GSBM German-Saudi Business Magazine

May 2016

Service Industry in Saudi Arabia and Bahrain -

How German Know-How Can be the Key to Diversification

German-Saudi Business Magazine

Editorial Dear readers,

As the new Delegate of German Industry and Commerce for Saudi Arabia, Bahrain and Yemen it is a pleasure welcoming you to this edition of the ‘German-Saudi Business Magazine’, GSBM. You might have noticed some small changes in the design and the composition of the Magazine. We hope this meets your expectations and reading habits. As usual we are grateful for any feedback. Reading international and also German business news the outlook for the Gulf economies and therefore also the bilateral business relations seems rather cloudy. Indeed, everyone speculates about the impact of the low oil price on the Arab economies. Our office has received numerous media requests over the past months, many of them questioning the sustainability of the Saudi economic model. Interestingly, the development of bilateral exchange of goods and services tells a different story: latest figures of 2015 reveal that German exports to Saudi Arabia increased by another 12%, reaching EUR 9.97 billion. Hence, bilateral trade accounted for nearly EUR 11 billion. This once again makes Saudi Arabia the second most important export destination among the Gulf Cooperation Council countries. With EUR 1.63 billion and EUR 1.10 billion road vehicles and general industrial machinery and equipment account for the bulk of goods traded between the two countries. The bottom-line is: at least until the end of 2015 the economic relations still seemed to flourish. And there is no indication of significant changes in this respect!

Oliver Oehms Delegate of German Industry and Commerce for Saudi Arabia, Bahrain and Yemen

One promising segment is only randomly covered by traditional trade statistics: trade in services. While one can only ‘guesstimate’ the contribution of this sector to the bilateral flow of know-how, personnel and investment there is at least strong anecdotal evidence of vibrant and dynamically developing businesses. Hence, we decided to dedicate this magazine to the manifold engagements of German service providers not only in Saudi Arabia, but also in Bahrain. While most of the companies featured are large or at least larger medium-sized ventures there is a growing number of ‘typical German’ small and medium-sized firms – the famous Mittelstand - exploiting opportunities on the Arab peninsula. Did you know that the clock of the Abraj Al Bait Towers in Makkah was engineered by a small firm from South-West Germany? Did you also know that some of the most beautiful green spots in Riyadh were designed by a German familyowned landscape engineering office? Anecdotal evidence, for sure. But certainly inspiring others to follow the lead. Welcome to Riyadh and Manama, our Delegation is happy to support you!

Oliver Oehms GSBM May 2016

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German-Saudi Business Magazine

Contents 3

Editorial

6

GESALO

7

Introducing Oliver Oehms

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A New Look for GSBM

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DIHK Economic Survey

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German Breakfast and Catalogue Show 2016

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The Service Industry in Saudi Arabia and Bahrain

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GESALO TALKS with Eng. Khaled Al Otaibi

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BAHRAIN SPECIAL

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SMS Group in Bahrain

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Gulf Air‘s Uwe Wriedt interviewed

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SCHMIDT ME Logistics in Bahrain DB Schenker Saudi Arabia

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DETECON

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Deutsche Bank

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Drees & Sommer

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FAHSS / TÜV NORD

30

LUCAS-NÜLLE

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Munich Airport

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TÜV Rheinland Arabia LLC

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40 Years of V-LINE in Saudi Arabia

German-Saudi Business Magazine

Secondment of German employees to Arab Gulf States taking the Kingdom of Saudi Arabia as an example

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Salient Features of the New Company Law of Saudi Arabia

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Trade Fairs represented by GESALO

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IFAT

45



CeMAT

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Intersolar Europe

47



InnoTrans

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jobXchange

49

Services of GESALO

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Your Contact Persons

52

Arabic Content

54

‫العالج في المانيا‬

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Heath Care in Germany



Trade Fairs



‫حـوار مع سعادة المهندس خالد‬ ‫ األمين العام لمجلس الغرف السعودية‬- ‫العتيبي‬



‫المعارض في المانيا‬

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GESALO TALKS with Eng. Khaled Al Otaibi

Layout / Design:

Editor-In-Chief:

Printing:

Oliver Oehms

Star Printing Company

Edited by:

Cover photo:

Sören Kohse

© Jakub Jirsàk / Fotolia



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The views expressed in this publication do not necessarily reflect the views of the GermanSaudi Arabian Liaison Office and its representatives. No responsibility accepted for errors. All information is subject to change. No part of this magazine may be reproduced without GESALO‘s written permission. GSBM May 2016

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German-Saudi Business Magazine

GESALO The official representative of the German Industry and Commerce for Saudi Arabia, Bahrain and Yemen

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he German–Saudi Arabian Liaison Office for Economic Affairs (GESALO) was founded in 1978 by royal decree with the mission of supporting and increasing the bilateral economic relations between Germany and the Kingdom of Saudi Arabia and is today the official representative of German Industry and Commerce in Saudi Arabia, Bahrain and Yemen. GESALO is part of the German Chamber Network, and it is mandated by the Federal Ministry for Economic Affairs and Energy, based on a decision of the German Federal Parliament. With 130 locations in 90 countries around the world, the members of the German Chamber Network (AHKs) offer their experience, connections and services to German and foreign companies. AHKs are located in all countries of particular importance to German businesses. They are closely connected to the regional Chambers of Commerce and Industry (IHKs) and the Association of German Chambers of Commerce and Industry (DIHK) in Germany. Together they support German companies with building up and extending their economic relations to foreign countries, representing in total 3.6 million German businesses. AHKs are also service providers to companies under the brand “DEinternational”. AHKs provide services to

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companies both from Germany and their host countries in order to support their foreign business activities. These services include but are not limited to 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. On average, GESALO organizes 250 Business Partner Searches annually, individual and delegation travelers combined. This opens investment opportunities to Saudi and Bahraini companies as well as partnerships for the desired technology and knowledge transfer. Numerous information events are being held by GESALO staff in Germany to promote Saudi Arabia and Bahrain as investment locations and advocate for technology partnerships with Saudi and Bahraini companies. This contributes remarkably to increasing awareness within the German business community, especially the famous ‘Mittelstand’. GESALO’s connections to the internationally important German fair sites foster the making of contacts between Saudi and Bahraini companies and German business partners with innovative technologies. For this reason, GESALO organizes

numerous business delegations for Saudi Arabian and Bahraini exhibitors and visitors to trade fairs, aiming at promoting export and connecting Saudi and Bahraini companies with German cooperation partners. By delivering key technologies and providing know-how “Made in Germany”, German companies have been contributing for many years to the realization of projects that are of strategic value for Saudi Arabia and Bahrain, for example in the oil and gas sector, in petrochemicals, in transport and logistics, in the construction of factories, power plants and grids, but also in border security. Saudi Arabia and Germany are the major players in their respective regions. Bilateral trade has risen from EUR 6.46 billion in 2010 to EUR 10.84 billion in 2015 by more than 67 %. The work of GESALO as a catalyst and facilitator of business has an important share in this dynamic and flourishing cooperation. In its main office in Riyadh a team of full-time professionals is ready to support German, Saudi, Bahraini and Yemenite companies. In December 2010 the first German-Saudi Arabia Desk has been established at the Bielefeld Chamber of Industry and Commerce (North Rhine-Westphalia/Germany). It functions as an information platform about Saudi Arabia for all German companies. In January 2014 GESALO and the Asharqia Chamber of Commerce of the Eastern Province set up a German Desk at the Jubail branch of the Asharqia Chamber in order to serve the German and Saudi Arabian companies of the Eastern Province as well as the Bahraini companies through a more personalized, locally rooted approach. In January 2016 Oliver Oehms has been appointed as the new Delegate of German Industry and Commerce for Saudi Arabia, Bahrain and Yemen. Working complementary to the German Embassies in the three countries the Delegate officially represents German business interests in Saudi Arabia, Bahrain and Yemen.

German-Saudi Business Magazine

Introducing Oliver Oehms The new Delegate of German Industry and Commerce

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liver Oehms (born 1973) grew up in Trier, a picturesque ancient town close to the Grand Duchy of Luxembourg. He majored (M. A.) in Political Science, Public International Law and African Studies from the University of the Free and Hanseatic City of Hamburg. Already during his studies Oliver started working for German Africa Business Association (Afrika-Verein e. V.) where his last position was Regional Manager Western Africa. From 2003 onwards he headed the Foreign Trade and Trade Fairs Department of one of the

regional Chambers of Commerce and Industry. Working and living in Hanau, he enjoyed the attractiveness of a highly industrialized part of the Rhine-Main region, which is beautifully embedded in a densely wooded landscape. Early 2009 Oliver moved with his family to Jakarta where he was tasked to develop a new service unit in the national Indonesian Chamber of Commerce and Industry (KADIN Indonesia) in Jakarta. Together with a team of local professionals he developed new market-driven services

and supported the Chamber Board in responding to the many challenges a dynamically developing economy encounters. Still in Jakarta, Oliver was hired from 2014 onwards by Gesellschaft für Internationale Zusammenarbeit (GIZ) for promoting a program of regional economic development. Since mid-January 2016 he has been appointed as the Delegate of German Industry and Commerce for Saudi Arabia, Bahrain and Yemen. GSBM May 2016

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German-Saudi Business Magazine

A New Look for GSBM Revised GSBM Concept and Layout

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n important part of GESALO’s efforts to improve the quality of the services to our esteemed customers from Saudi Arabia, Bahrain, Yemen and Germany is the revised concept and layout of our German-Saudi Business Magazine (GSBM). We are happy to present to you the first edition consisting of new features: • A revised and up-to-date layout of both front cover and the inside part

• Bahrain will now have a part in every issue, the content is organized by our German Desk in Dammam • A new interview series with Saudi Arabian VIPs: “GESALO TALKS” • Arabic language content covering the trade fairs represented by GESALO, our medical treatment service and a translation of the GESALO TALKS interview. How do you like our new layout and the new content? You are welcome to send us your feedback!

For general inquiries and our advertisement / advertorial opportunities please contact Mr. Soeren Kohse via +966 11 4050201 Ext. 108 or via [email protected]. For inquiries about the Bahrain part please contact the head of our German Desk in Dammam, Mr. Jan Lutz Mueller via +966 13 3470689 Ext. 1525 or via [email protected].

Professional Design by ATLAS MEDIA AGENTUR, professional printing by Star Printing Company.

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German-Saudi Business Magazine

DIHK Economic Survey Spring Edition just published

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he Association of German Chambers of Commerce and Industry (Deutscher Industrie- und Handelskammertag – DIHK) has released their economic survey spring 2016 edition.

remain far behind the boom years; exports to many emerging economies have recently been too weak. Overall, the low oil price, weak exchange rate and favourable financing situation currently translate to

ficult. Retailers and service providers are hardly expecting better business than in fall. The recent decline in oil prices has relieved businesses, and furnished consumers with additional purchasing power. Business concerns

Businesses have never assessed their overall business situation this positively before. Particularly companies in the domestic-oriented trade and services sector are highly satisfied with their situation. The usual seasonal slowdown in construction has been rather mild at the beginning of the year. In the manufacturing industry, situation assessments are also picking up. However, in this sector, expectations

unusually good conditions to most companies.

around the „economic policy framework“, however, are expanding appreciably; the highest figure ever for this survey.

GSBM May 2016

Business expectations for the coming months are stabilising; however, they cannot fully compensate for the fall 2015 slump. The manufacturing industry is gradually gathering renewed confidence, even when it comes to exports. Domestic demand is robust, but growth as was the case last year will be more dif-

The outlook in the export industry has recovered from the fall 2015 downturn. Businesses have more confident expectations when it comes to international transaction; however, they are nowhere near as optimistic as in recent years. Euro-

German-Saudi Business Magazine

Business investment plans have hardly improved, rendering any significant upturn in investment unlikely for 2016. Even though financing conditions remain favourable, concerns about economic policy are growing, which is traditionally an important determinant of investment. The construction industry is particularly planning for larger investment budgets – the plans have not been this expansionary since the unification boom. Service, the trade and the manufacturing industry report little change. However, capital goods producers have downgraded their budgets slightly against the trend, and despite a slight increase in export expectations. Businesses intend to continue to build staff levels 2016. Hiring plans are improving in manufacturing industry, the trades, a fair share of service companies, and different than usual at the beginning of the year, also in construction. The inhibiting factors appear to be concerns about economic policy, including ever-tightening labour market regulation, and rising labour costs. At the same time, companies are desperately looking for qualified employees, and increasingly in vain. A record number of companies of any recent DIHK economic survey regard skills shortages as a relevant business risk. pean perspectives are continuing to brighten up, and the US economy has coped well with the gradual exit from the zero interest rate policy. The declining oil prices lead to stronger purchasing power and a boost in consumption around the world. Fur-

thermore, the euro exchange rate has stabilised at a relatively low level, partially compensating for weaker demand from producing countries and China.

© graphics: DIHK

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GSBM May 2016

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German-Saudi Business Magazine

German Breakfast and Catalogue Show 2016 Last year‘s huge success to be repeated

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ur combined German Breakfast and Catalogue Show were a huge success in the last years and enjoyed comprehensive coverage in Saudi Arabian and Bahraini newspapers. Therefore, we are proud to announce that the Catalogue Show will again take place this year in the following cities: in Riyadh (with German breakfast) on May 5, in Dammam on May 16., in Al-Jubail on May 17, in Manama, Bahrain (with German breakfast) on May 19 and finally ending in Jeddah (with German breakfast) on May 23.

The German Breakfast has an excellent reputation both in the Kingdom of Saudi Arabia and in the Kingdom of Bahrain. Since 2004 GESALO is successfully hosting the event exclusively meant for business guests covering various industries and the public sector. The breakfast is the major and exclusive platform for German as well as Saudi and Bahraini business people, CEOs and VIPs to get together, share experiences and ideas and to deepen existing relations.

The Catalogue Show was established in 2006 and turned out to be a great success over the years. It offers an outstanding opportunity for German companies to get in touch with the Saudi Arabian and Bahraini market. The Catalogue Show is aimed at companies that would like to enter the respective markets and at those companies that are already established and now seeking to extend their reach. The participating companies exhibit their catalogues and company profiles to a broad range of local companies.

GSBM May 2016

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German-Saudi Business Magazine

The Service Industry in Saudi Arabia and Bahrain cent success story in Saudi Arabia and about many more other German companies that are portrayed in our magazine for you to explore. As the hiring of foreign experts plays an important part in the transfer process of Know-How to Saudi Arabia, we have included an article by the German law experts Schlueter & Graf on secondment of German employees to Saudi Arabia. Another important legal matter is the revised Saudi companies law which shall come into force on May 2, 2016. Wajdi Edrees, a Saudi Arabian national and the Principal and Saudi Practicing Attorney of the Law Firm of Wajdi Edrees wrote a summary of the new regulations for our GSBM. The service industry is a main pillar of every developed nation. With both Saudi Arabia and Bahrain in a need to diversify their economies, which became more necessary lately, the outlook of this sector is quite promising. Saudi Arabia’s service imports rose from USD 76.6 billion in 2013 to USD 96,9 billion in 2014, Bahrain’s service imports valued USD 1.6 billion in 2013, whereas in 2012 the imports only accounted for USD 1.46 billion.

