German-Saudi Business Magazine

May 2014

German Investments in Saudi Arabia

Petrochemicals

Automotive

Infrastructure

ICT

German - Saudi Business Magazine

Editorial Dear readers,

Andreas Hergenröther Delegate of German Industry & Commerce for Saudi Arabia and Yemen

Saudi Arabia has been focusing more and more on promoting transfer of knowhow and technology to diversify its industrial landscape outside the hydrocarbon sector. The government needs strong partners for sustainable long-term business relations. German economy can be a major ally in this process. “Made in Germany” is renowned around the world for its attributes of premium quality, state-of-the-art technology and know-how. The latter takes a pivotal role in the success story that “made in Germany” achieved and it is here that the German industry is a strong partner for many industries and regions, helping spread it to local production sites. As the world’s second largest exporter, the German economy is recognized worldwide for high quality products and services and as a guarantee for sustainable and fair business. German enterprises have successfully contributed to the economic development in Saudi Arabia by investing, training Saudi Arabian employees and actively transferring technology and know-how. For example, German investors like Siemens, Mercedes, Linde, Evonik or Henkel are well known through their production sights in Saudi Arabia but also small and medium-sized companies (SME) like Bischof+Klein, V-Line, Erndtebrücker Eisenwerk GmbH or SIG Combibloc are successful investors. In 2012 Siemens took the next step towards a massive expansion of its activities in Saudi Arabia, breaking ground on a landmark manufacturing facility for gas turbines and compressors. This creates job opportunities for young Saudis, serving as a knowledge transfer hub for new Siemens technology and supporting the country’s industrialization drive. Another example is DHL supply with more than 1,700 employees in Saudi Arabia which illustrates its commitment to innovation, service excellence and providing customers in Saudi Arabia with superior logistics solutions. And for over ten years now, the successful joint venture undertaken by German family-owned company Bischof+Klein and three Saudi partners have been producing FFS packaging solutions on the basis of co-extruded films as well as stretch hood and shrink films. The plant in Dammam has a total output of almost 24,000 metric tons. Evonik Industries and Saudi Acrylic Acid Company (SAAC) have established a joint venture called Saudi Acrylic Polymers Company (SAPCo) for the production of superabsorbents. SAAC is a joint venture of the Saudi companies National Industrialization Company (Tasnee) and Sahara Petrochemicals. The production facility has an annual capacity of 80,000 metric tons. Other major investments were made in the automotive sector by the successful joint ventures of Mercedes with Juffali and MAN with Xenel Group assembling trucks in Jeddah. By creating jobs and interacting with local enterprises these companies make a contribution to the positive development of the Saudi Arabian economy. To create a better awareness of the high potential of German-Saudi Arabian business relations we would like to present in this current edition the portfolios of some of the major German companies investing in the Kingdom.

Andreas Hergenröther AHK Saudi Arabia - www.saudiarabien.ahk.de

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Contents 05

56

06 12

34

10

32

Editorial

01

MAN

35

AHK Saudi Arabia

04

BMW

36

German Desk Opens in Jubail

05

E. A. Juffali & Brothers

37

Government Support for the Private Sector

06

Investments in Saudi Arabia

08

SAP

41

Industrial Cities

09

Detecon Al Saudia Co. Ltd.

42

Petrochemicals

10

Logistics

44

BASF

12

DB International

46

Bischof + Klein

14

DHL

48

Henkel Polybit

16

SMEs

50

Evonik Industries

18

KSB Pumps Arabia

52

SIG Combibloc

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48 47

SSI Schaefer

53

Linde

22

54

Lurgi

24

55 50

V-Line AHK Services

56

Banking

26

Your contact persons at AHK Saudi Arabia

58

Deutsche Bank

28

Trade Fairs

60

Infrastructure

30

Siemens

32

Automotive

34

Information & Communication 39 Technologies

42 38

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Disclaimer: German–Saudi Business Magazine (GSBM), Issue May 2014

Editor-in-Chief Andreas Hergenröther Head of Public Relations Christian Engels Responsible for Printing AHK Saudi Arabia © Copyright GSBM 2014. All rights reserved.

No part of this magazine may be reproduced without GSBM’s written permission. The opinions expressed in GSBM do not necessarily reflect the views of the German Delegation of Industry and Commerce for Saudi Arabia and Yemen (AHK Saudi Arabia). GSBM is not responsible for the validity of contents in articles written by external authors.

German - Saudi Business Magazine

HISTORY

AHK Saudi Arabia

The official representation of the German economy in Saudi Arabia

The Delegation of German Industry & Commerce for Saudi Arabia and Yemen (AHK Saudi Arabia) has been founded in 1978 by Royal decree under the name of German-Saudi Arabian Liaison Office for Economic Affairs (GESALO). AHK Saudi Arabia is part of the German Chamber Network and the official German Foreign business promotion. With 120 offices worldwide AHKs offer their experience, connections and services to German and companies of their partner countries. With a staff of 20 employees, AHK Saudi Arabia supports Saudi and German companies with its services. AHKs are closely connected to the Chambers of Industry and Commerce (IHKs) in Germany. Together, they represent in total 3.6 million companies in Germany. AHK Saudi Arabia is the official representative of German economy in Saudi Arabia. Besides this AHKs are service providers to companies under the brand “DEinternational” AHKs provide services to companies both from Germany and their host countries in order to support their foreign business activities. These services include conducting market studies and providing sector information, matchmaking, business consulting, organization and representation of trade shows, issuing business publications, legal information, medical treatment support and vocational training, etc.

AHK Saudi Arabia more than 30 years of experience German-Saudi Arabian business relations follow a long tradition In 1978 the Joint German-Saudi Economic Committee composed by representatives of the German Ministry for Economics and the Saudi Ministry of Finance decided to establish a German foreign trade commission in Saudi Arabia. On August 22nd 1978 was the inauguration of the first office for German–Saudi economic relations, which has been established by Royal Decree. The first years AHK Saudi Arabia shared the office with the German consulate in Riyadh since in 1985 the German embassy moved from Jeddah to

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Riyadh. First Delegate of German Industry and Commerce in Saudi Arabia was Dr. Gerhard Fischer (1978-82), who had at that time just one employee his secretary. His successor Marc Landau (1982-86) shaped the name German Saudi Arabian Liaison Office for Economic Affairs and his short form GESALO. From the beginning the office was not just responsible for Saudi Arabia but also for the economic relations to Bahrain, Kuwait, Qatar and Yemen. Delegate Dieter Mankowski (1986-1991) intensified the work of AHK Saudi Arabia in the Kingdom. As trade fairs are crucial instruments in foreign trade promotion and Germany is the world’s number one venue for organizing international trade fairs it was a logical step to found an own trade fair department.

Establishing AHK-Services His successor Dr. Rainer Herret (19911998) put the focus on a second issue, which is of high importance for the bilateral economic relations: With the implementation of a legal department AHK Saudi Arabia was able to assist German companies regarding legal questions like customs regulations, taxes and the legal framework of launching branches, founding a Joint Venture with a Saudi company or establishing a liaison office. Since then Saudi businessmen are able to get assistance in the visa process for Germany via the AHK office when they are to visit or exhibit on trade fairs or need to travel for business trips. AHK Saudi Arabia acts also as a mediator in cases of commercial disputes between German and Saudi business partners with the aim to solve disputes without harming the long term business relations. Under the lead of Michael Tockuss (1998-2001) AHK Saudi Arabia ameliorated its services for German companies in the region. Since then today’s longest tenured employee, Mohammed Faleel, is in charge for the promotion of business to business development. Due to his knowledge about the market and his connection to Saudi decision makers AHK Saudi Arabia was able to create an infrastructure to provide German companies services like market

information, address research, business partner research and the organization of business trips. In the time of Mr. Tockuss a second branch in Jeddah has been opened to serve the companies based in the former capital. For delegate Manfred Rothgänger (2001-2005) the times were difficult as the Kingdom faced terrorist attacks against governmental institutions as well as foreigners in the country. The Jeddah office had to get closed again due to the uncertain circumstances. Nevertheless Saudi Arabia recovered and paved its way to participate in the World Trade Organization (WTO), which can be seen as a great success. In the term in office of Delegate Gerd Doepner (20052010) the boom in the United Arab Emirates and the foundation of the German Emirati Joint Council for Industry & Commerce (AHK UAE) led to restructuring the market. Since 2009 German business relations with Bahrain, Kuwait and Qatar is organized by AHK UAE.

New Challenges: Andreas Hergenröther Since October 2010 Andreas Hergenröther is the current Delegate of German Industry and Commerce for Saudi Arabia and Yemen. Under his lead the German-Saudi business relations tightened within one year even more and many projects are on the way deepening these relations. In December 2010 the first German-Saudi Arabia Desk has been established at the Bielefeld Chamber of Industry and Commerce. It functions as an information platform about Saudi Arabia for all German companies. Under the lead of Mr. Hergenröther more than 100 events in Germany and Saudi Arabia have been organized by AHK Saudi Arabia in order to promote German-Saudi business relations. With its services for German and Saudi companies AHK Saudi Arabia is in a key position for the bilateral economic relations. Every businessman, who is interested in doing business in Saudi Arabia or in Germany will find an individual concept of entering the market, promoting its business through trade fairs and find the perfect business partner from the other country.

German - Saudi Business Magazine

HISTORY

German Desk Opens in Jubail to Facilitate Transfer of Technology The ‘German Desk’ opened at the Jubail Branch of Asharqia Chamber aiming at facilitating transfer of technology for the industrial development at the twin cities of Jubail. Dr. Peter Ramsauer, Chairman of the Committee of the German Parliament for Economic Affairs & Energy, inaugurated the event last month. Mr. Hassan M. Al Zahrani, Vice-Chairman of Asharqia Chamber, Michael Ohnmacht, Acting German Ambassador to the Kingdom and Mr. Andreas Hergenrother, Delegate of German Industry and Commerce for Saudi Arabia were present. Germany is keenly interested in participating in the Kingdom’s on-going economic development, said Dr. Peter Ramsauer adding that he was amazed witnessing tremendous industrial development in Jubail. German technology and industrial equipment are of high quality compared to other countries, he noted. Mr. Al Zahrani pointed out that the opening of the German Desk in the Kingdom’s industrial hub of Jubail will give a fresh boost to the already strong trade and commercial relations between Saudi Arabia and Germany. Many globally recognized petrochemical plants built by the Saudi Arabian Basic Industries Corporation (SABIC) are based in the Jubail Industrial Cities-One and Two. In addition, Saudi Aramco has several large-scale new projects such as Sadara Chemical Company and Saudi Aramco Total Refining & Petrochemical Company located in the twin industrial cities, he said. German companies have strong presence in the Saudi market offering high-tech products and expertise. Over 100 German companies are now represented in Saudi Arabia and their combined investments, according to the Saudi Arabian General Investment Authority, reached over $8 billion, noted Mr. Zahrani.

He invited German firms to take advantage of liberalized economic policy and a package of incentives announced by the Saudi government for foreign investors. The liberalized economic policy has made Saudi Arabia the most favorable country for businesses in the Arab world, Middle East and North Africa region, observed Mr. Zahrani. Currently, the annual two-way average trade has reached over SR42.7 billion , of which, Saudi imports from Germany are valued at around SR41.3 billion while Saudi exports to Germany are worth only 1.4 billion Riyal. Mr. Zahrani offered Chamber’s willingness to cooperate with German companies in order to support them in their efforts to identify trade and investment opportunities in the Kingdom.

Mr. Hergenrother noted that Germany is a key supplier of technology and know-how to the Kingdom particularly to its Eastern Province where many German companies have established their production bases. These German firms included Linde (industrial gases), Siemens (gas turbines), BASF (construction chemicals), Kenkel (industrial coatings), Evonik (suberabsorbants), Bischof & Klein (packaging) and Erntebruecker Eisenwerke (pipelines). Mr. Hergenrother mentioned the strong presence of the German logistic giant DHL which has become the largest German employer in the Kingdom employing over 4,000 people. For creating employment opportunities, DHL has been honored with the Prince Nayef Award for the highest Saudization quota of a foreign company in the Kingdom. AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

Government Support for the Private Sector

Government Support for the Private Sector

The government plays an essential role in industrial and economic development.

The Ministry of Economy and Planning assists in formulating the five-year development plans that set long-term economic goals. The Ministry of Finance supervises implementation of the nation's economic policies. The Saudi Arabian Monetary

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Agency (SAMA), the nation's central bank, oversees the country's fiscal policy. To facilitate the expansion of the private sector's role in the national economy, the government established five specialized credit institutions, which provide economic opportunities to many Saudis

who were previously unable to compete in the marketplace. These financial institutions have provided loans to citizens for development projects in agriculture, industry and construction. In 1974, the Saudi Industrial Development Fund (SIDF) was the first government

Government Support for the Private Sector

agency set up to provide interest-free soft loans to enable Saudi businessmen to establish industrial plants. These loans can be used to finance up to 50 percent of the capital for a new factory. SIDF loans have helped launch thousands of new factories and expand hundreds of existing facilities. Since it was founded in 1963, the Saudi Arabian Agricultural Bank (SAAB) has provided loans for agricultural projects, farm machinery and production requirements. The Real Estate Development Fund has been financing residential and commercial construction since 1974, with a unique program that provides interest-free loans repayable in 25 years. Launched in 1971, the Public Investment Fund offers credit to public and semi-public corporations. The Saudi Credit Bank was founded in 1973 to provide personal loans for home repair, as well as vocational and crafts training.

