German-Saudi Business Magazine
May 2014
German Investments in Saudi Arabia
Petrochemicals
Automotive
Infrastructure
ICT
German - Saudi Business Magazine
Editorial
Dear readers,
Andreas Hergenröther
Delegate of German
Industry & Commerce
for Saudi Arabia and Yemen
Saudi Arabia has been focusing more and more on promoting transfer of knowhow and technology to diversify its industrial landscape outside the hydrocarbon
sector. The government needs strong partners for sustainable long-term business
relations. German economy can be a major ally in this process. “Made in
Germany” is renowned around the world for its attributes of premium quality,
state-of-the-art technology and know-how. The latter takes a pivotal role in the
success story that “made in Germany” achieved and it is here that the German
industry is a strong partner for many industries and regions, helping spread it to
local production sites. As the world’s second largest exporter, the German
economy is recognized worldwide for high quality products and services and as a
guarantee for sustainable and fair business. German enterprises have successfully
contributed to the economic development in Saudi Arabia by investing, training
Saudi Arabian employees and actively transferring technology and know-how.
For example, German investors like Siemens, Mercedes, Linde, Evonik or Henkel
are well known through their production sights in Saudi Arabia but also small and
medium-sized companies (SME) like Bischof+Klein, V-Line, Erndtebrücker
Eisenwerk GmbH or SIG Combibloc are successful investors. In 2012 Siemens
took the next step towards a massive expansion of its activities in Saudi Arabia,
breaking ground on a landmark manufacturing facility for gas turbines and
compressors. This creates job opportunities for young Saudis, serving as a
knowledge transfer hub for new Siemens technology and supporting the country’s
industrialization drive. Another example is DHL supply with more than 1,700
employees in Saudi Arabia which illustrates its commitment to innovation, service
excellence and providing customers in Saudi Arabia with superior logistics
solutions. And for over ten years now, the successful joint venture undertaken by
German family-owned company Bischof+Klein and three Saudi partners have
been producing FFS packaging solutions on the basis of co-extruded films as well
as stretch hood and shrink films. The plant in Dammam has a total output of
almost 24,000 metric tons. Evonik Industries and Saudi Acrylic Acid Company
(SAAC) have established a joint venture called Saudi Acrylic Polymers Company
(SAPCo) for the production of superabsorbents. SAAC is a joint venture of the
Saudi companies National Industrialization Company (Tasnee) and Sahara
Petrochemicals. The production facility has an annual capacity of 80,000 metric
tons. Other major investments were made in the automotive sector by the
successful joint ventures of Mercedes with Juffali and MAN with Xenel Group
assembling trucks in Jeddah.
By creating jobs and interacting with local enterprises these companies make a
contribution to the positive development of the Saudi Arabian economy. To
create a better awareness of the high potential of German-Saudi Arabian business
relations we would like to present in this current edition the portfolios of some of
the major German companies investing in the Kingdom.
Andreas Hergenröther
AHK Saudi Arabia - www.saudiarabien.ahk.de
1
Contents
05
56
06
12
34
10
32
Editorial
01
MAN
35
AHK Saudi Arabia
04
BMW
36
German Desk Opens in Jubail
05
E. A. Juffali & Brothers
37
Government Support
for the Private Sector
06
Investments in Saudi Arabia
08
SAP
41
Industrial Cities
09
Detecon Al Saudia Co. Ltd.
42
Petrochemicals
10
Logistics
44
BASF
12
DB International
46
Bischof + Klein
14
DHL
48
Henkel Polybit
16
SMEs
50
Evonik Industries
18
KSB Pumps Arabia
52
SIG Combibloc
20
48 47
SSI Schaefer
53
Linde
22
54
Lurgi
24
55 50
V-Line
AHK Services
56
Banking
26
Your contact persons at
AHK Saudi Arabia
58
Deutsche Bank
28
Trade Fairs
60
Infrastructure
30
Siemens
32
Automotive
34
Information & Communication 39
Technologies
42 38
40
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Disclaimer:
German–Saudi Business Magazine
(GSBM), Issue May 2014
Editor-in-Chief
Andreas Hergenröther
Head of Public Relations
Christian Engels
Responsible for Printing
AHK Saudi Arabia
© Copyright GSBM 2014.
All rights reserved.
No part of this magazine may be reproduced
without GSBM’s written permission.
The opinions expressed in GSBM do not
necessarily reflect the views of the German
Delegation of Industry and Commerce for
Saudi Arabia and Yemen (AHK Saudi Arabia).
GSBM is not responsible for the validity of
contents in articles written by external
authors.
German - Saudi Business Magazine
HISTORY
AHK Saudi Arabia
The official representation of the German economy in Saudi Arabia
The Delegation of German Industry &
Commerce for Saudi Arabia and Yemen
(AHK Saudi Arabia) has been founded in
1978 by Royal decree under the name of
German-Saudi Arabian Liaison Office for
Economic Affairs (GESALO). AHK
Saudi Arabia is part of the German
Chamber Network and the official
German Foreign business promotion.
With 120 offices worldwide AHKs offer
their experience, connections and services
to German and companies of their partner
countries. With a staff of 20 employees,
AHK Saudi Arabia supports Saudi and
German companies with its services.
AHKs are closely connected to the
Chambers of Industry and Commerce
(IHKs) in Germany. Together, they
represent in total 3.6 million companies
in Germany.
AHK Saudi Arabia is the official
representative of German economy in
Saudi Arabia. Besides this AHKs are
service providers to companies under the
brand “DEinternational” AHKs provide
services to companies both from
Germany and their host countries in order
to support their foreign business activities.
These services include conducting market
studies and providing sector information,
matchmaking,
business
consulting,
organization and representation of trade
shows, issuing business publications, legal
information, medical treatment support
and vocational training, etc.
AHK Saudi Arabia
more than 30 years of
experience
German-Saudi Arabian business relations
follow a long tradition In 1978 the Joint
German-Saudi Economic Committee
composed by representatives of the
German Ministry for Economics and the
Saudi Ministry of Finance decided to
establish a German foreign trade
commission in Saudi Arabia. On August
22nd 1978 was the inauguration of the
first office for German–Saudi economic
relations, which has been established by
Royal Decree. The first years AHK Saudi
Arabia shared the office with the German
consulate in Riyadh since in 1985 the
German embassy moved from Jeddah to
4
Riyadh. First Delegate of German
Industry and Commerce in Saudi Arabia
was Dr. Gerhard Fischer (1978-82), who
had at that time just one employee his
secretary. His successor Marc Landau
(1982-86) shaped the name German Saudi
Arabian Liaison Office for Economic
Affairs and his short form GESALO.
From the beginning the office was not just
responsible for Saudi Arabia but also for
the economic relations to Bahrain, Kuwait,
Qatar and Yemen.
Delegate Dieter Mankowski (1986-1991)
intensified the work of AHK Saudi Arabia
in the Kingdom. As trade fairs are crucial
instruments in foreign trade promotion
and Germany is the world’s number one
venue for organizing international trade
fairs it was a logical step to found an own
trade fair department.
Establishing AHK-Services
His successor Dr. Rainer Herret (19911998) put the focus on a second issue,
which is of high importance for the
bilateral economic relations: With the
implementation of a legal department
AHK Saudi Arabia was able to assist
German companies regarding legal
questions like customs regulations, taxes
and the legal framework of launching
branches, founding a Joint Venture with a
Saudi company or establishing a liaison
office. Since then Saudi businessmen are
able to get assistance in the visa process
for Germany via the AHK office when
they are to visit or exhibit on trade fairs or
need to travel for business trips. AHK
Saudi Arabia acts also as a mediator in
cases of commercial disputes between
German and Saudi business partners with
the aim to solve disputes without harming
the long term business relations. Under the
lead of Michael Tockuss (1998-2001)
AHK Saudi Arabia ameliorated its services
for German companies in the region.
Since then today’s longest tenured
employee, Mohammed Faleel, is in charge
for the promotion of business to business
development. Due to his knowledge about
the market and his connection to Saudi
decision makers AHK Saudi Arabia was
able to create an infrastructure to provide
German companies services like market
information, address research, business
partner research and the organization of
business trips. In the time of Mr. Tockuss
a second branch in Jeddah has been
opened to serve the companies based in
the former capital. For delegate Manfred
Rothgänger (2001-2005) the times were
difficult as the Kingdom faced terrorist
attacks against governmental institutions
as well as foreigners in the country. The
Jeddah office had to get closed again
due to the uncertain circumstances.
Nevertheless Saudi Arabia recovered and
paved its way to participate in the World
Trade Organization (WTO), which can be
seen as a great success. In the term in
office of Delegate Gerd Doepner (20052010) the boom in the United Arab
Emirates and the foundation of the
German Emirati Joint Council for
Industry & Commerce (AHK UAE)
led to restructuring the market. Since
2009 German business relations with
Bahrain, Kuwait and Qatar is organized by
AHK UAE.
New Challenges:
Andreas Hergenröther
Since
October
2010
Andreas
Hergenröther is the current Delegate of
German Industry and Commerce for
Saudi Arabia and Yemen. Under his lead
the German-Saudi business relations
tightened within one year even more and
many projects are on the way deepening
these relations. In December 2010 the first
German-Saudi Arabia Desk has been
established at the Bielefeld Chamber of
Industry and Commerce. It functions as an
information platform about Saudi Arabia
for all German companies. Under the lead
of Mr. Hergenröther more than 100
events in Germany and Saudi Arabia have
been organized by AHK Saudi Arabia in
order to promote German-Saudi business
relations. With its services for German and
Saudi companies AHK Saudi Arabia is in a
key position for the bilateral economic
relations. Every businessman, who is
interested in doing business in Saudi
Arabia or in Germany will find an
individual concept of entering the market,
promoting its business through trade fairs
and find the perfect business partner from
the other country.
German - Saudi Business Magazine
HISTORY
German Desk Opens in Jubail to
Facilitate Transfer of Technology
The ‘German Desk’ opened at the Jubail
Branch of Asharqia Chamber aiming at
facilitating transfer of technology for the
industrial development at the twin cities
of Jubail.
Dr. Peter Ramsauer, Chairman of the
Committee of the German Parliament for
Economic Affairs & Energy, inaugurated
the event last month. Mr. Hassan M.
Al Zahrani, Vice-Chairman of Asharqia
Chamber, Michael Ohnmacht, Acting
German Ambassador to the Kingdom and
Mr. Andreas Hergenrother, Delegate of
German Industry and Commerce for
Saudi Arabia were present.
Germany is keenly interested in
participating in the Kingdom’s on-going
economic development, said Dr. Peter
Ramsauer adding that he was amazed
witnessing tremendous industrial development in Jubail. German technology and
industrial equipment are of high quality
compared to other countries, he noted.
Mr. Al Zahrani pointed out that the
opening of the German Desk in the
Kingdom’s industrial hub of Jubail will
give a fresh boost to the already strong
trade and commercial relations between
Saudi Arabia and Germany. Many globally
recognized petrochemical plants built by
the Saudi Arabian Basic Industries
Corporation (SABIC) are based in the
Jubail Industrial Cities-One and Two. In
addition, Saudi Aramco has several
large-scale new projects such as Sadara
Chemical Company and Saudi Aramco
Total Refining & Petrochemical Company
located in the twin industrial cities, he said.
German companies have strong presence
in the Saudi market offering high-tech
products and expertise. Over 100 German
companies are now represented in Saudi
Arabia and their combined investments,
according to the Saudi Arabian General
Investment Authority, reached over
$8 billion, noted Mr. Zahrani.
He invited German firms to take
advantage of liberalized economic policy
and a package of incentives announced by
the Saudi government for foreign
investors. The liberalized economic policy
has made Saudi Arabia the most favorable
country for businesses in the Arab world,
Middle East and North Africa region,
observed Mr. Zahrani.
Currently, the annual two-way average
trade has reached over SR42.7 billion , of
which, Saudi imports from Germany are
valued at around SR41.3 billion while
Saudi exports to Germany are worth only
1.4 billion Riyal.
Mr. Zahrani offered Chamber’s willingness
to cooperate with German companies in
order to support them in their efforts
to identify trade and investment
opportunities in the Kingdom.
Mr. Hergenrother noted that Germany is a
key supplier of technology and know-how
to the Kingdom particularly to its Eastern
Province where many German companies
have established their production bases.
These German firms included Linde
(industrial gases), Siemens (gas turbines),
BASF (construction chemicals), Kenkel
(industrial
coatings),
Evonik
(suberabsorbants), Bischof & Klein
(packaging)
and
Erntebruecker
Eisenwerke (pipelines).