G

ermany is well known for its top quality products like machinery and cars, its high level scientific output or its many inventive talents. Yet there is another area in which German companies have high expertise in: the service industry, which is often referred to as the “tertiary sector”. The last issue of our German-Saudi Business Magazine, which was released in November 2015, covered the transport and logistics sector

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in particular, this issue will give you now a broader view of the expertise of German companies working in the tertiary sector in Saudi Arabia and Bahrain. You will read of Drees & Sommer’s activities for the sail tower at the Jeddah corniche, of TÜV Rheinland’s expertise testing and certification to guarantee the highest standards, of the successful work of logistics giant DB Schenker in Saudi Arabia for over 40 years, Deutsche Bank’s re-

As already portrayed in our February 2016 newsletter, Saudi Arabia’s information and communications technology (ICT) branch, which is expected to grow by 3.8 % in 2016 to reach a spending of approximately USD 36 billion. Spending on IT security will rise even more by 12 % as this is still an underdeveloped area in both Saudi Arabia and Bahrain.

German-Saudi Business Magazine

GESALO TALKS with Eng. Khaled Al Otaibi Interview with the Secretary General of the Council of Saudi Chambers ween our two countries, which will result in further enhancing our bilateral relations. Oehms: The Saudi-German Business Council plans having its next meeting in May 2016 in Germany. How do you see the current state of the bilateral relations, and what are your expectations for the upcoming meeting? Eng. Al Otaibi:

W

elcome to the first edition of GESALO TALKS. GESALO TALKS is a series of interviews with Saudi Arabian VIPs. Our first interview partner is Eng. Khalid Al Otaibi.

Eng. Khalid Al Otaibi is the Secretary General of the Council of Saudi Chambers (CSC). For GESALO, the CSC is an important partner, and the two organizations have been enjoying good relationships for many years. The new Delegate of German Industry and Commerce for Saudi Arabia, Bahrain and Yemen, Mr. Oliver Oehms, met Mr. Al Otaibi at the CSC premises and spoke with him about the successful cooperation between CSC and GESALO, future role and activities of the new Saudi-German Business Council, the service industry as well as the general economic developments in the Kingdom of Saudi Arabia. Oliver Oehms: Honorable Eng. Al Otaibi, it is a pleasure meeting you here at the Council of Saudi Chambers and I thank you for making this interview possible. GESALO and CSC are wor-

king closely together to support both Saudi and German businesspersons. Which, in your opinion, were the most meaningful projects and approaches in the past, and where do you see the business relations between our two countries require an extra push, if at all? Eng. Al Otaibi: Looking at our trade numbers, I would say that Saudi Arabia’s exports compared to its imports certainly need to improve. In 2014, our imports were estimated at approx. SAR 47.1 bn, compared to approx. SAR 1 bn in exports (only 2% of the total trade with Germany). The past indicates modesty in our exports, which can be overcome by having more information on the German market and its available opportunities, and creating trade partnerships between our respective business sectors. As for the future of our business relations, I’m optimistic considering the good political relations our two countries share, and the development plans the Kingdom is working to realize, which require obtaining high-tech German products (consumer and capital goods) in different economic sectors. There is also mutual interest to enhance trade bet-

Our current bilateral relations are excellent. Germany is the third largest trade partner to the Kingdom in terms of imports, with approx. SAR 47.1 bn in 2014 (more than $12.5 bn). Germany is also one of ten key trade partners to the Kingdom. Our trade volume is estimated at more than SAR 48.1 bn. Likewise; the Kingdom is the largest trade partner to Germany in the Middle East. There are around 120 German enterprises in the Saudi market. Moreover, the Kingdom and Germany signed several economic agreements that support mutual investments, including an agreement to support and protect investments. Alongside other measures taken by the two sides to enhance institutional relations, particularly in regards to bilateral trade and joint ventures between our respective private sectors, the two countries additionally signed agreements to facilitate challenges facing investors entering both countries’ markets. This is expected to be a topic of discussion on the agenda of the next meeting of the Saudi-German Business Council. Oehms: Saudi Arabia is going through an exciting process of economic diversification. This inevitably will lead to an expansion of the tertiary sector of industry - the service industry. Where do you see Saudi Arabia’s serGSBM May 2016

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German-Saudi Business Magazine

vice industry today and in the near future? Eng. Al Otaibi: The service industry has been growing distinctively over the last couple of years, with contribution to GDP (at current prices) increasing from approx. 40.6% in 2011 to approx. 60.4% in 2015. This is a result of national plans to enhance the healthcare, education and transportation sectors. In addition to trade, financial and tourism sectors in the Kingdom. Looking at tourism services for instance, many are unaware that the Kingdom has distinguished historic and touristic spots, beyond its deserts and urban life. In fact, there are several coastal lakes, and archaeological sites in Northern and Southern Saudi Arabia. In addition to the religious tourism and its related hospitality and transportation services, as well as the financial services, which are all key parts of Saudi economy. During Hajj (Pilgrimage) season, the Kingdom attracts over about 1.4million people in 10 days from outside the country, and the same number from inside the country. There are other services, related and unrelated to the tourism sector. In the near future as we approach the completion of the expansion of the holy mosque in Mecca to attract more visitors, the service industry’s contribution to economy will increase. Moreover, the completion of the railway network plans to link Eastern and Western Saudi Arabia, and the increase in commodity transportation from Jeddah and Yanbu ports in Western Saudi to other GCC countries in the East will increase the contribution of the service industry to national economy, be it financial, transportation, or tourism services. Oehms: Saudi Arabia is often considered as being in a difficult position, due to the low oil price. Usually challenging times like these give birth to forward-looking developments. If you

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look five or ten years ahead from now, how will the Kingdom’s economy look like, and what new opportunities will emerge? Eng. Al Otaibi: Surrendering to unpredictable external variables, such as the decline in oil prices, is what makes such predicaments even more challenging. But we have been fully aware of changes in international oil prices and how to deal with these changes for years now. This was not the first time that we have seen a sharp decline in oil prices, as we learned from the economic cycle. Prices will not remain constantly high. Therefore, both the government and private sectors in the Kingdom have been dedicating great efforts to support and implement strategies that lead to diversification of income resources, and lowering reliance on the oil industry. The decline in oil prices has perhaps pushed us to accelerate implementing diversification and expansion of our base beyond oil revenues. There is no doubt that oil is a significant part of the Kingdom’s economic power, however, it is not the only resource. We have other nonoil sectors, including manufacturing, services, and agriculture, which all contribute to the national economic development process. As for the Kingdom’s future and possible new opportunities, there is an ambitious national transformation program, which aims at achieving a diverse economy that relies more on productive and service industries. This can be realized through efficient use of the large national economic and human resources, better government performance, and sustaining development of the healthcare, education, and infrastructure sectors, and supporting national products through the local content policy in different economic sectors. Opportunities are available beyond oil and non-renewable energy. There are great opportunities to produce renewable energy (solar and wind energy) while simultaneously increase diversification of income resources and oil prices in the near future.

Oehms: Last but not least, if you had the chance for a sales pitch to a potential German investor, what would be your main argument convincing him to take his money to the Kingdom? Eng. Al Otaibi: Incentives are plenty. It is not an exaggeration to say the Kingdom has all the factors to attract foreign investments. We have political and economic stability, which are key attractions to any investor. There are no problems in exchange rates, and no restrictions on capital transfers in and outside the country. Full ownership is available. Investment regulations and infrastructures are continually developed. We have surpluses to finance investments, and a large support by the government to these investments, including offering affordable land rentals at industrial cities, and supporting energy and primary products. The kingdom has a large market with a high purchasing power, which facilitates selling products and increasing profitability. Given its location, the Kingdom also allows the opportunity to export to GCC countries and, in turn, increase personal incomes in these countries. It is also a gateway to the enormously populated Middle East region. I would like to point out to a very important element, which is government incentives in financing industrial enterprises. Financing has increased from 50% of total enterprise costs to 75% for enterprises in promising industrial regions, with payback periods extended up to 20 years instead of 15 years. Thus, there are development plans for all regions of the Kingdom (a total area of 2m sq km), whether these regions are established or require attracting more investments. Oehms: Dear Eng. Al Otaibi, thank you again for the interview. I am looking forward to the future cooperation of CSC and GESALO!

Bahrain Special

German-Saudi Business Magazine

BAHRAIN SPECIAL

Contact German Desk c/o Asharqia Chamber of Commerce & Industry - Main Branch, First Floor Mr. Jan Lutz Mueller 6701 King Fahad Road (Dammam-Khobar Highway), Al Hussam Dammam 34223 Phone: +966 13 3470689 Ext. 1525 Email: [email protected]

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Bahrain Special

German-Saudi Business Magazine

BAHRAIN With a population of 1.3 Mio. the Kingdom of Bahrain is the smallest of the GCC member states. But with its good infrastructure, low taxes, easy procedures and good educated population it is a very interesting location for investments in the Middle East and North Africa (MENA) region. GESALO serves its clients from Bahrain and German companies doing business in Bahrain with our German Desk located in Dammam. The head of our German Desk, Mr. Jan Lutz Mueller, stands ready to help you with all your inquiries regarding your business not only in Bahrain but also in the Saudi Arabian Eastern Province!

SMS Group in Bahrain German SMS Group opens regional office in Bahrain Group, part of German SMS SitsMS Holding GmbH, today announced decision to increase its presence

in Bahrain. The company is upgrading its office formerly known as SMS Meer to SMS Technical Service Gulf SPC office to cover technical service support for its large Middle East customer base. The Bahrain Economic Development Board (EDB) has been instrumental in the establishment of SMS Technical Service Gulf SPC and in supporting the company relocating 50 employees to the Kingdom. Mr. Khalid Al Rumaihi, Chief Executive of the EDB, commented on the office opening: „We are delighted to be able to continue our support to SMS Group and its subsidiary companies in developing and strengthening their regional operations. The wider Gulf market is currently valued at $1.6 trillion and is estimated to reach $2 trillion by 2020 and Bahrain, strategically located at the heart of the GCC economy, is perfectly placed to help international investors access this lucrative market. „Bahrain has developed a businessfriendly environment that allows international companies to prosper. Its

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manufacturing sector, including its thriving downstream steel and aluminium production, placed the Kingdom as one of the pioneers in the industry and continues to attract international players wanting to benefit from its competitive advantages.“ Mr. Al Rumaihi attended the opening ceremony of the new SMS Group office along with H.E. Alfred Simms-Protz, the German Ambassador to Bahrain, Professor Pino Tesè, SMS Group Executive Vice President of Service, Siegfried Gruber, Managing Director of SMS Group and Jan Lutz Mueller, Head of the German Desk - GESALO.

Prof. Tesè commented on the announcement: „The Gulf region is one of the fastest-growing in the world and its rising demand for manufactured products means huge investment opportunities for manufacturing companies. Bahrain presents a number of benefits, not least a highly-talented, bilingual local workforce and we intend to invest in new staff to support us in our Middle East operations. We look forward to the next

chapter in our company’s growth and intend to work closely with the EDB, to ensure that it is a success.“ SMS Group’s announcement follows a growing number of German companies launching operations in Bahrain. SMS group, one of the leading global system suppliers of plants, machines and services along the entire metallurgical value chain opened its Bahrain office in 2012 and has since worked with companies including Sulb, Alba, Garmco, Balexco amongst other clients in the region. Earlier this year Armacell, a German-based leader in engineered foam and flexible foam for equipment insulation, announced plans to build a new manufacturing facility in Bahrain.

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German-Saudi Business Magazine

The Ritz-Carlton, Bahrain The Villas at The Ritz-Carlton, Bahrain

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et amidst lush gardens and overlooking the serene Manama Bay, the villas of The Ritz-Carlton, Bahrain bring home the signature sophistication of The Ritz-Carlton brand, imbued with an effortless coastal vibe. The outdoor area offers a verdant pathway to the sparkling waters of the Bay, enticing guests to long, lazy swims around the resort. Equipped with al fresco amenities, the villa also offers guests the chance to enjoy an outdoor barbeque with family and friends, while being attended to by their personal butler. Guests can also indulge in a luxurious spa experience without leaving the comfort of the villa – the spa will come to them! The enclosed outdoor area provides a naturally perfect backdrop to indulge in one of the spa’s signature treatments.

The Ritz-Carlton, Bahrain features 23 villas, each with its own swimming pool, private beach, and 24-hour lifestyle butler to provide the ultimate retreat for guests seeking total tranquility. Each villa offers living areas of generous proportions and eye-catching design; and the luxury guest rooms, though oldworld in design and decor, feature state-of-the-art technology so that guests can indulge in the best of both worlds. The villas feature three wellappointed bedrooms, a beautifullystyled living room, a spacious dining area and a fully equipped private kitchen. To tailor the lifestyle

experience to each guest, the hotel also offers the private services of a butler, who can provide a sophisticated blend of local knowledge and attentive service to make each villa stay a memorable one.

Enhancing the overall villa experience is the Rolls-Royce transportation from the airport and the Eastern Province of Saudi Arabia provided with every villa booking. The Rolls-Royce Experience Package is starting at BHD 1040++ per night for the three-bedroom villa and further includes daily internet access, complimentary two item of pressing daily and complimentary Club Lounge access. For information and reservations, please contact +973 1758 0000 or visit ritzcarlton.com/bahrain.

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German-Saudi Business Magazine

Bahrain Special

Gulf Air‘s Uwe Wriedt interviewed Interview with Gulf Air Country Manager Germany Mr. Uwe Wriedt

How important is Germany as a destination for Gulf Air? Germany is a key destination for Gulf Air as is the city of Frankfurt: as Europe’s third largest hub, Europe’s largest transfer airport and one of Europe‘s TOP three gateways. Alongside this, Frankfurt is one of Gulf Air’s most longstanding routes, one we have operated to for 30 years! It is one of Europe’s most important business hubs, a critical economic and financial center that is closely linked to the Kingdom of Bahrain’s financial sector. From a client’s aspect, on what is Gulf Air focusing the most?

