RIYADH, 3 October 2006 — The German Saudi Arabian Liaison Office for Economic Affairs (GESALO) was founded in 1978 by the German Chamber of Industry and Commerce as a Delegation of German Industry and Commerce in Saudi Arabia.

GESALO is part of the worldwide net of the German Chambers of Industry and Commerce (IHK), the Association of German Chambers of Industry and Commerce and the bilateral German Chambers of Industry and Commerce (AHK).

Its mission is to support and to increase the bilateral economic relations between Germany and the Kingdom of Saudi Arabia. The GESALO with its office in Riyadh is ready to serve everyone with all information concerning Saudi Arabia, Kuwait, Bahrain and Yemen. M. Ghazanfar Ali Khan interviewed the GESALO chief Germd M. Doepner. Excerpts of the interview below:

Q. What are the new plans and projects being undertaken by GESALO to boost Saudi-German commercial ties? Please explain in detail.

A. GESALO is planning about 10 new projects for the next 12 months in order to boost German interest in business opportunities in the Kingdom. These projects focus on introducing German companies to the Saudi market that have no experience in the Kingdom yet. We will organize German delegations to the Kingdom in the fields of water, electricity, infrastructure, security, health care, IT, and others. We will arrange visits in the respective ministries, coordinate matchmaking events and enrich the business delegation by on-site visits. Based on this three- to four-day experience in the Kingdom we are convinced that German company representatives will be attracted by the vast opportunities in the biggest economy of the region while, at the same time, getting a personal impression of Saudi Arabia’s lifestyle and customs. Additionally, GESALO will organize road shows with Saudi partners in Germany.

Q. Which are the major trade fairs to be held in Germany this year and early next year? Which are the fairs in which Saudi businessmen will have their participation?

A. In 2006, some of the major international trade fairs taking place in Germany were CeBIT (the world’s No. 1 exhibition for IT and Telecommunication), Hannover Messe (the international trade fair for industrial solutions in Hannover), IBA, Security, and Photokina. Also in 2007 there are many international exhibitions to be held in Germany. The most important ones for Saudi Arabia are Domotex (international exhibition for floor coverings), CeBIT, Hannover Messe, ISM (the international trade fair for sweets and biscuits), Anuga (the international trade fair for the food industry in Cologne), as well as Bau and Bauma (the international exhibitions for building materials and construction machinery in Munich). At Domotex 2007 we expect around a dozen Saudi companies to participate as exhibitors, for CeBIT 2007 around 20 Saudi exhibitors. Anuga and ISM historically also have a number of exhibitors from Saudi Arabia. Besides exhibiting, we expect a huge number of Saudis businessmen visiting all above mentioned exhibitions.

Q. Which are the Saudi trade exhibitions in which German companies will participate this year and early next year?

A. The most popular exhibition in which German companies traditionally participate as exhibitors is the Saudi Build exhibition. We expect around a dozen German companies introducing themselves in the German Pavilion this December.

Q. Is there any German delegation coming to visit Saudi Arabia in the near future? If yes, which are the areas/sectors they will represent? Which are the areas of priority for GESALO in terms of fostering commercial relations between the two countries?

A. The next delegation arriving in the Kingdom will consist of a dozen German companies active in the water sector. The visit is scheduled for Nov. 10— 13. It will bring the delegation to Riyadh and Jeddah. With projects like this GESALO is focusing on the sectors that were earmarked for substantial investment in the years to come and where German technology and engineering offer leading edge solutions and services. Besides delegations to the Kingdom GESALO is also engaging in bringing Saudi companies to Germany and provide them with business contacts and first hand information. A project of this kind is scheduled for early 2007 in the field of energy.

Q. A major German-Arab water conference was organized by GESALO recently? What was the outcome of the conference? Is there any plan to organize a similar conference or events in Saudi Arabia in near future?

A. In April 2006 GESLAO successfully conducted the German Arab Water Conference in Hannover, Germany, for the second time. This year, as well as last year, the Kingdom was officially represented by the Ministry of Electricity and Water. The conference serves as a platform for the scientific exchange between experts from Arab countries and Germany and achieved a great level of satisfaction with the participants. For any future events in this field we might also consider the Kingdom as venue.

Q. How do you see the prospect of Saudi-German commercial relations in days to come, keeping in view the strong economic indicators?

A. We are very optimistic about the future of Saudi-German commercial ties. For a long time, German companies have been active in the Kingdom and engaged in many fields of cooperation with Saudi businesses. Against the background of the latest oil boom we are working on a further expansion of business relations between the two countries. Our aim is to boost the interest of German companies in the Saudi Arabia and convince them that the Kingdom is a very attractive market.

Q. What are the major problems faced by the German companies, which, in your opinion, are hampering growth of trade and investment relations between the two countries?

A. There are no major problems hampering commercial relations as WTO rules are being implemented in Saudi Arabia. However, in some cases German companies encounter visa, licensing or customs difficulties. In most cases our office can assist and resolve these. Yet, this should not mean that there is no room for improvement. For example, whenever we meet German companies in Germany we do our best to convey a realistic picture of the Kingdom. People simply do not get enough information about the true life in Saudi Arabia. We think that the Kingdom deserves a lot more interest and attention. The selective opening of the tourism sector and an exchange of journalists would be a step in the right direction.

Q. Please spell out the mandate of GESALO for the four countries to which it is accredited? What are the functions of GESALO in the Kingdom as a non-profit German governmental organization?

A. Our mission is to support and to increase the bilateral economic relations between Germany and Kingdom of Saudi Arabia, Kuwait, Bahrain and Yemen. GESALO was founded in 1978 by the Association of German Chambers of Industry and Commerce as the Delegation of German Industry and Commerce in Riyadh. GESALO is part of the worldwide network of German Chambers of Industry and Commerce abroad. GESALO’s mandate covers the Kingdom of Saudi Arabia, Kuwait, Bahrain and Yemen.