In addition to the specialized credit institutions, the government offers an array of incentives to the private sector. A sweeping reduction in utility and public service fees, implemented in early 1992, lowered operating and production costs for private companies, making their products more competitive with foreign goods. Private entrepreneurs are also given access to government information systems specifically created to help local manufacturers target the best market for their products. Government agencies such as the Saudi Consulting House, replaced in April 2000 by the broader Saudi Arabian General Investment Authority (SAGIA), provide free consulting and support services and publish lists of investment opportunities for the production of goods in demand in Saudi Arabia. In September 2000 SAGIA opened service centers in

German - Saudi Business Magazine

Jeddah and Dammam in addition to its headquarters in Riyadh. Government tenders also give priority to locally manufactured products and to Saudi companies. Saudi industries are exempted from paying customs duties on the import of machinery and supplies used in the production of goods domestically. To facilitate the transfer of technology and expand the operations of the private sector, the government also provides various incentives to foreign companies that enter into joint ventures with Saudi firms. Far-reaching new investment regulations in 2000, including removal of the need for sponsorship, gave further encouragement to foreign investors.

AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

Investments in Saudi Arabia

Investments in Saudi Arabia Saudi Arabia is currently working to develop its trade and investment laws with the intent of wooing more foreign direct investments and settling disputes between foreign investors and their local partners. Saudi Arabian General Investment Authority (SAGIA), the country’s investment facilitator, spearheads the move by adding some points of explanation in the current law in addition to putting a set of new conditions. The Kingdom encourages successful investment projects as they can create more jobs for Saudis, said one SAGIA official. The plan goes well with the Labor Ministry’s efforts to find more jobs for young Saudi men and women. The Kingdom has been making strenuous efforts to diversify its economy by encouraging investment projects in various sectors. It is worth mentioning Saudi Arabia received $16.4 billion in 2011. Fahd Al-Mashari, an economist, said many foreign investors aim to invest their money in Saudi Arabia because of the country’s strong and stable economy that has safely steered through global financial crises. “The steady growth of the economy and the incentives being offered by the government to foreign investors has strengthened Saudi Arabia’s chance to become a major hub for investment,” he pointed out. The Saudi economy has responded quickly to the speedy global economic changes. “We are one of the 20 largest economies in the world, holding 19th position. We are also the largest economy in the Middle East and North Africa (MENA) region and the largest recipient of foreign direct investment.”

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Industrial Cities While Saudi Arabia’s economic base continues to be dominated by oil, the Kingdom has taken steps to diversify the economy. Today, industrial products make up more than 90 percent of the Kingdom’s non-oil exports. Saudi Arabia exports petrochemicals, plastics, metal goods, construction materials and electrical appliances to some 90 countries. Petrochemical and other oil-based industries are concentrated at industrial cities in major urban centers. These plants use natural gas and natural gas liquids that were previously flared, as well as refined products from the oil industry to manufacture products that would in turn feed non-oil industries. Concentration on industrial plants in specific areas also facilitates the provision of vital support services, such as water, power and transportation.

Saudi Arabia is one of the highest growing economies in the world with a GDP growth rate of 6.8 percent in 2012. Saudi Arabia ranks 22nd out of 185 countries for the overall ‘Ease of Doing Business.’ There are many reasons for investing in the strategic sectors where Saudi Arabia has great comparative advantages. Saudi Arabia is at the heart of MENA region’s 400 million-strong populations. It is the largest free market in the Middle East, having 25 percent of the total Arab gross domestic product. “Saudi Arabia’s good location makes it and easy access for the European, Asian and African markets,” said a SAGIA official. Moreover, Saudi market has a high purchasing power and is expanding continuously. The Kingdom is one of the fastest-growing countries worldwide, with per capita income forecast to rise from $25,000 in 2012 to $33,500 by

German - Saudi Business Magazine

Industrial Cities

The Jubail Industrial City on the Arabian Gulf has dozens of factories and industrial facilities, including a desalination plant, a seaport, a vocational training institute and a college. The Yanbu Industrial City on the Red Sea has a modern port, refineries, a petrochemical complex and many manufacturing and support enterprises.

Saudi Arabia's successful industrialization. By 1994, it had 15 major plants operating in Jubail, Yanbu, and Jeddah, with an annual production of 13 million metric tons. By 2002, total production was 40.6 million tons of basic and intermediate chemicals, polymers, plastics, industrial gases, fertilizers, steel and other metals; this figure is expected to exceed 48 million tons by 2015.

The government offered incentives for the establishment of private companies at the industrial cities. The Saudi Arabian Basic Industries Corporation (SABIC), created in 1976, set up non-oil industrial facilities that use as feedstock natural gas and natural gas liquids manufactured by the oil industry.

One of the most ambitious economic projects to date is the massive King Abdullah Economic City near Jeddah, which broke ground in December 2005. The residential and commercial megaproject will include a dedicated port, an industrial park, a residential and hotel complex, and educational facilities.

SABIC is owned 70 percent by the Saudi government and 30 percent by shareholders from the six Gulf Cooperation Council (GCC) countries. SABIC quickly became the backbone of

In 2006, Custodian of the Two Holy Mosques King Abdullah launched similar economic cities in Rabigh, Hail and Madinah. Plans are also underway for an economic city in Makkah.

2020. “Saudi Arabia has low inflation rates and pursues to conclude mutual agreements with a number of countries for promoting and protecting investment as well as preventing double taxation,” the official said. Speaking about incentives, the official said investment applications are processed within 30 days; foreign investors will benefit from incentives and guarantees offered to local and national investors; and are allowed to transfer capital and profit abroad. “Foreign investors are also eligible to apply for loans from the Saudi Industrial Development Fund and can benefit from corporative, collateral and massive agreements regarding taxation and investment with other countries. They are also allowed to transfer losses for future years in regard to taxes,” he said.

AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

Petrochemicals

Petrochemicals Strong Growth Prospects Saudi Arabia’s petrochemical sector registers a strong double digit growth since 2007. Ten percent of the global petrochemical export products have been manufactured in Jubail and Yanbu. Both cities form the centre of the petrochemical industry and have played a key part in the Kingdom’s determination to develop hydrocarbon-based industries. Founded by Royal Decree in 1975, the Royal Commission for Jubail and Yanbu (RCJY) has created the basic infrastructure for these two cities. In Jubail is the world’s largest industrial city for petrochemicals.

RCJY is currently responsible for the construction of Jubail II, which will have the same size than Jubail. The industrial cities are characterized by physical closeness to oil fields to take advantage of short hauls. As the leading oil producer in the world Saudi Arabia plans to duplicate its refinery and petrochemical capacity and therefore needs international investors. German companies, well reputed for its extraordinary experience, know-how and quality, are well prepared

for joining the petrochemical market in the Kingdom. The country itself is holding an excellent starting position for reaching the political aim of being a powerful player on the global market of petrochemical products. Considering the economic circumstances and existing conditions it is realistic to reach the aim in a medium term. Driven by Saudi Arabia the members of the Gulf Cooperation Council (GCC) are evolving towards the world’s leading petrochemical location. The Kingdom already is the

Petrochemicals largest producer of methanol und ranks on the second place among ethylene producers. The Saudi Arabian Oil Company (ARAMCO) and the Saudi Basic Industries Corporation (SABIC) are the major actors in the sector. Being the world’s largest oil producer ARAMCO is in a key position: The state-owned company invests in multibillion-dollar projects, acts as a shareholder of many joint ventures and provides the feedstock for numerous petrochemical plants. SABIC as the biggest company in the entire Middle East was founded in 1976 to push the diversification of the local industry. Today it is the largest public company in Saudi Arabia as listed in Saudis stock exchange Tadawul, but the Government still owns about 70 percent of its shares. According to Gulf Petrochemicals and Chemicals Associaton, GCC member states were producing 39 million tons of petrochemical products in year 2000. Eight years later in 2008, the production increased to 100 million tons. Saudi Arabia as biggest and most influential GCC member produced 60 million tons in 2011. That shows a world market share of 7-8 percent, which is likely to be raised up to 80 million tons in 2015. All in all, Saudi Arabia contributes three quarters to the production of petrochemicals in the entire Gulf region. Saudi decision makers put unprecedented efforts in the diversification of the downstream industry to establish a labor intensive industry. SABIC and Saudi ARAMCO jointly with many additional players in Saudi Arabia are pushing the implementation process. In addition to increase the mass production of basic petrochemicals like polyethylene and polypropylene, Saudi Arabia focuses on expanding its downstream activities. Downstream products like acetone, carbon oxide, polyethylene etc., which are the basis of higher value added products, shall be produced in the Kingdom. Within the next

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Jubail is the largest industrial complex of its kind in the world

German - Saudi Business Magazine

Technology and know-how by the German Linde Group: The Jubail Olefins Complex being developed by Tasnee Petrochemicals Company (Tasnee) and Sahara Petrochemicals Company (Sahara) in partnership with Basell Polyolefins. five years, the production of 120 new chemicals will begin. The Middle East business intelligence MEED lists 26 projects in the Saudi petrochemical sector with an investment volume of 15 billion USD that are underway. Another 42 planned petrochemical projects are 46 billion USD worth. However, the preconditions for German companies are promising. Saudi Arabia has wide access to required raw materials and the costs for energy are low compared to other locations. Many German companies already use the advantages of site. An example how the future can look like is the Joint Venture Saudi Acrylic Polymers Company (SAPCo). In August 2011 the company was founded by Evonik, Tasnee and Sahara Petrochemicals to produce 80.000 tons p.a. of superabsorbent polymers in Jubail, starting in 2014. The Linde Group is also active on the Saudi market, operating with Sadara. The German company invests 380 million USD in Jubail to supply Sadara with carbon

monoxide, hydrogen and ammonia at a chemical complex now being built by Sadara in Jubail. The SME Bischof + Klein produces flexible packaging solutions in Al-Khobar and Zeppelin is active in Jubail in the plant manufacturing business. The increase of downstream activities offers German companies good prospects for entering the Saudi Arabian market. Huge investments as well as projects with a volume of several billion USD are planned and make a long term growth of the petrochemical sector very likely. The petrochemical industry is expanding rapidly in Saudi Arabia. All in all, German plant and mechanical engineering companies, providers of technology and external suppliers will find vast investment opportunities concerning the expansion of petrochemical plants in Saudi Arabia and the Gulf region.

AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

BASF Saudi BASF is part of the Germany headquartered multinational BASF the Chemical Company. Saudi BASF was incorporated in January 2001, when it started operations and production of construction chemicals in the Second Industrial Area in Dammam. This was followed by a second Saudi manufacturing plant which launched operations in Jeddah four years ago.

Saudi BASF plays an active part in the Saudi construction landscape. It is the leading supplier of construction chemicals to prestigious projects such as the expansion of the two holy mosques in Makkah and Madinah, the building of the King Abdul Aziz International Airport in Jeddah, King Abdullah Economic City, the Maaden Aluminium Smelter in Ras Al Khair. It is also a supplier to prominent clients such as the Royal Commission for Jubail and Yanbu and Saudi Aramco. “Saudi BASF’s team of sales engineers provide technical support to our customers in all areas of the kingdom

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BASF

where and when required at very short notice; they are known in the construction industry as the true solution providers. For example, our concrete admixtures MasterGlenium provide practical solutions to major challenges such as pumping concrete up to 600 meters high for the construction of landmark towers, while our high-performance grout have helped in anchoring rolling mill machinery at the aluminum smelter in Ras Al Khair,” says Bashar Shaksheer, general manager of Saudi BASF. The company has nine sales offices supported by warehouses in every region of Saudi Arabia. BASF’s Construction Chemicals division offers advanced chemicals solutions for new construction, maintenance and repair and renovation of structures. Its comprehensive portfolio encompasses concrete admixtures, cement additives, chemical solutions for underground construction, waterproofing systems, sealants, concrete repair and protection systems, performance grouts, flooring systems, tile fixing systems,

expansion control systems and wood protection solutions. Among these is the Master Builders Solutions brand built on the experience gained from more than 100 years in the construction industry. “Master Builders Solutions is backed by a global community of BASF construction experts,” says Mohammed Shahin, managing director Saudi and Near East. “To solve our customers’ specific construction challenges, we combine the suitable elements of our portfolio, our know-how across areas of expertise and regions, and draw on the experience gained in countless construction projects worldwide. We leverage global BASF technologies as well as our in-depth knowledge of local building needs, to develop innovations that help make our customers more successful and drive sustainable construction.” Shahin attributes the success of Saudi BASF to the extensive range of high performance products offered as well as the excellent support provided, particularly

German - Saudi Business Magazine

BASF its specification and marketing department which helps drive its success by getting BASF product technologies specified on projects by engineering firms during the design stage, and then following up by supporting its sales engineers to successfully supply contractors with BASF products to the satisfaction of clients, specifiers and contracting companies. Saudi BASF’s factories in Dammam and Jeddah produce most of these systems including admixtures, grouts, concrete repair products, and flooring and waterproofing systems, while other products such as the TPO membrane and pot bearings system come from its factories in Italy, Wabo architectural expansion joints from its facilities in the US, and the Alberia range of restoration systems from Turkey. Apart from these construction chemicals, BASF’s Senergy Classic BP EIFS (exterior insulation and finishing system) system has gained wide acceptance in the Saudi market. “BASF has provided around 70,000 sq m of BASF Senergy Classic BP EIFS system since 2012 to our major clients in the Saudi market including Saudi Aramco, government authorities such as Bahrain Causeway Authority and private

sector clients,” says Shaksheer. “Our EIFS system has shown outstanding results in terms of thermal insulation, quality of applied product and efficiency in energy saving.” Projects on which the product has been used include Manifa, a school and a 155-villa housing project in Ras Tanurah as well as a 38-villa housing scheme in Dhahran for Saudi Aramco; the BahrainSaudi Causeway (administration and information centre projects); Joaimah administration building; Al Osais head office in Dhahran; a private villa for Al Osais; Tanajeeb; and Rabiyah mosque in Dhahran. “These and other projects were completed by BASF-approved applicators and contractors who received the required professional training on the system application. These applicators are capable of completing huge projects within the set budget, time and using international EIFS system application standards,” he comments.