What is Gulf Air’s biggest challenge in 2016? Gulf Air operates in a highly competitive environment within which the airline is driven towards realizing commercial sustainability. Progressively improving business results over the past 3 years have reduced the airline’s financial losses by approximately 85% since 2012 and, today, Gulf Air’s strategic direction has shifted – with positive KPIs all around that are a sure sign of its ongoing recovery and a permanent, positive change in its financial trajectory. To stay on its current positive trajectory towards long-term commercial sustainability the airline needs to continue to evolve and adapt to its operating environment. As such, we need to be highly flexible and agile in our decision making – whether that is in our fare promotions, product and service offering, fleet en-

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hancements, schedule improvement or network expansion going forward. Which three most important goals would you name for Gulf Air in Germany in 2016? 1. Continued growth of our Middle East and Asia market, giving our passengers greater destination choices, more flexible schedule and frequency offerings and an enhanced product and service to a variety of cities across the Middle East and Asia regions 2. Expansion of our corporate database – ensuring we have a greater number of corporate customers that are attracted to, and retained by, our flexible corporate pricing strategy 3. Greater awareness and brand recognition of Gulf Air in Germany – via a wide spectrum of marketing activities

Gulf Air’s is focused on continually enhancing and improving the overall passenger experience and doing so every step of the way (both on the ground and in the air – across a variety of customer touch points). This includes focusing on its on time performance (globally ranked as one of the highest in punctuality), its product offering (fully flatbed seats onboard its premium cabin and continually upgraded aircraft interiors for greater passenger comfort) and its network and frequency offering (Gulf Air operates one of the largest Middle East networks, with double daily flights or more to 10 regional cities, in addition to select destinations in the Indian Subcontinent and Europe, from its hub at Bahrain International Airport. The airline currently boasts a network that serves 43 cities in 24 countries spanning three continents) to name a few. Renowned for its traditional Arabian hospitality, evidenced by the Gulf Air’s signature family and business friendly products, Bahrain’s national carrier is committed to being an industry leader and developing products and services that reflect the evolving needs and aspirations

Bahrain Special of its passengers. As the Kingdom of Bahrain’s national carrier we are a global ambassador for our country, whether with dedicated IFE offerings of traditional and modern Bahraini programming, classical workings of Bahraini music playing on board our aircraft, or the traditional Arabian hospitality we deliver to all our passengers. How important is the Saudi Arabian market for Gulf Air in Germany? The Saudi Arabian market has always been a key market for Gulf Air and, undoubtedly, one of the key markets for Gulf Air in Germany. With daily flights from Frankfurt to Bahrain and over 80 weekly flights to the airline’s five destinations in

combined total of USD7.6 billion. The orders consist of 16 Boeing 787-9 Dreamliners (for its long haul operations), 17 Airbus A321neo and 12 Airbus A320neo aircraft with deliveries commencing from Q2 2018. The planned new Airbus fleet will cater to Gulf Air’s regional schedule and high frequency MENA network movement – including, but not limited to, the Saudi Arabian market. Which benefits does Gulf Air offer its customers? Gulf Air passengers enjoy a number of added benefits when travelling with Bahrain’s national carrier. Gulf Air is an award-winning, family friendly airline with specially trai-

the Kingdom of Saudi Arabia, the connection is visibly very strong and continues to be enhanced. Furthermore, 2015 saw a marked increase in the number of passengers flying from Frankfurt to Gulf Air’s five Saudi destinations via the Kingdom of Bahrain; this is definitely a positive trend for Gulf Air.

ned Sky Nannies on board that are available to take care of children inflight and ensure a stress-free journey for all. That’s not all, Gulf Air’s on-board Sky Chefs will consult on menu selections, offering a range of European and Middle Eastern delights tailored to passengers’ tastes and preferences.

Alongside this, the airline’s forward-looking strategic direction encompasses fleet developments to cater to future network and capacity enhancement and fleet modernization. Gulf Air recently announced restructured orders of 45 aircraft with Boeing and Airbus in deals worth a

Gulf Air’s frequent travelers can join the airline’s Falconflyer Programme where they can earn miles whenever they fly on Gulf Air or on codeshare services with Gulf Air flight numbers. Falconflyer miles are redeemable and membership benefits include excess baggage, lounge access and seat up-

German-Saudi Business Magazine

grade. Gulf Air’s premium offering, Falcon Gold Class, allows travelers to enjoy First Class features such as flatbed seats with massage functions or our dedicated Sky Chef and Sky Nanny services: all at a Business Class price. Also, especially in Frankfurt, passengers can enjoy quick and personal service from our professional team. Do you think the number of passengers from FRA to BAH will increase, due to German companies’ growing interest in investing in Bahrain? Investing in Bahrain is an attractive proposition to German and foreign businesses and there is great potential for future business partnerships

and investments. Beyond that, Bahrain is garnering recognition globally as a tourist destination whether for hosting world class events such as the Formula 1 Grand Prix or due to the growing awareness of its many historic and cultural sights and activities. We anticipate positive trends and greater passenger traffic between Frankfurt and Bahrain going forward – both leisure and business traffic.

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German-Saudi Business Magazine

Bahrain Special

SCHMIDT ME Logistics in Bahrain New logistics hub opened In May 2016, it is intended to go live with the new SCHMIDT logistics HUB at Bahrain. SCHMIDT has decided to build and operate a HUB for dry bulk goods under the name of SCHMIDT Logistics Bahrain S.P.C in cooperation with NOGAHOLDING. With this HUB SCHMIDT is about to address the sharply increasing need for dry bulk solutions across the Middle East as a result of rapid growth in chemical manufacturing in the region. The service portfolio covers the processing of international import and export cargoes, handling, trans-

Key figures of the HUB: Terminal Surface: Covered storage: AC storage: Container storage: Silos: Silo storage capacity:

shipment and storage/warehousing of both packaged and bulk goods.

The HUB includes a tilting platform for containers filled with bulk material. The containers can be refilled into road tankers or the SCHMIDT own silo battery. So this will avoid demurrage and detention and is the ideal location for safe storage.

Dr. Wolfgang Hoppmann, CEO of SCHMIDT ME Logistics

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36,000 cbm 7,000 cbm 3,000 cbm 1,000 TEU 5 á 400 cbm 2,000 cbm

“We see a Bahrain Hub as a strategic decision to increase our geographical possibilities and expand our logistics portfolio,” says Dr. Hoppmann, CEO of SCHMIDT Middle East Logistics.

“Furthermore we see it as a great challenge to develop the best Dry Bulk Logistics solutions for the petrochemical and chemical industries throughout the Middle East.” value-added solutions with special equipment are key characteristics of the SCHMIDT-service portfolio. NOGAHOLDING is the investment and business development arm of NOGA, the National Oil and Gas Authority of the Kingdom of Bahrain. (www.nogaholding.com) SCHMIDT is a leading European dry bulk chemical logistics provider (www.schmidt-group.de)

Strong Bonds Infinite Possibilities.

Saudi Arabia and Germany have excellent diplomatic and business relations. We wish both nations continued success in expanding mutual cooperation in economic, technological, and industrial areas. Detecon Al Saudia (Detasad) is a clear example of successful Saudi-German cooperation. More than 30 years of mutual success that highlights the effective implementation of German-engineered telecommunication infrastructure solutions that will reflect on the future of Saudi Arabia. Detecon Al Saudia – We make ICT infrastructures work

www.detasad.com.sa

German-Saudi Business Magazine

DB Schenker Saudi Arabia Your prime logistics partner in the Kingdom - for over 40 years

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he beginning of DB Schenker in Schenker as freight forwarder for Saudi Arabia has not only helped the King Abdulaziz International Airto create a Jeddah landmark which port construction project in Jeddah. nearly every This project visitor to lay ground Jeddah is to what has passing but now devehas also set loped into a the tone for market-leathe future ding, statedevelopment of-the-art of this comlogistics sopany and it’s lution and capabilities. transport A success service prostory that vider in the began back 2011, Tampering Machines ex Austria for Kingdom. in 1975 when North South Railway Project No matter a German if you want construction company appointed to build airports, move complete

factories from other continents, move a 1000 tons boiler for the chemical industry, need us to store consumer goods on 40.000sqm for delivery to your point of sales in the Kingdom, want to ship 1 Container from Shanghai to Dammam or simply want to build a 180km metro system from scratch – Schenker Saudi Arabia has the people, knowledge and expertise to support every possible transport your business and project requires.

2012, Petrochemical Plant in Jubail, 155 tons

Schenker Saudi Arabia Milestones 1975 DB Schenker opened its 1st Branch in the Kingdom of Saudi Arabia in Jeddah as a Project Support Branch Office for the construction of Jeddah International Airport Project volume: 820.000 F/Tons. 1988 DB Schenker opened its 2nd Branch in the Kingdom of Saudi Arabia in Riyadh. 2004 DB Schenker opened its 3rd Branch in the Kingdom of Saudi Arabia in Dammam as a Project Support Branch Office for the SAFCO 4 Udhe-Ammonia plant project in Al Jubail. 2006 DB Schenker appointed as Freight Forwarder for Saudi Youth Welfare organization during the FIFA World cup in Germany. 2007 DB Schenker started its own ocean freight consolidation (LCL) to Dammam. DB Schenker expanded its own ocean freight consolidation services (LCL) to

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Jeddah. DB Schenker opened its own dedicated CFS (Container Freight Solution) in Jeddah Free zone/ JBRZ. 2008 Appointed freight forwarder for Saudi Olympic Committee.

2015 3 warehouse facilities with a total footprint of 75,000 SQM in Jeddah is giving DB Schenker Saudi Arabia a comprehensive logistics footprint and shows its capabilities in this field. 2016 DB Schenker appoints new Managing Director Mr. Marcel Mueller-Heywes, based in Riyadh.

2009 Establishment of Schenker Saudi Arabia LLC as 100% Schenker owned foreign inMore things to come! vestment. DB Schenker opens 3 sales offices in Saudi Arabia: Riyadh, Jeddah, Dammam. Schenker Saudi Arabia opens 2nd own dediDB Schenker Saudi Arabia Footprint cated CFS (Container Freight Station) in DamBranches: Riyadh, Jeddah, mam Free zone/DBRZ. Dammam, Jubail 2012 DB Schenker establishes business units Contract Logistics and Supply Chain Solutions

Global Projekt OIl&Gas Office: Dammam Corporate Office: Riyadh FTEs: 200 Warehouse Space: 75.000 sqm

German-Saudi Business Magazine

DETECON Telecommunications, VSAT and ICT services for Saudi Arabia tions and maintenance contractor for Saudi Telecom Company (Managed Services Transport) and CITC (Frequency Management). We support several major Saudi companies and governmental institutions such as STC and Mobily with fiber optical cable installations. Detecon Al Saudia was one of the first satellite service providers in the Kingdom of Saudi Arabia and operates more

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stablished in 1982, Detecon Al Saudia Co. Ltd. (DETASAD) is a joint venture between the FAL Holdings Arabia Co. Ltd. and Detecon Consulting International GmbH, the consulting subsidiary of Deutsche Telekom AG. Under a German senior management team, DETASAD currently employs more than 1,500 people and features a longstanding reputation as a reliable telecommunications, VSAT and ICT service provider in Saudi Arabia.

DETASAD is the preferred opera-

meet the high standards of the German auditing body, TÜV-IT GmbH. Since its official launch, the Data Center has operated without any outage and serves as a secure disaster recovery facility for major governmental agencies, companies, and international financial institutions. Through our MPLS network built on multiple carriers and using rented Tier III data center capacity, we can offer high availability colocation services. DETASAD offers premium cloud computing (OpenStack, VMware, Hyper-V) and managed security services (Dell SecureWorks, Zenedge). Our portfolio includes IaaS as well as SaaS, e.g. MS-Sharepoint, MS-Exchange, MSDynamics CRM and ServiceNow. Our dedicated approach towards quality and delivery is substantiated by continuous 24x7 support operations as well as our certifications (ISO 9000:2008, ISO 27001:2013 and „Trusted Infrastructure Site Level 3 Extended“).

than 4000 VSAT units from its two Saudi teleports. DETASAD supports a range of medium to large enterprise clients from various business sectors such as Contact telecommunications, banking, oil & gas exDetecon Al Saudia Co. Ltd. ploration, agricultural and manufacturing P.O. Box 22135 with VSAT, data and Riyadh 11495 internet links. Kingdom of Saudi Arabia In 2010, Detecon Al Saudia built its Data www.detasad.com.sa Center in Riyadh to

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German-Saudi Business Magazine

Deutsche Bank A trusted partner in Saudi Arabia

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he Kingdom of Saudi Arabia (KSA) is in a state of economic transition. With oil prices having decreased to around USD 35 a barrel (at time of writing) from over USD 90 a barrel in June 2014, the government is rationalizing spending, reconsidering investment programs and contemplating various funding initiatives. In a sign of the KSA’s willingness to embrace international foreign investment and increase the sophistication of its’ capital markets, in June 2015, it opened its USD 590 billion equity market to qualified foreign investors for the first time. In a further sign of this need to embrace reform, the government’s National Transformation Program will focus on ways to boost economic growth, create jobs and attract private investors. A McKinsey report in December said Saudi Arabia needs public and private investments of as much as USD 4 trillion to boost productivity and create jobs, and can’t afford to wait for oil prices to recover. Now more than ever before, foreign companies looking to enter the Saudi market need a banking partner with a strong local presence, proven track record and the requisite expertise to navigate this evolving environment. Deutsche Bank’s expertise makes it an ideal partner to help clients explore Saudi Arabia‘s vast opportunities. Deutsche Bank has been present in the Kingdom since 2006 and has been working closely with the Saudi Capital Market Authority (CMA) since establishing its securities arm Deutsche Securities Saudi Arabia in 2007. According to Jamal Al Kishi, Deutsche Bank’s Chief Executive Officer in the Middle East and Africa, this partnership enabled Deutsche Bank to share its global expertise and help shape the market liberalisation process – while simultaneously familiarising itself with the new regime so it could build the necessary expertise and infrastructure. The result is that through crossdivisional collaboration, Deutsche

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Bank is one of very few international institutions providing brokerage, research, sales, trading and custody services to foreign investors. “We invested in the local platform to be a genuine and well-equipped organisation to originate and execute business, and to cover clients in a comprehensive way”, said Al Kishi. “Our peers in Saudi Arabia for the most part have taken a different

Jamal Al Kishi, CEO Deutsche Bank Middle East

approach to their business model. They’ve installed small, coverage offices, for their offshore businesses. Deutsche Bank on the other hand has a very meaningful onshore business. Today we are composed of all the major divisions with the exception of retail banking, but everything else that Deutsche Bank does globally, we can do onshore in the Kingdom. This is a powerful proposition to our clients.” The Bank is fully licensed by the commercial banking regulator (SAMA) as well as the securities regulator (CMA). It has two legal entities fully owned by Deutsche Bank AG. Both are very well capitalised compared to peers in the market. “That enables us to have the flexibility to underwrite and conduct a lot of business that our peers cannot do”, Al Kishi said.

