Exchange of ideas

Forging closer ties for a better future

German Foreign Minister Dr Guido Westerwelle talks to GN Focus about new areas of cooperation

"The vibrant Gulf has become a very important region on a global scale, economically and politically.

“The UAE is a key player in the region and an economic powerhouse. My government is committed to further deepening our already excellent bilateral ties — politically, economically and culturally. Chancellor Merkel visited the UAE last year; I travelled more than a dozen times to the Middle East and Arab region, and twice to Abu Dhabi since coming into office in 2009.

“Since 2004, we are linked by a strategic partnership, which permits intensive as well as regular contacts on a broad range of issues of mutual interest and helps to boost our economic ties at the same time.

“As a result, we work closely together on issues of major international importance such as Afghanistan, Iran or Yemen. Furthermore, our economies are interlinked to a high degree. The UAE is the most important export market for Germany in the Arab world. Likewise exports and investment from the UAE to Germany have continuously grown in the past years.

“And there is more we can do. Renewable energies could play an important role. The UAE has a huge potential for solar power and wind energy, Germany is one of the world leaders in this field. This is why an even closer cooperation on renewable energies and energy efficiency would benefit both countries.

“I also see potential for more direct Emirati investments in Germany.

“And finally, we need to strengthen the dialogue between our societies. This is especially true in a time where the so-called Arab Spring has generated an even greater interest in Europe and Germany for what is actually going on in the Middle East.

“Today, we look back on decades of friendly and constructive bilateral relations. We are looking forward to forging even more intensive ties in the future.”

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Working together on pertinent global issues, innovation and technological advancement has given fresh impetus to the long-standing relationship between Germany and the UAE.

German companies are increasingly investing in production, particularly in human resources for their operations in the UAE. The European giant is a key contributor to building a knowledge-based economy in the UAE. However, in recent years, bilateral ambitions have moved beyond economic and political interests by boosting the third pillar — an increase in dialogue between the civil societies of the two countries.

Nikolai von Schoepff, the newly appointed German Ambassador to the UAE, says strategic bilateral relations, transfer of know-how and technology, as well as an increase in Emirati investment in Germany are key political and mutually rewarding developments that both countries will focus on for the next few years.

As a result of these strategic expansions, trade between both nations continues to grow. German exports to the UAE rose to €7.58 billion (Dh39 billion), an increase of 23 per cent over 2009. UAE exports to Germany increased by 10 per cent last year to €519 million. The number of UAE goods exported to Germany is steadily increasing, including major items such as aluminium, organic oils, minerals, textiles and electronic devices.

These figures are expected to witness sustained growth with renewed focus in areas such as power and water, automobiles, renewable energy, health, engineering, consulting and infrastructure.

"Not only are trade figures increasing but also our bilateral partnership is gaining in intensity and mutual trust as well," says Schoepff. "A key example is the opening of the German-UAE College of Logistics at the Higher Colleges of Technology. We are helping the UAE to implement its vision and policies by leveraging our presence in almost every field of modern life, heritage and innovation in the UAE. Major German companies have made sizeable investments in principal sectors of the UAE economy, which include logistics, aviation, petrochemicals and the electronics industry," says Schoepff.

Since the visit of Chancellor Angela Merkel in May last year, both nations have witnessed a series of high-profile visits that have contributed to further strengthening the ties between both countries. The UAE Foreign Minister Shaikh Abdullah Bin Zayed Al Nahyan visited Berlin the following month as an expression of solidarity. This year, the UAE welcomed German Foreign Minister Dr Guido Westerwelle, in April; the recent visit of Federal Minister of Interior Dr Hans-Peter Friedrich in October was followed by several high-ranking German officials visiting from 16 federal states.

As part of Germany's efforts to expand the presence of small- and medium-sized enterprises (SME) in the UAE, Chancellor Merkel's visit included the signing of a Memorandum of Understanding with the UAE government to further promote SME activities.

"These visits not only help to foster our bilateral relations but also develop new avenues for synergy and cooperation," Schoepff says. "In the face of stiff competition in the UAE markets, Germany will redouble its efforts not only to maintain but also enhance German market shares. It is no secret that small and medium enterprises make up for the bulk of German exports. An important element in realising the potential in bilateral trade relations will be the reform of the company law that should allow foreign companies to participate in major joint ventures in the country."

In addition to fostering entrepreneurship, Germany is focused on the transfer of advanced technological knowledge and the setting up of centres of excellence in the UAE. The German Logistics College at the Higher Colleges of Technology will produce highly skilled and qualified Emiratis who can work successfully in the UAE's logistics sector. Additionally, Germany's active commitment to all levels of education has seen the successful operation of three German international schools with large kindergartens at Abu Dhabi, Dubai and Sharjah.