Rabigh, which is scheduled to be commissioned in 2017. BASF has an extensive portfolio of products that ranges from chemicals, plastics, performance products and crop protection products to solutions for the oil and gas sector. The world’s leading chemical company has registered sales of about €74 billion ($102 billion) in 2013 and more than 112,000 employees as of the end of last year. Its construction division’s 5,700 employees form a global community of construction experts and tackle challenges from conception through to completion of a project by combining know-how across areas of expertise and regions and drawing on the experience gained in countless construction projects worldwide. It operates production sites and sales centres in more than 50 countries and achieved sales of about €2.1 billion ($2.9 billion) in 2013.

To meet the anticipated demand for its products in the region, BASF has plans to open yet another production facility in

AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

German - Saudi Business Magazine Middle East Company

Leading role in the region Bischof + Klein: B+K MEC joint venture very successful in Saudi Arabia In the Arabian Peninsula region, B+K MEC is assuming a leading role in the plastic industrial packaging market. For over ten years now, the successful joint venture undertaken by German familyowned company Bischof + Klein and the two Saudi family-owned companies H. A. Al-Zamil & Bros. Co. and Al-Rajhi House Enterprises plus Ahmed A. M. Al-Ohali has been producing FFS packaging solutions on the basis of co-extruded films as well as stretch hood and shrink films. The company is based in Al-Khobar, not far from the Al Jubail industrial complex near to Dammam. A second plant is being planned in the Rabigh petrochemicals complex. “We are profiting from the petrochemicals

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industry’s strong growth and our outstanding reputation in the region”, explains Dr. Volker Pfennig, managing director of the B+K-GROUP. “Co-operation with the Saudi companies is outstanding. We are extremely satisfied.” Abdulaziz Al Zamil, the former chairman of the Royal Commission and one of the leading lights of the Kingdom’s industrialisation, is an honorary mem-ber of B+K MEC's advisory board. Since Saudi Arabia took the decision not only to extract its raw materials but also to further process them itself, the petrochemicals industry within the country has been booming. B+K MEC's biggest customer is SABIC (Saudi Basic Industries Corporation), which boasts various production locations. In addition to Saudi companies, B+K

MEC also supplies numerous companies in the neighbouring states. So far, B+K MEC has carried out production on nine FFS lines and two machines for the Smart-Flex® stretch hood range. At the end of October 2011, two additional FFS film lines will enter operation. The company's annual capacity will then amount to 24,500 tonnes of FFS films and 5,400 tonnes of stretch films according to B+K MEC's managing director, Yousif Al-Suwailem. 30% of the regular workforce come from Saudi Arabia; their colleagues are Lebanese, Filipinos, Indians, Bangladeshi, Egyptians and Sudanese. Freddie de Mey has been head of production since 2010. The Belgian national was previously employed

Middle East Company

as technical director at B+K France in Pont Audemer. However, he was already very familiar with the region thanks to working at B+K MEC from 2002 to 2004. In 2001, B+K MEC began producing printed tubular films for automatically packaging PE granules plus pallet protection films with 35 employees. To date, the plant offers the most state-of-theart film production in the region. In addition, B+K MEC is the only local producer of stretch hood film. The B+K-GROUP is a leading European full-service supplier of flexible plastic and paper packaging and technical films which boasts a strong worldwide network. In 2010, B+K employed a total of around 2,400 staff at six production plants in Germany, France, the United Kingdom, Poland and Saudi Arabia. The company generated turnover of around 450 million Euros. The B+K-GROUP’S product range encompasses the entire range of flexible

packaging from traditional industrial packaging and consumer packaging to special films for technical applications. Bischof + Klein manufactures its products using the latest systems for mono/coextrusion, gra-vure/flexographic printing, solvent-based/solvent free lamination and coating as well as for extrusion lamination and coating. Highly developed conversion technology with product-specific facilities for sealed, welded and adhesive designs enable individual production according to customers’ wishes. Bischof + Klein enjoys outstanding relationships with all customers within the local petrochemicals industry and is anticipating further growth. Dr. Volker Pfennig: “The region is developing into a crucial location for the production of PE granules. We wish to continue participating in this growth. At the same time, we are contributing towards the creation of jobs for the young, up-andcoming generation.”

About Bischof + Klein Bischof + Klein (2010: 2,400 employees, turnover approx. €450m) is one of Europe's leading full-service suppliers of flexible plastic and paper packaging and technical films. The B+K-GROUP manufactures at six production plants in Germany, France, the United Kingdom, Poland and Saudi Arabia, and has a worldwide network of sales offices. B+K's product range encompasses the entire range of flexible packaging and technical films from traditional industrial packaging and consumer packaging to special films for technical applications. If you have any further questions, please contact: Gudula Benning Kommunikation Tel. +49 (0) 54 81/9 20 - 1 99 Fax +49 (0) 54 81/9 20 - 98 1 99 [email protected]

AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

Henkel Polybit

Henkel Polybit Industries Ltd. Polybit Industries Ltd. was established in 1995 as a privately owned company in UAE. It entered into a joint venture agreement with Henkel KGaA, world leaders in adhesive technologies and building chemicals, in 2005 after which the company was renamed as Henkel Polybit Industries Ltd. “We are able to offer the latest technologies and services to the customers in the fast moving and growing construction market in the region with the latest technical knowhow from Henkel” says Naveen Antony, General Manager Sales. Around 960 employees work at the Henkel Polybit Industries Ltd. Head office in Umm Al Quwain, UAE – located 30 min by car from the regional MEA Henkel HQ in Silicone Oasis, Dubai. Henkel Polybit is known as the market leader in the UAE for waterproofing, construction chemicals and innovative protection systems. With manufacturing facilities in Umm Al Quwain (UAE), Dammam (K.S.A.) and Cairo (Egypt) and offices in UAE, Qatar, Bahrain, Oman, Kuwait, the Kingdom of Saudi Arabia and Egypt, Henkel Polybit Industries Ltd. is well represented in the GCC and North Africa.

Competitive advantage Henkel Polybit ,apart from an extensive range of waterproofing products , it also offers complete system solutions for tiling, flooring, PU Foams, sealants and construction chemicals. Roofcare, a subsidiary of Henkel Polybit, is one of the leading application contractors offering unique roof waterproofing/thermal insulation as well as external thermal insulation systems assuring state of the art application of high end products. “We provide solutions. And this is possible because we manufacture all the products in our portfolio, unlike other manufactures in the waterproofing industry, who manufacture only limited products of certain categories and compliment it with an array of outsourced products,” explains Naveen Antony. “Being innovative and having a lean structure and strong customer orientation, we are extremely competitive and maintain our leading position. This approach, aligned with Henkel’s global sustainability strategy, is the driver for all new product developments in line with international and GCC green building codes.” Henkel Polybit’s technical service team works closely together with contractors, consultants and authorities to ensure close customer communication and react quickly to international market trends and demands. “Our technical service team also conducts customer trainings to consultants and applicators to support them in

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understanding our products and its chemistry so that they have a better understanding of the scope of the product” confirms Naveen Anthony.

Henkel Polybit collaboration The Joint Venture (JV) is growing stronger and has enhanced the enterprise potential by leveraging the strength and competence of Henkel in the Middle East Africa region and implementation of international business practices. “We have had many synergies in the JV which has worked in our favor” says Naveen Anthony. “The most prominent ones are in the promotion of Henkel products through our channels which resulted in our closing the largest wooden flooring job in the Middle East for the tallest tower (Burj Khalifa) in the world today. We have also had synergies in supply chain and logistics which has helped us to improve our efficiency in these domains.” Working in a booming economy, the heady growth rates also tested the organization and stretched it to its limit and beyond to respond the market demands. “Settling in with a JV where two different schools of thought strive to work together in such demanding situation was the biggest challenge”, notes Naveen Anthony.

Henkel Polybit Industries a most important Joint Venture for the construction and building adhesive world of Henkel.

German - Saudi Business Magazine

German - Saudi Business Magazine

Evonik Industries Description of company Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Profitable growth and a sustained increase in the value of the company form the heart of Evonik’s corporate strategy. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms. Evonik is active in over 100 countries around the world. In fiscal 2013 more than 33,500 employees generated sales of around €12.9 billion and an operating profit (adjusted EBITDA) of about €2.0 billion.

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Evonik has been very successful in the Middle East and North Africa for more than four decades and has erected production facilities in this region. In view of its attractive geographical position between Europe and Asia and the plentiful supply of petrochemical feedstock in the Gulf States, we regard this region as strategically important. We intend to participate in regional growth and expand our presence considerably. In Saudi Arabia, Evonik has established Saudi Acrylic Polymers Company (SAPCo), a joint venture with Saudi Acrylic Acid Company (SAAC), with capacity to produce 80,000 metric tons of superabsorbents a year. SAAC is a joint venture of the Saudi companies National Industrialization Company (Tasnee) and

Sahara Petrochemicals. Total investment runs into triple-digit millions of euros, and Evonik’s share is in the double-digit millions range. SAPCo’s superabsorbent production facilities uses Evonik’s state-of-the-art superabsorbent technology and is part of a new acrylic acid and derivatives complex at the Tasnee site in the Al Jubail Chemical Park in Saudi Arabia. They benefit from low-cost propylene from the neighboring cracker operated by Tasnee and Sahara in conjunction with LyondellBasell. The acrylic acid required to produce superabsorbents is supplied from a neighboring plant operated by a joint venture between SAAC and Dow Chemicals. The facility in Al Jubail strengthens our global leadership in this business and meets the rising demand for

hygiene products in the fast-growing markets of the Middle East and in parts of Africa and Asia.

Resource Efficiency

Employee number total and local

The Resource Effciency segment provides environment-friendly and energy-effcient system solutions. It consists of the Inorganic Materials and Coatings & Additives Business Units.

Evonik Industries (2013) ca. 33,500 employees Evonik MENA region ca. 60 employees

Specialty Materials

Regional HQ address and contact details: Evonik Gulf FZE Dubai Silicon Oasis Office E-107 Phone +971 4 372 4169 Fax +971 4 372 4175 P.O. Box 341256 Dubai – UAE www.evonik.com

The heart of the Specialty Materials

Key Production Facilities segment is the production of polymer Kingdom of Saudi Arabia, Riyadh, address (Plants) and Products list materials and intermediates, mainly for the and contact details: Consumer, Health & Nutrition The Consumer, Health & Nutrition segment produces specialty chemicals, principally for applications in the consumer goods, animal nutrition and healthcare sectors. It comprises the Consumer Specialties and Health & Nutrition Business Units.

rubber and plastics industries. This segment is composed of the Performance Polymers and Advanced Intermediates Business Units. Please refer to our homepage for more detailed product information: http://corporate.evonik.com/en/product s/pages/default.aspx

Evonik Tasnee Marketing Company Ltd. Phone +966 11 2108266 Fax +966 11 455-9854 Qurtuba Business Gate, Building C2 King Khalid International Airport Road 11496 Riyadh Saudi Arabia www.evonik.com AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

SIG Combibloc Obeikan

A decade of success in the Middle East

SIG Combibloc Obeikan: Joint venture enjoys continued growth Every day, millions of people all over the world quench their thirst with drinks out of carton packs from SIG Combibloc. As one of the world’s leading system manufacturers of carton packs and filling machines for beverages and food, SIG Combibloc is a preferred partner in the food industry. SIG Combibloc can look back on ten years of successful co-operation with the Obeikan Investment Group of Saudi Arabia in their “SIG Combibloc Obeikan” joint venture. From an initial figure of 362 million carton packs in 2001, SIG Combibloc’s sales in the region have grown to 2.8 billion packs in 2010. In 2001, SIG Combibloc and the Obeikan Investment Group entered into a joint venture to market aseptic carton packs and the filling machines for long-life beverages and food. The Obeikan Investment Group is a major player in the printing, packaging and publishing industries starting in 1982. The group has more than 3,000 employees and more than 15 representation offices in the Middle and Far East and Africa. Dr. Franz-Josef C ollin, now Managing Director of SIG International Services GmbH: “The very first talks with Obeikan were extremely valuable for both future partners in the joint venture. At the ANUGA FoodTec trade fair in 2000, we jointly worked out the key points for the framework agreement for a joint venture, and just a year later we kicked off our partnership with a 50:50 joint venture”. Both partners recognised the growing trend among the region's consumers to look for foods packaged for long life aspects of quality, hygiene and convenience played a key role here. For both partners, the partnership between the Obeikan Investment Group of Saudi Arabia and SIG Combibloc meant regional market entry with aseptic carton packs and additional growth in the Middle East region. The partnership began initially in sales and distribution and was later expanded to include production activities, with the building of a packaging materials plant in Riyadh. SIG Combibloc now employs 222 staff in Saudi Arabia.

