By Abdulsalam Sallat
KUWAIT, April 30 (KUNA) -- German Chancellor Angela Merkel is planning a Gulf tour, which will include Saudi Arabia and UAE, as part of Germany's efforts to boost bilateral relations in various areas.
Germany enjoys strong relations with GCC countries namely in the economic field, which Merkel will tackle in her visit due to the strong presence of German companies in the region.
Germany and Saudi Arabia relations go back to 1929, when the two countries signed a friendship treaty that included wishes to establish political and economic ties, and later triumphed with the appointment of German Consul General to Saudi Arabia in 1931.
Later, the two countries signed several economic, trade, scientific, and military agreements, including a cooperation deal in 1966, a scientific and technical cooperation accord in 1985, Memorandums of Understanding (MoU) on technical, industrial, and economic cooperation agreement in 1977, in addition to encouraging and protection of investment agreement signed in 1988.
Along with signing various agreements, the two countries also organized many economic activities and meetings.
Germany is also considered one of the main partners to Saudi Arabia, particularly since the amount of commercial exchange reached USD 12.6 billion in 2015, when compared to USD 6.9 billion in 2006, an increase of 83 percent according to official data.
Saudi Arabia exports to Germany reached in 2015 more than Saudi Riyal one billion, an increase of 27 percent from the previous year.
Saudi exports include different types of oil products, while German exports to the Kingdom include special vehicles, medicines, tobacco, and wheat.
Riyadh places a great deal of importance on German companies, especially with regard to their vision 2030 which currently brings more than 400 German companies to the kingdom, with investment totaling USD eight billion, according to Saudi Arabia's Pubic Authority for Investment.
Meanwhile, UAE established diplomatic ties with Germany in the early 1970s.
Germany and UAE also signed many MoUs and agreements, mainly in the development of economic cooperation, aviation, and investment.
However, the two countries bolstered their ties in 2004, when the two signed a strategic partnership agreement, expressing wishes to strengthen their economic relations through extensive trade deals and cooperation in various political issues.
In 2009, the two countries established UAE-Germany joint trade and industry council with the aim of boosting investments and economic ties, thus, making it easier to find vital information for investors.
Commercial exchange between the two reached USD 18 billion in 2015, German exports to UAE takes the biggest portion of that trade exchange.
UAE also is considered the number one partner in terms of exports with Germany, the highest in the Middle East and Africa, notably German exports to UAE grew 16 percent in 2015, when compared to the year before.
Most UAE investments in Germany goes to infrastructure, transportation, shipment and services between the two countries, in addition to many German companies working in the energy and alternative energy, technology, and mechanical equipment sectors. (end) aas.mb