"Following the extraordinary vision of the founding father of the UAE, Shaikh Zayed Bin Sultan Al Nahyan, educating the youth as the natural treasure of the new nation is of paramount importance to the future of the UAE," says Schoepff.

"Germany is eager to contribute to this overriding priority of State and society. We are proud to actively contribute to all levels of education. Emirati pupils are a constituent part of our teaching, and the formation of personality, individual and collective identity. At the university level, Germany is seconding excellent teaching staff to numerous Emirati universities and offers a student exchange programme allowing qualified Emirati students to continue their studies in Germany. I particularly encourage Emirati students to come to Germany for studies. Studying in Germany presents many advantages. With more than 300 higher education institutions nationwide, we have a density of universities that is practically unrivalled around the world. And there is no need to be perfect in German; universities in Germany offer more than 500 international study courses in English leading to bachelor's, master's and PhD degrees."

Focus area

Germany's decision to move to renewable energy by 2022 further highlights its expertise and invaluable experience in the field, which it is keen on sharing with the UAE. Last year, Chancellor Merkel was the first foreign head of government to pay a visit to the Masdar Institute, one of the two projects that Germany has a considerable presence in, the second being the International Renewable Energy Agency (Irena).

Abu Dhabi took centre stage in German-Emirati relations, when it was chosen as the interim headquarters for Irena two years ago and has experienced great support and hospitality with around 150 countries joining the agency as members. "Germany, together with like-minded countries, initiated the founding of Irena, which is rooted in the global belief that renewable energy use must and will increase in the coming years because of its key role in enhancing energy security, reducing greenhouse gas emissions and mitigating climate change. Furthermore, the use of renewable energy alleviates energy poverty, supports sustainable development and boosts economic growth," says Schoepff.

This October the Innovation and Technology Centre was launched with a high-ranking presence from the UAE and Germany. The centre will provide Irena with additional capacity and support in delivering its overall objectives.

Attracting investment

The UAE's increasing interest in collaborating with Germany is reflected in shining examples of investment, which include Aabar's 40 per cent stake in Daimler and Abu Dhabi MAR's acquisition of a controlling stake in German shipyard Nobiskrug in 2009 and the more recent and substantial investment by Abu Dhabi's Advanced Technology Investment Company in semiconductor and chip manufacturer Globalfoundaries in Dresden. Masdar Power — a developer and operator of renewable power generation projects from Masdar — recently invested $500 million in Germany, where it produces PV thin-film solar panels since October 2009.

Interestingly, the ambassador also points out that Germany is possibly the first country to be associated with a political foundation in the UAE. The Konrad Adenauer Foundation assists the UAE via the Emirates Centre for Strategic Studies in its efforts towards building a modern society.

"Our focus will continue to be an active partner and supporter of the UAE by providing support through our resources, technical expertise, innovation and knowledge. Our prime political aim for the future is to enhance private Emirati investment in Germany. UAE investment in Germany is already on a high level and thanks to Emirati investment funds is still growing," says the ambassador.

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Nurturing a steady and prosperous relationship

German Consul General in Dubai Klaus Ranner outlines his country's long-standing commitment to the emirate.

"The UAE, particularly Dubai, continues to be the most important partner of Germany in this region, and this significance is highlighted by the visits of high-ranking delegations, such as last year's visit of Philipp Rösler, the Federal Minister of Health, who has since become Vice Chancellor of Germany.

"German exports to Dubai cover a wide range of products and services — all of them of high quality and technological standards — and we intend to further build on this trend. Last year, we witnessed a growth of 23 per cent in our exports to Dubai totalling €7.58 billion (Dh39 billion) and we are confident that this growth will continue over the next few years. Environmental technologies are a growing part of the economy, both in Germany and the UAE. More recently, Germany's decision to phase out nuclear energy by 2022 and grow its renewable energy sector will translate into significant knowledge transfer and the sharing of technical expertise.

"Dubai has become extremely attractive, the proof of which can be seen in the increasing numbers of German tourists to Dubai. We've also seen a significant increase in Gulf Arabs visiting Germany. As per the German National Tourist Office, in 2010 there was a 26.4 per cent increase in overnight stays from Gulf Arabs in Germany as compared to 2009, with the total number of stays by Gulf Arabs reaching almost one million (968,336) last year.

"As for the future, both Consulate General and the significant German business community will continue to pursue and nurture a steady upward development of trade relations between Dubai and Germany. A good example is the continuously increasing presence of German exhibitors at trade fairs in Dubai. We have, every year, more than 20 German collective participations, better known as the German pavilions at the major Dubai trade fairs.

"German expatriates in Dubai, an estimated 60 per cent of the 10,000 in the UAE, blend extremely well into its multicultural society. The Consulate General continues to serve as an information hub for Germans in Sharjah, Ajman, Umm Al Quwain and Ras Al Khaimah as much as being a provider of information for UAE residents."