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The establishment of a local packaging production was evidence of the positive

market development in the region, and provided a fresh spur to push ahead with further development. The company invested more than USD 37 million in the new production plant. The new plant has a production area of 45,000 square metres. By manufacturing locally, the company is able to respond more rapidly to customer needs, improve its service offer and substantially reduce delivery times. More than six million packaging sleeves are now produced in the local production plant every day mainly the small formats combiblocMini and combiblocSmall. The screw cap combiSwift has also been produced in Riyadh since 2009, with daily output of about a million units. Plans are already in place to further expand this capacity. “For us, a successful business strategy principally means being there for the customer,” says Abdallah Obeikan, CEO of SIG Combibloc Obeikan. “By having a presence on the spot in the Middle East and Africa, SIG Combibloc Obeikan is close to its customers. Personal and direct contact is an important precondition for successful cooperation.” The joint venture has been charting successes in the strong-growth markets of the Middle East ever since it was founded. The market comprises all of the Gulf Cooperation Council (GCC) states (Saudi Arabia, Kuwait, the United Arab Emirates, Bahrain, Oman and Qatar), the Levant region, Africa and parts of South Asia. The joint venture currently looks after 71 countries. It has sales and service offices in Riyadh and Jeddah (Saudi Arabia), Cairo (Egypt), Tunis (Tunisia),Casablanca (Morocco), Tripoli (Libya), Tehran (Iran) and Istanbul (Turkey). In 2010, these were joined by branches in Cape Town (South Africa) and Lagos (Nigeria). SIG Combibloc Obeikan opened an additional branch in Algiers (Algeria) in February 2011.

Closer to the market, quicker to the customer. A particular decisive step for the joint venture was the start of its cooperation with food manufacturer Almarai in 2005. For this company, the largest producer and exporter of milk and milk products in the Middle East, SIG Combibloc Obeikan

provided complete filling and downstream solutions for a newly established production facility in Riyadh. The flexibility offered by the new filling machines enabled the entire range of the company’s milk and juice products to be re-launched in various packaging formats from SIG Combibloc. In the meantime, ten SIG Combibloc filling machines are in operation for Almarai, some allowing an output of 24,000 packs per hour.

Very promising outlook At the outset, in 2001, there were a total of 29 SIG Combibloc filling machines in use in the region; this figure has grown in the meantime to 110. The outlook for further growth in the markets of the Middle East and Africa is very promising: more and more customers are putting their trust in SIG Combibloc’s flexible filling technology. Thus, Juhayna, Egypt’s leading manufacturer of juices and milk products, installed a CFA 124 high-speed filling machine in 2009 to aseptically fill products into combiblocMini. This was the first high-speed filling machine in the region, operating at a rate of 24,000 packs per hour. In 2010, SIG Combibloc Obeikan made an important advance into the South African market with its customer DairyBelle, South Africa’s oldest and most well known dairy cooperative. SIG Combibloc is consolidating its position in Africa further with Nigerian food manufacturer Dansa. In 2011, the Saudi Arabian company Aujan, a long-established supplier of the brands Vimto, Barbecan and Rani, decided to fill its products in carton packs from SIG Combibloc.

New concepts The new product concept drinksplus is also meeting with major approval in the region: With drinksplus milk drinks and non-carbonated juices, smoothies and fruit juice drinks with up to ten per cent natural particulate content can be aseptically filled into carton packs using standard SIG Combibloc filling machines for liquid dairy and NCSD products. The first drinksplus pro-ducts worldwide have been launched in Iran just recently and will be filled and launched in Saudi-Arabia in the near future, as well.

German - Saudi Business Magazine

Linde

German - Saudi Business Magazine

Linde

Linde Engineering’s track record in Saudi Arabia Linde Engineering, a division of The Linde Group, is present in Saudi Arabia since 1984 and has its offices in Al Khobar and Al Jubail. Over the years, a great number of beneficial business relationships have been established between Saudi Arabian customers and Linde. Thanks to the local presence, Linde is dedicated to adding value to both the clients’ plants and to the Kingdom of Saudi Arabia as a whole. Furthermore, know-how is transferred into the Kingdom in line with Linde’s commitment to thinking globally and acting locally.

The following excellent projects were successfully mastered by Linde in the recent years: In July 2005, Linde was appointed to construct the ethylene plant at Al-Jubail for Tasnee Petrochemicals. With this and other orders in UAE, Linde significantly improved its market position in the growth region of the Arabian Gulf and confirmed its global technology leadership when it comes to ethylene plants. Mechanical completion of the Tasnee cracker was

achieved on 15 July 2008, six weeks ahead of schedule. In September 2005, Linde signed the contract for a polyethylene plant at Al Jubail for the Eastern Petrochemical Company SHARQ, a joint venture with SABIC and a Japanese group. The plant with an annual capacity of 800,000 tonnes HDPE and LLDPE was handed over to the customer in September 2009. In November 2005, Linde was awarded the contract for the turnkey delivery of two air

separation plants to produce pure oxygen by National Industrial Gas Company (NIGC), a subsidiary of SABIC. In November 2009, Linde publicised the first successful commercialisation of the SABLIN® technology for producing linear alpha olefins, which was developed jointly by both companies. In October 2010, Linde was given the order to build an acrylic acid plant in Al Jubail. The plant has been delivered turnkey lump-sum to Saudi Acrylic Monomer Company SAMCO at the end of 2013. In April 2012, Linde's Engineering Division was awarded a major contract by the Group's Gases Division. This order is for the turnkey lump-sum construction of a two-stream HyCo plant (hydrogen and

22

carbon monoxide) plus a single-stream ammonia plant with a large storage tank. The new plants will enable Linde to provide long-term supplies of these products to Sadara Petrochemical Company Sadara in Jubail at one of the world’s largest chemical complexes. In August 2013, Linde was awarded a contract to build the world’s largest carbon dioxide purification and liquefaction plant for Jubail United Petrochemical Company UNITED, a manufacturing affiliate of SABIC. The plant will be located in Al Jubail and will be designed to compress and purify around 1,500 tonnes per day of raw carbon dioxide coming from two nearby ethylene glycol plants. The purified gaseous CO2 will be pipelined through the piping corridor of the Royal Commission of Jubail to three SABIC-affiliated companies for enhanced methanol and

urea production. The plant will also be capable of producing 200 tonnes per day of liquid CO2 with food grade quality which will be stored and thereafter supplied by truck to the beverage and food industry. It is the first carbon capture and utilization (CCU) project of this size to be realised in Saudi Arabia. In a nutshell, Linde Engineering has designed and constructed some 75 big industrial plants in Saudi Arabia in the area of petrochemicals, refineries, synthesis gas and air gases over the last three decades. Linde Engineering is a truly global engineering, procurement and construction (EPC) company. Own innovative technologies form the basis of Linde Engineering’s offering for the process industry.

AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

Lurgi

Lurgi Saudi Arabia Solutions for the Middle East

defined to clients’ needs according to the mixture of impurities.

Genuinely committed to innovation by constantly enhancing its comprehensive portfolio of proprietary technologies.

Proven technology

across the entire project lifecycle. We have gained a significant amount of experience in projects involving a variety of scenarios, from high-value projects and EPC (Engineering Procurement Construction) scenarios, to complex designs involving multiple technologies.

Over the years, we have developed proven project execution processes and tools

Present since decades in the Middle East, and very well know via its Lurgi brand (Lurgi was integrated in Air Liquide in 2007) Air Liquide Global E&C Solutions has the requisite operational and industrial experience, and a global understanding of

Your Challenge

Our Solution

Raw Natural Gas

CO2/H2S/COS

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Natural gas is a growing energy source at the same an abundant feedstock. Natural gas offers diversified gas usages, such as LNG as well as downstream products (MeOH, MTP, DME). Since a lot of new sources of natural gas are sour and its composition varies widely, an appropriate treatment and processing is essential,

The world’s largest LNG plant in Qatar uses our gas treatment technology. The latest train started up in 2011 with a capacity of 1,577 MMSCFD of raw sour gas. The challenging part was not only to remove carbon dioxide and H2S; rather, in addition mercaptans and carbonyl sulfide (COS), present in levels too high to be processed in the downstream liquefaction unit had to be removed first. Air Liquide Global E&C Solutions supplied the integrated natural gas processing concept OmniSulf®, including the acid gas removal , sulfur recovery unit, Lurgi Tail Gas treatment® and Aquisulf®. This allows to guarantee a sulfur recovery of more than 99.9% for the whole complex. Our design achieves less than 1ppm COS in the product gas as

In its own plants Air Liquide is operating its own SRU (Sulfur Recovery Unit inoperational), using the in-house Lurgi sulfur management technologies. Through a constant operational feedback within our Group, we continuously optimize our processes and provide innovative solutions, which are tried and tested.

Our references We have contracted: • More than 170 Lurgi Claus® plants • More than 40 Lurgi OxyClaus® burners • More than 60 Lurgi tail gas treating® processes • More than 50 Aquisulf ® plants

The YASREF Refinery Project involves the construction and operation of a 400,000 barrel per day (bpd) integrated petroleum refinery in the Yanbu Industrial City located on the west coast of Saudi Arabia along the Red Sea, and Air Liquide Global E&C Solutions currently provides to its client Air Liquide Arabia project execution and process technology and equipment for the HGU (Hydrogen Generation Unit) Plant to supply YASREF with the required H2. Beginning of 2014 Air Liquide Global E&C Solutions got the order to license an Acid Gas Removal Unit in Jazan Area to reduce pollutants hazardous to environment and further production. The plant is planned to be operational 2016.

Contact information: Grégoire Nollet, Grégoire Nollet Vice President, Middle East, India Zone, Air Liquide Global E&C Solutions, www.engineering-solutions.airliquide.com

Amine Units Membranes (Medal)

Mercaptans

Purisol Molsieves

H2S

Lurgi Sulfur Management

N2 He

Cryogenic Purification

Omnisulf

One stop shop

your challenges in monetizing natural gas. Based on your specific environment and objectives, we create customized solutions based on our wide portfolio of natural gas conditioning technology.

Air Liquide Global E&C Solutions offers products that fit each client’s challenges, relying on or knowledge and capabilities across the entire gas treatment value chain.

well as 10 ppm CO2 and 2 ppm of H2S. The client’s challenge is to ensure that the end product specifications as well as environmental requirements are met.

One Stop Shop

Air Liquide Global E&C Solutions is a premium strategic partner and a world leader in engineering and construction, able to meet constantly growing customer needs and to exceed their expectations through creative, safe, reliable and competitive solutions with an optimum balance of investment and operating cost, and with efficient project management.

German - Saudi Business Magazine

Lurgi

AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

Banking

Banking Saudi Arabia has a modern banking industry with 13 commercial banks. Saudi banks provide retail and corporate banking, investment services, brokerage facilities, and derivative transactions in addition to credit cards, ATMs and point-of-sale transactions. There are also banks in the Kingdom that provide Islamic banking services. Islamic banking is a system of banking that is consistent with the principles of Islamic law (Shari’ah). It prohibits usury, the collection and payment of interest and trading in financial risk.

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Saudi Arabia also has a thriving stock market. The total value of shares traded

annually is some SR 60 billion [US $16 billion]. The Tadawul All-Share Index (TASI) of the Saudi stock market is one of the most highly capitalized stock exchanges in the Arab world. TASI was also one of the first exchanges globally to set up a full electronic clearing and settlement system with immediate transfer of ownership. The banking and finance sector is overseen by several government agencies. The Ministry of Finance supervises economic policies. The Saudi Arabian Monetary Association (SAMA) manages fiscal policy, issues the country’s currency, the

Saudi Riyal and oversees the nation’s commercial banks. The government has also established five specialized credit institutions to provide loans to citizens for development projects in agriculture, industry and construction the Saudi Industrial Development Fund (SIDF), the Saudi Arabian Agricultural Bank (SAAB), the Real Estate Development Fund, the Public Investment Fund and the Saudi Credit Bank.

German - Saudi Business Magazine

Deutsche Bank in Saudi Arabia

Deutsche Bank in Saudi Arabia In April 2006, Deutsche Bank’s presence was established in the Kingdom of Saudi Arabia with the opening of a branch in the capital, Riyadh. The branch is regulated by the Saudi Arabian Monetary Agency and operates under a full commercial banking license. A second entity, Deutsche Securities Saudi Arabia LLC (DSSA), was incorporated in December 2007. DSSA is regulated by the Capital Market Authority and is licensed to carry out securities business. Deutsche Bank Saudi Arabia offers the full range of investment banking, asset and wealth management, and global transaction banking services. Deutsche Bank Saudi Arabia is well recognized for

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its leading role on some of the most prestigious domestic transactions, and is the recipient of several regional awards in recognition for its achievements in investment banking and Islamic finance. Deutsche Bank Saudi Arabia’s core businesses are: Corporate Banking & Securities (CB&S) combines the sales, trading and structuring of a wide range of financial market products, including bonds, equities and equity-linked products, exchange traded and over-the-counter derivatives, foreign exchange, money market instruments, securitized instruments and commodities. CB&S is responsible for mergers and acquisitions, including advisory; debt and

equity issuance; and capital markets coverage of Sovereign entities, Financial Institutions and large corporations. Country-focused teams ensure the delivery of the entire range of financial products and services to clients. Global Transaction Banking (GTB) serves financial institutions and corporates globally by effectively managing their commercial banking needs. GTB's range of services in the Kingdom includes domestic and cross-border payments, trade finance and the provision of trust and securities services. As a global bank, Deutsche Bank has an in-depth knowledge of all relevant markets, as well as placing state-of-the-art technologies at the

German - Saudi Business Magazine

Deutsche Bank in Saudi Arabia

disposal of its clients. Indeed, as one of the world's leading providers of transaction banking services, Deutsche Bank offers an end-to-end service to support national and international transaction banking needs. Asset and wealth Management (AWM): Offering a wide range of traditional and alternative investment products, AWM helps private and institutional investors to secure and increase their wealth. AWM also offers tailored wealth management products and services to ultra high net worth individuals and families. Deutsche Asset & Wealth Management joins together all of Deutsche Bank's wealth and asset management capabilities to offer a comprehensive selection of world-class products and solutions. These are supplied in a streamlined, client-centric coverage model.

