German business welcomes Schroeder visit

In a mood of general harmony, which has become quite rare in Germany today, business leaders, politicians and other public figures have warmly welcomed the visit of Chancellor Schroeder to Egypt, Saudi-Arabia and the United Arab Emirates this month.

In Egypt, Gerhard Schroeder, jointly with President Housny Mubarak opened the first privately financed German university abroad, the German University Cairo (GUC). In Saudi-Arabia, the Chancellor had talks with Crown Prince Abdullah and King Fahd and in Dubai's Burj al Arab he met Crown Prince General Sheikh Mohammed bin Rashid Al Maktoum.

The Germans were deeply impressed by the demonstrative warmth and the close attention they found everywhere during their tour.

As the Chancellor noted in an address to the Chamber of Industry and Commerce in Riyadh, Germany's approach to the conflicts in the Middle East has also opened new doors for business in the region; or as the Chairman of Saudi-Arabia's Investment Board, Prince Abdullah bin Faisal bin Turki put it: 'If the public has gained the impression that certain governments are dealing properly with certain subjects, then this will definitely help.'

It was no coincidence that Schroeder was accompanied by 20 high ranking business representatives including the Chairman of Siemens, Heinrich von Pierer, the Co-Chairman of the Airbus manufacturer EADS, Rainer Hertrich, The Head of the German Section of ABB, Bernhard Jucker and Reinmetall Chairman Klaus Eberhardt.

Although the Middle East share of Germany's total foreign trade is still comparatively modest, the region has become the most dynamic area of this country's export drive.

In a survey published on 6th October 2003, The German Association of Chambers of Trade and Industry, DHIK, forecast an export increase of 6.3 per cent to the Near and Middle East for the current year (world-wide: + 2.0 per cent; USA, Canada, Mexico: - 5.0 per cent in 2003). For the next year, the IHK is even more optimistic for German-Arab trade figures.

The United States is still by far the number one in the trade statistics of Saudi-Arabia. However, Manfred Rothgaenger, the DHIK Delegate in Riayadh observed: 'The real winner of the past few years is actually German business.'

It had become quite obvious recently that British and American products were increasingly replaced by German brands. Not only investors, but also consumers were looking for alternatives.

To quote an example: At the fringe of the Schroeder visit, Finance Minister Ibrahim Abdel Asis el Assaf confirmed that Deutsche Bank had been given permission to open a branch in Saudi-Arabia.