Mr. Hergenrother mentioned the strong
presence of the German logistic giant
DHL which has become the largest
German employer in the Kingdom
employing over 4,000 people. For creating
employment opportunities, DHL has been
honored with the Prince Nayef Award for
the highest Saudization quota of a foreign
company in the Kingdom.
AHK Saudi Arabia - www.saudiarabien.ahk.de
5
German - Saudi Business Magazine
Government Support for the Private Sector
Government Support
for the Private Sector
The government plays an essential
role in industrial and economic
development.
The Ministry of Economy and Planning
assists in formulating the five-year
development plans that set long-term
economic goals.
The Ministry of Finance supervises
implementation of the nation's economic
policies. The Saudi Arabian Monetary
6
Agency (SAMA), the nation's central bank,
oversees the country's fiscal policy.
To facilitate the expansion of the private
sector's role in the national economy, the
government established five specialized
credit institutions, which provide
economic opportunities to many Saudis
who were previously unable to compete in
the
marketplace.
These
financial
institutions have provided loans to citizens
for development projects in agriculture,
industry and construction.
In 1974, the Saudi Industrial Development
Fund (SIDF) was the first government
Government Support for the Private Sector
agency set up to provide interest-free soft
loans to enable Saudi businessmen to
establish industrial plants. These loans can
be used to finance up to 50 percent of the
capital for a new factory. SIDF loans have
helped launch thousands of new factories
and expand hundreds of existing facilities.
Since it was founded in 1963, the
Saudi Arabian Agricultural Bank (SAAB)
has provided loans for agricultural
projects, farm machinery and production
requirements. The Real Estate Development Fund has been financing residential
and commercial construction since 1974,
with a unique program that provides
interest-free loans repayable in 25 years.
Launched in 1971, the Public Investment
Fund offers credit to public and
semi-public corporations. The Saudi
Credit Bank was founded in 1973 to
provide personal loans for home repair, as
well as vocational and crafts training.
In addition to the specialized credit
institutions, the government offers an array
of incentives to the private sector.
A sweeping reduction in utility and public
service fees, implemented in early 1992,
lowered operating and production costs for
private companies, making their products
more competitive with foreign goods.
Private entrepreneurs are also given access
to government information systems
specifically created to help local
manufacturers target the best market for
their products. Government agencies such
as the Saudi Consulting House, replaced in
April 2000 by the broader Saudi Arabian
General Investment Authority (SAGIA),
provide free consulting and support
services and publish lists of investment
opportunities for the production of goods
in demand in Saudi Arabia. In September
2000 SAGIA opened service centers in
German - Saudi Business Magazine
Jeddah and Dammam in addition to its
headquarters in Riyadh.
Government tenders also give priority to
locally manufactured products and to
Saudi companies. Saudi industries are
exempted from paying customs duties on
the import of machinery and supplies
used in the production of goods
domestically.
To facilitate the transfer of technology and
expand the operations of the private
sector, the government also provides
various incentives to foreign companies
that enter into joint ventures with Saudi
firms. Far-reaching new investment
regulations in 2000, including removal of
the need for sponsorship, gave further
encouragement to foreign investors.
AHK Saudi Arabia - www.saudiarabien.ahk.de
7
German - Saudi Business Magazine
Investments in Saudi Arabia
Investments
in Saudi Arabia
Saudi Arabia is currently working to
develop its trade and investment laws with
the intent of wooing more foreign direct
investments and settling disputes between
foreign investors and their local partners.
Saudi Arabian General Investment
Authority (SAGIA), the country’s
investment facilitator, spearheads the
move by adding some points of
explanation in the current law in addition
to putting a set of new conditions. The
Kingdom
encourages
successful
investment projects as they can create
more jobs for Saudis, said one SAGIA
official. The plan goes well with the Labor
Ministry’s efforts to find more jobs for
young Saudi men and women. The
Kingdom has been making strenuous
efforts to diversify its economy by
encouraging investment projects in various
sectors. It is worth mentioning Saudi
Arabia received $16.4 billion in 2011. Fahd
Al-Mashari, an economist, said many
foreign investors aim to invest their money
in Saudi Arabia because of the country’s
strong and stable economy that has safely
steered through global financial crises.
“The steady growth of the economy and
the incentives being offered by the
government to foreign investors has
strengthened Saudi Arabia’s chance to
become a major hub for investment,” he
pointed out. The Saudi economy has
responded quickly to the speedy global
economic changes. “We are one of the 20
largest economies in the world, holding
19th position. We are also the largest
economy in the Middle East and North
Africa (MENA) region and the largest
recipient of foreign direct investment.”
8
Industrial Cities
While Saudi Arabia’s economic base
continues to be dominated by oil, the
Kingdom has taken steps to diversify the
economy.
Today, industrial products make up more
than 90 percent of the Kingdom’s non-oil
exports.
Saudi
Arabia
exports
petrochemicals, plastics, metal goods,
construction materials and electrical
appliances to some 90 countries.
Petrochemical and other oil-based
industries are concentrated at industrial
cities in major urban centers. These plants
use natural gas and natural gas liquids that
were previously flared, as well as refined
products from the oil industry to
manufacture products that would in turn
feed non-oil industries.
Concentration on industrial plants in
specific areas also facilitates the provision
of vital support services, such as water,
power and transportation.
Saudi Arabia is one of the highest growing
economies in the world with a GDP
growth rate of 6.8 percent in 2012. Saudi
Arabia ranks 22nd out of 185 countries for
the overall ‘Ease of Doing Business.’
There are many reasons for investing in
the strategic sectors where Saudi Arabia
has great comparative advantages. Saudi
Arabia is at the heart of MENA region’s
400 million-strong populations. It is the
largest free market in the Middle East,
having 25 percent of the total Arab gross
domestic product. “Saudi Arabia’s good
location makes it and easy access for the
European, Asian and African markets,”
said a SAGIA official. Moreover, Saudi
market has a high purchasing power and is
expanding continuously. The Kingdom is
one of the fastest-growing countries
worldwide, with per capita income forecast
to rise from $25,000 in 2012 to $33,500 by
German - Saudi Business Magazine
Industrial Cities
The Jubail Industrial City on the Arabian
Gulf has dozens of factories and
industrial facilities, including a desalination
plant, a seaport, a vocational training
institute and a college.
The Yanbu Industrial City on the Red Sea
has a modern port, refineries, a
petrochemical complex and many
manufacturing and support enterprises.
Saudi Arabia's successful industrialization.
By 1994, it had 15 major plants operating
in Jubail, Yanbu, and Jeddah, with an
annual production of 13 million metric
tons. By 2002, total production was 40.6
million tons of basic and intermediate
chemicals, polymers, plastics, industrial
gases, fertilizers, steel and other metals;
this figure is expected to exceed 48 million
tons by 2015.
The government offered incentives for the
establishment of private companies at the
industrial cities. The Saudi Arabian Basic
Industries Corporation (SABIC), created
in 1976, set up non-oil industrial facilities
that use as feedstock natural gas and
natural gas liquids manufactured by the oil
industry.
One of the most ambitious economic
projects to date is the massive
King Abdullah Economic City near
Jeddah, which broke ground in December
2005. The residential and commercial
megaproject will include a dedicated port,
an industrial park, a residential and hotel
complex, and educational facilities.
SABIC is owned 70 percent by the Saudi
government and 30 percent by
shareholders from the six Gulf
Cooperation Council (GCC) countries.
SABIC quickly became the backbone of
In 2006, Custodian of the Two Holy
Mosques King Abdullah launched similar
economic cities in Rabigh, Hail and
Madinah. Plans are also underway for an
economic city in Makkah.
2020. “Saudi Arabia has low inflation rates
and pursues to conclude mutual
agreements with a number of countries
for promoting and protecting investment
as well as preventing double taxation,” the
official said. Speaking about incentives, the
official said investment applications are
processed within 30 days; foreign investors
will benefit from incentives and guarantees
offered to local and national investors; and
are allowed to transfer capital and profit
abroad. “Foreign investors are also eligible
to apply for loans from the Saudi
Industrial Development Fund and can
benefit from corporative, collateral and
massive agreements regarding taxation and
investment with other countries. They are
also allowed to transfer losses for future
years in regard to taxes,” he said.
AHK Saudi Arabia - www.saudiarabien.ahk.de
9
German - Saudi Business Magazine
Petrochemicals
Petrochemicals
Strong Growth Prospects
Saudi Arabia’s petrochemical sector
registers a strong double digit growth since
2007. Ten percent of the global
petrochemical export products have been
manufactured in Jubail and Yanbu. Both
cities form the centre of the petrochemical
industry and have played a key part in the
Kingdom’s determination to develop
hydrocarbon-based industries. Founded by
Royal Decree in 1975, the Royal
Commission for Jubail and Yanbu
(RCJY) has created the basic infrastructure
for these two cities. In Jubail is the world’s
largest industrial city for petrochemicals.
RCJY is currently responsible for the
construction of Jubail II, which will have
the same size than Jubail. The industrial
cities are characterized by physical
closeness to oil fields to take advantage of
short hauls.
As the leading oil producer in the
world Saudi Arabia plans to duplicate its
refinery and petrochemical capacity
and therefore needs international
investors. German companies, well
reputed for its extraordinary experience,
know-how and quality, are well prepared
for joining the petrochemical market
in the Kingdom.
The country itself is holding an excellent
starting position for reaching the political
aim of being a powerful player on the
global market of petrochemical products.
Considering the economic circumstances
and existing conditions it is realistic to
reach the aim in a medium term. Driven by
Saudi Arabia the members of the Gulf
Cooperation Council (GCC) are evolving
towards the world’s leading petrochemical
location. The Kingdom already is the
Petrochemicals
largest producer of methanol und ranks on
the second place among ethylene
producers.
The Saudi Arabian Oil Company
(ARAMCO) and the Saudi Basic Industries
Corporation (SABIC) are the major actors
in the sector. Being the world’s largest oil
producer ARAMCO is in a key position:
The state-owned company invests in multibillion-dollar projects, acts as a shareholder
of many joint ventures and provides the
feedstock for numerous petrochemical
plants. SABIC as the biggest company in
the entire Middle East was founded in 1976
to push the diversification of the local
industry. Today it is the largest public
company in Saudi Arabia as listed in Saudis
stock exchange Tadawul, but the
Government still owns about 70 percent
of its shares.
According to Gulf Petrochemicals and
Chemicals Associaton, GCC member states
were producing 39 million tons of
petrochemical products in year 2000. Eight
years later in 2008, the production
increased
to
100
million
tons.
Saudi Arabia
as biggest and most
influential GCC member produced 60
million tons in 2011. That shows a world
market share of 7-8 percent, which is likely
to be raised up to 80 million tons in 2015.
All in all, Saudi Arabia contributes
three quarters to the production of
petrochemicals in the entire Gulf region.
Saudi decision makers put unprecedented
efforts in the diversification of the
downstream industry to establish a labor
intensive industry. SABIC and Saudi
ARAMCO jointly with many additional
players in Saudi Arabia are pushing the
implementation process. In addition to
increase the mass production of basic
petrochemicals like polyethylene and
polypropylene, Saudi Arabia focuses on
expanding its downstream activities. Downstream products like acetone, carbon oxide,
polyethylene etc., which are the basis of
higher value added products, shall be
produced in the Kingdom. Within the next
10
Jubail is the largest industrial complex of its kind in the world
German - Saudi Business Magazine
Technology and know-how by the German Linde Group: The Jubail Olefins
Complex being developed by Tasnee Petrochemicals Company (Tasnee) and
Sahara Petrochemicals Company (Sahara) in partnership with Basell Polyolefins.
five years, the production of 120 new
chemicals will begin. The Middle East
business intelligence MEED lists
26 projects in the Saudi petrochemical
sector with an investment volume of
15 billion USD that are underway. Another
42 planned petrochemical projects are
46 billion USD worth.
However, the preconditions for German
companies are promising. Saudi Arabia has
wide access to required raw materials and
the costs for energy are low compared to
other locations. Many German companies
already use the advantages of site. An
example how the future can look like is the
Joint Venture Saudi Acrylic Polymers
Company (SAPCo). In August 2011 the
company was founded by Evonik, Tasnee
and Sahara Petrochemicals to produce
80.000 tons p.a. of superabsorbent
polymers in Jubail, starting in 2014. The
Linde Group is also active on the Saudi
market, operating with Sadara. The
German company invests 380 million USD
in Jubail to supply Sadara with carbon
monoxide, hydrogen and ammonia at a
chemical complex now being built by
Sadara in Jubail.
