A premier German organization — the Delegation of German Industry & Commerce for Saudi Arabia and Yemen (AHK Saudi Arabia) — was founded in 1978 under the name of German-Saudi Arabian Liaison Office for Economic Affairs (GESALO).
Since October 2010, Andreas Hergenroether is the Delegate of German Industry and Commerce for Saudi Arabia and Yemen.
Hergenroether has been exerting all efforts to promote long-term business relations between the Kingdom and Germany.
Ghazanfar Ali Khan of Arab News spoke to the GESALO chief on the occasion of the German national day.
The following are highlights of the interview:
Please give a brief overview of the mandate, the functions and the services being rendered by GESALO office in Riyadh?
The German-Saudi Arabian Liaison Office for Economic Affairs (GESALO) also known as AHK Saudi Arabia was founded in 1978 by a Royal Decree charged to promote bilateral economic relations between Germany and Saudi Arabia.
GESALO is part of the German Chamber Network representing a total of 3.6 million companies in Germany. With 125 AHK-offices around the world, the German Chamber Network (AHK) as the official representative of German Economy abroad and mandated by the German Ministry of Economy and Energy offers its expertise, network and services regarding market access, transfer of technology and know-how and investments. By organizing business delegations, conferences, business to business meetings, road shows, trade fair participation, catalogue shows etc. GESALO supports German and Saudi Arabian companies regarding their particular business projects in both directions.
Which are the major trade fairs to be organized in Germany during the remaining part of 2014 and during 2015? Which are the major German shows in which Saudi Arabia intends to participate or traditionally participates every year of biennially?
The major trade fairs where Saudi Arabian participations/pavilions and business delegations are planned are the following ones: Bazaar Berlin (World’s leading trade fair for handicraft) — Berlin 12 – 16 November 2014 . Domotex (World’s leading trade fair carpeting and flooring) — Hanover 17-20 January 2015. Green Week (World’s leading trade fair for Agriculture) — Berlin Jan. 16– 25, 2015. Fruit Logistica (World’s leading trade fair for fresh fruit and vegetable marketing) Berlin 4–6 February 2015. Hannover Messe (World’s leading trade fair for industry) — Hanover April 13–17 2015. Transport Logistik (World’s leading logistics) Munich 5–8 May 2015.
For many years GESALO has supported the organization of these pavilions and delegation trips from Saudi Arabia to these trade fairs have been organized.
In 2013, for example, the Kingdom of Saudi Arabia was represented at HANNOVER MESSE through a high-profile participation headed by Dr. Tawfiq Al-Rabiah, minister of commerce and industry, with a pavilion covering 1000 square meters, a Saudi Pavilion is planned again for 2015.
Another example is the Saudi Arabian Pavilion on the world’s largest trade fair for Agriculture Green Week.
This year a very high-ranking delegation headed by Fahd bin Abdul Rahman Balghunaim, minister of agriculture, visited the fair. Another example is the participation of the Saudi Ports Authority, Saudi Airlines Cargo Company and Four Winds Saudi Arabia Ltd. at the world’s largest exhibition for logistics, Transport Logistik in Munich.
How do you evaluate GESALO’s achievements in terms of promoting Saudi-German commercial relations? Do you have plans to organize some major commercial events including seminars and symposium this year or early next year.
We evaluate bilateral business relations very positively.
Behind the US and China German Economy has been for several years the third most important supplier of Saudi Arabia.
In recent years the German exports increased by 20 percent yearly to almost 10 billion euros.
We organize yearly about 20 delegation trips from Germany to Saudi Arabia and vice versa plus about 50 conferences and workshops in our two countries.
The most important upcoming event for 2015 from the business perspective will be the official visit of the Sigmar Gabriel, German vice-vhancellor and minister of economy and energy, accompanied by a huge high-ranking business delegation on March 8 in order to chair the Joint Economic Commission from the German side. Furthermore we will receive three high-ranking delegations in Saudi Arabia in January 2015.
First North Rhine Westphalia, Minister of Economics, will head a delegation to Riyadh, Jubail and Bahrain, followed by a delegation trip of the Prime Minister of Lower Saxony to Riyadh and Jeddah and finally the Bavarian State Secretary of Economics and Energy a Delegation will visit to Riyadh and Jubail.
Is there any plan on the part of German companies to take part in Saudi exhibitions this year or next year? Please provide details.
German companies have exhibited at many trade fairs in Saudi Arabia in the past and will continue doing so in the future. Some examples include Saudi Build, Intersolar, Print & Pack, Plastics & Petrochem (PPPP), Transtec, Big 5 Jeddah, Saudi Agriculture, Saudi Health, Decofair and Foodex Saudi. From our side, we are actively promoting fairs in KSA among the German business communities. Visibility of German products on Saudi Arabian trade is a top priority for us.
How do you evaluate relations between Germany and Saudi Arabia on commercial front? Please give detailed answer with special reference to the new developments on bilateral level.
When the office of the German Saudi Arabian Liaison Office for Economic Affairs was established in 1978, just a few leading German companies were involved in business with Saudi Arabia.
Today more than 700 German companies of many different business sectors are established in the Kingdom.
The cooperation ranges from 100 percent German owned branches over German-Saudijoint ventures to simple liaison offices and agency agreements.
The German economy is not only an important trade partner for Saudi Arabia, but equally an important technology and knowhow supplier for the Saudi Arabian businesses.
Huge companies like Linde, Siemens, Mercedes, MAN, BASF, Henkel and lately Evonik set up their own production and assembling entities in Saudi Arabia.
Which are the most important sectors of German economy or business opportunities that could attract interests of Saudi businessmen? What kind of concessions German government offers to Saudi and Gulf investors?
In the past, many sectors in Germany have attracted the interests of Saudi businessmen.
For example, SABIC has been operating a petrochemical production site in Gelsenkirchen for many years. Saudi Arabian businessmen have also been investing in commercial real estate markets in Germany.
In order to assist foreign investment in Germany, the government founded the investment agency Germany Trade and invest (GTAI).
Published by ARABNEWS on 21-10-2014