UAE and Germany explore stronger collaboration in energy, sustainability & investment sectors

Meeting held on the sidelines of German Chancellor’s visit to the UAE

The UAE and Germany explored means to enhance bilateral partnerships in the fields of energy, sustainability, and investment sectors, during a round table meeting that took place on the sidelines of German Chancellor Olaf Scholz’s and his accompanying delegation’s visit to the UAE.

H.E. Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, led the UAE side in the meeting, while Franziska Brantner, Parliamentary State Secretary in the Federal Ministry for Economic Affairs and Climate Action, led the German side. The meeting also saw the participation of H.E. Mohamed Ali Al Shorafa, Chairman of Abu Dhabi Department of Economic Development, from the UAE side.

H.E. Al Zeyoudi welcomed the German delegation, emphasizing that there exists a wide array of opportunities for collaboration and joint efforts by the two countries. This is particularly so since the UAE seeks to increase the contribution of economic sectors based on knowledge, innovation, and sustainability to its GDP in line with its economic diversification strategy. Also, these are the sectors in which Germany has achieved significant progress to become one of the leading countries in these areas, globally.

H.E. said: “The UAE launched the ‘Projects of the 50’ last year with the aim of kick starting a new era of economic prosperity, led by innovation and advanced technology. This  makes Germany a perfect partner for us in this regard, as it currently invests 3.2 per cent of its GDP in research and innovation, a full percentage point higher than the EU average, focusing on future sectors, including hydrogen production, AI, and quantum computing.”

H.E. Al Zeyoudi added: “There are many similarities between the UAE’s and Germany’s future visions with regard to future industries and economic sectors capable of driving sustainable development. Therefore, the prospects for stronger bilateral partnerships between the two countries are promising and can be built on the solid foundations of industrial, technological, and trade collaboration. Moreover, Germany is the 13^th largest global trading partner of the UAE, accounting for 2 per cent of the UAE’s global trade. The volume of our non-oil trade reached USD 9.6 billion in 2021, reflecting a 12 per cent growth from 2020. Furthermore, the UAE-German non-oil trade continued its recovery in the first half of the current year, totaling more than USD 4.5 billion reflecting a six per cent growth compared to the same period of 2021.”

H.E. further noted that Germany is the UAE’s second largest EU trade partner with a share of 20 per cent, and first in terms of imports, third in terms of non-oil exports, and also third in re-exports. At the same time, the UAE accounts for more than 20 per cent of Germany’s trade with the Arab countries, and it is Germany’s first Arab trade partner. The UAE also takes over 45 per cent of Germany’s trade with the GCC countries. As for FDI between the two, it amounted to more than USD 3.2 billion by the end of 2020, with German investments in the UAE accounting for 80 per cent of mutual investments.

In addition, H.E Al Zeyoudi expressed the UAE’s desire to establish new UAE– German partnerships in the next phase in sectors of mutual interest, which could benefit the economies of both countries and their business communities.

Meanwhile, Dr. Franziska Brantner said: “The UAE has always been a strategic partner of Germany, and there are promising aspects to developing the collaboration between the two countries in various sectors such as clean energy, sustainability, combating climate change, and more. Also, I commend the UAE’s efforts in ensuring the success of the Abraham Accords.”

H.E. Al Shorafa emphasized the UAE and Abu Dhabi’s commitment to bolstering the economic relations with Germany. He said: “There are many opportunities to expand and strengthen our existing partnerships as Abu Dhabi continues to focus on the development of an innovation and knowledge-based economy and enhancing its investments in fields with higher growth potential, such as agricultural technology, fintech, health care, pharmaceutical industries, energy, tourism, and IT. This creates more opportunities to strengthen the collaboration with our German partners and we are keen to work closely with leading German establishments in these fields.”

He added: “The Abu Dhabi Industrial Strategy, launched last June, aims to support the concept of smart and sustainable circular economy, the adoption of 4IR tools, develop skills and talents in the industrial sector, and encourage qualitative investments in the sector. We invite our German partners to benefit from the collaboration prospects offered by the initiatives and projects under the Industrial Strategy, in addition to forging partnerships in the other vital sectors.”

The meeting, which took place at ADNOC’s headquarter in Abu Dhabi, saw the participation of H.E Omar Al Suwaidi, Undersecretary of the Ministry of Industry and Advanced Technology (MoIAT); H.E Osama Amir Fadhel, Assistant Undersecretary for the Industrial Accelerators Sector at MoIAT; HE Hameed Mohamed bin Salem, Secretary General of the Federation of UAE Chambers of Commerce and Industry; Dr. Ali Husain Makki, Executive Director of Logistics & Trade Facilitation Sector at Abu Dhabi Department of Economic Development (ADDED); H.E Eng. Ahmed Mohammed Belajer Al Rumaithi, Undersecretary of the Department of Energy in Abu Dhabi; Carlos Gasco, Acting Executive Director of Energy Policy at ADDED; H.E Saeed Abdul Jalil Mohammed Al Fahim, Chairman of The German Emirati Joint Council for Industry & Commerce (AHK); and Majid Al-Suwaidi, Director of COP28 Program Management.

The meeting was also attended by a number of leading UAE companies, namely EDGE Group; Mubadala Energy; YAS Holding; Al Yah Satellite Communications Group; The Abu Dhabi Future Energy Company – Masdar; DP World; KEZAD Group; ADNOC LNG; AlNowais Investments; Ammar Al Malik, Managing Director of Dubai Internet City; Al Ghurair Group; and Abu Dhabi Global Market.

From the German side, the meeting was attended by the CEOs of Allianz, Bayer, Siemens Energy, Airbus, Europace, Saab News, HBA Hamburg Port, ThyssenKrupp AG, SPG Steiner GmbH, Benz Automotive, and G+D.