cross-country rail network.

Trade bodies that help forge ties between German and Arab companies are also seeing an increase in their workload. Ghorfa Arab-German Chamber of Commerce and Industry, which promotes the mutual interests of German companies and Arab countries and companies, is now into its 35th year, and is seeing a greater number of requests for information.

“There are 22 Arab countries represented with an equal number of Germans represented on the board,” says Kariem El-Ali, a consultant for the GCC nations and Yemen for the body. “So the key is supporting the member countries and take part in trade shows and organising big conferences.
There is a big one in June and every year a different Arab country is host. This is the 14th time that it has met.”

El-Ali was speaking from The Big 5 Conference in Jeddah, the first time that the annual show took place outside Dubai – a reflection of the great interest in the Saudi market and an opportunity for companies to learn more about German suppliers and services.

“Most of the questions [from German businessmen] relate to how you would found a company. Normally they are trying to enter the market and need an agent,” he said.

“Most of the companies here already have an agent though some do not. The second step would then be to attend exhibitions. Another step would perhaps be to send a delegation from the company from Germany to the GCC.”