The SME Bischof + Klein produces
flexible packaging solutions in Al-Khobar
and Zeppelin is active in Jubail in the plant
manufacturing business. The increase of
downstream activities offers German
companies good prospects for entering the
Saudi Arabian market. Huge investments as
well as projects with a volume of several
billion USD are planned and make a long
term growth of the petrochemical sector
very likely. The petrochemical industry is
expanding rapidly in Saudi Arabia. All in
all, German plant and mechanical
engineering companies, providers of
technology and external suppliers will find
vast investment opportunities concerning
the expansion of petrochemical plants in
Saudi Arabia and the Gulf region.
AHK Saudi Arabia - www.saudiarabien.ahk.de
11
German - Saudi Business Magazine
BASF
Saudi BASF is part of the Germany
headquartered multinational BASF the
Chemical Company. Saudi BASF was
incorporated in January 2001, when it
started operations and production of
construction chemicals in the Second
Industrial Area in Dammam. This was
followed by a second Saudi manufacturing
plant which launched operations in Jeddah
four years ago.
Saudi BASF plays an active part in the
Saudi construction landscape. It is the
leading supplier of construction chemicals
to prestigious projects such as the
expansion of the two holy mosques in
Makkah and Madinah, the building of the
King Abdul Aziz International Airport in
Jeddah, King Abdullah Economic City,
the Maaden Aluminium Smelter in Ras
Al Khair. It is also a supplier to prominent
clients such as the Royal Commission for
Jubail and Yanbu and Saudi Aramco.
“Saudi BASF’s team of sales engineers
provide technical support to our
customers in all areas of the kingdom
12
BASF
where and when required at very short
notice; they are known in the construction
industry as the true solution providers. For
example, our concrete admixtures MasterGlenium provide practical solutions to
major challenges such as pumping
concrete up to 600 meters high for the
construction of landmark towers, while
our high-performance grout have helped
in anchoring rolling mill machinery at the
aluminum smelter in Ras Al Khair,” says
Bashar Shaksheer, general manager of
Saudi BASF.
The company has nine sales offices
supported by warehouses in every region
of Saudi Arabia. BASF’s Construction
Chemicals division offers advanced
chemicals solutions for new construction,
maintenance and repair and renovation of
structures. Its comprehensive portfolio
encompasses concrete admixtures, cement
additives,
chemical
solutions
for
underground construction, waterproofing
systems, sealants, concrete repair and
protection systems, performance grouts,
flooring systems, tile fixing systems,
expansion control systems and wood
protection solutions.
Among these is the Master Builders
Solutions brand built on the experience
gained from more than 100 years in the
construction industry. “Master Builders
Solutions is backed by a global community
of BASF construction experts,” says
Mohammed Shahin, managing director
Saudi and Near East. “To solve our
customers’
specific
construction
challenges, we combine the suitable
elements of our portfolio, our know-how
across areas of expertise and regions, and
draw on the experience gained in countless
construction projects worldwide. We
leverage global BASF technologies as well
as our in-depth knowledge of local
building needs, to develop innovations that
help make our customers more successful
and drive sustainable construction.”
Shahin attributes the success of Saudi
BASF to the extensive range of high
performance products offered as well as
the excellent support provided, particularly
German - Saudi Business Magazine
BASF
its specification and marketing department
which helps drive its success by getting
BASF product technologies specified on
projects by engineering firms during the
design stage, and then following up by
supporting its sales engineers to successfully supply contractors with BASF
products to the satisfaction of clients,
specifiers and contracting companies.
Saudi BASF’s factories in Dammam and
Jeddah produce most of these systems
including admixtures, grouts, concrete
repair products, and flooring and
waterproofing systems, while other
products such as the TPO membrane and
pot bearings system come from its
factories in Italy, Wabo architectural
expansion joints from its facilities in the
US, and the Alberia range of restoration
systems from Turkey.
Apart from these construction chemicals,
BASF’s Senergy Classic BP EIFS (exterior
insulation and finishing system) system has
gained wide acceptance in the Saudi
market. “BASF has provided around
70,000 sq m of BASF Senergy Classic BP
EIFS system since 2012 to our major
clients in the Saudi market including Saudi
Aramco, government authorities such as
Bahrain Causeway Authority and private
sector clients,” says Shaksheer. “Our EIFS
system has shown outstanding results in
terms of thermal insulation, quality of
applied product and efficiency in energy
saving.”
Projects on which the product has been
used include Manifa, a school and a
155-villa housing project in Ras Tanurah as
well as a 38-villa housing scheme in
Dhahran for Saudi Aramco; the BahrainSaudi Causeway (administration and
information centre projects); Joaimah
administration building; Al Osais head
office in Dhahran; a private villa for
Al Osais; Tanajeeb; and Rabiyah mosque
in Dhahran.
“These and other projects were completed
by BASF-approved applicators and
contractors who received the required
professional training on the system
application. These applicators are capable
of completing huge projects within the set
budget, time and using international EIFS
system application standards,” he
comments.
Rabigh, which is scheduled to be
commissioned in 2017.
BASF has an extensive portfolio of
products that ranges from chemicals,
plastics, performance products and crop
protection products to solutions for the oil
and gas sector. The world’s leading
chemical company has registered sales of
about €74 billion ($102 billion) in 2013 and
more than 112,000 employees as of the
end of last year. Its construction division’s
5,700 employees form a global community
of construction experts and tackle
challenges from conception through to
completion of a project by combining
know-how across areas of expertise and
regions and drawing on the experience
gained in countless construction projects
worldwide. It operates production sites
and sales centres in more than 50 countries
and achieved sales of about €2.1 billion
($2.9 billion) in 2013.
To meet the anticipated demand for its
products in the region, BASF has plans to
open yet another production facility in
AHK Saudi Arabia - www.saudiarabien.ahk.de
13
German - Saudi Business Magazine
German - Saudi Business Magazine
Middle East Company
Leading role in the region
Bischof + Klein: B+K MEC joint venture
very successful in Saudi Arabia
In the Arabian Peninsula region, B+K
MEC is assuming a leading role in the
plastic industrial packaging market. For
over ten years now, the successful joint
venture undertaken by German familyowned company Bischof + Klein and the
two Saudi family-owned companies H. A.
Al-Zamil & Bros. Co. and Al-Rajhi House
Enterprises plus Ahmed A. M. Al-Ohali
has been producing FFS packaging
solutions on the basis of co-extruded films
as well as stretch hood and shrink films.
The company is based in Al-Khobar, not
far from the Al Jubail industrial complex
near to Dammam.
A second plant is being planned in the
Rabigh petrochemicals complex. “We are
profiting from the petrochemicals
14
industry’s strong growth and our
outstanding reputation in the region”,
explains Dr. Volker Pfennig, managing
director
of
the
B+K-GROUP.
“Co-operation with the Saudi companies is
outstanding. We are extremely satisfied.”
Abdulaziz Al Zamil, the former chairman
of the Royal Commission and one of the
leading lights of the Kingdom’s industrialisation, is an honorary mem-ber of B+K
MEC's advisory board. Since Saudi Arabia
took the decision not only to extract its
raw materials but also to further process
them itself, the petrochemicals industry
within the country has been booming.
B+K MEC's biggest customer is SABIC
(Saudi Basic Industries Corporation),
which boasts various production locations.
In addition to Saudi companies, B+K
MEC also supplies numerous companies
in the neighbouring states.
So far, B+K MEC has carried out
production on nine FFS lines and two
machines for the Smart-Flex® stretch
hood range. At the end of October 2011,
two additional FFS film lines will enter
operation. The company's annual capacity
will then amount to 24,500 tonnes of FFS
films and 5,400 tonnes of stretch films
according to B+K MEC's managing
director, Yousif Al-Suwailem. 30% of the
regular workforce come from Saudi
Arabia; their colleagues are Lebanese,
Filipinos, Indians, Bangladeshi, Egyptians
and Sudanese. Freddie de Mey has been
head of production since 2010. The
Belgian national was previously employed
Middle East Company
as technical director at B+K France in
Pont Audemer. However, he was already
very familiar with the region thanks to
working at B+K MEC from 2002 to 2004.
In 2001, B+K MEC began producing
printed tubular films for automatically
packaging PE granules plus pallet
protection films with 35 employees. To
date, the plant offers the most state-of-theart film production in the region. In
addition, B+K MEC is the only local
producer of stretch hood film.
The B+K-GROUP is a leading European
full-service supplier of flexible plastic and
paper packaging and technical films which
boasts a strong worldwide network. In
2010, B+K employed a total of around
2,400 staff at six production plants in
Germany, France, the United Kingdom,
Poland and Saudi Arabia. The company
generated turnover of around 450 million
Euros.
The B+K-GROUP’S product range
encompasses the entire range of flexible
packaging from traditional industrial
packaging and consumer packaging to
special films for technical applications.
Bischof + Klein manufactures its products
using the latest systems for mono/coextrusion,
gra-vure/flexographic
printing,
solvent-based/solvent
free
lamination and coating as well as for
extrusion lamination and coating. Highly
developed conversion technology with
product-specific facilities for sealed,
welded and adhesive designs enable
individual production according to
customers’ wishes.
Bischof + Klein enjoys outstanding
relationships with all customers within the
local petrochemicals industry and is
anticipating further growth. Dr. Volker
Pfennig: “The region is developing into a
crucial location for the production of PE
granules. We wish to continue participating
in this growth. At the same time,
we are contributing towards the
creation of jobs for the young, up-andcoming generation.”
About Bischof + Klein
Bischof + Klein (2010: 2,400 employees,
turnover approx. €450m) is one of
Europe's leading full-service suppliers of
flexible plastic and paper packaging and
technical films. The B+K-GROUP
manufactures at six production plants in
Germany, France, the United Kingdom,
Poland and Saudi Arabia, and has a
worldwide network of sales offices. B+K's
product range encompasses the entire
range of flexible packaging and
technical films from traditional industrial
packaging and consumer packaging to
special films for technical applications.
If you have any further questions, please
contact:
Gudula Benning
Kommunikation
Tel. +49 (0) 54 81/9 20 - 1 99
Fax +49 (0) 54 81/9 20 - 98 1 99
gudula.benning@bk-packaging.de
AHK Saudi Arabia - www.saudiarabien.ahk.de
15
German - Saudi Business Magazine
Henkel Polybit
Henkel Polybit
Industries Ltd.
Polybit Industries Ltd. was established in
1995 as a privately owned company in
UAE. It entered into a joint venture
agreement with Henkel KGaA, world
leaders in adhesive technologies and
building chemicals, in 2005 after which the
company was renamed as Henkel Polybit
Industries Ltd.
“We are able to offer the latest technologies
and services to the customers in the fast
moving and growing construction market
in the region with the latest technical knowhow from Henkel” says Naveen Antony,
General Manager Sales.
Around 960 employees work at the Henkel
Polybit Industries Ltd. Head office in
Umm Al Quwain, UAE – located 30 min
by car from the regional MEA Henkel HQ
in Silicone Oasis, Dubai. Henkel Polybit is
known as the market leader in the UAE for
waterproofing, construction chemicals and
innovative protection systems. With
manufacturing facilities in Umm Al
Quwain (UAE), Dammam (K.S.A.) and
Cairo (Egypt) and offices in UAE, Qatar,
Bahrain, Oman, Kuwait, the Kingdom of
Saudi Arabia and Egypt, Henkel Polybit
Industries Ltd. is well represented in the
GCC and North Africa.
Competitive advantage
Henkel Polybit ,apart from an extensive
range of waterproofing products , it also
offers complete system solutions for tiling,
flooring, PU Foams, sealants and
construction chemicals. Roofcare, a
subsidiary of Henkel Polybit, is one of the
leading application contractors offering
unique
roof
waterproofing/thermal
insulation as well as external thermal
insulation systems assuring state of the art
application of high end products.
“We provide solutions. And this is possible
because we manufacture all the products in
our portfolio, unlike other manufactures in
the
waterproofing
industry,
who
manufacture only limited products of
certain categories and compliment it with
an array of outsourced products,” explains
Naveen Antony. “Being innovative and
having a lean structure and strong
customer orientation, we are extremely
competitive and maintain our leading
position. This approach, aligned with
Henkel’s global sustainability strategy, is the
driver for all new product developments in
line with international and GCC green
building codes.”
Henkel Polybit’s technical service team
works closely together with contractors,
consultants and authorities to ensure close
customer communication and react quickly
to international market trends and
demands.
“Our technical service team also conducts
customer trainings to consultants and
applicators to support them in
16
understanding our products and its
chemistry so that they have a better
understanding of the scope of the
product” confirms Naveen Anthony.
Henkel Polybit collaboration
The Joint Venture (JV) is growing stronger
and has enhanced the enterprise potential
by leveraging the strength and competence
of Henkel in the Middle East Africa region
and implementation of international
business practices.