The cross-divisional offering is another factor that differentiates Deutsche Bank: “With our front-to-back expertise, established track record, strong onshore presence and commitment to the Saudi market, Deutsche Bank is in an excellent position to guide foreign institutions looking to invest in the Middle East’s largest market.” For Al Kishi, the evolution of the Saudi economy and subsequent market liberalisation activity could have ramifications for the whole region. “The ability of foreign investors to come in and invest in Saudi Arabia raises the profile of the wider Middle East and will attract more interest from investors who in the past may have looked at the Middle East and Gulf countries but perhaps did not see the scale that would render markets here of sufficient size and importance from their perspective. With the inclusion of Saudi Arabia in the picture the scale of change and I suspect the amount of interest in and profile of Gulf investments will elevate.” For multinational companies invested and operating in Saudi Arabia Deutsche Bank provides a wide range of services through its Global Transaction Banking platform. These include, among other things, trade finance, cash management, foreign exchange and custody services. Clients benefit greatly from Deutsche Bank‘s global footprint and presence in key markets for exporters and importers.

Contact

Deutsche Bank AG Dubai (DIFC) Branch P.O. Box 504902 Dubai United Arab Emirates www.db.com/mea/

German-Saudi Business Magazine

Drees & Sommer Consulting, Planning, Construction and Operation representative, consultant and project manager, and as the interface between the customer, planners, and contractors to ensure smooth progress of construction and economic realization of the project. Headquartered in Stuttgart, the company was founded in 1970 and works with multinational teams. Drees & Sommer combines German engineering expertise with the necessary experience and sensitivity with respect to local requirements and value systems. In addition, staff can call on the expertise of 2,000 employees in 20 German and 18 international locations, thus increasing capacity within a very short time. Thanks to the broad network of offices, experts can reach clients at any site and guarantee high quality. Services in the portfolio include project preparation with feasibility studies, project strategies and project reports, as well as construction project management, and technical project management with technical & economic consulting. Business consulting services include advising on lean structures and ensuring efficient operation through their extensive facility management expertise. In all projects, the prime focus is on profitability. On this basis, Drees & Sommer realizes real estate projects to the desired quality and within the prescribed timeframe. Clients benefit from plannable investments.

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or more than ten years, Drees & Sommer has been supporting real estate investors and principals on the Arabian peninsula with all aspects of real estate. For example, local teams of experts undertake client representation on site. Office building construction and fitout are among the key activities. From the initial consultation and planning to quality implementation on schedule and within budget, the engineers, consultants and architects are there to assist and advise international and local clients.

Today the company has over 45 employees in its offices in Riyadh, Jeddah and Dubai. The experts successfully support infrastructure and construction projects of any type and scale. These include project management for the Sail Tower in Jeddah on the Red Sea coast, which – at 260 meters – will be the tallest building on the Corniche, and project management and organizational support for a residential developer. Drees & Sommer is supporting these projects right through to turnkey handover to the principal. The consulting firm will act as the principal’s

Photo: Perkinks & Will

Contact Drees & Sommer Consulting Engineering King Fahd Road - Olaya P.O. Box 16226 Riyadh 11464 Kingdom of Saudi Arabia Phone +966 11 4005209 Fax +966 11 2034266 [email protected] GSBM May 2016

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German-Saudi Business Magazine

FAHSS / TÜV NORD Industry, Construction, Certification and more

• Industry Oil & gas, power, transportation, process and manufacturing industries. Fahss TUV NORD helps clients in all industrial sectors preserve the safety, reliability and integrity of their assets, and conform to national and international standards and voluntary QHSE standards. Our inspection, certification and non-destructive testing services, deployed globally, cover supply chain integrity and the life cycle of assets, from design through construction, operation and

cally during their useful life. We also analyze air and water quality. The aim: to ensure the safety and performance of buildings, environmental protection, and business continuity • Construction Residential, commercial and industrial buildings and installations, public facilities and infrastructures. Fahss TUV NORD services provide reassurance that structures are safe, compliant and energy-efficient. They span the life of a building, from assessments at design stage through technical inspections during construction, and environmental and technical due diligence prior to sale to an investor. We seek to go beyond compliance, providing added-value services that improve building performance. • Certification

decommissioning. • In-Service Inspection & Verification Building equipment in operation, and environmental analysis. Building occupiers have to comply with numerous regulations. We inspect equipment and installations, from elevators and electrical installations to fire safety systems, before they are put in service, and periodi-

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International QHSE standards, sector-specific management systems, and sustainability practices. Companies looking to manage risk drive performance and demonstrate excellence in their management systems turn to certification by Fahss TUV NORD. Accredited by over 79 bodies internationally, our global reach has made us the partner of choice for multinational companies looking to certify systems worldwide to QHSE standards. We also offer sector-specific solutions and the verification of sustainability practices. • Commodities Oil and petrochemicals, metals and minerals, coal, agriculture.

Jamal Al-Baeejan, CEO FAHSS TÜV Nord

Fahss TUV NORD partners commodities clients along the value chain, from exploration and mining through to shipment, transformation and trading. Our inspection, sampling and testing services provide confidence in the composition, quality and quantity of commodities, and minimize risk during cargo storage and transportation. • Marine & Offshore New build and in-service ships, offshore oil and gas platforms, and vessels and maritime equipment. Fahss TUV NORD supports safety and performance at sea through a range of classification, certification and advisory services. Ship owners and operators rely on our expertise from design stage, and throughout construction and operation to assess and manage risk. We are supporting the energy industry’s move into deeper waters and harsher climates with our new rules and industry-leading research.

Contact Head Office FAHSS/TÜV Nord P O Box 3998 Dammam 31481 Kingdom of Saudi Arabia Phone +966 13 840-8333 Fax +966 13 840-6476 www.fahsstuv.com

German-Saudi Business Magazine

LUCAS-NÜLLE Technical Training Systems Made In Germany

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ucas-Nülle stands for tailor-made Engineering Training Systems since 1973. We provide complete training concepts and solutions for electrical/ electronic engineering, automation technology, mechatronics, communications, drives and automotive technology. All training systems come together with comprehensive PC based training courses which run in the LabSoft environment. Together with the LabSoft Classroommanager comfortable and time-saving administration of courses, students and classes can be made. Alternatively all LabSoft training courses can be integrated into many SCORM compatible (LMS) learning management systems. Relying strongly on our in-house development and production Lucas-Nülle delivers highly sophisticated, state-of-theart quality systems for more than one hundred countries worldwide.

Our core services include consultation and planning for the construction and installation of training centers. Additional value is added for our customers through specialized training seminars and intensive after sales service.

With its long-term international expertise, high customer satisfaction and most innovative products LucasNülle stands out as global market leader.

Contact Lucas-Nülle GmbH Mr. Sebastian Neumann Siemensstraße 2 50170 Kerpen Germany sebastian.neumann@ lucas-nuelle.com www.lucas-nuelle.com 30 GSBM May 2016

German-Saudi Business Magazine

Munich Airport Over 20 years of International Consulting Experience

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ince 1949, Flughafen München GmbH (FMG), the operator of Munich Airport, has established an excellent reputation in the aviation industry. This is partly a reflection of the unparalleled development of Munich Airport from its beginnings in 1992. At that date, the master plan of the 70s which is still the planning baseline for infrastructure development at Munich Airport reflected an efficient and operationally driven approach with the goal of developing one of the most efficient, profitable and high-quality airports worldwide. In 2015, Munich was honored as Europe’s first “five-star-airport” by the London-based Skytrax Institute. This prestigious designation denotes Munich Airport’s extraordinary quality of service, efficiency of processes, and passenger comfort. Further, the airport is recognized as one of the most punctual and efficient hub systems and was just awarded “Best Airport in Europe” by more than 13 million passengers worldwide (Skytrax World Airport Awards 2016). The know-how and operational success of Germany’s second busiest airport attracted various airports worldwide and hence FMG has been providing consultancy services to international airport operators since 1995. FMG is not only the global market leader in ORAT (Operational Readiness and Airport Transfer) but also offers a range of consulting and management services based on the experience and expert knowledge of all FMG Group divisions. This is almost unrivaled in the market because FMG works with its clients as equals – from one airport operating company to another. Through years of operational experience, FMG‘s experts un-

derstand the day-to-day challenges of running an airport. This enables them to provide targeted support for all issues that arise from the planning phase of an airport or a terminal via the testing, commissioning and handover to the ongoing operation and management of airports and terminals. For almost 10 years Mu-

Dr. Ralf Gaffal (© Flughafen München)

nich Airport supports clients in the Middle East and Saudi Arabia and is looking forward to expanding its business and business relationships in this region of the world: Riyadh King Khalid Int. Airport, Saudi Arabia Arrival Transformation Process 10/2014 – 05/2015 Transformation of international arrival processes. To perform the scope, FMG responded to 4 streams (Business Stream, Strategy Stream, IT Stream and Human Resource Stream). Muscat Int. Airport & Salalah Airport, Oman ORAT, Operational & Management Training Since 11/2010 FMG provides operational readiness support to the stakeholders of Muscat and Salalah airport. The main tasks are to assist the stakeholders, to produce standard operating procedures, review recruitment of new employees as well as coordinate the huge amount of training that is required for all staff operating in the new airports. New Doha Int. Airport, Qatar ATC Management 09/2011 – 07/2013 FMG provided support services with experts from Munich after the on-time transition from the old air-

port and the successful opening of the new airport. Comprehensive understanding of procedures and interfaces as well as an in-depth knowledge of the new systems and infrastructure. Bahrain Int. Airport, Bahrain Concept Design Review 04/2014 – 05/2014 Review of the preliminary conceptual design for the new terminal from an operational and commercial perspective. This helps in internal decision-making processes andgives a resilient and comprehensible demonstration of the validity of the planned terminal qualities. Bahrain Int. Airport, Bahrain Airport Management 07/2009-12/2011 FMG advised Bahrain Airport Company on strategic and management level to improve the service level of BIA. King Abdulaziz Int. Airport, Jeddah, Saudi Arabia IT, Management Services & Operational Support Since 04/ 2012 FMG supports its clients in airport ICT infrastructure planning and operational airport systems integration. Hamad Int. Airport Doha, Qatar Opening of Airport Mai 2014 FMG supported the client in smooth and successful opening of the airport. Transition of New Doha Int. Airport Project into successful opening of Hamad Int. Airport. Munich Airport’s main goal is to enhance customer satisfaction. In line with this, all members of the consulting team are eager to provide the clients with tailor-made solutions. Further, FMG continuously strives to widen its product portfolio and to improve its support services.

Contact Flughafen München GmbH Nordallee 25, 85326 München Germany [email protected] munich-airport.de/consulting GSBM May 2016

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German-Saudi Business Magazine

TÜV Rheinland Arabia LLC TÜV Rheinland‘s Goal is to be the World‘s best provider of technical services fpr testing, inspection, certification, consultation and training.

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ÜV Rheinland is a global leader in independent inspection services, founded more than 140 years ago.

a member of the United Nations Global Compact to promote sustainability and combat corruption. TÜV Rheinland Arabia – a subsi-

spare parts and electrical appliances for the first time in Saudi Arabia and in the Middle East. To serve the needs of importers and exporters of different sectors such as Automotive, Electrical products, IT, Telecom, and other businesses, TÜV Rheinland also offers certificate of conformity services for Saudi Arabia, Kuwait, Iraq and other countries in the Middle East. TÜV Rheinland is an approved conformity assessment body by Saudi Arabian authorities and hence, provides services to importers and exporters for conformity assessment of their products for Saudi Arabian market. At TÜV Rheinland, the 10th principal of UN Global compact formed the framework of our values. They promote sustainable actions and therefore serve as a guide for each and every of our employees. This applies in participation to human and labor rights, preservative and sustainable protection of the environment and combating corruption. Our services benefit the society in the following areas:

From left to right: Mr. Andreas Hoefer, Mr. Stephan Schmitt, Mr. Ulrich Meier, Mr. Nabeel Molla, Mr. Mohammad Al Dhakeel, Mr. Muhammad Asif inaugurating TÜV Rheinland Arabia Electrical and Auto spare parts Test centers.

The group maintains a presence in 69 countries with 19,300 employees. The independent experts stand for quality, efficiency and safety for people, technology and the environment in nearly all aspects of life. TÜV Rheinland inspects technical equipment, products and services, oversees projects and helps to shape processes for companies. Its experts train people in a wide range of careers and industries. To this end, TÜV Rheinland employs a global network of approved labs, testing and education centers. Since 2006, TÜV Rheinland has been

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diary of TÜV Rheinland group was established in Jeddah, Kingdom of Saudi Arabia, in 2005. It opened its branches in Riyadh in 2011, in Eastern province in 2013, Jubail and Pakistan offices in 2015. With the economic development and booming expansion of industrial projects in the Middle East region, TÜV Rheinland took the initiative to support local companies with its global service network. TÜV Rheinland Arabia expanded its worldwide capabilities by opening fully equipped Test Centre consisting of laboratories for testing the safety of automotive

Confidence in the end consumer --- Providing confidence to our customers in the quality and safety of products Tested by Us. Quality --- Assuring society the quality of the products and services Inspected by Us. Safety --- Instill the confidence among the end user regarding the safety of the products and services Certified by Us. Our Vision Our aim To become the most successful and sustainable global and independent

German-Saudi Business Magazine

TÜV Rheinland Arabia‘s Electrical and Automotive Spare Parts Test Centers.

Mr. Schmitt with H.E. Nabil Molla at inauguration of Electrical and Auto spare parts Test centers.

testing, inspection and certification (TIC) service provider ---- Stand alone and self – financed. Our corporate competencies Adding value to our customers by providing Services and solutions for safety, compliance and efficiencies Our ambition Profitable growth ---- faster than the market By using best-in-class processes

Contact TÜV Rheinland Arabia LLC Al Ruwais Dist. Al Andalus Street P.O. Box: 11488, Jeddah 21453 Kingdom of Saudi Arabia Mr. Muhammad Asif, CEO TÜV Rheinland Arabia

[email protected] www.tuv.com GSBM May 2016

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German-Saudi Business Magazine

When the going gets tough, the tough get going 40 Years of V-LINE in Saudi Arabia cipation to the on-going efforts and reforms will prosper,” Detlef Daues noted. The National Transformation Program has also set increasing employment as a priority. V-LINE has not only been increasingly availing employment opportunities, but equally encouraging other German companies to empower young Saudis. Joint efforts with the German-Saudi Arabian Liaison Office for Economic Affairs had led, for instance, to hold a two day workshop at V-LINE premises in Jubail, „Success Secrets for Saudi Women in Business“, to help Saudi women overcome the most challenging issues in cross-border business.

