Saudi-German Business Forum Discusses Industrial Cooperation

The Saudi-German Business Forum was held in Riyadh with the participation of more than 40 Saudi and German companies. (Asharq Al-Awsat)
The Saudi-German Business Forum was held in Riyadh with the participation of more than 40 Saudi and German companies. (Asharq Al-Awsat)
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Saudi-German Business Forum Discusses Industrial Cooperation

The Saudi-German Business Forum was held in Riyadh with the participation of more than 40 Saudi and German companies. (Asharq Al-Awsat)
The Saudi-German Business Forum was held in Riyadh with the participation of more than 40 Saudi and German companies. (Asharq Al-Awsat)

Saudi Arabia and Germany discussed industrial cooperation, especially in the automobiles, medical technology, and artificial intelligence sectors, at the Saudi-German Business Forum.

Organized by the Federation of Saudi Chambers, the Forum was held in Riyadh with the participation of more than 40 Saudi and German companies, from various economic sectors, as a German industrial delegation visited the Kingdom.

The Bavarian Industry Association led the delegation, with the participation of the German-Arab Friendship Association and the German-Saudi Liaison Office for Economic Affairs (GESALO).

The delegation included companies operating in water, training, education, infrastructure, industries, construction, innovation, vehicles, medical technologies, energy, technology, and artificial intelligence.

Head of the Saudi delegation Abdulrahman al-Zamil discussed Saudi developments in the economic and stimulus investment environment and reviewed investment opportunities available for German companies in all sectors, particularly at the industrial level, which is witnessing a qualitative leap in the Kingdom in light of Vision 2030.

Managing Director of Foreign Trade for the Bavarian Industry Association Volker Lenweber praised the Kingdom’s economic progress, expressing the delegates' interest in boosting business relations with the country, particularly in the industrial sector, and looking into potential investment opportunities.

Lenweber noted that Germany's cutting-edge products and expertise could significantly contribute to the success of industrial projects in Saudi Arabia.

Germany is one of Saudi Arabia's most important trading partners, and relations between them are based on a solid institutional base represented by the Saudi-German Joint Committee and the Saudi-German Business Council, in addition to several memorandums and various cooperation agreements.

The commercial exchange volume between Saudi Arabia and Germany in 2020 reached some SAR28.5 billion. Germany ranks 62nd in the Kingdom's exporting countries and fourth in importing countries.

German ambassador to Saudi Arabia Dieter Lamele said he was looking forward to increasing cooperation in the areas that would enable them to boost hydrogen manufacturing in the Kingdom, transfer technology, and exchange experiences in the fields of artificial intelligence, renewable energy, education, and tourism.

German MP Alexander Radwan, a member of the Committee on Foreign Affairs, said Berlin is determined to build a sustainable and long-term partnership with Riyadh in the economy and technological industries, science and research fields and increase the exchange visits of youth and business delegations.

Former Minister of Economy and Technology Otto Weiss, head of the German-Saudi People's Friendship Association, believes the coming period will witness an actual translation of the results of these visits in terms of economic, investment, and scientific agreements.

He noted that the radical transformation of the Saudi economy and Vision 2030 programs would bolster cooperation between the two countries, especially in the technological industry, technology, knowledge, science, and training.

Weiss cited several agreements signed in the education sector between the Technical University of Munich and King Saud and King Faisal Universities, which he described as constructive and tangible.

Deputy delegate of the German-Saudi Arabian Liaison Office for Economic Affairs (GESALO) Astrid Crookes revealed that work is underway to link the Saudi and German economies and enhance cooperation in the fields of hydrocarbons and hydrogen.

She indicated that the visiting delegation held talks between seven German companies operating in the Kingdom, announcing that another delegation would arrive next week to discuss sanitation, water desalination, and agricultural technology.



Saudi Arabia’s Private Sector Ends 2024 with Strongest Sales Growth

 The Saudi capital, Riyadh (AFP)
 The Saudi capital, Riyadh (AFP)
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Saudi Arabia’s Private Sector Ends 2024 with Strongest Sales Growth

 The Saudi capital, Riyadh (AFP)
 The Saudi capital, Riyadh (AFP)

Saudi Arabia’s non-oil private sector concluded 2024 on a high note, with significant increases in sales and business activity fueled by robust domestic and international demand.
The Kingdom’s non-oil GDP is expected to grow by over 4% in both 2024 and 2025, supported by notable improvements in business conditions, according to Riyad Bank’s Purchasing Managers’ Index (PMI) report.
Despite inflationary challenges, the Riyad Bank PMI recorded 58.4 points in December, reflecting strong and accelerated economic recovery, albeit slightly lower than November’s 59.0 points.
The solid performance highlights improvements across non-oil sectors, with new business activity in December growing at its fastest pace in 12 months. This growth reflects rising domestic and global demand. Renewed marketing efforts and strong customer demand encouraged companies to boost production and expand operations, particularly in wholesale and retail.
The PMI has remained above the neutral threshold of 50.0 points since September 2020, signaling continuous expansion in Saudi Arabia’s non-oil economic activity.
The International Monetary Fund (IMF) previously projected sustained momentum in Saudi Arabia’s non-oil reforms, estimating non-oil GDP growth for 2024 at between 3.9% and 4.4%. The IMF noted that growth could reach 8% if reform strategies are fully implemented.
Expansion in International Markets
A surge in exports was among the key factors driving non-oil economic growth in Saudi Arabia. December saw the largest increase in export orders in 17 months, underscoring the success of Saudi policies in opening new markets and fostering strong international trade relationships, supported by ongoing product innovation.
Higher domestic and international demand boosted production levels in December. Companies also worked to enhance operational efficiency, leading to a notable increase in inventory. Purchasing activity accelerated to its highest level in nine months, reflecting the sector’s ability to effectively meet rising demand.
Cost Pressures on Production
Despite significant growth in production and sales, the sector continues to face challenges related to sharp inflation in input costs, driven by heightened demand for raw materials. These pressures have led to higher product prices, although some companies opted to reduce prices to remain competitive and address elevated inventory levels.
Meanwhile, wage cost increases were less pronounced, helping mitigate economic pressures related to salaries.
Future Outlook
Dr. Naif Al-Ghaith, Chief Economist at Riyad Bank, highlighted the positive end to 2024 for the Kingdom’s non-oil private sector, reflecting the progress achieved under Saudi Arabia’s Vision 2030. He noted that the PMI score of 58.4 points demonstrates the sector’s resilience and ongoing expansion.
Al-Ghaith expects non-oil GDP to grow by over 4% in 2024 and 2025, driven by improved business conditions and rising new orders, signaling increased market confidence and demand. Elevated domestic demand and export growth have pushed total sales to their highest level in a year. This, in turn, has led to strong increases in business activity and inventory levels, demonstrating the sector’s ability to meet and capitalize on excess demand, he underlined.