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Working Hand in hand: UAE Foreign Minister Shaikh Abdullah Bin Zayed Al Nahyan met Federal Foreign Minister Guido Westerwelle in Germany last year to discuss bilateral and regional issues Image Credit: Corbis

From politics, security and health care to trade and commerce, Germany and the UAE share a prosperous relationship. There has been a spurt in investments, transfer of knowledge and trade volumes in recent years, and bilateral ties have also been strengthened at the highest levels by regular visits of dignitaries from both countries.

A visit by the Federal Environment Minister of Germany, Peter Altmaier, to Abu Dhabi earlier this year during the general assembly of the International Renewable Energy Agency (Irena) and the World Future Energy Summit, and UAE Minister of Economy Sultan Bin Saeed Al Mansouri’s visit to Germany last April as leader of the UAE delegation at the ninth meeting of the German-Emirati Joint Economic Committee, are worth mentioning.

“For many years, Germany and the UAE have maintained a political dialogue based on mutual trust,” says Nikolai von Schoepff, the German Ambassador to the UAE.”

The Federal Republic of Germany established diplomatic relations with the UAE in May 1972. In April 2004, Germany and the UAE signed an agreement for strategic partnership. Since then there has been a constant exchange of high level visits and a close cooperation in all aspects.

“They are working together to help the Arab world deal with the historic changes that are sweeping across the region. Germany welcomes the efforts of the UAE to develop Abu Dhabi as a centre for international dialogue on sustainable energy policy, which also offers great opportunities for further cooperation,” says Schoepff.

Sustainable development

Germany and Abu Dhabi-based Irena recently signed a cooperation agreement concerning the employment of German associate experts at the agency. Under the agreement, Germany will propose and sponsor highly qualified young German professionals at the Irena headquarters for an initial period of 12 months.

“Through this agreement, Germany intends to strengthen the capacity of Irena to fulfil its mandate and, at the same time, facilitate the employment of German early career professionals. However, the decision regarding the appointment and/or assignment of the German candidates rests entirely with Irena. Once selected by Irena, the German associate experts will work as regular Irena staff members,” says the ambassador.

Trade figures

Trade between both countries has soared steadily in the past few years. The UAE is Germany’s biggest export market in the Middle East and North Africa.

German exports to the UAE amounted to €9.77 billion (about Dh49 billion) last year, an increase of 30 per cent on 2011. Germany exports automobiles, machinery and electronic and chemical products to the UAE.

“Exports from the UAE to Germany, primarily aluminium alloys and chemical products, have declined from €1.02 billion in 2011 to about €800 million in 2012, according to provisional figures,” says Schoepff. “International competition will most likely increase in the UAE in 2014. However, with the help of the outstanding services by the German-Emirati Joint Council for Industry and Commerce in Dubai and Abu Dhabi, German companies will successfully master this challenge,” he adds.

An estimated 12,000 Germans are living in the UAE and a number of German companies are currently running successful operations in the country. These companies have contributed significantly to the principal sectors of the UAE economy, including construction, railway systems and operation, renewable energy, and environmental and medical technologies.

Ahmed Pauwels, Chief Executive Officer of Epoc Messe Frankfurt GmbH, the Dubai subsidiary of the world’s largest trade fair organisers, Messe Frankfurt, attributes his company’s success in the UAE to the country’s infrastructure and its relatively easy visa processes.

“We have been operating in the UAE for more than a decade and currently organise seven annual trade fairs, one biannual event and a series of conferences. About 20 per cent of our total sales come from the UAE. We have 50 UAE customers who exhibit at our mother fairs in Germany throughout the year, all of which is coordinated through our international sales office in Dubai,“ Pauwels says.

German banking and financial services companies have also experienced strong growth in the past few years in the UAE. “The first half of 2013 was positive and we expect the momentum to stay for the second half of the year, to exceed our 2012 results,” says Nadeem Masud, Chief Country Officer for the UAE, Deutsche Bank AG, which offers a full range of investment banking, asset and wealth management, and global transaction banking services. It is also a strong player in the UAE Islamic finance industry.

“We see ourselves well positioned in the country and we are poised to build upon this success, which is a key component of our global strategy for 2015,” Masud adds.

Germany and the UAE also have joint security interests in the Gulf, as well as in Afghanistan. Both countries are co-chairs of the working group on economic reconstruction and development within the Group of Friends of the Syrian People and recently signed the framework agreement on the Syria Recovery Trust Fund together with the German Kreditanstalt für Wiederaufbau (Reconstruction Loan Corporation). On energy and environment issues, both are working together to build up Irena as a successful international organisation.

Intensifying cultural relations is an objective of the strategic partnership between the UAE and Germany, says the ambassador. Since 2006, the German Academic Exchange Service (DAAD) and the Goethe-Institut, the German cultural organisation, have regional offices for the Gulf states in Abu Dhabi. Through these organisations, Germany focuses on academic exchange and the promotion of the German language. Last month music lovers and students of Emirates-based universities attended the German-French concerts held in Abu Dhabi and Sharjah. The events saw performances by Emirati, German and French artists.

“Germany has an excellent reputation in the field of higher education and vocational training, but we need to continue our efforts in encouraging cultural, scientific, technological and educational cooperation, as well as intercultural dialogue and bilateral encounters,” says Schoepff. A very good example is the internship programme of Atic/Mubadala, where more than 120 students of various higher educational institutions in the UAE have been sent to Dresden for an internship at the chip plant Globalfoundries.

“Another recent highlight in the fostering of relations in the educational field is the opening of the German UAE College of Logistics, a joint venture between the Higher Colleges of Technology and a consortium of three German universities in Abu Dhabi,” says the ambassador. The college will offer an internationally recognised German-UAE double bachelor’s degree in logistics sciences.