From left to right: Saudi Minister of Foreign Affairs Adel Al-Jubeir, German Secretary of State Frank-Walter Steinmeier and Detlev Daues, CEO of V-LINE.

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ast December, the Council of Economic and Development Affairs announced the National Transformation Program. Since that time, VLINE has been striving to implement various reforms with a major focus on total cost of ownership reduction. In parallel to its proven track record in providing Maintenance, Repair, and Operations (MRO) procurement services, V-LINE is in the verge of becoming a strategic partner of industrial customers across the Kingdom. For instance, the company held workshops that involved high-level executives with the aim of openly discussing challenges facing Saudi economy. These meetings have led to lay down the foundation of strategic transformation initiatives that will help customers achieve significant cost savings in their indirect procurement. In an ever-changing business climate, V-LINE has set as its priority to avail worldwide best practices in this complex field, reduce spend, improve assets availability, optimize inventory, and increase profitability. “At a time when the kingdom’s economy is going through tough chal-

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lenges, an increasing skepticism of doing business in Saudi Arabia has been resented. As the founder and CEO of V-LINE which has been present in the kingdom for nearly four decades, I strongly believe that stepping back or shying away at this very moment are out of consideration. The present difficulties will undoubtedly lead to the rebirth of a new economy. And only companies with deep commitment and active parti-

V-LINE is also planning to hold biannual job fairs around Europe and the United States of America by and for Saudis. Young talents will be identified, recruited, trained, and mentored in the company’s offices around the world. “I strongly believe that this initiative will provide universities graduates with endless opportunities. The acumen of such an experience will equip a new generation of Saudis with international exposure, knowledge, and skills to lead the country’s future social and economical endeavors,” Detlef Daues added. All in all, V-LINE’s vision is to keep on building innovative solutions for the entire supply chain of industrial spare parts. The company’s executives are confident that their strategy is in line with The National Transformation Program’s priorities. “Bringing more intelligence, transferring best practices, supporting supply chain excellence initiatives, and contributing in the creation of shared services centers in Saudi Arabia will boost the economic growth and create more jobs across the country,” Shahzad Haider concluded.

German-Saudi Business Magazine

Secondment of German employees to Arab Gulf States taking the Kingdom of Saudi Arabia as an example by Christoph Keimer, Lawyer | Qualified Labour Law Specialist - Legal Consultant Schlüter Graf Rechtsanwälte PartG mbH | Dortmund - Dubai - Riyadh - Doha Due to their huge oil and gas deposits, the Arab Gulf States (Saudi Arabia, UAE, Qatar, Oman, Bahrain and Kuwait) have been key business partners of industrial nations in Europe since the 1970s. In the beginning, trade relations dominated but in the meantime more and more foreign companies are required to be constantly present on-site in the fast developing Arab economic ar-ea. This is mainly attributable to the fact that large projects are advertised internationally. Con-sidering the local labour bottleneck, the secondment of German workforce has gained in im-portance in order to cover the growing demand for labour there. In view of such cross-border transfers, however, German companies/employers face considerable problems with labour law, right of residence, tax legislation and social insurance. These problems will be addressed in gen-eral and by taking the Kingdom of Saudi Arabia as an example.

A. Seconding German employees to Arab countries

1. Preparations for foreign assignments A German employee’s assignment to Arab countries (Saudi Arabia, in particular) starts with the selection of a suitable candidate in good time who meets all specific requirements. When select-ing the right employee, companies often make the first mistake. Bearing in mind that there is a different culture, language, climate and social environment, personal skills are of utmost im-portance. Having selected the appropriate candidates they (and their families) must be prepared carefully for their new and manifolded activities as part of an employers‘ general duty of care

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and (frequently overlooked) they should be supported throughout their time of secondment to ensure a smooth re-integration upon their return. 2. The “four legal pillars” of a secondment Legally, seconding a German employee is a complex procedure as besides aspects involving la-bour law and right of residence, social insurance and tax issues must be taken into consideration as well. This applies to both the home state and the host state and includes both operational and personal aspects of secondment. In case of Non-EU member states like the Arab countries, credi-ble information can’t simply be “googled”. As posting poses significant liability risks, in particu-lar, to an employer corresponding expertise will be required right from the beginning in order to perfectly coordinate and interlink different complexes in a way that makes sense economically. a. Right of residence First of all, a seconded employer has to find out if his employees are allowed to live and work in the respective country at all. As regards German employees this is basically no problem as far as the Gulf states are concerned. As in Germany, a work permit that is subject to certain prerequisites depending on the respective country is needed to obtain a residence visa/iqama. In this con-text, an employer would be well advised to obtain first-hand information about so-called nationalization programs (e.g. in Saudi Arabia the so-called Nitaqat Program in the course of saudiza-tion) now existing in all Arab Gulf states. One should break with one bad habit: starting to work on-site on the basis

of a visitor’s visa or a business visa. This is an illegal practice in all Arab Gulf states entailing serious consequences for the respective employee (worst case: detention or deportation) and his employer (liability). b. Labour law Both employer and employee should know in good time on which contractual basis a foreign assignment will be placed. In most cases, an existing German contract of employment is not enough to meet the requirements of a cross-border assignment. As a rule, a supplementary agreement (the typical secondment agreement) is added to the existing German contract of employment, with such agreement including all necessary provisions relevant to posting. Alternatively, the German contract of employment could be suspended for the duration of the secondment and a separate contract of employment could be concluded with the company’s local subsidiary/branch. Irrespective of that, in all Arab Gulf states it is still necessary that an employee enters into a local contract of employment with a local employer (the so-called „sponsor“) in order to obtain a work permit and residence visa. As such employment is subject to local laws, an accurate adjustment of the respective legal systems and contractual systems is required in advance. c. Social insurance Due to the complex issue most mistakes are made in this field. Is a relocated employee still subject to the German social insurance law? This question is of utmost importance to an employer, in particular, since a wrong payment of contributions means that social insurance authorities would not be required to pay

German-Saudi Business Magazine

in the (assumed) benefit case, and failure to pay contributions would result in significant supplementary claims by social insurance authorities. A recourse against an employee in this regard is excluded. As Germany has not concluded any social insurance agreements with Arab Gulf states so far, an employer is generally only subject to local social insurance laws unless the German provisions on social security systems apply mandatory („Ausstrahlung“) pursuant to Section 4, Vol. IV of the German Social Security Code (SGB IV). If these prerequi-sites ( (i) seconding an employee to another country, (ii) on the basis of an active employment existing in Germany, and (iii) up-front limitation of the secondment) exist, an employee man-datory continues to be in the German social insurance system - in addition to a mandatory local social insurance system. If there is no case of such mandatory insurance cover („Ausstrahlung“) abroad (or if such cover is not intended), there is the possibility of being voluntarily insuraned by nearly all German social insurance branches. This option is in any case recommended since local social insurance systems don’t meet German quality and payment standards. d. Tax legislation Except for Bahrain and the UAE, all Gulf states including Saudi Arabia have their own (active) tax systems. Irrespective of that there is no taxation of income from employment in any of the Gulf states. The risk that this type of income is taxed is therefore subject to German tax laws only the more so as Germany only concluded double-taxation agreements with the UAE and Kuwait which, however, do not/do no longer result in an exemption from taxes in Germany. According-ly, it is of utmost importance to an employer and employee posted from Germany to find out if he is still liable to pay tax in Germany especially as this would entail an employer’s liability to pay wage taxes in Germany. A posted employee’s global income will therefore remain subject to German taxation if he still has a residence („Wohnsitz“) or an habitual abode

(„gewöhnlicher Aufenthalt“) in Germany. Particularly an official notice of departure/de-registration is insufficient to abandon a tax residence. The point is: Does an employee have a flat/home that he could - even though theoretically - maintain and use in Germany during the time of his secondment? Maintaining a residence in Germany coinciding with a tax exemption would only be possible if an em-ployee is subject to the so-called „Decree on Employment Abroad“ („Auslandstätigkeitserlass“, formerly known as: “Montageerlass”). In this minefield, tax advice from experts is indispensable.

B. Specifics when seconding an employee to the Kingdom of Saudi Arabia

The above basics apply also to employees sent to Saudi Arabia, in particular. 1. Special social circumstances Posting an employee to Saudi Arabia exceeds by far an employer’s normal duties of care as far as a comprehensive preparation of the assignment is concerned. Even if an employer is under no obligation to address any possible detail, it is very much advisable to raise an employee’s awareness for many and partly large differences in law, taxation, social insurance, climate, state/ poli-tics, religion, culture, language, etc., by providing a detailed checklist and recommending third-party advice. 2. Application of German labour law/local labour law Even if trade unions and works constitution structures are (still) unknown and prohibited in Saudi Arabia, the German Works Constitution Act may apply to an employment of a posted employee. This must be taken into account in case of a transfer, dismissal and other similar measures taken by an employer. The continued validity of other standards under public law (i.e. Maternity Pro-

tection Act, protection of seriously disabled persons, etc.) would also be possible. Labour law regulations in Saudi Arabia, last materially reformed in 2015, are similar to those of other Gulf states. This particularly applies to the statutory claim for compensation of an employee upon ter-mination of employment („End of Service Benefit“). A protection from unwanted termination as existing in Germany (according to the Protection Against Unfair Dismissal Act with re-employment/reinstatement), however, is - at least for expatriates - unknown. Hence, a dismissal basically terminates the employment but, however, may lead to compensation claims especially of the employee. 3. Parental allowance / child allowance An employee seconded to Saudi Arabia is generally entitled to German parental allowance. Child allowance will only be paid if a child is resident or has at least a habitual abode in Germany. 4. Work permit, residence visa (iqama) and Nitaqat Prior to starting to work and enter in(to) Saudi Arabia, a German employee - being a non-Saudi citizen - must, through his local employer (sponsor), apply for a work permit (Ministry of Labor) and a residence permit (iqama) (Ministry of Interior). As a rule, they are valid for a period of two years. Visas or permits are not granted upon arrival but must be obtained in advance. Companies are required to register their employees with the Ministry of Interior before a residency permit (Iqama) can be issued. Each company is granted a certain quota of residency visas which varies from case to case. Employees may not work for anyone other than their sponsor, or on their own account, and sponsorship cannot be transferred until the employee has worked for their original sponsor for a specific period of time (unless exemptions under Nitaqat system apply). When applying for a working visa with the Saudi embassy in the home country of the employee (not di-rectly in Saudi Arabia), at least a GSBM May 2016

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basic contract of employment (not the secondment agreement) concluded with the Arab employer must be presented. Such contract should be bilingual and meet the requirements of Saudi labour laws. Formal contracts (as in the UAE) that must be presented to the competent authorities in Saudi Arabia are not (yet) mandatory (but under preparation). In June 2011 Saudi Arabia introduced a new Saudisation program called Nitaqat (Arabic for ‘categories’). The system works by categorizing each business in Saudi Arabia into a multitude of sectors with varying Saudisation requirements; the company’s employment performance is then determined based on the standards set out for its sector and the business is classified into one of four zones, namely red, yellow, green and premium/excellent. This classification depends on the level of the company’s compliance with the Saudisation requirement applicable to its sector and on the size of its workforce. Part of the Nitaqat program is a detailed list of quotas which are determined by the business sector and size of the business entity. Therefore, the (local) employer is well advised to comply as much and as fast as possible with these Saudisation rules in order to avoid irreconcilable obstacles in employing seconded employees in particular and doing business in Saudi Arabia in general. 5. Health check A German employee must undergo a health check in Germany and in Saudi Arabia. If a work permit and an iqama have been obtained, an employer may “sponsor” his family members, i.e. he can apply for residence permits for them. If he loses his work permit and his iqama (e.g. by ter-mination, etc.) his family’s permits will cancelled which me-

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ans that he and his family will have to leave the country within a short transitional/grace period.

to cause to be exempted from German taxation even when retaining his resi-dence in Germany (which is intended in many cases).

6. GOSI (General Organization for Social Insurance) membership GOSI membership is a prerequisite for an iqama. Accordingly, social insurance contributions are paid locally (not abroad) by the Saudi employer (for expats only health and accident insurance). Nevertheless, both the employee and the German employer should pay attention to an adequate insurance protection of the posted employee (by way of local insurances or insurances in Germany what should include accident insurance and third-party liability insurance, in particular).

To sum it up, it can be said that seconding an employee to Saudi Arabia is a complex procedure that should not be taken lightly by both parties especially due to liability reasons. Given a careful and timely planning, a „secondment project“, however, can be organized in compliance with all legal standards and both parties will benefit from such a project.

