German expertise fuels growth in UAE key sectors

The UAE and Germany are deepening business ties as they look to strengthen industrial and energy partnerships. The Emirates is tapping German expertise to strengthen its economic diversity while the European nation looks to secure energy supplies, particularly in hydrogen and the renewables sectors.

Last week, officials from the Abu Dhabi Department of Energy met representatives of German energy businesses in Berlin as part of a visit aimed at jointly developing innovative energy technology solutions to support the energy transition in both countries. The UAE delegation also visited several German international companies, including Siemens, 50Hertz, and the Federal Ministry for Economic Affairs and Climate Action of Germany (BMWK).

Last week, officials from the Abu Dhabi Department of Energy met representatives of German energy businesses in Berlin as part of a visit aimed at jointly developing innovative energy technology solutions to support the energy transition in both countries. The UAE delegation also visited several German international companies, including Siemens, 50Hertz, and the Federal Ministry for Economic Affairs and Climate Action of Germany (BMWK).

It was just one of several visits that have taken place this year alone.

In April, representatives from the Abu Dhabi Department of Economic Development, Abu Dhabi Investment Office, ADNOC, Kezad Group and Dubai Industrial City attended a roundtable with about 30 German companies at Hannover Messe, one of the world’s largest industry trade fairs.

The event showcased the UAE’s unique value proposition for investors and innovators in the manufacturing and energy technology sector. The discussion, titled Make it in the Emirates: The UAE as a Global Industrial Hub, focused on sustainable industrial development, decarbonisation and energy security.

And in May, a delegation led by Sharif Al Olama, Under-Secretary for Energy and Petroleum Affairs at the Ministry of Energy and Infrastructure, toured the Fraunhofer Institute for Solar Energy Systems in Freiburg to learn about its research on hydrogen technologies. It was part of an energy-focused business trip to the EU.

The UAE has ramped up its commitment to decarbonising its fossil-fuel-heavy economy, announcing it would triple renewable energy capacity to 14GW by 2030 in its recently updated National Energy Strategy and has committed to spending up to Dh200 billion to support the energy transition over the next seven years.

Oil and gas currently accounts for about 30 per cent of UAE exports. A stronger renewable energy sector better positions the country to replace these with clean fuels, maintaining its role as an energy leader.

Germany has reopened coal-fired power plants and turned to new import markets.

Finally, long-term contracts for unabated fossil gases cannot run beyond 2049. Renewables and low-carbon gases from the UAE could provide a long-term solution.

Germany and the UAE are already exploring the potential of a relationship focused around clean and alternative energy.

One area of progress is exports, where tests and trials are underway to study the feasibility of transporting new fuels over long distances.

A first shipment of 137,000 cubic metres of supercooled liquefied natural gas was delivered from Das Island in Abu Dhabi to the Elbehafen floating LNG terminal in Brunsbuttel this February. ADNOC and German power company RWE were involved in the project.

The landmark cargo followed in the wake of a low-carbon ammonia from ADNOC to Hamburg last October. Ammonia is an industrial feedstock for industrial applications. The hydrogen it contains can serve as a low-carbon alternative for the energy-intensive processes in metal production.

“This demonstration cargo of low-carbon ammonia builds upon the long-standing bilateral relationship between the UAE and Germany and our growing partnership in clean energy,” Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, said at the time.

Meanwhile, here in the UAE, Germany’s famed engineering prowess is already being put to work in industry and infrastructure.

Siemens and Siemens Energy are providing technical and specialist expertise to industrial partners in Dubai and Abu Dhabi.

In October, it was announced that the Abu Dhabi Investment Office will support Siemens Energy in setting up its Middle East Innovation Centre in the emirate, as part of a Dh2 billion innovation programme to create growth opportunities for businesses in the emirate.

The company is already serving as the technical partner on the engineering, design, procurement, and construction of a 650MW solar photovoltaic plant to supply green hydrogen and ammonia to a project of Brooge Renewable Energy (BRE) in Abu Dhabi.

The Munich-headquartered company has also established the region’s first solar-powered green hydrogen plant over an area of 10,000 square metres at the Mohammed bin Rashid Al Maktoum Solar Park in Dubai.

And across the UAE, Siemens technology will power a nationwide network of ultra-fast electric vehicle (EV) chargers to boost EV adoption, and help build a sustainable transportation system. The project, backed by the UAE Ministry of Energy and Infrastructure, will install Siemens Sicharge D 160kW ultra-fast chargers on highways in Ras Al Khaimah, Ajman, Umm Al Quwain and Fujairah.

Critical industries and infrastructure may be grabbing the headlines, but business activity has also been growing in other areas.

Ramy Jallad, Group Chief Executive Officer of Ras Al Khaimah Economic Zone (RAKEZ), one of the largest economic zones in the region, says the dedicated business precinct has “seen a notable uptick in interest from German entrepreneurs”.

“Ras Al Khaimah, with its strategic location, robust infrastructure, and business-friendly environment, has emerged as an attractive proposition for international entrepreneurs, including those from Germany,” Jallad says.

“German entrepreneurs have displayed impressive versatility in their choice of sectors within RAKEZ. We have witnessed their involvement across diverse fields such as manufacturing, technology, media tech, AI and robotics, specialised industrial machinery trading, logistics, media, construction, building materials, trading, engineering and consultancy, among many more. This diversity is a testament to the adaptability and entrepreneurial spirit of German businesses,” he says,

From heavy industry to construction and real estate, more than 600 German companies have established businesses in RAKEZ, he says.

At least in part, RAKEZ’ success stems from business outreach within Germany. The free zone’s dedicated regional office in Germany offers personalised guidance for German investors and businesses expanding into the Middle East.

“We believe that by providing such comprehensive support, we not only attract German entrepreneurs but also nurture their growth and success within our dynamic business environment,” Jallad says.

Meanwhile, Messe Frankfurt, a German exhibitions company that organises trade fairs such as Automechanika and Beautyworld Middle East in Dubai, is looking to expand business in the other direction and help UAE consumer brands build stronger relationships within Europe.

Events such as Ambiente, the international sourcing exhibition held in Frankfurt each January, offers a platform for networking, marketing and business development.

“Visiting German trade fairs presents UAE companies with a gateway to new markets,” Julia Uherek, Vice President Consumer Goods Fairs, Messe Frankfurt Exhibitions, tells GN Focus. “These trade fairs offer an invaluable opportunity to showcase products and services, establish business connections, and understand the specific needs and preferences of the European consumer base. Exploring these markets can lead to fruitful collaborations, increased export potential, and a broader international presence.”

Exposure to German business practices and innovation fosters adaptability, she says, enabling UAE companies to tailor their strategies for success in diverse and dynamic global markets. As the UAE looks to diversify away from a hydrocarbon-based economy, that advice couldn’t be more pertinent. ■