“We have had many synergies in the JV
which has worked in our favor” says
Naveen Anthony. “The most prominent
ones are in the promotion of Henkel
products through our channels which
resulted in our closing the largest wooden
flooring job in the Middle East for the
tallest tower (Burj Khalifa) in the world
today. We have also had synergies in supply
chain and logistics which has helped us to
improve our efficiency in these domains.”
Working in a booming economy, the heady
growth rates also tested the organization
and stretched it to its limit and beyond to
respond the market demands. “Settling in
with a JV where two different schools of
thought strive to work together in such
demanding situation was the biggest
challenge”, notes Naveen Anthony.
Henkel Polybit Industries a most
important Joint Venture for the
construction
and
building
adhesive world of Henkel.
German - Saudi Business Magazine
German - Saudi Business Magazine
Evonik Industries
Description of company
Evonik, the creative industrial group from
Germany, is one of the world leaders in
specialty chemicals. Profitable growth and
a sustained increase in the value of the
company form the heart of Evonik’s
corporate strategy. Its activities focus on
the key megatrends health, nutrition,
resource efficiency and globalization.
Evonik benefits specifically from its
innovative prowess and integrated technology platforms.
Evonik is active in over 100 countries
around the world. In fiscal 2013 more than
33,500 employees generated sales of
around €12.9 billion and an operating
profit (adjusted EBITDA) of about
€2.0 billion.
18
Evonik has been very successful in the
Middle East and North Africa for more
than four decades and has erected
production facilities in this region. In view
of its attractive geographical position
between Europe and Asia and the plentiful
supply of petrochemical feedstock in the
Gulf States, we regard this region as
strategically important. We intend to
participate in regional growth and expand
our presence considerably.
In Saudi Arabia, Evonik has established
Saudi Acrylic Polymers Company
(SAPCo), a joint venture with Saudi
Acrylic Acid Company (SAAC), with
capacity to produce 80,000 metric tons of
superabsorbents a year. SAAC is a joint
venture of the Saudi companies National
Industrialization Company (Tasnee) and
Sahara Petrochemicals. Total investment
runs into triple-digit millions of euros, and
Evonik’s share is in the double-digit
millions range. SAPCo’s superabsorbent
production facilities uses Evonik’s
state-of-the-art superabsorbent technology and is part of a new acrylic acid and
derivatives complex at the Tasnee site in
the Al Jubail Chemical Park in Saudi
Arabia. They benefit from low-cost
propylene from the neighboring cracker
operated by Tasnee and Sahara in
conjunction with LyondellBasell. The
acrylic acid required to produce
superabsorbents is supplied from a
neighboring plant operated by a joint
venture between SAAC and Dow
Chemicals. The facility in Al Jubail
strengthens our global leadership in this
business and meets the rising demand for
hygiene products in the fast-growing
markets of the Middle East and in parts of
Africa and Asia.
Resource Efficiency
Employee number total and
local
The Resource Effciency segment provides
environment-friendly and energy-effcient
system solutions. It consists of the
Inorganic Materials and Coatings &
Additives Business Units.
Evonik Industries (2013) ca. 33,500
employees
Evonik MENA region ca. 60 employees
Specialty Materials
Regional HQ address and contact details:
Evonik Gulf FZE
Dubai Silicon Oasis
Office E-107
Phone +971 4 372 4169
Fax +971 4 372 4175
P.O. Box 341256
Dubai – UAE
www.evonik.com
The heart of the Specialty Materials
Key
Production
Facilities segment is the production of polymer Kingdom of Saudi Arabia, Riyadh, address
(Plants) and Products list
materials and intermediates, mainly for the and contact details:
Consumer, Health & Nutrition
The Consumer, Health & Nutrition
segment produces specialty chemicals,
principally for applications in the
consumer goods, animal nutrition and
healthcare sectors. It comprises the
Consumer Specialties and Health &
Nutrition Business Units.
rubber and plastics industries. This
segment is composed of the Performance
Polymers and Advanced Intermediates
Business Units.
Please refer to our homepage for more
detailed product information:
http://corporate.evonik.com/en/product
s/pages/default.aspx
Evonik Tasnee Marketing Company Ltd.
Phone +966 11 2108266
Fax +966 11 455-9854
Qurtuba Business Gate, Building C2
King Khalid International Airport Road
11496 Riyadh
Saudi Arabia
www.evonik.com
AHK Saudi Arabia - www.saudiarabien.ahk.de
19
German - Saudi Business Magazine
SIG Combibloc Obeikan
A decade of success in the Middle East
SIG Combibloc Obeikan: Joint venture enjoys continued growth
Every day, millions of people all over the
world quench their thirst with drinks out
of carton packs from SIG Combibloc. As
one of the world’s leading system
manufacturers of carton packs and filling
machines for beverages and food, SIG
Combibloc is a preferred partner in the
food industry. SIG Combibloc can look
back on ten years of successful
co-operation with the Obeikan Investment
Group of Saudi Arabia in their “SIG
Combibloc Obeikan” joint venture. From
an initial figure of 362 million carton packs
in 2001, SIG Combibloc’s sales in the
region have grown to 2.8 billion
packs in 2010.
In 2001, SIG Combibloc and the Obeikan
Investment Group entered into a joint
venture to market aseptic carton packs and
the filling machines for long-life beverages
and food. The Obeikan Investment Group
is a major player in the printing, packaging
and publishing industries starting in 1982.
The group has more than 3,000 employees
and more than 15 representation offices in
the Middle and Far East and Africa.
Dr. Franz-Josef C ollin, now Managing
Director of SIG International Services
GmbH: “The very first talks with Obeikan
were extremely valuable for both future
partners in the joint venture. At the
ANUGA FoodTec trade fair in 2000, we
jointly worked out the key points for the
framework agreement for a joint venture,
and just a year later we kicked off our
partnership with a 50:50 joint venture”.
Both partners recognised the growing
trend among the region's consumers to
look for foods packaged for long life
aspects of quality, hygiene and convenience
played a key role here. For both partners,
the partnership between the Obeikan
Investment Group of Saudi Arabia and
SIG Combibloc meant regional market
entry with aseptic carton packs and
additional growth in the Middle East
region.
The partnership began initially in sales and
distribution and was later expanded to
include production activities, with the
building of a packaging materials plant in
Riyadh. SIG Combibloc now employs 222
staff in Saudi Arabia.
20
The establishment of a local packaging
production was evidence of the positive
market development in the region, and
provided a fresh spur to push ahead with
further development. The company
invested more than USD 37 million in the
new production plant. The new plant has a
production area of 45,000 square metres.
By manufacturing locally, the company is
able to respond more rapidly to customer
needs, improve its service offer and
substantially reduce delivery times.
More than six million packaging sleeves are
now produced in the local production plant
every day mainly the small formats
combiblocMini and combiblocSmall. The
screw cap combiSwift has also been
produced in Riyadh since 2009, with daily
output of about a million units. Plans are
already in place to further expand this
capacity. “For us, a successful business
strategy principally means being there for
the customer,” says Abdallah Obeikan,
CEO of SIG Combibloc Obeikan. “By
having a presence on the spot in the Middle
East and Africa, SIG Combibloc Obeikan
is close to its customers. Personal and
direct contact is an important precondition
for successful cooperation.”
The joint venture has been charting
successes in the strong-growth markets of
the Middle East ever since it was founded.
The market comprises all of the Gulf
Cooperation Council (GCC) states (Saudi
Arabia, Kuwait, the United Arab Emirates,
Bahrain, Oman and Qatar), the Levant
region, Africa and parts of South Asia.
The joint venture currently looks after
71 countries. It has sales and service offices
in Riyadh and Jeddah (Saudi Arabia), Cairo
(Egypt),
Tunis
(Tunisia),Casablanca
(Morocco), Tripoli (Libya), Tehran (Iran)
and Istanbul (Turkey). In 2010, these were
joined by branches in Cape Town (South
Africa) and Lagos (Nigeria). SIG
Combibloc
Obeikan
opened
an
additional branch in Algiers (Algeria) in
February 2011.
Closer to the market, quicker to
the customer.
A particular decisive step for the joint
venture was the start of its cooperation
with food manufacturer Almarai in 2005.
For this company, the largest producer and
exporter of milk and milk products in the
Middle East, SIG Combibloc Obeikan
provided complete filling and downstream
solutions for a newly established
production facility in Riyadh. The
flexibility offered by the new filling
machines enabled the entire range of the
company’s milk and juice products to be
re-launched in various packaging formats
from SIG Combibloc. In the meantime,
ten SIG Combibloc filling machines are in
operation for Almarai, some allowing an
output of 24,000 packs per hour.
Very promising outlook
At the outset, in 2001, there were a total of
29 SIG Combibloc filling machines in use
in the region; this figure has grown in the
meantime to 110. The outlook for further
growth in the markets of the Middle East
and Africa is very promising: more and
more customers are putting their trust in
SIG
Combibloc’s
flexible
filling
technology. Thus, Juhayna, Egypt’s leading
manufacturer of juices and milk products,
installed a CFA 124 high-speed filling
machine in 2009 to aseptically fill products
into combiblocMini. This was the first
high-speed filling machine in the region,
operating at a rate of 24,000 packs per
hour. In 2010, SIG Combibloc Obeikan
made an important advance into the South
African market with its customer DairyBelle, South Africa’s oldest and most well
known dairy cooperative. SIG Combibloc
is consolidating its position in Africa
further with Nigerian food manufacturer
Dansa. In 2011, the Saudi Arabian
company Aujan, a long-established
supplier of the brands Vimto, Barbecan
and Rani, decided to fill its products in
carton packs from SIG Combibloc.
New concepts
The new product concept drinksplus is also
meeting with major approval in the region:
With drinksplus milk drinks and
non-carbonated juices, smoothies and fruit
juice drinks with up to ten per cent natural
particulate content can be aseptically filled
into carton packs using standard SIG
Combibloc filling machines for liquid dairy
and NCSD products. The first drinksplus
pro-ducts worldwide have been launched
in Iran just recently and will be filled and
launched in Saudi-Arabia in the near future,
as well.
German - Saudi Business Magazine
Linde
German - Saudi Business Magazine
Linde
Linde Engineering’s
track record in Saudi Arabia
Linde Engineering, a division of The
Linde Group, is present in Saudi Arabia
since 1984 and has its offices in Al Khobar
and Al Jubail. Over the years, a great
number
of
beneficial
business
relationships have been established
between Saudi Arabian customers and
Linde. Thanks to the local presence, Linde
is dedicated to adding value to both the
clients’ plants and to the Kingdom of
Saudi Arabia as a whole. Furthermore,
know-how is transferred into the
Kingdom in line with Linde’s commitment
to thinking globally and acting locally.
The following excellent projects were
successfully mastered by Linde in the
recent years:
In July 2005, Linde was appointed to
construct the ethylene plant at Al-Jubail
for
Tasnee
Petrochemicals.
With
this and other orders in UAE, Linde
significantly improved its market
position in the growth region of
the Arabian Gulf and confirmed
its global technology leadership when it
comes to ethylene plants. Mechanical
completion of the Tasnee cracker was
achieved on 15 July 2008, six weeks ahead
of schedule.
In September 2005, Linde signed the
contract for a polyethylene plant at Al
Jubail for the Eastern Petrochemical
Company SHARQ, a joint venture with
SABIC and a Japanese group. The plant
with an annual capacity of 800,000 tonnes
HDPE and LLDPE was handed over to
the customer in September 2009.
In November 2005, Linde was awarded the
contract for the turnkey delivery of two air
separation plants to produce pure oxygen
by National Industrial Gas Company
(NIGC), a subsidiary of SABIC.
In November 2009, Linde publicised the
first successful commercialisation of the
SABLIN® technology for producing
linear alpha olefins, which was developed
jointly by both companies.
In October 2010, Linde was given the
order to build an acrylic acid plant in
Al Jubail. The plant has been delivered
turnkey lump-sum to Saudi Acrylic
Monomer Company SAMCO at the
end of 2013.
In April 2012, Linde's Engineering
Division was awarded a major contract by
the Group's Gases Division. This order is
for the turnkey lump-sum construction of
a two-stream HyCo plant (hydrogen and
22
carbon monoxide) plus a single-stream
ammonia plant with a large storage tank.
The new plants will enable Linde to
provide long-term supplies of these
products to Sadara Petrochemical
Company Sadara in Jubail at one of the
world’s largest chemical complexes.
In August 2013, Linde was awarded a
contract to build the world’s largest carbon
dioxide purification and liquefaction plant
for Jubail United Petrochemical Company
UNITED, a manufacturing affiliate of
SABIC. The plant will be located in Al
Jubail and will be designed to compress
and purify around 1,500 tonnes per day of
raw carbon dioxide coming from two
nearby ethylene glycol plants. The purified
gaseous CO2 will be pipelined through the
piping corridor of the Royal Commission
of Jubail to three SABIC-affiliated
companies for enhanced methanol and
urea production. The plant will also be
capable of producing 200 tonnes per day
of liquid CO2 with food grade quality
which will be stored and thereafter
supplied by truck to the beverage and food
industry. It is the first carbon capture and
utilization (CCU) project of this size to be
realised in Saudi Arabia.