7. Taxes Germany has not yet concluded a treaty for the avoidance of double taxation with Saudi Arabia. Employees who are still resident in Germany must pay income tax in Germany, and an employer is required to pay wage tax in Germany if salaries are paid from Germany. Unless a German em-ployee is already subject to the Decree on Employment Abroad (1983, see above) he will only be exempted from German taxation when abandoning his residence in Germany. The Decree on Employment Abroad provides tax advantages for certain activities abroad such as planning, in-stallation, maintenance, etc. of factories, buildings, stationary machines and similar installations as well as the consultation of foreign clients/customers with regard to such activities. Such activities abroad must be performed for a minimum period of three months. In case of German companies being involved in large projects in Saudi Arabia an employee is in these cases given the (only) legal opportunity

Contact Schlüter Graf & Partners Legal Consultants Mr. Christoph Keimer P.O. Box: 29337, Dubai United Arab Emirates [email protected]

German-Saudi Business Magazine

Salient Features of the New Company Law of Saudi Arabia by Wajdi Edrees Introduction: For over a decade, the current Saudi Companies Law issued by Royal Decree No. (M/6) dated 22/3/1385 H (corresponding to 22/7/1965 AD) has been the subject of discussions by the private commercial sector and by various government bodies, particularly the Bureau of Experts at the Council of Ministers, the Shura (Consultative) Council, and the Ministry of Commerce and Industry (MOCI). Finally, those discussions and deliberations have resulted to a major legal development that is of great interest to the local business circle as well as to foreign investors. It was on November 9, 2015 that the Ministry of Commerce and Industry (MOCI) announced the issuance of the new Saudi Companies Law (NSCL) which shall come into effect 150 days from its publication in the Official Gazette which occurred on December 4, 2015. This 150-day period will end on May 2, 2016. The NSCL overhauled the existing Saudi Companies Law (ESCL). The Implementing Regulations of the NSCL will be issued in due course, by the Minister of Commerce and Industry and by the Capital Markets Authority (CMA). The members of the committee that drafted the NSCL up to its final form, could be seen to have adopted best practices in business law and corporate governance as the NSCL appeared to align Saudi Arabia’s responsibilities as a member of the World Trade Organization and the confirmation of its foundation in establishing the Saudi Arabian General Investment Authority (SAGIA) and the CMA. In fact, a full reading of the NSCL would convince every practicing lawyer to arrive at the conclusion that the NSCL has created an atmosphere conducive to both local and foreign companies, to enhance their goodwill, upgrade their commercial activities and, make their business operations one of the

key contributors to the economy of the Kingdom. The NSCL in General The NSCL is composed of 266 articles. Like in the ESCL, the Ministry of Commerce and Industry (“MOCI”) will continue its function as the primary regulator of Saudi companies. However, the authority to oversee Joint Stock Companies listed in the Saudi financial markets, has been entrusted to the Capital Markets Authority. Unlike in the ESCL, there are only five corporate forms under the NSCL. They are the (1) General Partnership, (2) Limited Partnership, (3) Joint Venture Company, (4) Joint Stock Company, and (5) Limited Liability Company. The (1) Cooperative Companies, Partnerships Limited by Shares, and (3) Variable Capital Companies that are found under the Old Law, have been eliminated and it will no longer be allowed to establish such companies. Companies that are currently existing that do not adopt one of either of the corporate forms under the NSCL, will become void. The partners will be jointly and severally liable for the obligations of the void company. Recent trends in information technology has paved the way in the adoption of the MOCI website as the official vehicle for the publication of Companies’ legal matters such as the Articles of Association, By-Laws and their amendments, instead of in the Official Gazette or in local dailies. The Formation of Companies • The minimum number of shareholders to form a Joint Stock Company (JSC) has been reduced from five to two. However, the government, public juristic persons, companies that are totally owned by the government, and companies with a capital

of not less than Saudi Arabian Riyals Five Million (SR 5,000,000), or approximately US$ 1.3 million, may incorporate a one-person JSC, with full authority of the shareholder’s assemblies, including the foundation assembly. Currently, two shareholders are • required to form a Limited Liability Company (LLC). This requirement has been reduced under the NSCL where only a single shareholder can form a LLC subject, however, to the following restrictions: a) It is not possible for a natural person to establish more than one single-shareholder LLC; b) A single-shareholder LLC may not in turn establish or own another single-shareholder LLC. Although it has not been expressly provided in the NSCL, it would appear possible for a juridical person to establish one or more single-shareholder LLCS. It is hoped that the Implementing Regulations will provide clarification on this aspect. Key Features of Joint Stock Companies • The minimum capitalization requited for JSCs has been reduced from SR 2,000,000 (or US$ 533,362) to SR 500,000 (or US$ 133,340). • The statutory reserve which needs to be put aside each year by the JSC is no longer needed once the reserve reaches 30% of the share capital, which used to be 50% of the share capital under the ESCL. • The number of the Board of Directors of a JSC should not be less than three and not more than 11. Owning by a member of the Board of Directors of a specified minimum number of shares of the relevant company will no longer be required. GSBM May 2016

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• In a scenario where the Chairman and Members of the Board of Directors of a JSC resign or if the General Assembly failed to constitute the Board of Directors by voting, the MOCI or the CMA (for listed companies), may, in the exercise of their sound discretion, step in and form a temporary committee to oversee the company with the appropriate experience, expertise, and number of members. • The holding of general meetings of shareholders and the participation of the shareholders in the deliberations and voting on decisions may now be conducted through modern technological means or communication methods in accordance with the existing regulations set out by the competent authority. This facility, however, does not appear to be available for LLC. • The CMA has the power to call for a general assembly in certain situations and to extend the lock-up period for share transfer from the founders of listed JSC to any third party. • An Audit Committee is required to be established to oversee the business of the JSC. The members of this Committee, consisting of between three and five members, may not be composed of executive members of the Board of Directors.

negotiable shares. • JSCs are permitted to purchase or mortgage their own shares subject to the rules set out by the competent authority. • Under any circumstance, if the JSC’s accumulated losses exceed 50% (it was 75% under the ESCL) of the company’s share capital, and the General Manager of the JSC or the Board does not call the shareholders to meet, or in case the shareholders failed to resolve to continue the company or dissolve it, the company shall dissolve by operation of law. • The first financial year should not be less than 6 months and not more than 18 months. • The par value of the share of a JSC is SR 10.00 (or US$ 2.67). Under the ESCL. It used to be SR 50 or (US$ 13.33), both conversions into US$ are as per the current exchange rate of Saudi Riyals to US Dollars. • Also, under the NSCL, an external auditor can be appointed for a continuous period of five years. It is possible for the external auditor to be reappointed after two years from the end of the five-year period. Key Features of Limited Liability Companies

• As regards voting rights, cumulative voting is permitted for the election of the Board of Directors provided that the voting rights per share would be used only once i.e., without duplication of votes. This new system introduced under the NSCL is bound to benefit the minority shareholders.

• The minimum number of shareholders in a Limited Liability Company (LLC) has been reduced, under the NSCL, from two to one. This development has been welcomed by most of the foreign investor as it reduces their burden of establishing a LLC with the mandatory presence of two shareholders.

• A restriction is imposed upon the Chairman of the Board of Directors where his position may not be combined with any other executive position. In all cases, the maximum compensation payable to a Director shall be SR 500,000.

• The statutory reserve required under the ESCL, which needs to be put aside each year by the LLC is no longer needed once the LLC reserve has reached 30% of the share capital. The ESCL required 50% of the share capital.

• The NSCL allows a JSC to issue Sharia’a compliant bonds (sukuks) and other debt and financing instruments which may be converted into

• One unique feature of the NSCL is in the conversion of the LLC to a JSC. If the number of shareholders in a LLC is exceeds fifty (50), the LLC

should have to be converted into a JSC within a period of one year from the time the number of shareholders increased to 50. Otherwise, the LLC shall be considered as dissolved under the NSCL. The only exception to this rule, however, is when the increase in the number of shareholders was as a result of an inheritance or provisions of a will. • Also, there is a significant change in the liability of shareholders of an LLC. Under the NSCL, the shareholders of an LLC will no longer be personally liable if the LLC’s debts exceed 50% of its share capital. If the General Manager or the Board of Directors does not call a meeting of the shareholders or the shareholders do not resolve to continue operating the company or dissolve it, the LLC will dissolve by operation of law and the shareholders will not be personally liable. Under Article 180 of the ESCL, the shareholders are jointly and severally liable for the debts of the LLC if no decision were as to whether to continue or dissolve the LLC. This change is therefore significant for shareholders of limited liability companies and may remove the need for shareholders to rely on waivers by creditors of such limited liability companies of their rights under Article 180 of the ESCL. Among the shareholders of an • LLC, a specific duty of confidentiality is imposed upon them with respect to information they receive in relation to the LLC. New Concepts under the NSCL Unlike in the ESCL, the concept of a holding company has been introduced and is now explicitly recognized under the NSCL. It expressly provides that a holding company can be established in the form of either an LLC or a JSC. It is essential, however, that a holding company shall identify itself as a holding company by including in its corporate name the wording “holding”. By way of reference, a company is considered as a holding company if it controls other subsidiaries by owning more than half of the share capital of that subsidiary. Neither one of the subsidiaries of the GSBM May 2016

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said company are permitted to hold shares in such company. It is interesting to note that under the NSCL, a holding company is required to prepare its consolidated financial statements by availing of the usual accounting practice and standards, covering all its subsidiaries. In both under the ESCL and the NSCL, foreign companies who have obtained a contract from the Saudi government or any government agency are entitled to apply for a TCR. The foreign companies‘ activities must be limited to that specific government project. Certain changes are expected to be provided by the Implementing Regulations of the NSCL as the NSCL itself does not provide any guidance on the forms of companies that are entitled to apply for a TCR, its fields of activities or even the percentage of ownership that may be owned by the foreign investor who have to comply with the Saudi Arabian General Investment Law and its Implementing Regulations. Conclusion The business circles in Saudi Arabia are becoming more eager to know the Implementing Regulations of the NSCL which are expected to be issued soon by the MOCI and the CMA. It is most anticipated that the Implementing Regulations would provide clarifications to those areas in the NSCL that have not been adequately provided therein. One such area is the establishment of companies by foreigners who are not GCC nationals. The author believes that the company so established would still be subject to the SAGIA regulations regarding licensing.

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Also, it is to the eager interest of local and foreign individuals desiring to establish companies in Saudi Arabia, to see the MOCI’s model forms of Articles of Association and the By-Laws of all types of companies under the NSCL.

The author would be happy to provide updates following the issuance of the Implementing Regulations of the NSCL.

====================== The information and views contained in this Article are intended for general information only and shall not be construed as a legal advice by the author to any entity or individual doing or intending to do business in Saudi Arabia. For specific legal advice on any of the information discussed in this Article, you may wish to contact the author. Wajdi Edrees is a Saudi Arabian national and the Principal and Saudi Practicing Attorney of the Law Firm of Wajdi Edrees, he is a holder of a License No. issued by the Saudi Ministry of Justice. Wajdi obtained his Bachelor of Laws Degree (LLB) from the King Abdul Aziz University in Jeddah, Saudi Arabia, and his Master of Laws Degree (LLM), Major in International Commercial Law from Golden Gate University in San Francisco, CA, USA. Wajdi is a Certified Arbitrator at the GCC Commercial Arbitration Centre (GCCAC). He is also a Member of the Arbitrators Committee at the Saudi Ministry of Justice, Member of the Arbitrators Committee of the Chamber of Commerce in Jeddah, Saudi Arabia, and an active Member of the Arab Lawyers Union.

Wajdi Edrees, Lawyer

Contact The Law Firm of Wajdi Edrees Mr. Wajdi Edrees P.O. Box 40469, Jeddah 21499 Level 26, King’s Road Tower, Jeddah Kingdom of Saudi Arabia [email protected] Tel.: +966 (12) 2293476 Fax: +966 (12) 283 4518

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n impressive number of repeat bookings, lots of new exhibitors and a high level of international participation: The signs are looking good for IFAT, which takes place from May 30 to June 3, 2016 at the Messe München exhibition center. In 2016, the world’s biggest environmental technology trade fair will again be taking up all the available exhibition halls and a part of the open-air site at Messe München— in total 230,000 square meters. The show is seeing another rise in demand for space as compared to 2014. Back then, a total of 3,081 exhibitors from 59 countries, and 135,288 visitors from 168 countries took part. GESALO is the official representative of IFAT. For further information, please contact [email protected], +966 11 4050201

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CeMAT World Leading Trade Fair for Intralogistics and Supply Chain Management | May 31 - June 3 2016, Hanover tions. In other words, the show will highlight the pivotal role of logistics in today’s increasingly digitized and integrated industrial value chains.

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Dr. Andreas Gruchow, a member of the Managing Board of Deutsche Messe, explains: “Logistics is growing in importance because accuracy and flexibility of supply are fundamental to the growing Industry 4.0 trend. Soon, all parts containers, racks, materials handling and transport systems and even the materials themselves will need to be intelligent so that they can communicate with their surroundings and with machines and robots in downstream and upstream production and assembly processes.” This, precisely, is the focus of the upcoming CeMAT with its lead theme of Smart Supply Chain Solutions.

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Intersolar Europe The World‘s Leading exhibition for the Solar Industry and its Partners | June 22 - 24 2016, Munich

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InnoTrans Travelling in Style: InnoTrans 2016 focusses on Travel Catering and Comfort Services | September 20 - 23 2016, Berlin

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Tunnel Construction. Just outside the exhibition halls, a wide range of railbound vehicles are presented on a comprehensive 3,500-meter track system. The outdoor display is a unique feature of InnoTrans: exhibits include multiple unit trains, locomotives, freight vehicles, trams, and construction and two-way vehicles. In addition to ten standard gauge tracks, the Special Gauge Display showcases rail vehicles with broad and narrow gauges. The InnoTrans Convention takes place in conjunction with the trade show, and has become firmly established as an international meeting place for top decision-makers from the business, political and transportation communities. Featuring highprofile panel discussions and expert talks on current and future-focused mobility issues, the InnoTrans Convention is an ideal platform for face-to-face communication. This is where tomorrow‘s transport concepts are explored on an international level.

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jobXchange GESALO‘s Service for Recruiters and Job Seekers

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he German-Saudi Arabian Liaison Office for Economic Affairs (GESALO) is the first port of call for recruiters and job seekers due to its key role in bilateral trade relations. We are part of an international network and are well-connected with many companies. With our jobXchange-website, we offer a platform for job seekers and interns wishing to deploy their professional skills in the markets of

Saudi Arabia, Bahrain and Yemen. In addition, they have the opportunity to add their profile and CV to our database (http://saudiarabien.ahk. de/en/jobxchange/). The details are subject to strict confidentiality and will only be forwarded to companies when the profile matches their criteria.

we can verify the data with our database to find the right candidate for them. If you are interested in our service or wish more details, please contact Mr. Benahsene via [email protected], Tel. +966-11-4050201 Ext. 117.

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What is our Service? Recruiting: We match recruiting firms with applicants from our database, which contains more than 100 profiles. Taking into account the regulations for employment (Saudization), we can be particularly helpful in finding Saudi employees to meet the rules of Nitaqat. Job Advertisement: Recruiters have the possibility to advertise their job vacancy on our homepage to get directly in touch with the job seekers.

What makes our HR Services unique?

Highly qualified candidates with strong international profiles: We are the first point of contact for professionals with international work experience wishing to deploy their skills in the Saudi Arabian, Bahraini or Yemeni market. Our extensive candidate database enables us to identify the perfect match for your company. World-Wide Network: Our established relationships to the local firms along with our international network enable us to find suitable candidates for your company in the most efficient manner. Intercultural Competency: Our in-depth knowledge and understanding of the Saudi Arabian, Bahraini and Yemeni culture makes us uniquely qualified to assess our applicants’ competency and compatibility.

Individual Solutions: We offer individual solutions that are tailored to your company’s needs. Thereby, we strive for complexity reduction and customer satisfaction. Cost Efficiency and Transparancy: We offer cost-effective solutions and guarantee full transparency. There are no hidden costs involved as we do not charge any success fees or commission.

GSBM May 2016

49

German-Saudi Business Magazine

Services of GESALO Our Services for your Needs Market Entry 1. Individual Market Advice 2. Business Partner Search 3. Address Research 4. Business Trips Market Information & Export Promotion

S

mall and medium-sized companies are particularly supported by experienced partners to enter foreign markets. The AHK’s Service Brand DEinternational is present in all 130 offices of the German Chamber Network abroad. According to the services of DEinternational, GESALO offers German companies services to assist them in the market entry and Saudi, Bahraini and Yemeni companies to get in touch with German businessmen. Important sectors like health care, infrastructure, construction, petrochemicals, information and communications technology, metallurgical mills and plants, food industry as well as energy related topics are covered by our employees.

