RIYADH, 16 November 2006 — German Federal Minister of Economics and Technology Michael Glos said here yesterday that four German companies have submitted their proposals to Saudi authorities to win bids on several of the Kingdom’s future railway projects.
“We hope to receive some incentives, especially since Germany is renowned for its expertise in establishing railway lines, cargo lines, and traffic light posts,” he said.
He said the German government was encouraging German investors and German companies to invest in Saudi Arabia.
The minister attended yesterday’s conclusion of the German-Saudi Joint Commission’s 16th session and the Saudi-German Business Dialogue held at the headquarters of the Riyadh Chambers of Commerce and Industry. On Tuesday, he and Saudi Minister of Finance Dr. Ibrahim Al-Assaf co-chaired the 16th session.
“Saudi Arabia is Germany’s most important trade partner in the Arab world,” said the German minister.
He said that during the 15th meeting of bilateral Economic Commission, held in Berlin in July 2004, an agreement was made on additional steps toward strengthening companies’ investment activities and expanding cooperation in the fields of health care, tourism, vocational training, agriculture, and environmental protection.
The two countries signed three agreements.
“The agreements signed today aim at strengthening the cooperation between private sectors in Germany and in Saudi Arabia and find areas of mutual interest for investment,” said Khaled Al-Jaffali, vice president of the Jaffali Group and vice chairman of the Saudi German Business Dialogue (SGBD).
Helene Rang, CEO of the German Near And Middle East Association, the founder of the Saudi-German Business Dialogue, said that German businessmen who came to the Kingdom as part of the delegation were from health sectors, energy sector, water sector, IT sector, construction sector, and other business sectors.
“We are looking for partnerships to invest in Saudi Arabia,” she said.
She also said she hoped that German companies would take part in investment opportunities in several of the Kingdom’s economic cities. “We discussed regulations, investment laws, the law in general, and even the different cultures here in the Kingdom as well as the opportunity for German businesswomen to invest here,” she said.
CEO of the Water and Electricity Company Omar Al-Ghamdi briefed many German businessmen about the investment opportunities in two of the main water desalination plants in the Kingdom: Shuaiba and Shuqaiq.
Some of the benefits foreign companies would receive, he pointed out, were equity financing requirement freedom and the freedom to propose individual debt to equity ratios.
According to the German-Saudi Joint Commission, trade balance between Germany and Saudi Arabia stood at 1,386 million euros by the end of June this year. Germany’s main imports from Saudi Arabia include raw materials (500.6 million euros), of that crude oil represents 500.1 million euros.
As for Germany’s exports to Saudi Arabia, machinery topped the list at 518.6 million euros followed by motor vehicles 460.9 million euros.
