German firms are looking to invest and strengthen business ties with Saudi Arabia across fields like solar and energy efficiency, and hydrogen.
The Gulf is under a lockdown with oil prices hitting an all-time low, but Ramadan has finally brought in some good news. Germany, which managed its outbreak relatively well, is now ready to gradually start business as normal again. So, German companies are looking to maintain business continuity with the Kingdom of Saudi Arabia by adopting a new digital routine. Furthermore, Germany-Saudi Arabia partnership has big plans for renewable energy in the Kingdom.
Highlights! Wary of oil’s future, Saudi Arabia eyes German co-operation to make the shift to renewable energy
- Saudi-German business continuity engaging in early dialogue
- German firms want to be a part of Saudi Arabia’s vision 2030
- The new focus of renewable energy to make up for oil damages
Towards business continuity among organizations, the German-Saudi Arabian Liaison Office for Economic Affairs (GESALO) has gone digital, starting to facilitate interactions between the Saudi-German business community. German firms are looking to invest and strengthen business ties with Saudi Arabia across fields like solar and energy efficiency, hydrogen, and organic food.
Watch: UAE and Saudi Arabia worst hit by coronavirus
Early dialogue will help in the future
Despite the coronavirus stumble, Saudi’s megaprojects as part of Crown Prince Mohammad bin Salman’s Vision 2030 are still the country’s target. German companies are eyeing an early mover advantage with responsiveness from the private players as well as government, fortifying the German-Saudi relationship.
GESALO said, “Starting and continuing the dialog today will lay a strong foundation for the time when international travel restrictions will be lifted and face-to-face will be possible again.” Several weekly webinars have been held and the industry believes the digital interactions will be crucial moving forward.
Shift from oil
The global lockdowns have really staggered the world’s oil-dependent economy. Will surplus to continue, the COVID-19 outbreak is expected to have long-term impacts on the oil industry. The future forecast is reportedly making the Kingdom wary. Thus, Saudi Arabia will look to inculcate a strong renewable energy industry in the next decade.
Co-operation from the German business community will be pivotal for Saudi Arabia to make the shift. German companies are pioneers in the field. Interest from companies in Germany speaks of Saudi Arabia’s potential as a renewable energy market and is definitely great news as the Ramadan month approaches.