Knowledge about the German market and characteristics of its society and culture are essential for a successful market entry. GESALO informs companies from Saudi Arabia, Bahrain and Yemen and assists them in their export promotion. Investment In cooperation with our partner

growth and employment levels. Globalisation and an increasing focus on brands will lead to these globally important industry marketplaces occupying an even more significant role in the future, and as a result trade fair organisers are increasingly becoming all-round marketing partners of the industry. Trade fairs are important marketing instruments in almost every part of the world. They range from universal trade fairs in developing countries to specialist events catering to almost every sector in highly industrialised countries. According to figures from the international trade fair association UFI, worldwide there are over 1,100 trade fair venues, with hall space totalling more than 31 million m², which annually host more than 30,000 fairs as well as 2.9 million exhibitors and over 250 million visitors. GESALO is the official representative of the Deutsche Messe AG,

Business to Business Development In order to strengthen the bilateral economic relations between Germany, Saudi Arabia, Bahrain and Yemen, GESALO supports German companies during their market entry, and provides assistance to companies from Saudi Arabia, Bahrain and Yemen to get in touch with German businessmen.

Germany Trade & Invest, we also support foreign companies, who are interested in investing in Germany. Trade Fair Services Trade fairs and exhibitions are important marketing instruments and as such provide a significant impetus for international trading of goods and services. They help to create a more competitive market and to raise

50 GSBM May 2016

Messe München, Messe Berlin, Nürnbergmesse, Spielwarenmesse eG, DLG Service GmbH, DECHEMA Ausstellungs-GmbH, Solar Promotion GmbH, Al Harithy Exhibitions und Hilal Conferences & Exhibitions. We offer a wide range of services to our clients. Our exhibitors and visitors receive personalized service that is beyond comparison.

German-Saudi Business Magazine

• Travel support (flight and accommodation) • Translation service Legal Affairs In order to enter a market successfully, legal aspects need to be considered carefully. AHK Saudi Arabia provides companies from German and Saudi Arabia with the needed legal services in diverse business related aspects reaching from customs and taxes to investment, import and export regulation, etc. Our Services for Visitors

Our Services for Exhibitors

• Offering information about German trade fairs and events

• Offering information about German trade fairs and events

• Trade Fair visitor registration and ticket sales

• Selecting the most suitable trade show according to the company’s business and objective

• Assistance for Schengen visa application • Travel support (flight and accommodation) • Organisation of B2B meetings and company visits • Translation service • Organisation of visitor delegations

• Assistance during the application process and stand allocation • Assistance with stand construction and third-party contractors • Advice on freight forwarding • Recommendation on marketing and promotion campaigns • Organisation of B2B meetings and company visits • Assistance for Schengen visa application

Visa Assisting Saudi companies and businessmen with the visa application process, AHK Saudi Arabia prepares letters of recommendation to the German Consulate or Embassy. We also support German companies and businessmen in business visa issues by acting as the sponsor during their stay. Health Treatment in Germany GESALO works with renowned clinics in Germany to assist Saudi Arabian and Bahraini patients who wish to seek for medical treatment in Germany. Mediation & Debt Collection GESALO acts as a mediator in cases of commercial disputes between German and Saudi business partners. Sustainable damage of long year business partnerships can easily be avoided by debt collection through AHK Saudi Arabia.

Business Translation Services • German to Arabic • German to English • English to Arabic

GSBM May 2016

51

German-Saudi Business Magazine

Your Contact Persons Management

Legal Affairs

Delegate of German Industry and Commerce for Saudi Arabia, Bahrain and Yemen

Assistant Delegate and Head of Legal Affairs [email protected] + 966 11 4050201 Ext. 106

[email protected] + 966 11 4050201

OLIVER OEHMS

OMAR HASSAN HAMZA

DEinternational Head of DEinternational

Head of Business Promotion

[email protected] + 966 11 4050201 Ext. 118

[email protected] + 966 11 4050201 Ext. 105

ANTON BONDAREW

MOHAMMAD FALEEL

DEinternational Consultant [email protected] + 966 11 4050201 Ext. 117

NABIL BENAHSENE

German Desk in Dammam Head of German Desk [email protected] + 966 13 3470689 Ext. 1525

JAN LUTZ MUELLER

52 GSBM May 2016

German-Saudi Business Magazine

Your Contact Persons Trade Fairs and Promotion Head of Trade Fairs and Promotion

Senior Trade Fairs Officer

[email protected] + 966 11 4050201 Ext. 110

[email protected] + 966 11 4050201 Ext. 112

AL-AMEEN AL-DALALI

ASIF IQBAL ANSARI

Public Relations and Promotion

Intermediation of Health Services / Trade Fair Officer

[email protected] + 966 11 4050201 Ext. 108

[email protected] + 966 11 4050201 Ext. 109

SOEREN KOHSE

TAREQ QAMHAN

Finance and Administration Head of Finance Department

System Administrator

[email protected] + 966 11 4050201 Ext. 111

[email protected] + 966 11 4050201 Ext. 114

MUHANAD KHUSRO

MOHAMMED AKBAR

Office Services

Address Research

[email protected] + 966 11 4050201 Ext. 119

[email protected] + 966 11 4050201 Ext. 100

FAISAL NALPURAKKAL

FAROOK HAMEED

Administration Assistant

Maintenance

[email protected] + 966 11 4050201 Ext. 101

+ 966 11 4050201

MOHAMMED RIYAS GULCAN

MOHAMMED AMINUL ISLAM GSBM May 2016

53

‫‪German-Saudi Business Magazine‬‬

‫العالج في المانيا‬ ‫تعتبر المانيا من اكثر الدول تقدما في‬ ‫مجال الطب والصحه بشكل عام حيث‬ ‫يقصدها سنويا مئات االالف من المرضى‬ ‫من جميع انحاء العالم ففي عام ‪2014‬‬ ‫وصل عدد الزوار الذين يب حثون عن العالج‬ ‫الطبي فقط في المستشفيات والعيادات‬ ‫الى اكثر من ‪ 251000‬مئتين وخمسين الف‬ ‫مريض غالبيتهم من روسيا ودول الخليج‬ ‫فضال عن المنتجعات الصحية االلمانية‬ ‫التي تتمتع بك وادر طبية وفريق ممرضين‬ ‫ذو مهارة عالية والتي توفر احدث االجهزة‬ ‫الطبية المستخدمة في كل من‬ ‫المستشفيات‪ ,‬العيادات او م راكز العالج‬ ‫الطبيعي والمنتجعات‬ ‫تمتع ألمانيا بسمعة ممتازة في مجال‬ ‫العالج والعناية بالمرضى ال وافدين من‬ ‫جميع أنحاء العالم‪ .‬و يشكل العرب‬ ‫خاص ًة من الخليج نسبة كبيرة من عدد‬ ‫ال وافدين على ألمانيا للعالج نظ راً لما‬ ‫تتمتع به ألمانيا من أفضل وأحدث النظم الطبية في العالم و ك ذالك الرعاية الممتازة التي يحظى بها المرضى العرب في المانيا‬ ‫فيما يلي بعض األم راض التي‬ ‫تعالج في ألمانيا‬ ‫عالج ام راض القلب‬ ‫اعادة التأهيل والعالج الطبيعي‬ ‫عالج االم راض الجلدية‬ ‫عالج االم راض العصبية‬ ‫عالج مشاكل المفاصل والعظام‬ ‫عالج مرض التصلب العصبي‬ ‫المتعدد‬ ‫عالج مرض التصلب الجانبي‬ ‫الضموري‬ ‫عالج السكتة الدماغية أو الجلطة‬ ‫الدماغية‬ ‫عالج الشلل الدماغى‬ ‫عالج مرض باركنسون‬ ‫عالج االم راض المزمنة‬ ‫الج راحة التجميلية‬ ‫عالج السرطان واألورام الخبيثة‬ ‫عالج المسالك البولية والضعف‬ ‫الجنسي‬ ‫عالج أم راض العقم‬ ‫زراعة الكلى والكبد والبنكرياس‬ ‫خدمة ارسال المرضى الى المانيا‬ ‫مفوضية الصناعة والتجارة االلمانية لدى السعودية والب حرين واليمن (‪ AHK‬المملكة العربية السعودية) تقدم خدمة ارسال المرضى‬ ‫الى المانيا وهي خدمه تقدم الى جميع االشخاص الذين يرغبون بالسفر الى المانيا لتلقي العالج الطبي أو أي نوع من ان واع الرعاية‬ ‫الصحية في حالة وجود طلب أو استفسار بشأن الم راسالت الطبيه او الخدمات الصحية في ألمانيا ال تترددوا في االتصال على‬ ‫السيد‪ /‬طارق قم حان‬ ‫العناية بالمرضى‪ /‬المنسق للمعارض في المانيا‬ ‫‪54 GSBM‬‬ ‫‪May 2016‬‬

‫‪German-Saudi Business Magazine‬‬

‫المعارض‬ ‫التي يمثلها مكتب االتصال االلماني السعودي للشئون االقتصادية‬

‫المعارض في المانيا‬

‫املانيا هي من الدول البارزة في العالم ان لم تكن االولى في استضافة اكبر واهم املعارض التجارية الدولية والتي تقام بشكل سنوي حيث‬ ‫عشرة ماليني زائر سنويا‪ 10000000.‬مئة وستون الف عارض ويصل عدد الزوار الى ‪160000‬يصل عدد العارضني في معارضها الى مايقارب‬ ‫تقدم املعارض التجارية في املانيا الفرصة ملقابلة صناع القرار لدى الشركات العاملية من انحاء العالم حيث يتم تبادل الصفقات فوريا داخل‬ ‫صالة املعرض اما بالنسبة للشركات االملانية فان املعارض تشكل لهم افضل واهم االماكن على االطالق لتسويق منتجاتهم وخدماتهم وعقد‬ ‫اللقائات الثنائية التجارية ‪ B2B‬والصفقات مع رجال االعمال من مختلف انحاء العالم تتيح لك املعارض تقدمي منتجاتكم وخدماتكم وبناء‬ ‫عالقات جديدة مع عمالء جدد فضال عن احلفاظ على العالقات السابقة مع العمالء‬ ‫اململكة العربية السعودية) هي املمثلة الرسمية الهم املعارض )‪ AHK‬مفوضية الصناعة والتجارة االملانية لدى السعودية والبحرين واليمن‬ ‫الدولية التي تقام في املانيا واململكة العربية السعودية و مملكة البحرين بشكل سنوي حيث تقدم مجموعة واسعة من اخلدمات لعمالئها‬ ‫من الزوار او العارضني وفيما يلي اهم اخلدمات‬

‫خدمات الزوار‬ ‫• تقديم المعلومات حول المعارض التجارية األلمانية‬ ‫• اختيار المعرض التجاري المناسب وفقا ألعمال ‬ ‫ الشركة واه دافها‬ ‫• تسجيل وبيع ت ذاكر الدخول باسعار مخفضة‬ ‫• تنظيم اجتماعات ‪ B2B‬و زيارة الشركات‬ ‫• المساعدة في طلب تأشيرة شنغن‬ ‫• المساعدة في شؤون السفر (الطي ران واإلقامة)‬ ‫• خدمات الترجمة‬ ‫• تنظيم وفود وب رامج الز ّوار‬ ‫خدمات العارضين‬ ‫• تقديم المعلومات حول المعارض التجارية األلمانية‬ ‫• اختيار المعرض التجاري المناسب وفقا ألعمال‬ ‫الشركة واه دافها‬ ‫• المساعدة في حجز مساحات العرض واستيفاء جميع االستمارات المطلوبة‬ ‫• المساعدة في تجهيز وبناء األجنحة‬ ‫• تقديم المشورة بشأن الشحن‬ ‫• المساعدة في حمالت التسويق والترويج‬ ‫• تنظيم اجتماعات ‪ B2B‬و زيارة الشركات‬ ‫• المساعدة في طلب تأشيرة شنغن‬ ‫• المساعدة في شؤون السفر (الطي ران واإلقامة)‬ ‫• خدمات الترجمة‬ ‫في حالة وجود طلب أو استفسار بشأن املعارض التترددو باالتصال على‬ ‫السيد‪ /‬طارق قمحان‬ ‫العناية باملرضى‪ /‬املنسق للمعارض في املانيا‬

