| The Federal Republic of Germany is the main engine in Europe; not only for having the biggest EU population of 82 million, but also the world's third strongest national economy with €2302.7 billion of national income. Moreover, the strategic geographical location of Germany in the center of Europe makes it the heart of commodity and services' movement.
Trade exchange between the Arab and German parties is limited, despite the fact that Germany has become a major partner of Arab countries and that German exports to Arab countries are increasing over the years; from €18.5 billion in 2005 to € 21.5 billion in 2006 (16%). On the other hand, German imports from Arab countries have increased during the said period from €10.5 billion to €12 billion (14.8%). This reflects incomparability of trade exchange between the two parties as the Arab trade deficit is radically increasing in favor of the German party. Such deficit is greatly related to prices of oil, which is the major export commodity in the Arab World, in addition to restrictions on the entry of Arab products to European markets; mainly high customs taxes.
Major obstacles faced by the Arab-German trade exchange include the meager direct and indirect German investments in the Arab World, which do not exceed 0.5% of the total German foreign investments. The main reason lies in concerns about investment in Arab markets that are mostly ranked by Germans as unsafe. As for the Arab countries, the oil producing ones in specific, they seek to invest in Germany, especially after the gigantic rise in oil revenues. However, Germans expressed their concerns that Arab investments have a political tint; in case of taking over strategic German companies in key sectors such as; communications, banking, planning and energy. Therefore, Germans attempt to protect such companies against foreign control for fear of political exploitation. The main reason for poor mutual investments is bureaucracy witnessed in Germany and Arab countries, where businessmen suffer from complicated procedures with regard to work and investment permits, in addition to difficulty of obtaining entry visas for Arab investors. Another main reason is the lack of an Arab Common Market capable of attracting German companies; as it is the case with the Chinese and Indian giant markets.
SABER GERMAN-ARAB CONSULTING & COOPERATION plays a major role in fostering Arab-German trade and investment exchange. Our vision is to bridge gaps of viewpoints and mutual trust and striving for eliminating all obstacles.
Market Entry Services include:
- Carrying out detailed studies on opportunities and fields of Arab-German trade exchange
- Carrying out studies on targeted markets, including prevailing legal systems; e.g. customs and taxes
- Provision of detailed studies on opportunities and fields of Arab-German mutual investments
- Banking services; detailed data of potential banks and their systems
- Dealership/Agency services; identifying companies in the field and provision of studies on financial and marketing capacity of such companies
- Import/Export services; including customs clearance, opening LCs, etc
- Logistic services; shipping, transportation, storage, distribution, etc