German economic relations with Saudi Arabia

0
277

After the violent death of journalist Jamal Khashoggi the Saudi Arabian Consulate in Istanbul, the pressure on German companies, the UK business is growing.

An Overview of the economic relations between Germany and Saudi Arabia:

Economic power

– Saudi Arabia: thanks to its rich Deposits of petroleum and natural gas, it has been the 32 million inhabitants of the country to wealth. The gross domestic product was 2017 at the equivalent of around 600 billion euros. Due to the declining price of Oil, the country had the least problems. Thus, the economic performance shrank in the past year to 0.7 percent. In addition, youth unemployment is nearly 35 percent is quite high.

– Germany: the gross domestic product, with nearly 3.3 trillion euros, was considerably higher. Since 2010, the economy has been growing continuously, not least because of its export success. Youth unemployment is six percent, far below the in Saudi Arabia.

TRADE

– Germany is part of for the Kingdom of the five most important suppliers. In the past year Were from German production to the value of € 6.6 billion were transported in the country. On the ranking list of Germany’s most important sales markets in the space of 36 means. However, the sum is equivalent to only 0.5 percent of Germany’s total goods exports last year.

– Saudi Arabia, in turn, Were supplied to the value of 0.8 billion Euro to Germany. Much more important for the country Japan, China, South Korea, India, the USA and the United Arab Emirates.

EXPORT

Machines is the largest German export hit, followed by vehicles, food, medicine, process Measuring and control technology, and electrical engineering.

Oil by far the most important export of Saudi Arabia in the business with Germany, followed by plastics and industrial chemicals.

INVESTMENTS

– In Saudi Arabia German companies have built up a capital stock of EUR 1.6 billion.

– Conversely, Saudi Arabia has made direct investments in Germany in the amount of 275 million euros.

COMPANY

– In the UK, there are about 800 German companies are active. These include large corporations such as Siemens, Bayer, and Boehringer Ingelheim, but also numerous medium-sized companies. Great business opportunities many hope to achieve through the planned modernisation of the country. It is to be set up in the coming years, its economy wider, and so the dependence on Oil and Gas reduce. For example, the share of the private sector to the gross domestic product by 40 to 60 percent increases that of the foreign direct investment from 3.8 to 5.7 percent.

– Saudi Arabian money has flowed in recent years in Silicon Valley, but sometimes also to Germany. The specialty chemicals group Lanxess has founded a rubber joint ventures with the oil giants Saudi Aramco, from which it is dropped out in August.

Competitiveness

– Here, Saudi Arabia is attested is still a lot of catching up to do. The “Ease of Doing Business”, a Ranking of the world Bank, it ends up merely to rank 92 out of 190 countries studied. As a Problem is the comparatively high level of corruption.

– Germany reached the world Bank’s Ranking of 20. The bureaucracy and relatively high taxes are considered to be a disadvantage compared to other countries.

ul/hb (rtr)