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‫‪GSBM‬‬ ‫‪May 2016‬‬

‫‪German-Saudi Business Magazine‬‬

‫المعارض‬ ‫التي يمثلها مكتب االتصال االلماني السعودي للشئون االقتصادية‬

‫‪56 GSBM‬‬ ‫‪May 2016‬‬

‫‪German-Saudi Business Magazine‬‬

‫صناعة اخلدمات في اململكة لها وزن كبير داخل النشاط االقتصادي منذ زمن كبير‪ ،‬فعلى سبيل املثال خدمات السياحة ما ال يعلمه‬ ‫الكثيرون أن اململكة بها اماكن تاريخية وسياحية أكثر من رائعة‪ ،‬فالكثير يظن أن اململكة عبارة عن صحراء أو حضارة مستحدثة‪ ،‬لكن‬ ‫الواقع لدينا منتجعات والبحيرات الساحلية ومواقع اثرية متعددة في الشمال واجلنوب‪ ،‬بجانب السياحة الدينية وما تتعلق به من خدمات‬ ‫الفندقة واالقامة والنقل واخلدمات املالية متثل جزء ال يتجزأ من األنشطة االقتصادية في اململكة‪ ،‬فلك أن تتخيل أن اململكة يزورها في‬ ‫فترة احلج أي في عشرة أيام تقريبا ما يزيد عن مليون حاج من اخلارج بجانب ما يدرج ضمن السياحة الداخلية ما يزيد أيض ًا عن مليون‬ ‫حاج‪ ،‬بجانب أنشطة خدمية أخرى سواء كانت أنشطة خدمية مرتبطة بالسياحة أو أنشطة خدمية غير مرتبطة‪.‬‬ ‫في املستقبل القريب ومع استكمال توسعة احلرم املكي واستيعاب مزيد من زائري بيت اهلل احلرام‪ ،‬سترتفع مساهمة قطاع اخلدمات في‬ ‫النشاط االقتصادي‪ ،‬كما أن استكمال خطط ربط السكك احلديدية لغرب اململكة بشرقها‪ ،‬ورواج نشاط النقل السلعي من مواني جدة‬ ‫وينبع في غرب اململكة إلى دول مجلس التعاون في الشرق‪ ،‬سيؤدي إلى ارتفاع مساهمة القطاعات اخلدمية في االقتصاد سواء اخلدمات‬ ‫ً املالية أو النقل والسياحة كما أشرت سابقا‬ ‫أوهمس‪ :‬غالبا ما تعتبر اململكة العربية السعودية بأنها في موقف صعب بسبب اإلنخفاض في أسعار النفط‪ .‬وعادة تخلق األوقات الصعبة‬ ‫مثل تلك التي جتري تطورات مفعمة بالتطلع‪ .‬فإذا نظرمت لألمام خمس أو عشر سنوات من اآلن‪ ،‬كيف سيبدو إقتصاد اململكة وما هي‬ ‫الفرص اجلديدة التي ستظهر؟‬ ‫املهندس العتيبي‪:‬‬ ‫االستسالم للمتغيرات اخلارجية كانخفاض أسعار النفط والوقوف وتلقي األثر اخلارجي بجوانبه السلبية هو ما يجعل هذه املواقف صعبة‬ ‫ويزيد من صعوبتها‪ ،‬خاصة في حالة عدم إدراك هذا األثر مسبقاً‪ ،‬لكن نحن في اململكة مدركني متام ًا ملعنى األسعار العاملية وتقلباتها‪،‬‬ ‫وكيفية االستجابة ملثل هذا االنخفاض منذ سنوات فهذه ليست املرة االولى التي تهبط فيها أسعار النفط بشكل كبير‪ ،‬وهذا ما تعلمناه‬ ‫من الدورات االقتصادية‪ ،‬فلن تظل دائما تعمل في ظل طفرة سعرية مرتفعة‪ ،‬ولذا فمنذ سنوات واململكة على املستوى احلكومي والقطاع‬ ‫اخلاص تبذل جهوداً كبيرة لدعم وتنفيذ خطط استراتيجية تقود إلى تنويع مصادر الدخل وانخفاض درجة االعتماد على النفط‪.‬‬ ‫ولعل االنخفاض في أسعار النفط يدفعنا إلى اإلسراع في اخلطوات التنفيذية لعملية التنويع االقتصادي وتوسيع القاعدة اإلنتاجية في‬ ‫اململكة مبا يجعلها أقل اعتمادية على العوائد النفطية‪ ،‬فمن الصحيح أن اليد االقتصادية القوية للمملكة هي النفط‪ ،‬لكنها ليست اليد‬ ‫االقتصادية الوحيدة‪ ،‬فلدينا القطاعات األخرى وخاصة قطاع الصناعات التحويلية واخلدمات والزراعة‪ ،‬كلها قطاعات تساهم بشكل جيد‬ ‫في دفع عجلة النشاط االقتصادية‪.‬‬ ‫وفيما يتعلق بكيف ستبدو اململكة والفرص اجلديدة مستقبال‪ ،‬فاململكة لديها برنامج طموح للتحول الوطني يقود إلى تنوع أكبر على‬ ‫املستوى االقتصادي واعتماد أكبر على القطاعات اإلنتاجية واخلدمية‪ ،‬في ظل العمل على استغالل املوارد الضخمة في اململكة وحتقيق‬ ‫أقصى مستويات الكفاءة سواء في استخدام املوارد االقتصادية أو في األداء‬ ‫احلكومي‪ ,‬واالرتقاء مبستوى أداء املوارد البشرية واالستمرار في تطوير قطاع‬ ‫الصحة والتعليم والبنية التحتية‪ ,‬بجانب دعم املنتج الوطني من خالل سياسة‬ ‫احملتوى احمللي في مختلف القطاعات االقتصادية فالفرص املتاحة ال تتوقف عند‬ ‫قطاع النفط أو الطاقة غير املتجددة‪ ،‬فلدينا فرص ًا ممتازة إلنتاج الطاقة املتجددة‬ ‫كالطاقة الشمسية وطاقة الرياح‪ ،‬بالتزامن مع درجة أعلى في تنويع مصادر‬ ‫الدخل وأيض ًا ارتفاع أسعار النفط في املستقبل القريب‪.‬‬ ‫أوهمس‪ :‬أخيرا وليس آخرا‪ ،‬إذا كان لديكم فرصة للترويج لألستثمار باململكة‬ ‫ملستثمر أملاني محتمل‪ ،‬ما الذي ميكنكم أن تسوقونه من ُحجج رئيسية لديكم‬ ‫إلقناعه بأن يأتي بأمواله إلى اململكة؟‬ ‫املهندس العتيبي‪:‬‬ ‫القناعات و احلجج متعددة وال أكون مبالغ ًا إذا قلت أن كافة مقومات جذب االستثمارات االجنبية متوفرة باململكة‪ ،‬لدينا بفضل اهلل استقرار‬ ‫سياسي واقتصادي راسخ وهما أول النقاط التي ينظر إليها املستثمر بشكل عام‪ ،‬ال توجد لدينا مشاكل في سعر الصرف ال توجد لدينا‬ ‫قيود على التحويالت الرأسمالية للداخل أو اخلارج‪ ،‬لدينا حرية متلك كامل لالستثمارات في اململكة‪ ،‬تنظيمات وقوانني االستثمار نعمل‬ ‫دائما على تطويرها‪ ،‬البنية التحتية يتم تطويرها وحتديثها بشكل دائم‪ ،‬وجود فوائض مالية تستخدم في متويل االستثمارات‪ ،‬الدعم الكبير‬ ‫الذي تقدمه احلكومة لالستثمارات سواء من خالل انخفاض أسعار تأجير األراضي باملدن الصناعية أو دعم الطاقة واملنتجات االولية‪ ،‬سوق‬ ‫كبيرة بها قوة شرائية مرتفعة وبالتالي سهولة تصريف املنتجات وارتفاع مستويات الربحية‪ ،‬كما ميكن من خالل اململكة التصدير إلى دول‬ ‫مجلس التعاون اخلليجي التي تتسم بارتفاع مستوى دخول االفراد بها وكذلك الدخول إلى أسواق دول الشرق األوسط التي تتسم بعدد‬ ‫سكان كبير‪ .‬وهنا يجب أن أشير إلى نقطة هامة جدا أال وهي احلوافز احلكومية في متويل املشاريع الصناعية التي تتضمن ارتفاع نسبة‬ ‫عاما‪ 20‬للمشروعات الصناعية في املناطق الواعدة «األقل تنمية» ولفترات سداد تصل إلى ‪ 75%‬من تكلفة املشروع إلى ‪ 50%‬التمويل من‬ ‫بدال من ‪ 51‬عام‪ ،‬أي أن التنمية مستهدفة في كافة أرجاء اململكة التي تبلغ مساحتها ‪ 2‬مليون كيلومتر مربع‪ ،‬سواء كانت في املناطق األكثر‬ ‫حظا في التنمية وذات اإلنتاج الصناعي الكثيف أو املناطق األقل حظا في التنمية والتي حتتاج إلى جذب وبناء مزيد من االستثمارات‪ .‬هل‬ ‫تريد املزيد من احلجج فأنا مستمر معك‪.‬‬ ‫أوهمس‪ :‬المهندس العتيبي‪ ،‬أكرر شكري لسعادتكم على المقابلة‪ .‬وأتطلع إلى التعاون المستقبلي بين مجلس الغرف‬ ‫السعودية و مكتب اإلتصال األلماني السعودي للشؤون االقتصادية!‬

‫‪57‬‬

‫‪GSBM‬‬ ‫‪May 2016‬‬

‫‪German-Saudi Business Magazine‬‬

‫حـوار مع سعادة المهندس خالد العتيبي ‪ -‬األمين العام لمجلس‬ ‫الغرف السعودية‬ ‫مرحبا بكم في الطبعة األولى من حوار مكتب اإلتصال األلماني‪-‬السعودي للشؤون اإلقتصادية (جيسالو ‪-‬‬ ‫‪ )GESALO‬هذا الحوار عبارة عن سلسلة من المقابالت مع كبار الشخصيات في المملكة العربية السعودية‪ .‬و‬ ‫حوارنا األول مع شريكنا سعادة المهندس خالد العتيبي‪.‬‬ ‫المهندس خالد العتيبي هو األمين العام لمجلس الغرف السعودية‪ ،‬وهو شريك مهم لـ»جيسالو» حيث تتمتع المنظمتان بعالقات‬ ‫جيدة لسن وات عديدة‪.‬‬ ‫وقد تش َّرف مفوض الصناعة و التجارة األلمانية الجديد لدى‬ ‫المملكة العربية السعودية والب حرين واليمن‪ ،‬السيد أوليفر‬ ‫أوهمس‪ ،‬بلقاء المهندس العتيبي في مقر مجلس الغرف‬ ‫السعودية وت حدث معه حول التعاون الناجح بين مجلس الغرف‬ ‫السعودية وجيسالو‪ ،‬والدور المستقبلي ألنشطة مجلس األعمال‬ ‫ال عن‬ ‫السعودي األلماني الجديد‪ ،‬في الخدمات الصناعية‪ ،‬فض ً‬ ‫التطورات اإلقتصادية العامة في المملكة العربية السعودية‪.‬‬ ‫أوليفر أوهمس‪ :‬سعادة المهندس العتيبي‪ ،‬يسرني لقائكم هنا‬ ‫في مقر مجلس الغرف السعودية‪ ،‬وأشكر لكم تمكيني من‬ ‫إج راء ه ذا اللقاء‪ .‬مجلس الغرف السعودية وجيسالو يعمالن‬ ‫معا بشكل وثيق من أجل دعم كل من رجال األعمال السعوديين‬ ‫واأللمان‪ .‬في رأيك‪ ،‬ماهي المشاريع التي كانت أكثر وضوحا‬ ‫في الماضي‪ ،‬و هل ترى أن العالقات التجارية بين بلدينا ت حتاج‬ ‫إلى دفعة إضافية‪ ،‬إذا كان ذلك ُم نطبق اً؟‬ ‫المهندس العتيبي‪:‬‬ ‫بالنظر إلى ارقام التبادل التجاري بين البلدين‪ ،‬يمكن القول أن الصادرات السعودية إلى المانيا ت حتاج إلى مزيد من قوى الدفع االضافية‬ ‫مليار ريال بينما بلغت صادرات المملكة أللمانيا نحو مليار ريال‪47.1‬م بلغت نحو ‪2014‬مقارنة بال واردات‪ ،‬ف واردات المملكة عام‬ ‫فقط‪ ،‬أي أنها تمثل فقط ‪ 2%‬من إجمالي حجم التبادل التجاري بين البلدين‪ ،‬فالماضي يشير على المستوى الكمي إلى ت واضع‬ ‫الصادرات وهو ما يمكن التغلب عليه من خالل تقديم مزيد من المعلومات عن السوق االلمانية والفرص التجارية المتاحة‪ ،‬وإقامة‬ ‫ش راكات تجارية بين أصحاب األعمال بالبلدين‪.‬‬ ‫ورؤيتي للعالقات التجارية واالستثمارية الثنائية المستقبلية هي رؤية تفاؤلية مردها العالقات السياسية الطيبة القائمة على االحت رام‬ ‫المتبادل بين البلدين وكذلك الخطط االست راتيجية التنموية التي تعمل المملكة على تحقيقها وما تتطلبه من الحصول على‬ ‫المنتجات االلمانية عالية التقنية س واء كانت سلع استهالكية أو رأسمالية في مختلف القطاعات االقتصادية وليس في قطاع محدد‪،‬‬ ‫والرغبة المتبادلة بين الطرفين لتعزيز حجم التبادل التجاري‪ ،‬وه ذا ما سيخلق دفعة إضافية للتجارة البينية بين البلدين‪.‬‬ ‫م في ألمانيا‪ .‬كيف تنظرون إلى‪2016‬اوهمس‪ :‬من المخطط أن يعقد مجلس األعمال السعودي األلماني إجتماعه القادم في شهر مايو‬ ‫الوضع الحالي للعالقات الثنائية‪ ،‬وما هي توقعاتكم بشأن اإلجتماع القادم؟‬ ‫المهندس العتيبي‪:‬‬ ‫العالقات الثنائية الحالية بين المانيا والمملكة عالقات متميزة‪ ،‬فألمانيا هي ثالث أكبر شريك تجاري عالمي بالنسبة ل واردات‬ ‫‪ 10‬مليار دوالر‪ ،‬كما تعد المانيا من أهم أكبر ‪ 12.5‬مليار ريال أي ما يزيد عن ‪47.1‬م بلغت نحو ‪2014‬المملكة‪ ،‬بقيمة واردات عام‬ ‫شركاء تجاريين للمملكة ويبلغ حجم التبادل التجاري بين البلدين السنوي ما يزيد عن ‪ 1.84‬مليار ريال‪ ،‬وفي المقابل تعد المملكة‬ ‫مشروع اً‪120،‬أكبر شريك تجاري أللمانيا في المنطقة‪ ،‬وتبلغ المشروعات االستثمارية األلمانية في المملكة نحو‬ ‫فالمملكة وألمانيا ترتبطان بعدد من االتفاقات االقتصادية لتشجيع االستثمار المتبادل‪ ،‬من بينها اتفاقية دعم وتشجيع وحماية‬ ‫االستثمارات‪ ،‬بجانب عدد من الخط وات التي يسعى الطرفين لتعزز العالقات المؤسسية بينهما وتحدي داً المتعلقة بتعزيز التبادل‬ ‫التجاري ودعم االستثمار المشترك بين القطاع الخاص في البلدين‪ ،‬مدعوما بمزيد من االتفاقيات وإزالة المعوقات التي قد تعترض‬ ‫التدفقات التجارية بين البلدين وهو ما نتوقع أن يناقشه االجتماع القادم لمجلس األعمال السعودي االلماني ضمن أجندة أعماله‪.‬‬ ‫اوهمس‪ :‬تمر المملكة العربية السعودية بعملية هامة للتنويع اإلقتصادي‪ .‬وسيؤدي ه ذا حتم ًا إلى التوسع في القطاع الثالث للصناعة‪-‬‬ ‫أي صناعة الخدمات‪ .‬أين ترون صناعة الخدمات في المملكة العربية السعودية اليوم وفي المستقبل القريب؟‬ ‫لمهندس العتيبي‪:‬‬ ‫من الناتج‪40.6%‬ينمو قطاع الخدمات في المملكة بشكل متميز في السن وات األخيرة‪ ،‬حيث ارتفعت مساهمته في الناتج من نحو‬ ‫‪ .‬وهو ما يرجع بشكل كبير إلى الخطط الوطنية الهادفة إلى‪ 2015‬عام ‪ 60.4%‬باألسعار الجارية إلى نحو ‪2011‬الم حلي اإلجمالي عام‬ ‫االرتقاء بقطاع الخدمات الصحية والتعليم والنقل بجانب األهمية الكبيرة للقطاع التجاري والخدمات المالية والسياحة‬ ‫في المملكة‪.‬‬ ‫‪58 GSBM‬‬ ‫‪May 2016‬‬

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