Download Economic relations between Germany and the GCC countries

Bilateral Economic Relations between
Germany and the GCC countries
www.bmwi.de
Germany’s trade with the GCC countries
Imports*
2014
Exports*
2015
%
Jan.June
2016
%
2014
Trade volume*
2015
%
Jan.June
2016
%
Jan.June
2016
%
UAE
748,1
894,0
19,5
457,0
-7,5
11.364,1
14.627,7
28,7
7.239,1
14,4
7.696,1
12,8
Saudi
Arabia
1.105,
1
870,9
-21,2
181,2
-60,2
8.879,8
9.972,2
12,3
3.850,4
-22,3
4.031,6
-25,5
Katar
678,3
388,2
-42,8
211,7
15,5
2.097,5
2.158,3
2,9
1.230,9
37,5
1.442,6
33,8
Kuwait
136,8
60,1
-55,7
13,8
113,7
1.422,2
1.302,9
-8,4
728,5
10,5
742,3
11,5
Oman
67,0
47,9
-28,4
21,4
-14,7
691,7
940,9
36,0
441,4
-0,1
462,7
-0,8
Bahrain
54,8
24,8
-54,8
14,8
19,2
374,0
417,5
11,6
160,1
-32,6
174,9
-30,0
*in m euro
Economic relations between Germany and the
GCC countries
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GCC countries are a very important market for
Germany, yet highly competitive.
UAE are the front-runner for German exports in 2015
Saudi Arabia, the biggest national economy in the
region, remains the second most important GCC trade
partner for Germany.
German companies are mainly high tech subcontractors,
EPC projects are essentially going to Korea, Japan and
China as lump-sum turnkey contracts.
Economic challenges …
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The economies of GCC countries remain highly
dependent on oil and gas and are strongly affected by the
sinking oil price.
GCC countries try to diversify their national economies.
Private sector does not yet play the role it should have.
Bureaucracy and tendering procedures (which do not
always meet our transparency expectations).
… and how to meet them
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Saudi Arabia deepens the value-added chain by processing oil
in the petrochemical industry to compensate the loss of profits
due to the fluctuant oil price.
As of 2018, the GCC countries collect VAT (3-5 %), moreover
the collection of corporate or tobacco tax is discussed in order
to stabilize national budgets.
Due to the rapid growth of the population, great possibilities
for cooperation in the fields of education and health care.
Improvement of employability and esteem of the private
sector to create jobs.
Cooperation in the fields of infrastructure and renewable
energy (e.g., railway projects; IRENA).