Through its Middle East Foundations, Deutsche Bank continues to bring Deutsche Bank’s unparalleled global commitment to the Saudi community. This is done by supporting local NGOs and charities to build social capital by creating opportunities, fostering talent and ensuring long-term viability. Initiatives list includes: -

-

The global focus of Deutsche Bank's social responsibility is reflected in its regional units and foundations.

Partnering with Al-Holailah Charity Society to support its Humanitarian Rehabilitating and Training Center in Al Ahsa in the eastern province of the Kingdom in 2014. Organizing an Eid Party for the kids of Bunyan Association in 2013. Supporting the Intellectual Education Institute for Girls in East Riyadh by hosting an art exhibition and purchasing a communication device for the Institute in 2012. Partnering with Edge of Arabia to showcased Saudi Arabia’s leading contemporary artists in a two-month exhibition in Turkey in 2010.

Boris Klöckner, CIIA Vice President | Investment Advisor Deutsche Bank AG Wealth Management Europe, Middle East & Africa (EMEA) Taunusanlage 12, 60325 Frankfurt am Main, Germany Tel. +49 69 910-22217 Fax +49 69 910-22297 Mobile +49 174 2400309 Email [email protected] Visit us: http://://www.pwm.db.com or http://://www.banking-on-green.com/ en/content/greentowers.html

AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

Infrastructure in Saudi Arabia

Infrastructure in Saudi Arabia The market for projects linked to the Saudi infrastructure is one of the biggest growing markets in the Kingdom of Saudi Arabia. The Saudi government invests enormous sums in the construction of a state of the art transport infrastructure. With an amount of total 17.2 billion US-Dollars 9.3 percent of the 2012 budget is planned to be invested in construction and infrastructure. Main projects worth more than 726 billion US-Dollars are planned or under way in the first quarter of 2012 and many are linked to big infrastructure projects in the field of transport. The extension of the Saudi railway network, investments in new ports and berths, new roads more than 4000 km long as well as the expansion of different airports are demanding sufficient planning and implementation.

Railways in Saudi Arabia Saudi Arabia plans to enhance its network of public and industrial transportation. The Saudi Railways Organization is the operator of the Saudi railway system. Modern railways were introduced in Saudi Arabia in 1947 to facilitate the transport of goods of Saudi Aramco from ports

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located on the coast of the Arabian Gulf to warehouses in Dhahran. Several development projects have been completed since then, including an extension of the line to Riyadh, construction of several passenger terminals and the opening of a dry port in Riyadh. Apart from this traditional railway the Saudi government invested billions of dollars in covering the whole country with a railway network. Since late 2010 the Metro Mekka is connecting the most important stations of the Hajj that will transport annually millions of Muslim pilgrims from Mekka over the cities Mina and Muzdalifah to Arafat and back. German companies like DB international and Siemens contributed actively to this state of the art railway. Under the title of the “North-South Line” the Saudi Railway Company (SAR) is in charge for connecting the Saudi capital and cities in the Eastern Province like Ras al-Khair with the bauxite and phosphate mines in the North of the country. First trains with minerals from Hazm near the northern border arrived in Riyadh in 2011. Like in

other projects the work is also done by subcontractors as for example the French Thales group. The Haramain Speed Train Project or Western Railway will link the cities of Medina and Mecca via King Abdullah Economic City (KAEC) in Rabigh, Jeddah and King Abdulaziz International Airport. The double-track line will be electrified and the design speed is 360 kilometers per hour. On 26 October 2011, the Saudi Railways Organization announced that the Saudi-Spanish consortium Al-Shoula Group won the contract. The Public Investment Fund (PIF) plans to develop a railway that connects the port cities of Jeddah, Dammam and Jubail, passing through the capital city Riyadh and serving its dry port. The rail link is expected to have a profound impact on shipping patterns in the region and is estimated to cost about 7 billion US-Dollars just for planning. The Saudi Landbridge will have the capability of moving large quantities of cargo over long distances at competitive rates and will

German - Saudi Business Magazine

Infrastructure in Saudi Arabia

offer safe, comfortable, and fast overland passenger transport between the country's four major economic centers. Other plans foresee to develop a railway in the South West of Saudi Arabia in order to link Jazan with the cities of Khamis al Mushayt, Taif, Mekka and Jeddah. Railways play also an important role on a multinational level in the region: the Gulf Cooperation Council (GCC) plans to implement a GCCRailway. The purpose of the project is to link the six GCC states together running from Kuwait to Oman. The project will start in 2013 and is expected to be completed by 2017.

Saudi Ports - the core of international transport in the Kingdom Ports and shipping play an important role for Saudi Arabian trade. With its favorable geostrategic position between the Arabian Gulf and the Red Sea, Saudi Arabia functions as a bridge between the Mediterranean, East Africa and Asia. Especially Saudi Arabia’s main export goods like oil and gas find their destinations abroad by ship. The Jeddah Islamic Port is one of the biggest ports in the region. Apart from being a plot for in and out coming goods it plays also a major role for pilgrims during hajj. Annually about 500.000 pilgrims enter the country via Jeddah. All ports in the Kingdom are planned to be expanded within the next decade for enhancing their capacities. For instance the King Abdullah Port of the King Abdullah Economic City (KAEC) will have a capacity for 20 million 20-foot equivalent units (TEUs) when it is finished. It will be the first international commercial port in the Middle East which is privately owned, developed, financed and operated. Currently the ports of

Dammam and Jubail are Saudi Arabia’s connection to the Arabian Gulf. With the new port in Ras al-Khair the Kingdom will have the possibility to ship their fossil and refined Bauxite and Phosphate directly to the customers all over the world. Even the capital Riyadh is connected to the Gulf via the Dry Port Riyadh that is run by the Saudi Railway Organization. Currently, the biggest project is the expansion of the King Abdulaziz Port in Dammam. The expansion will cost more than 500 million US-Dollars and includes the construction of a second container terminal at the port to increase the container handling capacity from 1.5 million 20-foot equivalent units (TEUs) to 3 million TEUs. Combined with the railway projects the Saudi harbor network will be able to import and export smoothly, even if the Strait of Hormuz should be closed for any reasons.

Roads of Saudi Arabia The Ministry of Transport had a budget of 2.9 billion US-Dollars for 2012 provided for 284 projects to construct 4,154 km of highways, secondary and branch roads in addition to conducting studies and designing of 2,139 km of roads. While some of the projects are new, others are just a completion of existing projects. Additionally, another 4 million US-Dollars has been allocated to conduct studies and designing of a public transportation system for each city. The aim is to ease the rush of traffic particularly in large cities. The new allocations include construction of 814 km of new roads and study and designing 759 km of roads in the Riyadh region. The western region around Makkah, Jeddah and Medina will get 804 km of new roads in addition to the study and designing of 170 km of roads. Qassim in the North will get projects for the construction of

216 km and studies on 50 km. The length of new roads to be built in the Eastern region is estimated at 496 km and studies will be conducted for the construction of 175 km. New roads are also planned in the Asir region, around the cities of Tabuk, Jazan, Hail and Najran as well near the northern and southern border of Saudi Arabia.

Up in the Air The General Authority of Civil Aviation (GACA) regulates the aviation industry by managing and operating international and domestic airports in cooperation with subcontractors. GACA is owned by the Saudi government that massively invests in the expansion of its airports. One of the bigger projects is the expansion of the King Abdulaziz International Airport (KAIA) in Jeddah. The purpose of the project is to increase the airport's capacity from 15 million passengers per year to 30 million passengers per year. The KAIA Development Project (KADP) is developed in three phases at a cost of 11.3 billion US-Dollars. Phase 1 is expected to be completed in 2014. Phase 2 is expected to be completed in 2020 with a capacity of 50 million passengers per year and phase 3 is expected to be completed in 2035 with an annual capacity of 80 million passengers. Another big airport project is the Madinah based Prince Mohammed Bin Abdulaziz Airport. With total investments of 1.5 billion US-Dollars the airport's capacity will be increased from 3.5 million passengers to 14 million passengers per year.

AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

Siemens 160 years ago, Werner Von Siemens once said “I will not sell the future of my company for the quick profit”. Since then innovations from Siemens have been changing the world and Siemens has been following this path together with its partner E. A. Juffali & Brothers for over 80 years in Saudi Arabia. With its innovative technology, Siemens has been committed to developing sustainability through strong commitment to its customers and partners in Saudi Arabia and its technical expertise in the field of Energy, Healthcare, Industry and

Infrastructure & Cities. Siemens currently has more than 2,050 employees in Saudi Arabia.

Siemens

from utility to industry and from oil and gas to renewable energy, all required for a sustainable future of the power and water sectors in the Kingdom.

Energy: Siemens Energy is a driving force for our daily lives through a wide range of products, solutions and services along with comprehensive know-how encompassing the entire energy conversion chain from power generation and transmission to distribution, plant-to-grid connections and much more with high focus on energy efficiency and sustainability. Siemens serves a broad spectrum of applications

In 2012 Siemens took the next step towards a massive expansion of its activities in Saudi Arabia, breaking ground on a landmark manufacturing facility for gas turbines and compressors. Planned for completion in late 2014, the center will create job opportunities for young Saudis, serving as a knowledge transfer hub for new Siemens technology and supporting the country’s industrialization drive.

The power equipment manufactured at the plant will be supplied to the local Saudi market, where energy requirements are strongly increasing. Siemens and its local partner, E.A. Juffali & Brothers, is investing jointly a three-digit million US Dollar figure in the facility, which will be constructed on a 220,000 square-meter site in Dammam in the Kingdom’s Eastern Region. The manufacturing facility is the first of its kind for Siemens in the Middle East.

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German - Saudi Business Magazine

Siemens

Bildunterschrift: Siemens Energy is a world leader in industrial gas turbines for power generation and mechanical drive applications

diseases, Siemens also makes healthcare faster, better and more cost-effective.

Industry: Siemens Industry contributes through a board spectrum of products and solutions required in building factories and industries with its top notch integrated portfolio encompassing automation solutions, drive technologies and motion controls for greater productivity, energy efficiency and flexibility.

Healthcare:

Infrastructure & Cities:

Siemens Healthcare delivers hope each day to patients in Saudi Arabia and around the world and is trendsetter in medical imaging, laboratory diagnostics, medical information technology and hearing aids. Siemens offers its customers products and solutions for the entire range of patient care from a single source from prevention and early detection to diagnosis, and on to treatment and aftercare. By optimizing clinical workflows for the most common

Siemens Infrastructure & Cities gears for making Saudi Arabia and its cities a place where people and business can thrive through a better quality of life. With a portfolio comprising mobility solutions, integrated building and security systems, power distributions equipment, smart grid applications and low and medium voltage products among other sustainable technologies for metropolitan areas.

Siemens in Saudi Arabia is committed to supporting the careers of young Saudis through targeted professional recruitment programs. The Siemens Generation21 program strongly supports educational activities with its innovative Discovery Box initiative reaching students of young age aimed to inspire tomorrow’s young engineers, doctors and scientists. Siemens, in association with Saudi Petroleum Services Polytechnic (SPSP) and Saudi Arabia’s Human Resources Development Fund (HRDF), offer a two-year technical apprenticeship program provided by SPSP, followed by one year of on-the-job training at Siemens. Depending on their job fields, students will be trained in various Siemens locations in Germany and the United States.

AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

Automotive

German - Saudi Business Magazine

MAN

Education & Training in KSA Haji Husein Alireza & Co Ltd’s MAN Commercial Vehicle Division have a Continual Training program designed & approved in conjunction with MAN TB, to constantly asses & improve all aspects of our business, it is a Strategy that we at HHA firmly believe in, to continually Train & Educate our Most Valued & Important Asset “ Our Employees “ to help further their personal development Our Sales Teams attend a number of training seminars throughout the calendar year designed to improve product knowledge, competitor comparisons, communication skills & to develop the key skills required in the competitive market place that we operate in, these courses/seminars are held in our purpose built training center in Jeddah and our new training school at our newly expanded showroom & workshops in Riyadh.

Automotive Saudi Arabia is a growing industry with huge potential and a well-positioned base for Western manufacturers wishing to sell vehicles both into the growing middle classes in Asia and Africa, as well as the rest of the Gulf region. The kingdom aims to build a large automobile and parts industry and the Saudi government is prepared to spend 1 billion US Dollars to develop the industrial city Yanbu as a Centrum for car manufacturing.

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Other car makers are already manufacturing in Saudi Arabia. Isuzu Motors hopes to produce around 25,000 trucks a year in Dammam and also Ratan Tata, chairman

of Tata Motors which owns Jaguar Land Rover declared in summer 2012, to establish a plant in Yanbu by 2017. A big draw for Jaguar Land Rover is the aluminum smelter of the Ma'aden-Alcoa joint venture in Ras Al Khair. Furthermore, there are already assembly plants of Mercedes, MAN and Volvo. Another major benefit are the abundant bauxite resources (the main source for aluminium) as well as the cheap electricity needed to fire its smelters and other low-cost raw materials. Petrochemicals giant SABIC is already working with companies like Volkswagen, Land Rover,

and Mitsubishi to provide new materials like lightweight engineering thermoplastics and enhanced fuel additives to their cars. Additional the Saudi government is likely to help with funding and cheap loans to build up an indigenous manufacturing industry. The domestic demand, coupled with demand from the Gulf and the wider Middle East, makes car manufacturing in the kingdom of Saudi Arabia feasible and Saudi Arabia will grow to an important position in the MENA region in the future.

