“If Germany today is Saudi Arabia’s third largest trading partner, then it speaks volumes about our relations, not only on commercial front, rather in all fields” said Marko Ackermann, deputy delegate of the Saudi Arabian Liaison Office for Economic Affairs (GESALO), in Riyadh.
“As for 2009, German companies’ exports exceeded 4.8 billion euros,” said Ackermann, while giving an overview of the economic relations between Riyadh and Berlin. On the other hand, Saudi exports to Germany totaled 1.5 billion euros in 2008. He said that there were still great potential to tap in all sectors especially in the fields of economy and trade. Saudi Arabia is “the biggest economy in the Middle East, and therefore, a lot of room exist for further strengthening ties between the two nations”, he added.
Asked about the role of GESALO, which was founded in Riyadh way back in 1978 with an aim to promote commercial relations, Ackermann said that GESALO supports and further develops business relations between Germany and the Kingdom on the one hand and between Germany and Yemen on the other. GESALO is the official representative of German Industry and Commerce in these countries and part of the German Chamber of Industry and Commerce (IHK). GESALO, he said, also represents the Association of German Chambers of Industry and Commerce (Deutscher Industrie- und Handelskammertag, DIHK), and 80 other bilateral German Chambers of Industry and Commerce (AHK) around the world. GESALO’s representation in Saudi Arabia through the years has been an overwhelming success, as this office has extended all possible help and logistics for businessmen, for general people and for companies, which evinced keen interest in doing business.
Hence, the office was very happy to celebrate the 30-year anniversary of GESALO in 2009, said GESALO’s deputy chief. He also pointed out that GESALO would receive a new delegate within the next few days since Gerd M. Doepner, who headed GESALO for the last five years, has retired. He said that Doepner’s contributions in helping the two countries to consolidate relations should be remembered on this occasion.
“Due to his deep understanding of the country and the whole region, GESALO under the leadership of Doepner, strove successfully to build on what was achieved earlier,” said Ackermann. One of GESALO’s major aims is to familiarize German companies with the impressive business opportunities currently available in the Kingdom. For that reason, GESALO is implementing several plans in 2010 in order to introduce and disseminate information about Saudi Arabia among German companies, which have no prior experience in the Saudi market.
He pointed out that GESALO had been credited with organizing important German business delegations to the Kingdom in the fields of health care, security, renewable energy, engineering and construction. This is in addition to a large number of official delegations from different countries including Saudi Arabia, which visited Germany. In the first quarter of 2010, GESALO hosted delegations for health care, infrastructure and energy efficiency.
Referring to the business environment in the Kingdom, he said: “We are convinced that German companies’ representatives will be attracted by the opportunities in the biggest economy of the region.” With several projects and plans to promote trade and investment relations, GESALO is focusing now on the industry sector, where German technology and engineering can be used. Besides delegations to the Kingdom, GESALO is also engaged in bringing Saudi companies and representatives to Germany and provide them with business contacts and first-hand information.
Another very important mission of GESALO is to promote German trade fairs among Saudi companies and businessmen, who have been looking for truly international contacts. Many leading trade fairs take place in Germany. “We assist Saudi businessmen in targeting the right trade fairs, getting tickets and visas as well as in arranging convenient travel plans for the visitors,” said Ackermann.
From January to September 2009, some of the major international trade fairs in Germany include: CeBIT (the world’s No. 1 exhibition for IT and Telecommunication), Domotex (international exhibition for floor coverings), Hannover Messe (the international trade fair for industrial solutions in Hannover), BAUMA (international exhibition for construction machinery, building material machines and construction equipment in Munich), IFAT (the leading international trade fair for water, sewage, refuse and recycling in Munich), and Photokina (world of imaging in Cologne). Trade fairs like BAUMA, IFAT and Domotex are historically highly frequented by Saudi visitors and exhibitors.
GESALO also promotes Saudi trade fairs. The most popular exhibition in which German companies traditionally participate as exhibitors and visitors is the Saudi Build exhibition, which will be inaugurated this week in Riyadh. A huge number of German exhibitors will participate in this Riyadh fair. Furthermore, GESALO is also active in the field of knowledge and technology transfer. In this regard, he cited the example of a one-day seminar GESALO successfully conducted on the topic of renewable energy this year in Riyadh. This event served as a platform for the scientific and business exchange between experts from Germany and Saudi Arabia.
GESALO, he said, was also very optimistic about the future of Saudi-German commercial ties. For a long time, German companies have been active in the Kingdom and have been engaged in many fields. “Our aim is to promote and take care of the interests of German companies in the Kingdom, while convincing them to ensure their presence in the Saudi market,” said the GESALO’s deputy chief, adding that GESALO conveys a realistic picture of the Kingdom among German companies.
Many people or even businessmen in the two countries are ignorant about the business environment and potential of the two countries. “Hence, there is an urgent need to disseminate information about Saudi Arabia in Germany and about Germany in the Kingdom,” said Ackermann, adding that the manufacturing industry has established itself as the new powerhouse driving growth. Germany, he said, has succeeded in developing efficient industrial sector in various high-tech zones including Dresden, Jena, Leipzig, Leuna and Berlin.
