- JEDDAH: Saudi-German trade is strong and thriving.
- “What we need now more than ever is to build a long-term strategic partnership that guarantees a positive economic impact as well as sustainable social alliances,” Jeddah Chamber of Commerce and Industry's board member Fatin Bundagji said at a meeting with a high ranking German trade mission headed by Stefan Mappus, minister president of the state of Baden-Wurttemberg, on Monday.
Saudi is the biggest economy in the Arabian Peninsula and has the largest young population in the region. “Within the next 20 years, our youth will be sitting in our place leading our countries to great heights. So, our focus today should be on building our human capital and its expertise, and cementing the cornerstone of a strategic partnership that guarantees the equitable continuity of our bilateral trade,” she said while welcoming Mappus and his delegation.
This is the fourth visit by a trade delegation from Baden-Wurttemberg to Saudi Arabia in the past two and a half years. The delegation included Professor Wolfgang Reinhart, minister for federal, European and international affairs, and Tanja Goenner, minister of the environment, nature conservation and transport. Baden-Wurttemberg is among the most prosperous states in Germany and one of the wealthiest regions in Europe with a traditionally low unemployment rate. Interestingly, the state, which is heavily industrialized and dependent on skilled manpower, is dominated by small and medium enterprises (SMEs) rather than large corporations.
In 2009, there was a 12 percent increase in trade between Germany and Saudi Arabia over the previous year. “Literally, this translates into $9.6 billion, but unfortunately this increase of revenue was more in favor of Germany than Saudi Arabia,” Bundagji said. “Instead of continuing along the path of one-way trade relationship, we need to shift our focus toward a better future for all.”
She reminded that the transfer of knowledge, expertise and know-how through exchange programs in all sectors such as vocational training, SME development, industry, innovation, R&D, banking, IT and urban development are the basis upon which sustainable partnerships are built, knowledge is shared, technical expertise is transferred, know-how is delivered and, more importantly, genuine alliances are established.
No other German state is so focused on Saudi Arabia as Baden-Wurttemberg. Asked by Arab News why this was the case, Mappus said: “ Baden Wurttemberg is the seventh largest economy in the European Union. It is a major exporter.” Last year, Baden-Wurttemberg's exports to Saudi Arabia amounted to 987 million euros and its imports from the Kingdom totaled only 62 million euros. Thus, there is a yawning bilateral trade gap.
Mappus pointed to manufacturing in the state, especially vehicles. A third of the cars manufactured in Germany are made there. They include Mercedes-Benz, Porsche and Audi.
Asked whether the state would open a representative office in the Kingdom to pursue its interest, the minister said: “If our business (in the Kingdom) continues to grow, we could.”
Replying to a questioner, Mappus said there was tremendous scope in his state for companies and establishments to provide training and internship to Saudi graduates.

