RIYADH: Germany and Saudi Arabia are enjoying robust and dynamic trade, with the volume increasing by 40 percent to $12 billion during the last five years.

“For the past seven months of 2015 alone, the trade volume has increased by 11 percent,” said Andreas Hergenroether, delegate for German industry and commerce for Saudi Arabia, Bahrain and Yemen.

Hergenroether, who is a lawyer, sees huge potential for German and investments in the region as he ends this month his tour of duty after five years of being in Saudi Arabia.

He headed the Riyadh-based German-Saudi Arabian Liaison Office (GESALO) which is officially charged with representing the interests of the German economy in the Kingdom, Bahrain and Yemen.

GESALO also provides services to companies from Germany and Saudi Arabia or partner-countries and organizes delegations, provides legal information, looks for business partners, among others.

Talking about the bilateral trade, Hergenroether said: “We evaluate the relations very positively. We also have also created a number of direct investments in this country by German companies.”

There are about 700 companies operating with local partners and doing business in Saudi Arabia without being present directly.

“Until now, Saudi Arabia and the UAE are the most important markets for us in the Middle East and North Africa (MENA) region,” said Hergenroether.

Those countries, he said, “tie in 50 percent of the bilateral trade in the MENA region from Morocco to Iran, with Saudi Arabia having about 25 percent market share in the German economy.”

While Germany and Saudi Arabia are enjoying a robust exchange of trade, he said that Saudi exports to Germany suffered a downturn during the first six months of the year due to low oil prices.

Saudi exports to Germany include hydro-carbon oil and petrochemical products oil prices have a direct impact on these items, he said.

“German exports to the Kingdom are not affected. On the contrary, as already mentioned above, our exports are on the uptrend,” he said.

He added: “This year, we are quite sure that German exports will be worth 12 billion euros — an amount that has not yet been exceeded in the past.”

He said that German investments in Saudi Arabia could be in the vicinity of $1 billion in the construction sector.

There are also big German players such as DHL and Siemens in the local market, he pointed out.

Hergenroether cited Siemens’ investment in Dammam in the Eastern Province, which provides many employment opportunities to both local cadres and expatriates.

He also highlighted the role of German firms Detecon and Evonic operating in the Saudi market. Evonic is the first company to invest in specialized chemicals.

He also referred to a joint venture firm in Hail which produces sleepers and mattresses for railways with German capital infusion.

“The joint venture is successful, to say the least, and plans to expand and ramp up production are in the pipeline,” Hergenroether said.

As far as trade fairs are concerned, he said that “we are currently discussing with partners to have a Saudi pavilion in one of the major events such as HONOFA Industrial Fair, a key event in Europe.

It is the largest industrial fair in the world with 500,000 square meters of exhibition space and the US will be the partner-country, he said. President Barack Obama is supposed to be there, he added.

Russian President Vladimir Putin was there three years ago. Indian Prime Minister Narendra Modi was also there, he said.

It is the best event when it comes to industrial innovation, Hergenroether said. Saudi firms, which have exhibited there, include the Al-Fanater Group, occupying 300 square meters in promoting its products.

Talks are also being held with Saudi organizations such as the Saudi Arabian General Investment Authority (SAGIA) to encourage their participation and to have a pavilion at the trade fair.

Another event is the “Green Week” which is the world’s largest social forum on food and agriculture since 1926.

This event showcases products from agriculture and forestry industry.

“It is a well-established show and we are holding talks with the Saudi Ministry of Agriculture to showcase high-end local products,” he said.

Then Saudi Agriculture Minister Fahd Abdulrahman Balghunaim visited the event two years ago. Saudi dates were promoted at the show.