In a nutshell, Linde Engineering has
designed and constructed some 75 big
industrial plants in Saudi Arabia in the area
of petrochemicals, refineries, synthesis
gas and air gases over the last three
decades. Linde Engineering is a truly
global engineering, procurement and
construction (EPC) company. Own
innovative technologies form the basis of
Linde Engineering’s offering for the
process industry.
AHK Saudi Arabia - www.saudiarabien.ahk.de
23
German - Saudi Business Magazine
Lurgi
Lurgi Saudi Arabia
Solutions for the Middle East
defined to clients’ needs according to the
mixture of impurities.
Genuinely committed to innovation by
constantly enhancing its comprehensive
portfolio of proprietary technologies.
Proven technology
across the entire project lifecycle.
We have gained a significant amount of
experience in projects involving a variety
of scenarios, from high-value projects
and EPC (Engineering Procurement
Construction) scenarios, to complex
designs involving multiple technologies.
Over the years, we have developed proven
project execution processes and tools
Present since decades in the Middle East,
and very well know via its Lurgi brand
(Lurgi was integrated in Air Liquide in
2007) Air Liquide Global E&C Solutions
has the requisite operational and industrial
experience, and a global understanding of
Your Challenge
Our Solution
Raw Natural Gas
CO2/H2S/COS
24
Natural gas is a growing energy source at
the same an abundant feedstock. Natural
gas offers diversified gas usages, such as
LNG as well as downstream products
(MeOH, MTP, DME). Since a lot of new
sources of natural gas are sour and its
composition varies widely, an appropriate
treatment and processing is essential,
The world’s largest LNG plant in Qatar
uses our gas treatment technology. The
latest train started up in 2011 with a
capacity of 1,577 MMSCFD of raw sour
gas. The challenging part was not only to
remove carbon dioxide and H2S; rather, in
addition mercaptans and carbonyl sulfide
(COS), present in levels too high to be
processed in the downstream liquefaction
unit had to be removed first.
Air Liquide Global E&C Solutions
supplied the integrated natural gas
processing
concept
OmniSulf®,
including the acid gas removal , sulfur
recovery unit, Lurgi Tail Gas treatment®
and Aquisulf®. This allows to guarantee a
sulfur recovery of more than 99.9% for
the whole complex. Our design achieves
less than 1ppm COS in the product gas as
In its own plants Air Liquide is operating
its own SRU (Sulfur Recovery Unit
inoperational), using the in-house Lurgi
sulfur management technologies. Through
a constant operational feedback within our
Group, we continuously optimize our
processes and provide innovative
solutions, which are tried and tested.
Our references
We have contracted:
• More than 170 Lurgi Claus® plants
• More than 40 Lurgi OxyClaus®
burners
• More than 60 Lurgi tail gas treating®
processes
• More than 50 Aquisulf ® plants
The YASREF Refinery Project involves
the construction and operation of a
400,000 barrel per day (bpd) integrated
petroleum refinery in the Yanbu Industrial
City located on the west coast of Saudi
Arabia along the Red Sea, and Air Liquide
Global E&C Solutions currently provides
to its client Air Liquide Arabia project
execution and process technology and
equipment for the HGU (Hydrogen
Generation Unit) Plant to supply YASREF
with the required H2.
Beginning of 2014 Air Liquide Global
E&C Solutions got the order to license an
Acid Gas Removal Unit in Jazan Area
to reduce pollutants hazardous to
environment and further production. The
plant is planned to be operational 2016.
Contact information: Grégoire Nollet,
Grégoire Nollet
Vice President, Middle East, India Zone,
Air Liquide Global E&C Solutions,
www.engineering-solutions.airliquide.com
Amine Units
Membranes (Medal)
Mercaptans
Purisol
Molsieves
H2S
Lurgi Sulfur
Management
N2
He
Cryogenic
Purification
Omnisulf
One stop shop
your challenges in monetizing natural gas.
Based on your specific environment and
objectives, we create customized solutions
based on our wide portfolio of natural gas
conditioning technology.
Air Liquide Global E&C Solutions offers
products that fit each client’s challenges,
relying on or knowledge and capabilities
across the entire gas treatment value chain.
well as 10 ppm CO2 and 2 ppm of H2S.
The client’s challenge is to ensure that the
end product specifications as well as
environmental requirements are met.
One Stop Shop
Air Liquide Global E&C Solutions is a
premium strategic partner and a world
leader in engineering and construction,
able to meet constantly growing customer
needs and to exceed their expectations
through creative, safe, reliable and competitive solutions with an optimum balance of
investment and operating cost, and with
efficient project management.
German - Saudi Business Magazine
Lurgi
AHK Saudi Arabia - www.saudiarabien.ahk.de
25
German - Saudi Business Magazine
Banking
Banking
Saudi Arabia has a modern banking industry
with 13 commercial banks.
Saudi banks provide retail and corporate
banking, investment services, brokerage
facilities, and derivative transactions in
addition to credit cards, ATMs and
point-of-sale transactions.
There are also banks in the Kingdom that
provide Islamic banking services. Islamic
banking is a system of banking that is
consistent with the principles of Islamic
law (Shari’ah). It prohibits usury, the
collection and payment of interest and
trading in financial risk.
26
Saudi Arabia also has a thriving stock
market. The total value of shares traded
annually is some SR 60 billion [US $16
billion]. The Tadawul All-Share Index
(TASI) of the Saudi stock market is one of
the most highly capitalized stock
exchanges in the Arab world. TASI was
also one of the first exchanges globally to
set up a full electronic clearing and
settlement system with immediate transfer
of ownership.
The banking and finance sector is overseen
by several government agencies. The
Ministry of Finance supervises economic
policies. The Saudi Arabian Monetary
Association (SAMA) manages fiscal policy,
issues the country’s currency, the
Saudi Riyal and oversees the nation’s
commercial banks.
The government has also established five
specialized credit institutions to provide
loans to citizens for development projects
in agriculture, industry and construction
the Saudi Industrial Development Fund
(SIDF), the Saudi Arabian Agricultural
Bank (SAAB), the Real Estate
Development Fund, the Public Investment
Fund and the Saudi Credit Bank.
German - Saudi Business Magazine
Deutsche Bank in Saudi Arabia
Deutsche Bank in
Saudi Arabia
In April 2006, Deutsche Bank’s presence
was established in the Kingdom of Saudi
Arabia with the opening of a branch in the
capital, Riyadh. The branch is regulated by
the Saudi Arabian Monetary Agency and
operates under a full commercial banking
license. A second entity, Deutsche
Securities Saudi Arabia LLC (DSSA), was
incorporated in December 2007. DSSA
is regulated by the Capital Market
Authority and is licensed to carry out
securities business.
Deutsche Bank Saudi Arabia offers the full
range of investment banking, asset and
wealth
management,
and
global
transaction banking services. Deutsche
Bank Saudi Arabia is well recognized for
28
its leading role on some of the most
prestigious domestic transactions, and is
the recipient of several regional awards in
recognition for its achievements in
investment banking and Islamic finance.
Deutsche Bank Saudi Arabia’s core
businesses are:
Corporate Banking & Securities (CB&S)
combines the sales, trading and structuring
of a wide range of financial market
products, including bonds, equities and
equity-linked products, exchange traded
and over-the-counter derivatives, foreign
exchange, money market instruments,
securitized instruments and commodities.
CB&S is responsible for mergers and
acquisitions, including advisory; debt and
equity issuance; and capital markets
coverage of Sovereign entities, Financial
Institutions and large corporations.
Country-focused teams ensure the delivery
of the entire range of financial products
and services to clients.
Global Transaction Banking (GTB) serves
financial institutions and corporates
globally by effectively managing their
commercial banking needs. GTB's range
of services in the Kingdom includes
domestic and cross-border payments,
trade finance and the provision of trust
and securities services. As a global bank,
Deutsche Bank has an in-depth knowledge
of all relevant markets, as well as
placing state-of-the-art technologies at the
German - Saudi Business Magazine
Deutsche Bank in Saudi Arabia
disposal of its clients. Indeed, as one of
the world's leading providers of
transaction banking services, Deutsche
Bank offers an end-to-end service to
support national and international
transaction banking needs.
Asset and wealth Management (AWM):
Offering a wide range of traditional and
alternative investment products, AWM
helps private and institutional investors to
secure and increase their wealth. AWM
also offers tailored wealth management
products and services to ultra high net
worth individuals and families. Deutsche
Asset & Wealth Management joins
together all of Deutsche Bank's wealth and
asset management capabilities to offer a
comprehensive selection of world-class
products and solutions. These are supplied
in a streamlined, client-centric coverage
model.
Through its Middle East Foundations,
Deutsche Bank continues to bring
Deutsche Bank’s unparalleled global
commitment to the Saudi community. This
is done by supporting local NGOs and
charities to build social capital by creating
opportunities, fostering talent and
ensuring long-term viability. Initiatives list
includes:
-
-
The global focus of Deutsche Bank's
social responsibility is reflected in its
regional units and foundations.
Partnering with Al-Holailah Charity
Society to support its Humanitarian
Rehabilitating and Training Center in
Al Ahsa in the eastern province of the
Kingdom in 2014.
Organizing an Eid Party for the kids of
Bunyan Association in 2013.
Supporting the Intellectual Education
Institute for Girls in East Riyadh by
hosting an art exhibition and
purchasing a communication device
for the Institute in 2012.
Partnering with Edge of Arabia to
showcased Saudi Arabia’s leading
contemporary artists in a two-month
exhibition in Turkey in 2010.
Boris Klöckner, CIIA
Vice President | Investment Advisor
Deutsche Bank AG
Wealth Management Europe,
Middle East & Africa (EMEA)
Taunusanlage 12, 60325 Frankfurt
am Main, Germany
Tel. +49 69 910-22217
Fax +49 69 910-22297
Mobile +49 174 2400309
Email boris.kloeckner@db.com
Visit us: http://://www.pwm.db.com or
http://://www.banking-on-green.com/
en/content/greentowers.html
AHK Saudi Arabia - www.saudiarabien.ahk.de
29
German - Saudi Business Magazine
Infrastructure in Saudi Arabia
Infrastructure in
Saudi Arabia
The market for projects linked to the Saudi infrastructure is one
of the biggest growing markets in the Kingdom of Saudi Arabia.
The Saudi government invests enormous
sums in the construction of a state of the
art transport infrastructure. With an
amount of total 17.2 billion US-Dollars
9.3 percent of the 2012 budget is planned
to be invested in construction and
infrastructure. Main projects worth more
than 726 billion US-Dollars are planned or
under way in the first quarter of 2012 and
many are linked to big infrastructure
projects in the field of transport. The
extension of the Saudi railway network,
investments in new ports and berths, new
roads more than 4000 km long as well as
the expansion of different airports are
demanding sufficient planning and
implementation.
Railways in Saudi Arabia
Saudi Arabia plans to enhance its network
of public and industrial transportation.
The Saudi Railways Organization is the
operator of the Saudi railway system.
Modern railways were introduced in Saudi
Arabia in 1947 to facilitate the transport
of goods of Saudi Aramco from ports
30
located on the coast of the Arabian Gulf
to warehouses in Dhahran. Several
development
projects
have
been
completed since then, including an
extension of the line to Riyadh,
construction of several passenger
terminals and the opening of a dry port in
Riyadh. Apart from this traditional railway
the Saudi government invested billions of
dollars in covering the whole country with
a railway network. Since late 2010 the
Metro Mekka is connecting the most
important stations of the Hajj that will
transport annually millions of Muslim
pilgrims from Mekka over the cities Mina
and Muzdalifah to Arafat and back.
German companies like DB international
and Siemens contributed actively to this
state of the art railway. Under the title of
the “North-South Line” the Saudi Railway
Company (SAR) is in charge for
connecting the Saudi capital and cities in
the Eastern Province like Ras al-Khair
with the bauxite and phosphate mines in
the North of the country. First trains with
minerals from Hazm near the northern
border arrived in Riyadh in 2011. Like in
other projects the work is also done by
subcontractors as for example the French
Thales group.
The Haramain Speed Train Project or
Western Railway will link the cities of
Medina and Mecca via King Abdullah
Economic City (KAEC) in Rabigh, Jeddah
and King Abdulaziz International Airport.
