Networking
Delegation Trip

March: business delegation on Smart Cities and Logistics.

19/03/2023

From March 5th to March 9th, 2023, the German-Saudi Arabian Liaison Office for Economic Affairs (GESALO) together with MENA Business GmbH and with the support of the Logistics Alliance Germany (LAG) organized a business initialization trip to Saudi Arabia on behalf of the Federal Ministry for Economic Affairs and Climate Action.

The business initialization trip offered German companies the opportunity to get to know the current developments in information and communication technologies in urban development on site. During individual B2B meetings as well as visits to Saudi market-leading companies and institutions in Riyadh, NEOM and Jeddah, participants established contacts and identify opportunities for collaboration with potential partners. Moreover, the German companies had the opportunity to present their products, technologies and services to a Saudi audience of experts at a local business symposium event. The participating companies got a professional insight into current dynamics of the Saudi market as well as into current reference projects of this sector. The aim of the business delegation trip was to promote German-Saudi economic cooperation in these areas.


Last Week

Projects such as THE LINE in NEOM truly point out the astonishing vision for a smart future of urban development in KSA. German companies have recognized potential Saudi Arabia is offering in the field of Smart-Cites.

#GESALO facilitated the delegation on “Innovative Smart City Solutions with a Focus on Transport Infrastructure and Logistics” as part of the Federal Ministry for Economics and Climate Action Foreign Market Entry Programme.

During several fruitful meetings, in Riyadh and Jeddah, seven German companies met relevant ministries, authorities, and local companies leading to potential cooperation.

Remarkably impressive was our symposium on March 6th where German companies presented their state-of-the-art, smart-city technology, and logistic solutions. Over 80 participants from the Saudi business community, institutions, and ministries engaged in a discussion with the German company representatives.

We would like to thank BMWK and our cooperation partner Martina Ziebell from MENA Business as well as the Logistics Alliance Germany e.V. for their support.

Diehl Aviation Gilching GmbH
EFAFLEX Tor- und Sicherheitssysteme GmbH & Co. KG
FOGTEC® Fire Protection Brandschutz GmbH
Schunk Transit Systems GmbH
TÜV Rheinland Group
Aitonomi AG (TeleRetail)
ZF Mobility Solutions GmbH


Smart Cities in Saudi Arabia

Saudi Arabia is reinventing its cities. In addition to major projects such as NEOM, King Abdullah Economic City, Yanbu and Jubail City, various development projects are being initiated.

The Ministry of Municipal, Rural Affairs and Housing (MOMRA), which is responsible for urban development, adopted a smart city strategy in February 2022. According to Minister Majid bin Abdullah Al-Hogail, the strategy aims at launching up to 50 smart city initiatives in nine sectors by 2030. Through the use of artificial intelligence (AI) and Internet of Things (IoT) applications, the municipal and housing sectors will become more digital. At the Global AI Summit organized in Riyadh in September 2022, MOMRA articulated the goal of transforming up to 200 cities into smart cities in the long term. Transportation infrastructure and logistics are key aspects in the planning. As a mega urban development project, NEOM is the prestige project in Saudi Arabia. Located at the Red Sea, the project is intended to be more than just a tourist resort. A technology park is also being planned.

 

Market opportunities for German companies

Neom is part of Vision 2030 and is intended to inaugurate an era of replacement of fossil fuels. The megaproject will cover a total area of 26,500 km² and extend 460 km along the Red Sea coast. Modified project details were presented in the summer of 2022. Originally, a 170-kilometer settlement zone was planned. The current planning status is the construction of a 9-million[1]inhabitant city ("The Line"), which is to consist of a single 170-km-long, 500-m-high and 200-m-wide interconnected building complex. An interior space is planned between two parallel building sections with mirrored exteriors. The Line is to be a car-free city, powered solely by renewable energy.

Major projects are also being built in the capital Riyadh. All phases of the Qiddiya Entertainment City are to be completed by 2035. To date, the planned subprojects are worth around USD 9 billion. Contracts for infrastructure construction worth USD 0.3 billion have been signed. Qiddiya's main attraction will be an amusement park (Six Flags). However, as an "entertainment city," Qiddiya is also intended to be a venue for sports and art events. The project will cover 334 km², of which one third will be buildings and two thirds will be a conservation area.

The King Abdullah Economic City (KAEC) is another Vision 2030 gigaproject. In addition to new industrial plants and extensive housing estates, large buildings and high skyscrapers are planned to shape the image of Saudi[1]Arabia and the entire Middle East. The project is expected to cost about 110 billion Saudi riyals (about 22 billion euros). The city will be connected by an international seaport, an airport and rail lines to the country's centers; highway routes already exist in all directions, and further expansion is planned.

Saudi Vision 2030 is a strategic framework to reduce Saudi Arabia's dependence on oil, diversify the economy, and develop public services such as health, education, infrastructure, and t