RIYADH, 1 March 2005 — German Chancellor Gerhard Schroeder yesterday said his country stood for an independent Palestinian state, peace and security for Israel, stability for Iraq, and no nuclear arms for Iran.
Inaugurating the “75 Years of Saudi-German Relationship Business Forum” at the Riyadh Chamber of Commerce and Industry (RCCI), during which business accords between Saudi Arabia and Germany involving $6 billion were signed, Schroeder said that the European Union will help establish a Palestinian state by donating 250 million euros.
Minister of Planning and National Economy Khaled Al-Gosaibi, and RCCI board Chairman Albdulrahman Al-Jeraisy also addressed the forum.
“When money arrives in Palestine, a quarter of it is always German money. A quarter of the European budget is carried by Germany. We... also want to assist in the economic reconstruction in Palestine, with its people living freely. Maybe there’s probability in doing this together,” he said.
He also expressed his wish for peace and order in Israel. “I clearly say what we want to do. We would like to live in secure frontiers with people free from terrorist attacks. We should succeed in establishing peace and order. Therefore, it’s fair to identify common ground on this policy and implement,” he said.
As far as Iraq is concerned, he said that the entire region is interested in it. “We (Germany) have an interest to be helpful when it comes to establishing security and helping the people of Iraq solve their own problems by themselves,” he said. He also wants to see economic recovery in Iraq.
As for Iran, he said that he does not want it to possess atomic weapons.
Talking about Saudi-German ties, he said that the two countries enjoy close cooperation.
“But I want close cooperation in all levels. That means that Germans don’t only come to Saudi Arabia, but Saudis should also visit Germany,” he said.
He said that both countries can do many things together, like the development of infrastructure in the Kingdom, saying that Germany has a big network of consultants.
He said that Germany has excellent expertise in technical and vocational institutions. They can advise Saudi partners in this field while also helping in training Saudi youths, thus contributing to the solution of unemployment.
Germany has excellent universities with many offering higher education to Saudis in English and German, he added. He invited Saudi students and the government to benefit from the German experience.
Addressing the forum, Al-Gosaibi paid tributes to Arab-German relations. “We should learn from the great German poet and author Wolfgang von Goethe, who was inspired by the Arab-Muslim poet Shamsuldine Muhammad Hafez. Goethe’s 1819 masterpiece ‘East-West’ was a real bridge between the Arab world and Germany. He realized the importance of communication between nations,” he said.
He said that Germany is the third largest investor in Saudi Arabia in terms of value and has executed various projects. German exports to Saudi Arabia in 2003 crossed SR12.4 billion while its imports touched SR1.7 billion.
Al-Gosaibi said that Saudi Arabia has achieved a lot of success in economic reformation.
“Part of our efforts was also focused on ensuring a new investment climate where new consultative and executive authorities were set up for communication and information technology, electricity, water and capital markets, industrial zones, food and pharmaceutical industries,” he said.
He added that Saudi efforts continue to improve business and investment environment and that the Kingdom relies on a lot of feedback it receives from different countries like Germany.
“As in the US, investors in the Kingdom are subject to only 4 procedures of registering property whereas they are subject to 10 procedures in France, 14 in Brazil and 21 in Nigeria.
“Our path is long ahead but we have a clear vision that Saudi economy must be more diversified and prosperous and be led by the private sector and to achieve this vision we need support from friends like Germany,” Al-Gosaibi said.
For his part, Al-Jeraisy said that in the next 15 years, Saudi Arabia will spend about $650 billion on projects servicing citizens and residents of the Kingdom and will open large fields for investments and for which he invited German businessmen to become partners.
German investors, by virtue of the new foreign capital investment law, can own and run 100% business ventures in Saudi Arabia and enjoy all the benefits and incentives of Saudi investors.
“Germany is the third largest trade partner of Saudi Arabia, which is looking forward to participate in the annual Arab-German Economic and Industrial Forum to be held in Berlin,” he said.
It will be attended by about 600 Arab and German businessmen.
“German exports to Saudi Arabia in 2003 crossed SR12.4 billion while its imports touched SR1.7 billion,” he said.
Later, Schroeder and Al-Gosaibi witnessed the signing of a joint venture agreement between the National Petrochemical Industrialization Company (NPIC-Tasnee Petrochemical) represented by Mubarak Al-Khafrah, chairman and CEO and Basell Holding Middle East GmbH represented by Dr. Volcker Trautz, president and CEO. Tasnee Petrochemical is a partnership with leading Saudi petrochemical companies of Sahara, and SPICHEM, both of which are based in Jubail.
The deal is for the development and implementation of a complex that will comprise a cracker for the production of one million tons per year of ethylene and over 200,000 tons per year of propylene, 400,000 tons of HDPE and 400,000 tons of LDPE per year based on advanced technology from Basell.
The total cost of the project is 1.3 billion euros.
The Saudi Industrial Fund is being approached for SR800 million, and the Public Investment Fund and commercial banks for the remaining.
Other major contracts signed included an agreement between Saudi Detecon Al Saudia, a German Saudi joint venture, and Communication and Information Technology Commission (CITC) in the amount of SR5,823 million for the operation and maintenance of spectrum frequency plants and systems in the Kingdom, according to Abdulrahman Al-Fehaid, deputy governor of the CITC.
Schroeder, Al-Gosaibi and Al-Jeraisy witnessed the signing of the deals. Health Minister Dr. Hamad Al-Manae was also present.