The double-track line will be electrified
and the design speed is 360 kilometers per
hour. On 26 October 2011, the Saudi
Railways Organization announced that the
Saudi-Spanish consortium Al-Shoula
Group won the contract. The Public
Investment Fund (PIF) plans to develop a
railway that connects the port cities of
Jeddah, Dammam and Jubail, passing
through the capital city Riyadh and
serving its dry port. The rail link is
expected to have a profound impact on
shipping patterns in the region and is
estimated to cost about 7 billion
US-Dollars just for planning. The Saudi
Landbridge will have the capability of
moving large quantities of cargo over long
distances at competitive rates and will
German - Saudi Business Magazine
Infrastructure in Saudi Arabia
offer safe, comfortable, and fast overland
passenger transport between the country's
four major economic centers. Other plans
foresee to develop a railway in the South
West of Saudi Arabia in order to link Jazan
with the cities of Khamis al Mushayt, Taif,
Mekka and Jeddah. Railways play also an
important role on a multinational level in
the region: the Gulf Cooperation Council
(GCC) plans to implement a GCCRailway. The purpose of the project is to
link the six GCC states together running
from Kuwait to Oman. The project will
start in 2013 and is expected to be
completed by 2017.
Saudi Ports - the core of
international transport
in the Kingdom
Ports and shipping play an important role
for Saudi Arabian trade. With its favorable
geostrategic position between the Arabian
Gulf and the Red Sea, Saudi Arabia
functions as a bridge between the Mediterranean, East Africa and Asia. Especially
Saudi Arabia’s main export goods like oil
and gas find their destinations abroad by
ship. The Jeddah Islamic Port is one of the
biggest ports in the region. Apart from
being a plot for in and out coming goods
it plays also a major role for pilgrims
during hajj. Annually about 500.000
pilgrims enter the country via Jeddah. All
ports in the Kingdom are planned to be
expanded within the next decade for
enhancing their capacities. For instance
the King Abdullah Port of the King
Abdullah Economic City (KAEC) will
have a capacity for 20 million 20-foot
equivalent units (TEUs) when it is
finished. It will be the first international
commercial port in the Middle East which
is privately owned, developed, financed
and operated. Currently the ports of
Dammam and Jubail are Saudi Arabia’s
connection to the Arabian Gulf. With the
new port in Ras al-Khair the Kingdom will
have the possibility to ship their fossil and
refined Bauxite and Phosphate directly to
the customers all over the world. Even the
capital Riyadh is connected to the Gulf via
the Dry Port Riyadh that is run by the
Saudi Railway Organization. Currently, the
biggest project is the expansion of the
King Abdulaziz Port in Dammam. The
expansion will cost more than 500 million
US-Dollars and includes the construction
of a second container terminal at the port
to increase the container handling capacity
from 1.5 million 20-foot equivalent units
(TEUs) to 3 million TEUs. Combined
with the railway projects the Saudi harbor
network will be able to import and export
smoothly, even if the Strait of Hormuz
should be closed for any reasons.
Roads of Saudi Arabia
The Ministry of Transport had a budget
of 2.9 billion US-Dollars for 2012
provided for 284 projects to construct
4,154 km of highways, secondary and
branch roads in addition to conducting
studies and designing of 2,139 km of
roads. While some of the projects are new,
others are just a completion of existing
projects. Additionally, another 4 million
US-Dollars has been allocated to conduct
studies and designing of a public
transportation system for each city. The
aim is to ease the rush of traffic
particularly in large cities. The new
allocations include construction of 814
km of new roads and study and designing
759 km of roads in the Riyadh region. The
western region around Makkah, Jeddah
and Medina will get 804 km of new roads
in addition to the study and designing of
170 km of roads. Qassim in the North will
get projects for the construction of
216 km and studies on 50 km. The length
of new roads to be built in the Eastern
region is estimated at 496 km and studies
will be conducted for the construction of
175 km. New roads are also planned in the
Asir region, around the cities of Tabuk,
Jazan, Hail and Najran as well near the
northern and southern border of
Saudi Arabia.
Up in the Air
The General Authority of Civil Aviation
(GACA) regulates the aviation industry by
managing and operating international and
domestic airports in cooperation with
subcontractors. GACA is owned by the
Saudi government that massively invests
in the expansion of its airports. One of
the bigger projects is the expansion of the
King Abdulaziz International Airport
(KAIA) in Jeddah. The purpose of the
project is to increase the airport's capacity
from 15 million passengers per year to
30 million passengers per year. The KAIA
Development Project (KADP) is
developed in three phases at a cost of 11.3
billion US-Dollars. Phase 1 is expected to
be completed in 2014. Phase 2 is expected
to be completed in 2020 with a capacity of
50 million passengers per year and phase 3
is expected to be completed in 2035 with
an annual capacity of 80 million
passengers. Another big airport project is
the Madinah based Prince Mohammed
Bin Abdulaziz Airport. With total
investments of 1.5 billion US-Dollars the
airport's capacity will be increased from
3.5 million passengers to 14 million
passengers per year.
AHK Saudi Arabia - www.saudiarabien.ahk.de
31
German - Saudi Business Magazine
Siemens
160 years ago, Werner Von Siemens once
said “I will not sell the future of my
company for the quick profit”. Since then
innovations from Siemens have been
changing the world and Siemens has been
following this path together with its
partner E. A. Juffali & Brothers for over
80 years in Saudi Arabia.
With its innovative technology, Siemens
has been committed to developing
sustainability through strong commitment
to its customers and partners in Saudi
Arabia and its technical expertise in the
field of Energy, Healthcare, Industry and
Infrastructure & Cities. Siemens currently
has more than 2,050 employees in
Saudi Arabia.
Siemens
from utility to industry and from oil and
gas to renewable energy, all required for a
sustainable future of the power and water
sectors in the Kingdom.
Energy:
Siemens Energy is a driving force for our
daily lives through a wide range of
products, solutions and services along with
comprehensive know-how encompassing
the entire energy conversion chain from
power generation and transmission to
distribution, plant-to-grid connections and
much more with high focus on energy
efficiency and sustainability. Siemens
serves a broad spectrum of applications
In 2012 Siemens took the next step
towards a massive expansion of its
activities in Saudi Arabia, breaking ground
on a landmark manufacturing facility for
gas turbines and compressors. Planned for
completion in late 2014, the center will
create job opportunities for young Saudis,
serving as a knowledge transfer hub for
new Siemens technology and supporting
the country’s industrialization drive.
The power equipment manufactured at the
plant will be supplied to the local Saudi
market, where energy requirements are
strongly increasing. Siemens and its local
partner, E.A. Juffali & Brothers, is
investing jointly a three-digit million
US Dollar figure in the facility, which will
be constructed on a 220,000 square-meter
site in Dammam in the Kingdom’s Eastern
Region. The manufacturing facility is
the first of its kind for Siemens in the
Middle East.
32
German - Saudi Business Magazine
Siemens
Bildunterschrift: Siemens Energy is a world leader in industrial gas turbines for
power generation and mechanical drive applications
diseases, Siemens also makes healthcare
faster, better and more cost-effective.
Industry:
Siemens Industry contributes through a
board spectrum of products and solutions
required in building factories and
industries with its top notch integrated
portfolio
encompassing
automation
solutions, drive technologies and motion
controls for greater productivity, energy
efficiency and flexibility.
Healthcare:
Infrastructure & Cities:
Siemens Healthcare delivers hope each day
to patients in Saudi Arabia and around the
world and is trendsetter in medical
imaging, laboratory diagnostics, medical
information technology and hearing aids.
Siemens offers its customers products and
solutions for the entire range of patient
care from a single source from prevention
and early detection to diagnosis, and on to
treatment and aftercare. By optimizing
clinical workflows for the most common
Siemens Infrastructure & Cities gears
for making Saudi Arabia and its
cities a place where people and business
can thrive through a better quality of life.
With a portfolio comprising mobility
solutions, integrated building and
security systems, power distributions
equipment, smart grid applications and
low and medium voltage products among
other sustainable technologies for metropolitan areas.
Siemens in Saudi Arabia is committed to
supporting the careers of young Saudis
through targeted professional recruitment
programs. The Siemens Generation21
program strongly supports educational
activities with its innovative Discovery Box
initiative reaching students of young age
aimed to inspire tomorrow’s young
engineers, doctors and scientists. Siemens,
in association with Saudi Petroleum
Services Polytechnic (SPSP) and Saudi
Arabia’s Human Resources Development
Fund (HRDF), offer a two-year technical
apprenticeship program provided by SPSP,
followed by one year of on-the-job
training at Siemens. Depending on their
job fields, students will be trained in
various Siemens locations in Germany and
the United States.
AHK Saudi Arabia - www.saudiarabien.ahk.de
33
German - Saudi Business Magazine
Automotive
German - Saudi Business Magazine
MAN
Education & Training in KSA
Haji Husein Alireza & Co Ltd’s MAN
Commercial Vehicle Division have a
Continual Training program designed &
approved in conjunction with MAN TB,
to constantly asses & improve all aspects
of our business, it is a Strategy that we at
HHA firmly believe in, to continually
Train & Educate our Most Valued &
Important Asset “ Our Employees “ to
help further their personal development
Our Sales Teams attend a number of
training seminars throughout the calendar
year designed to improve product
knowledge, competitor comparisons,
communication skills & to develop the key
skills required in the competitive market
place that we operate in, these
courses/seminars are held in our purpose
built training center in Jeddah and our new
training school at our newly expanded
showroom & workshops in Riyadh.
Automotive
Saudi Arabia is a growing industry with
huge potential and a well-positioned base
for Western manufacturers wishing to sell
vehicles both into the growing middle
classes in Asia and Africa, as well as the
rest of the Gulf region. The kingdom aims
to build a large automobile and parts
industry and the Saudi government is
prepared to spend 1 billion US Dollars to
develop the industrial city Yanbu as a
Centrum for car manufacturing.
34
Other car makers are already manufacturing in Saudi Arabia. Isuzu Motors hopes to
produce around 25,000 trucks a year in
Dammam and also Ratan Tata, chairman
of Tata Motors which owns Jaguar Land
Rover declared in summer 2012, to
establish a plant in Yanbu by 2017. A big
draw for Jaguar Land Rover is the
aluminum smelter of the Ma'aden-Alcoa
joint venture in Ras Al Khair. Furthermore, there are already assembly plants of
Mercedes, MAN and Volvo.
Another major benefit are the abundant
bauxite resources (the main source for
aluminium) as well as the cheap electricity
needed to fire its smelters and other
low-cost raw materials. Petrochemicals
giant SABIC is already working with
companies like Volkswagen, Land Rover,
and Mitsubishi to provide new materials
like lightweight engineering thermoplastics
and enhanced fuel additives to their cars.
Additional the Saudi government is likely
to help with funding and cheap loans to
build up an indigenous manufacturing
industry.
The domestic demand, coupled with
demand from the Gulf and the wider
Middle East, makes car manufacturing in
the kingdom of Saudi Arabia feasible and
Saudi Arabia will grow to an important
position in the MENA region in the future.
We have recently completed courses at
both our centers in “MAN Brand
Awareness & Sales Dialogue Techniques’’,
these particular courses are designed to
focus our Sales Teams on the importance
of the “Brand Image” and the importance
of how to use that focus when negotiating
with customers, to improve the customers
perception of our products,
All of courses are held and presented in
both Arabic and English,
As with our Sales Teams our Aftersales
Team also follow a carefully planned
program of training designed to keep our
Technicians up to date with the ever
changing technology. The MAN Service
Training Academy ME currently offer a
wide variety of technical face-to-face
seminars from basic repairs to more
advanced electronic training, E-learning
programs are also offered covering
technical, non technical as well as
management courses.
HHA MAN Aftersales division during
2012 completed a total of 51 days training
which equates to approximately 4280 man
hours training.. Additionally HHA with
MAN Service Academy will conduct two
courses for customers who service and
maintain their own fleets of MAN
vehicles.
One of the most exciting programs
recently introduced by MAN ME is
ProfiDrive, a driver training program that
is designed to enhance a driver's practical
capabilities, in conjunction with key
theoretical knowledge in addition to
fundamental economic driving techniques.
The combined cost of fuel, tyres and
maintenance make up well over half of the
total cost of ownership of a truck. Therefore by adopting a driving behavior that
shows an understanding of the vehicle, its
driveline and engine performance, harsh
braking, harsh acceleration and over
speeding are eliminated. This produces a
safer operation, making a considerable
contribution to reducing operating costs.
A number of HHA MAN customers have
already taken advantage of this program
and further ProfiDrive training dates are
planned.