We have recently completed courses at both our centers in “MAN Brand Awareness & Sales Dialogue Techniques’’, these particular courses are designed to focus our Sales Teams on the importance of the “Brand Image” and the importance of how to use that focus when negotiating with customers, to improve the customers perception of our products, All of courses are held and presented in both Arabic and English, As with our Sales Teams our Aftersales Team also follow a carefully planned program of training designed to keep our Technicians up to date with the ever changing technology. The MAN Service Training Academy ME currently offer a wide variety of technical face-to-face seminars from basic repairs to more advanced electronic training, E-learning programs are also offered covering technical, non technical as well as management courses. HHA MAN Aftersales division during 2012 completed a total of 51 days training which equates to approximately 4280 man hours training.. Additionally HHA with

MAN Service Academy will conduct two courses for customers who service and maintain their own fleets of MAN vehicles. One of the most exciting programs recently introduced by MAN ME is ProfiDrive, a driver training program that is designed to enhance a driver's practical capabilities, in conjunction with key theoretical knowledge in addition to fundamental economic driving techniques. The combined cost of fuel, tyres and maintenance make up well over half of the total cost of ownership of a truck. Therefore by adopting a driving behavior that shows an understanding of the vehicle, its driveline and engine performance, harsh braking, harsh acceleration and over speeding are eliminated. This produces a safer operation, making a considerable contribution to reducing operating costs. A number of HHA MAN customers have already taken advantage of this program and further ProfiDrive training dates are planned. At our Sister Company SAMCo “ Saudi Arabian Manufacturing Company “ Our ‘MAN TB Approved World Leading Assembly Plant’ in Jeddah SAMCO uses its own on-the-job modular training programme T.R.A.I.N (Teach Record Asses Individual Needs) which gives credit

to trainees for self development, showing the management each trainee's progress, serving as proof to official bodies of the employer's commitment to training staff, an objective reference for promotion, a motivational tool for both the TRAINEE and his peers, as well as being a ‘daily reminder’ that their company embraces their ‘career paths’. All training is tested and certified by qualified Mentors to ascertain credibility and the independence and reliability of each worker. Certificates (and other incentives) are presented to the TRAINEE for each Module that is successfully completed with Bronze, Silver or Gold grading. T.R.A.I.N’s on the job development of staff ensures man hours and production downtime are converted to positive uptime-meeting customer needs and expectations. Both HHA & SAMCO support Saudisation and through its own “SAMCO TRAIN” programme it has now issued 92 T.R.A.I.N certificates to its Saudi Nationals and has already certified two young Saudi men who had no previous experience in truck building to become certified team leaders, with others soon to graduate.

AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

BMW

Mohamed Yousuf Naghi Motors Established in 1990, Mohamed Yousuf Naghi Motors has been the exclusive and official importer of BMW Group brands BMW, MINI and Rolls-Royce for almost two decades in the Kingdom of Saudi Arabia. Their representation of the brand spreads across the Kingdom with showrooms and service centers in Jeddah, Riyadh, the holy cities of Makkah and Madinah, and Al Khobar.

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Mohammed Yousuf Naghi Motors also established one of the largest and most advanced service centers in the Middle East for the BMW Group in Jeddah which includes a Fast Lane Service. In addition to opening a service facility on Khurais road in Riyadh worth 20 million SR and refurbishing the current facility in Al Khobar.

Mohammed Yousuf Naghi Motors offers its customers in the Kingdom of Saudi Arabia a full range of services through its BMW facilities as well as providing a comprehensive range of parts and accessories, insurance, Sharia complaint finance services as well as professional customer service through certified BMW Sales Executive and Technicians.

German - Saudi Business Magazine

E. A. Juffali & Brothers

E. A. Juffali & Brothers and Damiler-Banz AG train set up technology center to train young Saudis In 1977, E.A. Juffali & Brothers, in association with Daimler-Benz AG of Germany, decided to set up a technology center to train young Saudis for technical assignment at various Juffali plants. The JTC began modestly in that year with training comprising of only two fields: Automotive Engineering and Maintenance Engineering. At this time the number of

trainees did not exceed nine from various regions of the Kingdom. As a result of the increasing number of Saudi trainees, there was eventually need for a larger center. In 1983 the Centre was transferred to its new premises. Since then, the scope of activities has expanded from 2 to 7 different industrial and managerial

activities, the latest but not the least of which have been Automotive Electrical Electronics. The training capacity has also increased to more than 200 trainees in the main technical field. Furthermore, the JTC in continuous coordination with the General Organization for Technical Education AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

E. A. Juffali & Brothers

Information & Communication Technologies

German - Saudi Business Magazine

& Vocational Training develops and modernizes the training curriculums to suit the advanced methods of technology. JTC also offers special courses for various organizations interested in raising the standards of their technicians, such as the Department of Civil Defence, International Airports Projects, SCECO South and SIDF. The idea behind the establishment of the Saudi Institute of German Technology (SIGT) comes as a result of the mutual cooperation between Technical and Vocational Training Corporation (TVTC) and E.A. Juffali & Brothers. One of many reasons why TVTC built a strong bond with E.A. Juffali & Brothers as a private sector is the trust and credibility which is known by the company in the field of technical training for over thirty years. Other reason is the big gap between education and training programs, as well as the need to cope with the rapid requirements of the training sector. TVTC will build the institute within its plans to support the development process in Saudi Arabia through training programs designed to provide an opportunity for Saudi youth to enroll in vocational and technical training institute in order to improve their skills and capabilities to prepare them to work in national organization and companies. SIGT will be located at Jeddah – Makkah highway on a 74,000 square meters area. It is expected to cost SR.150 million and can accommodate 700 trainees. SIGT will be run by E.A. Juffali & Brothers as strategic partner of the TVTC.

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Information & Communication Technologies With over 27 million consumers and a number of global enterprises, Saudi Arabia is the largest ICT market by far in the Middle East. For example, the Saudi Arabian telecommunications and information technology industries represent over 55% and 51% of the total Middle East markets, respectively.

telecom industry, driving increases in competition, service levels, and usage. Numerous Saudi Arabian IT industries show clear signs of rapid growth, driven by the committed presence of major multinationals, and by the expanding skills and confidence of local companies.

weighted heavily towards technologically literate early adopters. Arabization (digital content, software) activities enjoy strong growth prospects due to this large emerging market and the increasing supply of qualified software engineers coming available due to public and private training initiatives.

A large, emerging market Yet, while many of the world’s ICT markets are maturing, the Saudi Arabian market remains substantially underdeveloped by global standards and remains on a rapid growth trajectory. ICT spending has grown at over 10% per year since 2001 to reach US$7.3 billion in 2006. Liberalization is occurring across the

Leaders in connectivity and ICT The size of the Saudi Arabian ICT market provides excellent operational scale, as well as the advantages of locating in a technology hub catering to over 350 million Arabic-speakers in the region. Because Saudi society is young and growing rapidly, its consumer market is

ICT adoption is also increasing rapidly thanks to rising personal wealth and an unprecedented commitment on the part of the public sector to achieving leadership in connectivity and information technology. Saudi Arabia has embarked on AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

Information & Communication Technologies

German - Saudi Business Magazine

SAP

SAP in the Kingdom of Saudi Arabia These are exciting times for the Kingdom of Saudi Arabia. With visionary leadership in place, breath-taking development plans being both realised and in progress not to mention a young and uniquely tech-savvy population the future is packed with potential and cutting-edge credibility. In March 2012, SAP unveiled a four-year growth plan to up-skill local talent and drive sustainable innovation and growth across the Middle East and North Africa (MENA) region. Two years in, and the strategic importance of Saudi Arabia to that plan, is only getting stronger. a twenty-year ICT plan that will support widespread technology and telecommunications adoption across KSA’s households and enterprises. A combination of deregulation and substantial public investments will create attractive investment opportunities for the private sector. Recent examples of such participation include a US$100 million investment by a venture capital firm in Saudi-based technology companies.

State of the art communications infrastructure KSA’s unique access to energy makes it an attractive location for a range of activities across the ICT value chain. For example, ICT-enabled services providers (such as data centers) will be able to leverage Saudi Arabia’s unique access to low-cost power and state-of-the-art communications infrastructure to efficiently service global customers. Equipment and component production are also highly energy-

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intensive and require significant use of petroleum derivatives such as chemicals and plastics. Combined with KSA’s attractive setup incentives, these advantages translate into considerable cost savings for hardware manufacturing and assembly activities. Meanwhile, software and other content providers enjoy a secure environment for commercialization, thanks to significant progress on intellectual property rights (IPR) laws by the Ministry of Commerce and the CITC.

Good reasons to invest •

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Saudi Arabia is the region’s largest ICT market with strong growth in consumer and enterprise end markets Deregulation, privatization and WTO accession promoting private-sector opportunities supported by significant investment incentives Public-private funding partnerships

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such as KACST’s R&D co-funding initiatives by KACST Public-private partnerships supporting venture capital funding such as recent collaboration between SAGIA and Intel Strong commitment to e-commerce and e-governance initiatives (including IP protection) Significant unmet demands for web-based and mobile services; increased enterprise and government usage of web-based services provide large-scale opportunities for contractors and service providers Massive public investment in connectivity for Economic Cities provides unique opportunities for green-field projects covering millions of users Public investment in computer and Internet literacy programs

warehousing, visualization and reporting and enterprise applications, its sales across MENA grew 255 percent last year, with Saudi Arabia playing a big part in that growth. The market spoke up loud and clear, and we responded. Cloud computing is another case in point; between 2012 and 2013, SAP’s cloud deals in the MENA region increased by over 300 percent, with Saudi Arabia once leading the adoption of cutting edge technologies. Such growth would not be possible without strong in-country investment and a willingness to adapt to local requirements by, among other things, localising key solutions.

As the world’s largest business software company, SAP is more in demand than ever before. We now live at a time when we can generate valuable intelligence from virtually any process, action or “thing” for real-time analysis and action. This presents a hugely exciting and profound opportunity for businesses and government decision-makers to transform services, spur sustainable development, accelerate innovation, and empower communities. Saudi Arabia is showing tremendous and exemplary receptivity to this shift, and that is why SAP feels so at home here.

With eyes firmly on our future in Saudi Arabia, we are also ramping up our efforts to train local talent and add vital skills to the local job market.

To stay relevant in Saudi Arabia, SAP knows that it needs to support the local market demand. This means scaling in resource and expertise to ensure that the technologies that matter most are readily available and deployable on demand. Our ground-breaking in-memory technology SAP HANA is a good example, combining transactional and analytical processing in one system. A single platform for advanced real-time analytics, data

In order to maximise its ability to engage with local talent, SAP has also launched the 2nd Chance Education Program, which qualifies unemployed job-seekers as SAP certified consultants and users in collaboration with selected partners from government institutions and the private sector.

Key initiatives include the three-month Young Professional Training Programme. Designed for young graduates, the program includes hands-on project experience and spans everything from negotiation and communication to conflict management and “design thinking”. In addition, the initiative offers SAP certifications at associate level in core business and industry solutions.

More established is SAP’s world-renowned University Alliances Program, which

currently counts 67 members across MENA, 26 of which are in Saudi Arabia. The program incorporates thousands of students and 250 trained lecturers. UAP member schools gain access to the SAP Business Suite family of solutions, including SAP Enterprise Resource Planning (ERP), and gain insight and hands-on experience of how technology can empower businesses to optimize key processes. In another initiative to bolster local talent and markets, we recently signed an MOU with Saudi Arabian Airlines to collaborate on establishing a unique Competency Center at King Abdullah Economic City. The joint initiative will endeavor to prepare Saudi graduates for the job market through teaching essential business, IT and leadership skills. From where we’re standing, conditions to innovative and drive business transformation have never been better in Saudi Arabia. SAP is proud to contribute in whatever way it can, and we are only just getting started.

Ahmed Al Faifi, SAP KSA Managing Director AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

DETECON

Al Saudia Co. Ltd.

Detecon Al Saudia Co. Ltd. was established within the Kingdom of Saudi Arabia in 1982. Today Detecon Al Saudia (Detasad)is a joint venture between the Saudi FAL Group and Detecon International.