At our Sister Company SAMCo “ Saudi
Arabian Manufacturing Company “ Our
‘MAN TB Approved World Leading
Assembly Plant’ in Jeddah SAMCO uses
its own on-the-job modular training
programme T.R.A.I.N (Teach Record
Asses Individual Needs) which gives credit
to trainees for self development, showing
the management each trainee's progress,
serving as proof to official bodies of the
employer's commitment to training staff,
an objective reference for promotion, a
motivational tool for both the TRAINEE
and his peers, as well as being a ‘daily
reminder’ that their company embraces
their ‘career paths’.
All training is tested and certified by
qualified Mentors to ascertain credibility
and the independence and reliability of
each worker. Certificates (and other
incentives) are presented to the
TRAINEE for each Module that is successfully completed with Bronze, Silver or
Gold grading. T.R.A.I.N’s on the job
development of staff ensures man hours
and production downtime are converted
to positive uptime-meeting customer
needs and expectations.
Both HHA & SAMCO support
Saudisation and through its own “SAMCO
TRAIN” programme it has now issued 92
T.R.A.I.N certificates to its Saudi
Nationals and has already certified two
young Saudi men who had no previous
experience in truck building to become
certified team leaders, with others
soon to graduate.
AHK Saudi Arabia - www.saudiarabien.ahk.de
35
German - Saudi Business Magazine
BMW
Mohamed Yousuf
Naghi Motors
Established in 1990, Mohamed Yousuf
Naghi Motors has been the exclusive and
official importer of BMW Group brands
BMW, MINI and Rolls-Royce for almost
two decades in the Kingdom of Saudi
Arabia. Their representation of the brand
spreads across the Kingdom with
showrooms and service centers in Jeddah,
Riyadh, the holy cities of Makkah and
Madinah, and Al Khobar.
36
Mohammed Yousuf Naghi Motors also
established one of the largest and most
advanced service centers in the Middle
East for the BMW Group in Jeddah which
includes a Fast Lane Service. In addition to
opening a service facility on Khurais road
in Riyadh worth 20 million SR and
refurbishing the current facility in Al
Khobar.
Mohammed Yousuf Naghi Motors offers
its customers in the Kingdom of Saudi
Arabia a full range of services through its
BMW facilities as well as providing a
comprehensive range of parts and
accessories, insurance, Sharia complaint
finance services as well as professional
customer service through certified BMW
Sales Executive and Technicians.
German - Saudi Business Magazine
E. A. Juffali & Brothers
E. A. Juffali & Brothers and Damiler-Banz
AG train set up technology center to train
young Saudis
In 1977, E.A. Juffali & Brothers, in
association with Daimler-Benz AG of
Germany, decided to set up a technology
center to train young Saudis for technical
assignment at various Juffali plants. The
JTC began modestly in that year with
training comprising of only two fields:
Automotive Engineering and Maintenance
Engineering. At this time the number of
trainees did not exceed nine from various
regions of the Kingdom.
As a result of the increasing number of
Saudi trainees, there was eventually need
for a larger center. In 1983 the Centre was
transferred to its new premises. Since then,
the scope of activities has expanded from
2 to 7 different industrial and managerial
activities, the latest but not the least of
which have been Automotive Electrical
Electronics. The training capacity has also
increased to more than 200 trainees in the
main technical field.
Furthermore, the JTC in continuous
coordination
with
the
General
Organization for Technical Education
AHK Saudi Arabia - www.saudiarabien.ahk.de
37
German - Saudi Business Magazine
E. A. Juffali & Brothers
Information & Communication Technologies
German - Saudi Business Magazine
& Vocational Training develops and
modernizes the training curriculums to
suit the advanced methods of technology.
JTC also offers special courses for various
organizations interested in raising the
standards of their technicians, such
as the Department of Civil Defence,
International Airports Projects, SCECO
South and SIDF.
The idea behind the establishment of the
Saudi Institute of German Technology
(SIGT) comes as a result of the mutual
cooperation between Technical and
Vocational Training Corporation (TVTC)
and E.A. Juffali & Brothers.
One of many reasons why TVTC built a
strong bond with E.A. Juffali & Brothers
as a private sector is the trust and
credibility which is known by the company
in the field of technical training for over
thirty years.
Other reason is the big gap between
education and training programs,
as well as the need to cope with the rapid
requirements of the training sector.
TVTC will build the institute within its
plans to support the development process
in Saudi Arabia through training programs
designed to provide an opportunity for
Saudi youth to enroll in vocational and
technical training institute in order to
improve their skills and capabilities to
prepare them to work in national
organization and companies.
SIGT will be located at Jeddah – Makkah
highway on a 74,000 square meters area. It
is expected to cost SR.150 million and can
accommodate 700 trainees.
SIGT will be run by E.A. Juffali
& Brothers as strategic partner of
the TVTC.
38
Information & Communication
Technologies
With over 27 million consumers and a
number of global enterprises, Saudi Arabia
is the largest ICT market by far in the
Middle East. For example, the Saudi
Arabian
telecommunications
and
information
technology
industries
represent over 55% and 51% of the total
Middle East markets, respectively.
telecom industry, driving increases in
competition, service levels, and usage.
Numerous Saudi Arabian IT industries
show clear signs of rapid growth, driven
by the committed presence of major
multinationals, and by the expanding skills
and confidence of local companies.
weighted heavily towards technologically
literate early adopters. Arabization (digital
content, software) activities enjoy strong
growth prospects due to this large
emerging market and the increasing supply
of qualified software engineers coming
available due to public and private
training initiatives.
A large, emerging market
Yet, while many of the world’s ICT
markets are maturing, the Saudi Arabian
market remains substantially underdeveloped by global standards and remains
on a rapid growth trajectory. ICT spending
has grown at over 10% per year since
2001 to reach US$7.3 billion in 2006.
Liberalization is occurring across the
Leaders in connectivity and ICT
The size of the Saudi Arabian ICT market
provides excellent operational scale, as well
as the advantages of locating in a
technology hub catering to over 350
million Arabic-speakers in the region.
Because Saudi society is young and
growing rapidly, its consumer market is
ICT adoption is also increasing rapidly
thanks to rising personal wealth and an
unprecedented commitment on the part
of the public sector to achieving leadership in connectivity and information
technology. Saudi Arabia has embarked on
AHK Saudi Arabia - www.saudiarabien.ahk.de
39
German - Saudi Business Magazine
Information & Communication Technologies
German - Saudi Business Magazine
SAP
SAP in the
Kingdom of Saudi Arabia
These are exciting times for the Kingdom
of Saudi Arabia. With visionary leadership
in place, breath-taking development plans
being both realised and in progress not to
mention a young and uniquely tech-savvy
population the future is packed with
potential and cutting-edge credibility.
In March 2012, SAP unveiled a four-year
growth plan to up-skill local talent and
drive sustainable innovation and growth
across the Middle East and North Africa
(MENA) region. Two years in, and the
strategic importance of Saudi Arabia to
that plan, is only getting stronger.
a twenty-year ICT plan that will
support widespread technology and
telecommunications adoption across
KSA’s households and enterprises. A
combination of
deregulation and
substantial public investments will create
attractive investment opportunities for the
private sector. Recent examples of such
participation include a US$100 million
investment by a venture capital firm in
Saudi-based technology companies.
State of the art communications
infrastructure
KSA’s unique access to energy makes it an
attractive location for a range of activities
across the ICT value chain. For example,
ICT-enabled services providers (such as
data centers) will be able to leverage Saudi
Arabia’s unique access to low-cost power
and state-of-the-art communications
infrastructure to efficiently service global
customers. Equipment and component
production are also highly energy-
40
intensive and require significant use of
petroleum derivatives such as chemicals
and plastics. Combined with KSA’s
attractive
setup
incentives,
these
advantages translate into considerable cost
savings for hardware manufacturing and
assembly activities.
Meanwhile, software and other content
providers enjoy a secure environment for
commercialization, thanks to significant
progress on intellectual property rights
(IPR) laws by the Ministry of Commerce
and the CITC.
Good reasons to invest
•
•
•
Saudi Arabia is the region’s largest ICT
market with strong growth in
consumer and enterprise end markets
Deregulation, privatization and WTO
accession promoting private-sector
opportunities supported by significant
investment incentives
Public-private funding partnerships
•
•
•
•
•
such as KACST’s R&D co-funding
initiatives by KACST
Public-private partnerships supporting
venture capital funding such as recent
collaboration between SAGIA and
Intel
Strong commitment to e-commerce
and e-governance initiatives (including
IP protection)
Significant unmet demands for
web-based and
mobile services;
increased enterprise and government
usage of web-based services provide
large-scale
opportunities
for
contractors and service providers
Massive
public
investment
in
connectivity for Economic Cities
provides unique opportunities for
green-field projects covering millions
of users
Public investment in computer and
Internet literacy programs
warehousing, visualization and reporting
and enterprise applications, its sales across
MENA grew 255 percent last year, with
Saudi Arabia playing a big part in that
growth. The market spoke up loud and
clear, and we responded. Cloud computing
is another case in point; between 2012 and
2013, SAP’s cloud deals in the MENA
region increased by over 300 percent, with
Saudi Arabia once leading the adoption of
cutting edge technologies. Such growth
would not be possible without strong
in-country investment and a willingness to
adapt to local requirements by, among
other things, localising key solutions.
As the world’s largest business software
company, SAP is more in demand than
ever before. We now live at a time when we
can generate valuable intelligence from
virtually any process, action or “thing”
for real-time analysis and action. This
presents a hugely exciting and
profound opportunity for businesses and
government decision-makers to transform
services, spur sustainable development,
accelerate innovation, and empower
communities. Saudi Arabia is showing
tremendous and exemplary receptivity to
this shift, and that is why SAP feels so at
home here.
With eyes firmly on our future in
Saudi Arabia, we are also ramping up our
efforts to train local talent and add vital
skills to the local job market.
To stay relevant in Saudi Arabia, SAP
knows that it needs to support the local
market demand. This means scaling in
resource and expertise to ensure that the
technologies that matter most are readily
available and deployable on demand. Our
ground-breaking in-memory technology
SAP HANA is a good example, combining
transactional and analytical processing in
one system. A single platform for
advanced real-time analytics, data
In order to maximise its ability to engage
with local talent, SAP has also launched
the 2nd Chance Education Program,
which qualifies unemployed job-seekers as
SAP certified consultants and users in
collaboration with selected partners from
government institutions and the private
sector.
Key initiatives include the three-month
Young Professional Training Programme.
Designed for young graduates, the
program includes hands-on project
experience and spans everything from
negotiation and communication to conflict
management and “design thinking”. In
addition, the initiative offers SAP
certifications at associate level in core
business and industry solutions.
More established is SAP’s world-renowned
University Alliances Program, which
currently counts 67 members across
MENA, 26 of which are in Saudi Arabia.
The program incorporates thousands of
students and 250 trained lecturers. UAP
member schools gain access to the SAP
Business Suite family of solutions,
including SAP Enterprise Resource
Planning (ERP), and gain insight and
hands-on experience of how technology
can empower businesses to optimize
key processes.
In another initiative to bolster local talent
and markets, we recently signed an MOU
with Saudi Arabian Airlines to collaborate
on establishing a unique Competency
Center at King Abdullah Economic City.
The joint initiative will endeavor to
prepare Saudi graduates for the job market
through teaching essential business, IT and
leadership skills.
From where we’re standing, conditions
to innovative and drive business
transformation have never been better in
Saudi Arabia. SAP is proud to contribute
in whatever way it can, and we are only just
getting started.
Ahmed Al Faifi, SAP KSA
Managing Director
AHK Saudi Arabia - www.saudiarabien.ahk.de
41
German - Saudi Business Magazine
DETECON
Al Saudia Co. Ltd.
Detecon Al Saudia Co. Ltd. was established
within the Kingdom of Saudi Arabia in 1982.
Today Detecon Al Saudia (Detasad)is a joint venture
between the Saudi FAL Group and Detecon International.
Detecon Al Saudia acts as the representative of Detecon International (Deutsche
Telekom Consulting – Part of the
Deutsche Telekom Group) in Saudi Arabia.
Under the lead of a German senior management group Detecon Al Saudia currently
employs a total multinational base of
around 1.500 employees and can offer a
29-year, long-standing reputation as a
reliable telecommunications, VSAT and
ICT service provider within Saudi Arabia.
Detecon Al Saudia is the first satellite
service provider in the Kingdom of Saudi
Arabia to introduce a geo-redundant
satellite services platform for high
availability IP connectivity. Further
Detecon Al Saudia has built in the first
42
German TUVIT certified data center
fulfilling the very demanding “Trusted
Infrastructure Site Level 3” specification.