Detecon Al Saudia acts as the representative of Detecon International (Deutsche Telekom Consulting – Part of the Deutsche Telekom Group) in Saudi Arabia. Under the lead of a German senior management group Detecon Al Saudia currently employs a total multinational base of around 1.500 employees and can offer a 29-year, long-standing reputation as a reliable telecommunications, VSAT and ICT service provider within Saudi Arabia. Detecon Al Saudia is the first satellite service provider in the Kingdom of Saudi Arabia to introduce a geo-redundant satellite services platform for high availability IP connectivity. Further Detecon Al Saudia has built in the first

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German TUVIT certified data center fulfilling the very demanding “Trusted Infrastructure Site Level 3” specification. The data center officially launched operation in February 2010 and serves as a secure collocation and disaster recovery facility for important international banks, international airlines as well as the oil & gas industry. Since July 2011 Detecon Al Saudia is also capable to provide premium cloud computing application services from its data center in Riyadh (Microsoft Exchange 2011, Microsoft Office Communication Sever 2010, Microsoft SharePoint 2010 and Microsoft Dynamics CRM 2011), which can be individually customized according to our customers

requirements. Continuous 24/7/365 support operations as well as a dedicated approach towards quality and delivery are major points of how Detecon Al Saudia differentiates itself from the competition in the market. Thus, Detecon Al Saudia secured multiple key medium to large enterprise VSAT clients from various business sectors such as telecommunications, banking, oil & gas, agricultural and manufacturing as well as governmental institutions. Please visit: www.detasad.com.sa www.cloudex.sa

German - Saudi Business Magazine

Logistics

LOGISTICS The Kingdom of Saudi Arabia is a growing economy which is diversifying more and more. The declared goal is to develop a diversified transportation infrastructure with a most efficient supply chain and logistics network. With the help of foreign know how and a developing logistic industry, the Saudi Arabian logistics market will continue to foster its role as a leading transport and logistics hub within the region and globally. Saudi Arabia is already by far the largest market in the GCC region: The foreign trade volume has increased significantly in recent years. The expected value of SaudiGerman commercial deals in 2013 is around 10 billion Euros. Billions are spent on the expansion of port capacities and railroad routes. The turnover of the logistics industry is expected to exceed 15 billion Euros by 2015, in comparison to 2011’s turnover of only 11 billion Euros. Between 2004 and 2008 the volume of cargo loading and unloading in the ports

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of the Kingdom of Saudi Arabia has increased by almost 30% to 155 million tons (excluding crude oil). The past year witnessed an increase to over 160 million tons hitting a new record high. According to the current development plan, it is expected that by 2014 the total port business will reach 200 million tons. Also, the domestic cargo is expected to show growth rates of 4-5% per annum through 2020. Over all, Investments of more than 70 billion Euros will be made within the next ten years. This development offers opportunities for contractors, builders, and operators of transport facilities. Especially the extension of the railway network, building of airports and new seaports on the east and west coast, will further increase Saudi Arabia’s competitive advantages in the region. In addition to the increasing demand of Warehouse logistics and freight forwarding, full supply chain management for the industry is becoming more and

more a topic and is constantly growing, especially with the national strategy of establishing more manufacturing companies in the kingdom.

FAWAZ A. BAGHDADI ADVERTISING AGENCY

Logistic companies such as DHL, DB Schenker, and others have already a very strong presence in the freight forwarding market segment, and are now broadening their focus to oil and related industries, like ALFRED TALKE GmbH & Co. KG which offers services from site logistics for new factories up to high volume commodity polymers transportation and storage as well as the highly specialized liquid chemicals handling. Freight transport logistics and industrial logistic services very welcome in the Kingdom because are key sectors for promoting sustainable economic growth, technical innovation and the creation of jobs.

P.O. Box 7301, Riyadh 11462, Kingdom of Saudi Arabia Tel.: +966 11 270 4102 - Fax: +966 11 270 4103 [email protected]

German - Saudi Business Magazine

DB International

Engineering

DB International Globalisation of the rail transport sector has led to a change in markets and customers. Rail once again plays an important role worldwide, especially in oil producing and mining countries, but also in Asia with its dramatically increasing traffic volumes. Efficient railway systems are thus essential to provide mobility for both passengers and freight. Congested roads and relentlessly rising energy costs have curbed the development of private car and truck traffic, allowing the railway to make up ground. As far as environmental aspects are concerned, railway has always been far out in front.

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The sophisticated technical status of rail infrastructure and the quality of our railways, coupled with the knowledge and experience of the many railway experts in all sectors of the DB Group, make German rail expertise an interesting proposition for virtually every railway country in the world. DB International offers one face to the customer. This enables diverse services to be coordinated simply and quickly to ensure they satisfy the jointly defined quality standards. Since 1966, DE International has accomplished, or partaken in, more than

thousand of projects in more than 100 countries. The company, with around 1,200 employees, is represented by many branch offices in Germany and currently maintains 38 project offices overseas. The revenue in 2012 was €154m for the DB International Group. Nowadays DB International advises their clients around the globe and develops innovative and economic solutions for sustainable mobility and transport services and is active in the fields of:

German - Saudi Business Magazine

DB International

Design, project management and construction supervision of infrastructure projects relating to railway specific subjects for structural engineering, equipment engineering and Geotechnics.

System Consulting Technical consulting for integrated and interdisciplinary solutions for all modes of transport.

Business Consulting Management consulting in the context of an overall railway system, mobility and logistics; from strategy and concept consultancy through to profitability analysis and process optimization

AL-Haramain In September 2013, DB International engineers have received an order for the

first high speed rail link in Saudi Arabia for review the design of the track, the rail systems, the construction supervision and the supervision of rolling stock production. The client for the 450 kilometer long, double track and electrified high speed rail link is the Saudi Railways Organization (SRO). The link will provide a fast, comfortable and reliable service between the cities of Jeddah and the holy sites of Makkah and Medina. Maximum speed on this line will be around 320 kilometers per hour. A total of five rail stations have been planned for this project: in Makkah, Jeddah, Jeddah International Airport, King Abdullah Economic City and Medina.

detailed design of all system components, including track, signaling and telecommunication systems. From the initial concept to final completion, DB International’s (DBI) involvement will also include technical assistance for the construction of the operational control center and the overhead catenary system, and for both operations and maintenance. The new order for DB‘s wholly-owned subsidiary also includes the supervision of rolling stock production. This will involve DB International experts reviewing the designs developed by the Spanish consortium. To this end, a special contract management system and stringent quality control procedures will be put in place.

DB International’s scope of supply in this project includes the review of the design concept, the preliminary design and the AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

DHL Express has been present in the Kingdom of Saudi Arabia for 37 years, covering almost every part of the Kingdom, our experience, know-how and reputation in Saudi Arabia is second to none. As a German owned organization we have been aiding the trade lanes between Germany and KSA for many years and we will continue to develop and enhance the service in these lanes. Geoff Walsh, the DHL Express KSA country manager, believes that our current multimillion Euro investments in our infra-structure here in Saudi Arabia,

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DHL

whether it’s in our new facilities in Riyadh (King Khalid International Airport), Dammam (King Fahd International Airport) or Jeddah (King AbdulAziz International Airport), ensures that our service has surpassed our competition and will enable us to better serve the Saudi Arabian market for both its inbound and outbound business. At DHL we are committed to enhancing regional and international trade lane relationships to increase global connectivity for the benefit of the growing GCC economies. As the world’s leading logistic provider it is important for us to support and help build both domestic and

international trade lanes. Our recent investment highlights the importance of Saudi Arabia as one of the major inbound trade countries in the region, given the rate at which the country is growing and its strategic position in the Middle East.

German - Saudi Business Magazine

SMEs

The German promotion of Small and Medium Sized Enterprises German small and medium sized enterprises (SMEs) can refer to plenty support programs. There is no other country that has as many support programs for all kind of business like Germany. Just for startup companies, there are existing about 200 different business promotion tools on federal and regional level. Additionally, the state-owned KfW-Bank supports the SMEs with a total of 24 billion Euros. The support ranges from investment grants for projects of supra-regional significance to consulting

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services in emergencies. The most important instrument are concessionary loans with special interest conditions by German development banks or bank guarantees by banking institutes that are specialized in guarantees for an easier access to corporate loans. Companies, which are willing to use their energy and their materials in a more efficient way, receive public support as well.

The German SME-sector can also count on broad support regarding the access to international markets. The market entry to foreign markets is not easy at all especially not for SMEs. The examination of the local labor law and the local taxation is as much time consuming as the search for the perfect business partner. Detailed information about the market as well as its special conditions and developments in certain fields of industry are necessary for

German - Saudi Business Magazine

SMEs

a successful market entry. This is what the German Chambers of Industry and Commerce abroad, the delegations and representations of German economy (AHKs) actually do. Furthermore, German companies are supported by AHKs regarding the presence on global fairs. Regional Chambers of Industry and Commerce in Germany support their companies regarding the support programs according to their needs. As the official representatives of the economy they vote whether certain support is to be given to some companies or not. The main question in such cases is, if the support seems to be rewarding in the specific case and if the planned project applies to the conditions that are obligatory for any public support.

In the past, certain support programs have been very efficient and important. During the Global Financial Crisis in 2008 and 2009 the tool of the so called “short-time work” saved hundred thousands of jobs in Germany. At the short-time work the state partly paid the loans of the employees from certain companies that have been struggling due to the decreasing demand during the crisis. This allowed the companies to react flexible without being forced to dismiss their skilled workers. The outcome is recently shown: The rate of workless people in Germany is the lowest since more than 20 years. Unfortunately, such extremely positive examples remain the examination. The variety of all support programs sometimes overstretches the capacity of small and medium sized enterprises to decide, which

program fits the most to their needs. Additionally, bureaucratic obstacles for single enterprises can be very high. From an economic point of view the best way to promote SMEs is a general middle class friendly economic policy. A good economic policy is measured by a simple taxation system with little bureaucracy and no unnecessary patronizing by the state. Combined with focused support programs such a policy is most useful for the industrial middle class. Germany has much to offer in this field. The SMEs are the backbone of the German economy and can count on the latter conditions. For this reason the German economy was able to develop positively and enjoys today an internationally leading position.

AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

KSB Pumps Arabia

German - Saudi Business Magazine

SSI Schaefer

SSI Schaefer Tops Rankings for Material Handling Systems Supplier Retaining its position as the top supplier for Industrial and Automated Storage systems the 8th consecutive year, SSI Schaefer is once again ranked number one by US Magazine, Modern Materials Handling.

KSB Pumps Arabia KSB Pumps Arabia will invest EUR 7M for its expansion plan on a total land area of 21,000 square meters. The works have started and are expected to be completed by Nov 2015. They include the renovation of the existing factory and office building as well as the construction of a service workshop in addition to a new 0.5 MW test bed which will be soon constructed. Above decision was taken by KSB Pumps Arabia’s Board of Directors in the light of the continuous and sustainable economic growth in Saudi Arabia.

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In addition to this expansion, KSB Pumps Arabia Ltd. has been increasing its manpower plan, specifically its sales force to cater to the increasing development

projects in the Kingdom where the economy is driven by high population growth and high oil price. Sales engineers have been deployed to serve their respective regions covering the complete Kingdom after attending rigorous training programs.” Our initiative in hiring and training the young Saudi engineers has been strongly encouraged by the Ministry of Labor and its Human Resources Development fund which is financing a two-year customized training program to suit our Saudi young technicians needs” said Robert Aramouni, Managing Director. KSB Pumps Arabia’s experts have been conducting regular training programs for the consultants, ministries, authorities and decision makers so that they can make the right

selection for their pumps and valves in various applications. New Service centers in Jeddah and Khobar ensure ‘Being Available’ when the customer needs us. Further, our new expansion plans would help us to keep more stocks to reduce lead time therefore, creating another competitive advantage as short delivery time is a key success factor in our market. Following the Board meeting which took place in Riyadh Dr. Wolfgang Schmitt, KSB Chairman of the Board of Management visited the factory as well as the Riyadh sales office where he was warmly welcomed by everyone.

SSI Schaefer holds the number 1 spot with an increase revenue of 3% to USD2.65 billion over 2012 while Daifuku Co. remained at their number 2 spot with a revenue increase of 4% to USD2.46 billion over 2012. Dematic and Murata Machinery Ltd retained their 3rd and 4th position with revenue of USD$1.5 billion and USD960 million respectively. Vanderlande Industries swapped places with Mecalux to move up to the 5th position with revenue of USD956 million. The battle for the top 20 systems suppliers remains as a heated race to the top for 2013. While some of the growth is the result of mergers and acquisitions, it became obvious that the results reflected 2 facts of life in this industry: 1) The big are getting bigger. To crack into the top 10 spot, the No. 10th position posted increase revenue of about 57% in 2013 over the No. 10th in 2011. 2) There is an apparent increase in appetite for automation, largely driven by e-fulfilment that isn’t explained by industry consolidation. The overall combined revenues of the top 20 material handling systems suppliers showed a jumped of 6.5% over 2012 to USD15.6 billion in 2013.

Making the list To qualify for MMH's list, companies must be suppliers of materials handling systems, not just equipment providers. In addition to manufacturing at least two major handling system components, a company must also employ full-time staff that designs, installs and integrates materials handling systems. These systems include at least two of the following: transportation devices, storage and staging equipment, picking units, sortation systems, information management systems, data capture technologies and other types of handling equipment.

suppliers. They must also be able to report their materials handling revenues to MMH's editors. For more information, please feel free to contact:

SSI Schaefer Systems International DWC LLC Eli Danila – Junior Marketing Manager Phone +971 4 8048 100 Fax +971 4 8879 305 Mobile +971 050 155 5130 [email protected]

Companies must have a presence in North America to be considered worldwide AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

V-Line

Local Focus on MRO with Global Know-how MRO Connection™ Middle East information-driven solutions as add-on to V-LINE’s proven MRO supply services. Andreas Hergenröther, Delegate of German Industry and Commerce for Saudi Arabia and Yemen in discussion with Arne Randt, Head of MRO Technology Solutions at MRO Connection Middle East. Hergenröther: Mr. Randt, a very warm welcome from AHK Saudi Arabia. We have seen you around at multiple SaudiGerman business meetings since April 2013. While you are part of the V-LINE GROUP you are not in the market to

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acquire new customers for spare parts supply services, are you? Randt: First of all I would like to thank you, Mr. Hergenröther, as well as the members of the German business circles

for indeed making me feel very welcome in both Riyadh and Jubail. You are absolutely right, I am not in the spare parts business as such. Over the years, many of V-LINE’s customers have come up with questions regarding their Maintenance,

German - Saudi Business Magazine

V-Line

Repair and Operations that do not fall into the core scope of a company focused on fast and seamless supply of cross-border MRO. That’s why we have created the joint venture MRO Connection Middle East where we focus on achieving deep insight into our customers decisions on “WHAT MRO to buy?” as opposed to the V-LINE MRO supply models for “HOW to buy MRO?” Hergenröther: That makes sense. What do you expect from the investment into this new venture in Jubail? Randt: Our clients are facing more and more challenges that affect both them and V-LINE’s supply processes. That’s why we partnered with the MRO Connection from the USA who have been successfully delivering turn-key solutions to take on those challenges. Hergenröther: What are these solutions and what are the challenges you are referring to?

Randt: All of these solutions revolve around the three questions: What, when and how many spare parts should I procure? Not being able to answer these questions can create very painful challenges. Worldwide more and more data is collected in ERP and EAM systems, such as SAP, Oracle or IBM Maximo. This is great, but to make sense of this data has become very difficult. Both because the creation of meaningful reports itself is difficult and let’s face it: A lot of the data quality is very bad. The root causes are to be found within the people, the processes and the technology in place. Hergenröther: How are you able to resolve these problems and how does this fit together with V-LINE’s existing business? Randt: At MRO Connection Middle East we make sure to take all three factors into account. We are able to assess the skillsets of employees, the adequacy and logic of the processes and the capability of a client’s technology to support the first

two. Tailored to the clients’ needs we are then providing on-the-job training and online learning modules, redefine processes and provide technology for MRO-specific tasks, for example Inventory Optimization and asset management. This very hands-on approach is harmonized with the more academic management trainings we have been conducting with our partner, the Deutsche Management Akademie Niedersachsen. Celebrating 35 years of business in Saudi Arabia at the end of this year, we embrace Saudization by localizing global know-how and hope to keep building long-term and mutually beneficial business relationships. Hergenröther: Good luck with your project here in Saudi Arabia and the wider GCC region and thank you for the interview, Mr. Randt.

AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

AHK Services

Services of AHK Saudi Arabia Small and medium-sized companies are particularly supported by experienced partners to enter foreign markets. The AHK’s Service Brand DEinternational is present in all 120 offices of the German Chamber Network abroad. According to the services of DEinterantional, AHK Saudi Arabia offers German companies services to assist them in the market entry and Saudi companies to get in touch with German businessmen. Important sectors like health care, infrastructure, construction, petrochemicals, metallurgical mills and plants, food industry as well as energy related topics are covered by one of our employees, who are specialized in these fields.

Market Entry 1. Individual Market Advice The individual market advice is our most successful service. In a close dialogue with German companies and on the basis of the documents and product samples they provide, we identify business and product specific advantages on the Saudi market and analyze their market opportunities.

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2. Business Partner Search Within the context of the business partner search we take on the search for the right and appropriate business partners.

3. Address Research The AHK Saudi Arabia offers a verified research of sectoral and address information to simplify the establishment of contacts with Saudi companies. 4. Direct Mailing Services We offer you individual support in the search for interested business partners and we will take care of establishing initial contacts. 5. Business-Trips AHK Saudi Arabia offers German companies the possibility to take part in business trips of different industrial sectors to Saudi Arabia. During 3 to 4 days stay in Saudi Arabia the aim of these business trips is to give a first impression of the country and the market and to make first contact with Saudi businessmen. The main focus of an AHK-business trip lies on business to business meetings (B2B). Saudi businessmen who are interested in cooperation with German companies are cordially invited to contact us. 6. Catalogue Show - Exhibition AHK Saudi Arabia and Yemen presents German companies in the most important trade- and industrial centers in Saudi Arabia. Saudi companies have the unique opportunity to see a wide range of high quality products “Made in Germany” at one spot. The

Your service provider for sustainable business development with one of the world’s largest economies

Catalogue Show is usually combined with the German breakfast. Traditionally high ranking representatives of Saudi and German economy attend the breakfast and enjoy Germany’s delicious food and beverages.

In addition, we offer extrajudicial mediation and offer our help when contacts to public authorities and/or law firms are required.

Market Information

AHK Saudi Arabia assists Saudi Arabian patients who wish to make use of health treatment in Germany.

Knowledge about the Saudi Arabian market and characteristics of its society and culture are essential for a successful market entry. Regarding this, AHK Saudi Arabia offers Quick Market Checks and Market Surveys. In cooperation with our partner Germany Trade & Invest, we also help Saudi companies, who are interested in business in Germany.

Legal Information and Support 1. Legal Information In order to enter a market successfully, the legal aspects should be considered carefully. For this reason it is our pleasure to provide German companies with the needed legal services in diverse business-related aspects reaching from customs and taxes to investment, import and export regulation, etc.

German - Saudi Business Magazine

AHK Services

2. Health Treatment in Germany

3. Debt Collection Long experiences with debt collection show that extrajudicial proceedings offer faster and more promising solutions than court proceedings by civil law. AHK Saudi Arabia's experts with long term experience in the country can also help you to dissolve and avoid misunderstandings due to different perceptions of trade and business caused by cultural differences or customs. Sustainable damage of long year business partnerships can easily be avoided by the debt collection through AHK Saudi Arabia. 4. Mediation AHK Saudi Arabia acts as a mediator in cases of commercial disputes between the German and the Saudi business partner. Our objective is to solve disputes without harming the long term business relations.

5. Visa Service To help Saudi companies and businessmen with the visa application process we offer to provide exhibitors and visitors to trade fairs in Germany with a letter of recommendation to the German consulate/embassy. AHK Saudi Arabia assists German companies and businessmen in visa issues. We support business travelers who stay temporarily in the Kingdom in offering to act as the sponsor during their stay. AHK Saudi Arabia requests the so called E-Number at the Ministry of Foreign Affairs and is the responsible institution during the time of the visit. 6. Translation Services We offer translations of letters, documents, company profiles etc. in the following languages: • German Arabic • German English We also offer interpreting-services German Arabic during AHKEvents and delegations.

Trade Fair Services AHK Saudi Arabia is the official representative of the Deutsche Messe AG, Messe Munich, Messe Berlin GmbH, and Spielwarenmesse eG in our region. Exclusively for Saudi and Yemeni clients we offer a wide range of services as we take care of their preparation for trade fair participation as an exhibitor or visitor. These services includes selecting the suitable trade fair, according to their company profile, preparation of the application form, booth rental, etc. for exhibitors. For visitors, we are providing the admission ticket, issuing the recommendation letter for the visa process, providing info on visa application, flight and hotel booking, etc. For further information to the services of AHK Saudi Arabia please contact: German-Saudi Arabian Liaison Office for Economic Affairs (GESALO) P.O. Box 61695, Riyadh 11575, Kingdom of Saudi Arabia Tel.: 00966 11 4050201 Fax: 00966 11 4031232, Email: [email protected] www.saudiarabien.ahk.de AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

AHK Saudi Arabia

German - Saudi Business Magazine

AHK Saudi Arabia

Your contact persons at AHK Saudi Arabia

Your contact persons at AHK Saudi Arabia

Management

Public Relations & IT

Andreas Hergenröther

Delegate of the German Economy for Saudi Arabia and Yemen

Stephan Blocks

Deputy Delegate of the German Economy for Saudi Arabia and Yemen

[email protected] Tel.: + 966 (0) 11 405 02 01

[email protected] Tel.: + 966 (0) 11 405 02 01 Ext.115

Omar Hassan Hamza

Christian Engels

Legal Affairs Assistant Delegate & Head of Legal Affairs,

[email protected] Tel.: +966 (0) 11 405 02 01 Ext. 106

Legal Affairs

[email protected] Tel.: +966 (0) 11 405 02 01 Ext. 107

Christian Engels

Dani Yussek

Head of Public Relations

Public Relations

[email protected] Tel.: +966 (0) 11 405 02 01 Ext. 107

[email protected] Tel: +966(0) 11 405 02 01 Ext.115

Mohammed Akbar

IT System Administration [email protected] Tel.: +966 (0) 11 405 02 01 Ext. 114

Accountancy

Trade Fairs Al-Ameen Al-Dalali Head of Trade Fair and Export Promotion

[email protected] Tel.: +966 (0) 11 405 02 01 Ext. 109

Asif Iqbal Ansari

Trade Fair Officer / Trade Fair Coordinator for Visitors [email protected] Tel.: + 966 (0) 11 405 02 01 Ext. 112

Mohammed Khusro Accountancy

[email protected] Tel.: +966 (0) 11 405 02 01 Ext. 111

Mushtaq Ahmed Administration

[email protected] Tel.: +966 (0) 11 405 02 01 Ext. 102

At your Service

DEinternational Mohammed Faleel

Head of Business Promotion & Business to Business Affairs [email protected] Tel.: +966 (0) 11 405 02 01 Ext. 105

Stefan Weiler

DEinternational Consultant [email protected] Tel.: +966 (0) 11 405 02 01 Ext. 108

Farook Hameed

Faisal Nalpurakkal

[email protected] Tel.: +966 (0) 11 405 02 01 Ext. 100

[email protected] Tel.: +966 (0) 11 405 02 01 Ext. 100

Address Research / Front Desk

Administration / Front Desk

Mohammed Riyas Gulcan Tareq Qamhan

Intermediation of Health Services [email protected] Tel.: +966 (0) 11 405 02 01 Ext. 118

Philipos Tedros

DEinternational Consultant [email protected] Tel: +966 (0) 11 405 02 01 Ext.103

Messenger

[email protected] Tel.: +966 (0) 11 405 02 01 Ext. 101

Mohammed Aminul Islam Jan Lutz Mueller

DEinternational Consultant [email protected] Tel: +966(0) 11 405 02 01 Ext.113

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Caspar Matheis

DEinternational Consultant [email protected] Tel: +966 (0) 11 405 02 01 Ext.118

Facilities

[email protected] Tel.: +966 (0) 11 405 02 01

Delegation der Deutschen Wirtschaft für Saudi-Arabien und Jemen (AHK Saudi-Arabien) German-Saudi Arabian Liaison Office for Economic Affairs (AHK Saudi Arabia)

Futuro Tower, 4th Floor, Al Ma'ather Street P.O.Box 61695, Riyadh 11575, Königreich Saudi-Arabien / Kingdom of Saudi Arabia Phone : 00966-11-4050201 - Fax : 00966-11-4031232 Mail: [email protected] Web: http://saudiarabien.ahk.de/

AHK Saudi Arabia - www.saudiarabien.ahk.de

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German - Saudi Business Magazine

Trade Fairs

June-October 2014

Saudi Arabia

Germany

08-11 Sep. 2014 Riyadh Saudi Agriculture 2014 -The 33rd International Agriculture,Water and Agro-Industry Show…

03-06 Jun. 2014 Munich AUTOMATICA, International Trade Fair for Automation and Mechatronics

08-11 Sep. 2014 Riyadh Saudi Agro-Food 2014 - The 21th International Trade show for food products... 08-11 Sep. 2014 Riyadh Saudi Food Pack 2014 - The 4th International Exhibition for food processing and packaging 27-30 Oct. 2014 Riyadh Saudi Logistics, Transport and Freight Exhibition 27-30 Oct. 2014 Riyadh Saudi Rail Show - The International Exhibition for Rail, Metro Lines and Urban Transportation 10-13 Nov. 2014 Riyadh Saudi Build 2014 - The 26th International Construction Technology & Building Materials Show

04-06 Jun. 2014 Munich Intersolar, the World's Largest Exhibition for the Solar Industry 17-20 Sep. 2014 Nuremberg GaLaBau, International Trade Fair for Urban Green and Open Spaces/ Design - Construction Maintenance + PLAYGROUND 23-26 Sep. 2014 Berlin InnoTrans, International Trade Fair for Transport Technology - Innovative Components - Vehicles – Systems 30-02 Sep. 2014 Nuremberg POWTECH + TechnoPharm, World-Leading Trade Fair for Processing, Analysis, and Handling of Powder and Bulk Solids + Int. Trade Fair for Life Science Process Technologies 06-08 Oct. 2014 Munich EXPO REAL, International Trade Fair for Property and Investment

02-04 Dec. 2014 Wedding Arabia

Jeddah

07-09 Oct. 2014 Nuremberg IT-SA, The IT Security Expo and Congress

02-04 Dec. 2014 Beauty Arabia

Jeddah

14-16 Oct. 2014 Nuremberg Chillventa, International Trade Fair for Refrigeration, Air Conditioning, Ventilation and Heat Pumps

06-09 Dec. 2014 Jeddah Jeddah International Trade Fair

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Trade Fairs

21-25 Oct. 2014 Hanover EuroBLECH, International Sheet Metal Working Technology Exhibition

For Trade shows in Germany the Official representation contact German-Saudi Arabian Liaison Office for Economic Affairs (AHK Saudi Arabia) Futuro Tower, 4th Floor, Al Ma'ather Street P.O.Box: 61695 Riyadh: 11575 Saudi-Arabien Tel: 00-966-11-405 0201 Fax: 00-966-11-403 1232 Email: [email protected] Internet: http://saudiarabien.ahk.de

Trade Fair Department Mr. Al-Ameen Al-Dalali: [email protected] Mr. Asif Ansari: Ansari: [email protected] Tel.: 00-966-11-405 0201 Ext.110 Fax: 00-966-11-403 1232