The data center officially launched
operation in February 2010 and serves as a
secure collocation and disaster recovery
facility for important international banks,
international airlines as well as the oil &
gas industry. Since July 2011 Detecon Al
Saudia is also capable to provide premium
cloud computing application services
from its data center in Riyadh (Microsoft
Exchange 2011, Microsoft Office
Communication Sever 2010, Microsoft
SharePoint 2010 and Microsoft Dynamics
CRM 2011), which can be individually
customized according to our customers
requirements. Continuous 24/7/365
support operations as well as a dedicated
approach towards quality and delivery are
major points of how Detecon Al Saudia
differentiates itself from the competition
in the market. Thus, Detecon Al Saudia
secured multiple key medium to
large enterprise VSAT clients from
various business sectors such as
telecommunications, banking, oil & gas,
agricultural and manufacturing as well as
governmental institutions.
Please visit:
www.detasad.com.sa
www.cloudex.sa
German - Saudi Business Magazine
Logistics
LOGISTICS
The Kingdom of Saudi Arabia is a
growing economy which is diversifying
more and more. The declared goal is to
develop a diversified transportation
infrastructure with a most efficient supply
chain and logistics network. With the help
of foreign know how and a developing
logistic industry, the Saudi Arabian
logistics market will continue to foster its
role as a leading transport and logistics hub
within the region and globally. Saudi
Arabia is already by far the largest market
in the GCC region: The foreign trade
volume has increased significantly in
recent years. The expected value of SaudiGerman commercial deals in 2013 is
around 10 billion Euros. Billions are spent
on the expansion of port capacities and
railroad routes. The turnover of the
logistics industry is expected to exceed 15
billion Euros by 2015, in comparison to
2011’s turnover of only 11 billion Euros.
Between 2004 and 2008 the volume of
cargo loading and unloading in the ports
44
of the Kingdom of Saudi Arabia has
increased by almost 30% to 155 million
tons (excluding crude oil). The past year
witnessed an increase to over 160 million
tons hitting a new record high. According
to the current development plan, it is
expected that by 2014 the total port
business will reach 200 million tons. Also,
the domestic cargo is expected to show
growth rates of 4-5% per annum through
2020. Over all, Investments of more than
70 billion Euros will be made within the
next ten years. This development offers
opportunities for contractors, builders,
and operators of transport facilities.
Especially the extension of the railway
network, building of airports and new
seaports on the east and west coast, will
further increase Saudi Arabia’s competitive
advantages in the region.
In addition to the increasing demand of
Warehouse
logistics
and
freight
forwarding, full supply chain management
for the industry is becoming more and
more a topic and is constantly growing,
especially with the national strategy of
establishing
more
manufacturing
companies in the kingdom.
FAWAZ A. BAGHDADI
ADVERTISING AGENCY
Logistic companies such as DHL, DB
Schenker, and others have already a very
strong presence in the freight forwarding
market segment, and are now broadening
their focus to oil and related industries, like
ALFRED TALKE GmbH & Co. KG
which offers services from site logistics for
new factories up to high volume
commodity polymers transportation and
storage as well as the highly specialized
liquid chemicals handling.
Freight transport logistics and industrial
logistic services very welcome in the
Kingdom because are key sectors for
promoting sustainable economic growth,
technical innovation and the creation
of jobs.
P.O. Box 7301, Riyadh 11462, Kingdom of Saudi Arabia
Tel.: +966 11 270 4102 - Fax: +966 11 270 4103
info@fawazadvertising.com
German - Saudi Business Magazine
DB International
Engineering
DB International
Globalisation of the rail transport sector
has led to a change in markets and
customers. Rail once again plays an
important role worldwide, especially in oil
producing and mining countries, but also
in Asia with its dramatically increasing
traffic volumes. Efficient railway systems
are thus essential to provide mobility for
both passengers and freight. Congested
roads and relentlessly rising energy costs
have curbed the development of private
car and truck traffic, allowing the railway to
make up ground. As far as environmental
aspects are concerned, railway has always
been far out in front.
46
The sophisticated technical status of rail
infrastructure and the quality of our
railways, coupled with the knowledge and
experience of the many railway experts in
all sectors of the DB Group, make
German rail expertise an interesting
proposition for virtually every railway
country in the world. DB International
offers one face to the customer. This
enables diverse services to be coordinated
simply and quickly to ensure they satisfy
the jointly defined quality standards.
Since 1966, DE International has
accomplished, or partaken in, more than
thousand of projects in more than
100 countries. The company, with
around 1,200 employees, is represented
by many branch offices in Germany
and currently maintains 38 project
offices overseas. The revenue in
2012 was €154m for the DB
International Group.
Nowadays DB International advises
their
clients
around
the
globe
and develops innovative and economic
solutions for sustainable mobility
and transport services and is active
in the fields of:
German - Saudi Business Magazine
DB International
Design, project management and
construction supervision of infrastructure
projects relating to railway specific subjects
for structural engineering, equipment
engineering and Geotechnics.
System Consulting
Technical consulting for integrated and
interdisciplinary solutions for all modes of
transport.
Business Consulting
Management consulting in the context of
an overall railway system, mobility and
logistics; from strategy and concept
consultancy through to profitability
analysis and process optimization
AL-Haramain
In September 2013, DB International
engineers have received an order for the
first high speed rail link in Saudi Arabia for
review the design of the track, the rail
systems, the construction supervision
and the supervision of
rolling
stock production.
The client for the 450 kilometer long,
double track and electrified high speed rail
link is the Saudi Railways Organization
(SRO). The link will provide a fast,
comfortable and reliable service between
the cities of Jeddah and the holy sites of
Makkah and Medina. Maximum speed on
this line will be around 320 kilometers per
hour. A total of five rail stations have been
planned for this project: in Makkah,
Jeddah, Jeddah International Airport, King
Abdullah Economic City and Medina.
detailed design of all system components,
including
track,
signaling
and
telecommunication systems. From the
initial concept to final completion, DB
International’s (DBI) involvement will also
include technical assistance for the
construction of the operational control
center and the overhead catenary system,
and for both operations and maintenance.
The new order for DB‘s wholly-owned
subsidiary also includes the supervision of
rolling stock production. This will involve
DB International experts reviewing the
designs developed by the Spanish
consortium. To this end, a special contract
management system and stringent quality
control procedures will be put in place.
DB International’s scope of supply in this
project includes the review of the design
concept, the preliminary design and the
AHK Saudi Arabia - www.saudiarabien.ahk.de
47
German - Saudi Business Magazine
DHL Express has been present in the
Kingdom of Saudi Arabia for 37 years,
covering almost every part of the
Kingdom, our experience, know-how and
reputation in Saudi Arabia is second to
none.
As a German owned organization we have
been aiding the trade lanes between
Germany and KSA for many years and we
will continue to develop and enhance the
service in these lanes.
Geoff Walsh, the DHL Express KSA
country manager, believes that our current
multimillion Euro investments in our
infra-structure here in Saudi Arabia,
48
DHL
whether it’s in our new facilities in Riyadh
(King Khalid International Airport),
Dammam (King Fahd International
Airport) or Jeddah (King AbdulAziz
International Airport), ensures that our
service has surpassed our competition and
will enable us to better serve the Saudi
Arabian market for both its inbound and
outbound business.
At DHL we are committed to enhancing
regional and international trade lane
relationships
to
increase
global
connectivity for the benefit of the growing
GCC economies. As the world’s leading
logistic provider it is important for us to
support and help build both domestic and
international trade lanes. Our recent
investment highlights the importance of
Saudi Arabia as one of the major inbound
trade countries in the region, given the rate
at which the country is growing and its
strategic position in the Middle East.
German - Saudi Business Magazine
SMEs
The German promotion of Small
and Medium Sized Enterprises
German small and medium sized enterprises (SMEs)
can refer to plenty support programs.
There is no other country that has
as many support programs for all
kind of business like Germany. Just for
startup companies, there are existing
about 200 different business promotion
tools on federal and regional level.
Additionally, the state-owned KfW-Bank
supports the SMEs with a total of 24
billion Euros. The support ranges
from investment grants for projects of
supra-regional significance to consulting
50
services in emergencies. The most
important instrument are concessionary
loans with special interest conditions
by German development banks or
bank guarantees by banking institutes
that are specialized in guarantees
for an easier access to corporate loans.
Companies, which are willing to use
their energy and their materials
in a more efficient way, receive public
support as well.
The German SME-sector can also count
on broad support regarding the access to
international markets. The market entry to
foreign markets is not easy at all especially
not for SMEs. The examination of the
local labor law and the local taxation is as
much time consuming as the search for
the perfect business partner. Detailed
information about the market as well as its
special conditions and developments in
certain fields of industry are necessary for
German - Saudi Business Magazine
SMEs
a successful market entry. This is what the
German Chambers of Industry and
Commerce abroad, the delegations and
representations of German economy
(AHKs)
actually do. Furthermore,
German companies are supported by
AHKs regarding the presence on global
fairs.
Regional Chambers of Industry and
Commerce in Germany support their
companies regarding the support
programs according to their needs. As the
official representatives of the economy
they vote whether certain support is to be
given to some companies or not. The
main question in such cases is, if the
support seems to be rewarding in the
specific case and if the planned project
applies to the conditions that are
obligatory for any public support.
In the past, certain support programs have
been very efficient and important. During
the Global Financial Crisis in 2008 and
2009 the tool of the so called “short-time
work” saved hundred thousands of jobs in
Germany. At the short-time work the state
partly paid the loans of the employees
from certain companies that have been
struggling due to the decreasing demand
during the crisis. This allowed the
companies to react flexible without being
forced to dismiss their skilled workers.
The outcome is recently shown: The rate
of workless people in Germany is the
lowest since more than 20 years.
Unfortunately, such extremely positive
examples remain the examination. The
variety of all support programs sometimes
overstretches the capacity of small and
medium sized enterprises to decide, which
program fits the most to their needs.
Additionally, bureaucratic obstacles for
single enterprises can be very high.
From an economic point of view the best
way to promote SMEs is a general middle
class friendly economic policy. A good
economic policy is measured by a simple
taxation system with little bureaucracy and
no unnecessary patronizing by the state.
Combined with focused support
programs such a policy is most useful for
the industrial middle class. Germany has
much to offer in this field. The SMEs are
the backbone of the German economy
and can count on the latter conditions. For
this reason the German economy was able
to develop positively and enjoys today an
internationally leading position.
AHK Saudi Arabia - www.saudiarabien.ahk.de
51
German - Saudi Business Magazine
KSB Pumps Arabia
German - Saudi Business Magazine
SSI Schaefer
SSI Schaefer
Tops Rankings for Material
Handling Systems Supplier
Retaining its position as the top supplier
for Industrial and Automated Storage
systems the 8th consecutive year, SSI
Schaefer is once again ranked number one
by US Magazine, Modern Materials
Handling.
KSB Pumps Arabia
KSB Pumps Arabia will invest EUR 7M
for its expansion plan on a total land area
of 21,000 square meters. The works have
started and are expected to be completed
by Nov 2015. They include the renovation
of the existing factory and office building
as well as the construction of a service
workshop in addition to a new 0.5 MW
test bed which will be soon constructed.
Above decision was taken by KSB Pumps
Arabia’s Board of Directors in the light of
the continuous and sustainable economic
growth in Saudi Arabia.
52
In addition to this expansion, KSB Pumps
Arabia Ltd. has been increasing its
manpower plan, specifically its sales force
to cater to the increasing development
projects in the Kingdom where the
economy is driven by high population
growth and high oil price. Sales engineers
have been deployed to serve their
respective regions covering the complete
Kingdom after attending rigorous training
programs.” Our initiative in hiring and
training the young Saudi engineers has
been strongly encouraged by the
Ministry of Labor and its Human
Resources Development fund which is
financing a two-year customized training
program to suit our Saudi young
technicians needs” said Robert Aramouni,
Managing Director. KSB Pumps Arabia’s
experts have been conducting regular
training programs for the consultants,
ministries, authorities and decision
makers so that they can make the right
selection for their pumps and valves in
various applications.
New Service centers in Jeddah and
Khobar ensure ‘Being Available’ when the
customer needs us. Further, our new
expansion plans would help us to keep
more stocks to reduce lead time therefore,
creating another competitive advantage as
short delivery time is a key success factor
in our market.
Following the Board meeting which took
place in Riyadh Dr. Wolfgang Schmitt,
KSB Chairman of the Board of
Management visited the factory as well as
the Riyadh sales office where he was
warmly welcomed by everyone.
SSI Schaefer holds the number 1 spot with
an increase revenue of 3% to USD2.65
billion over 2012 while Daifuku Co.
remained at their number 2 spot with a
revenue increase of 4% to USD2.46 billion
over 2012. Dematic and Murata Machinery
Ltd retained their 3rd and 4th position
with revenue of USD$1.5 billion and
USD960 million respectively. Vanderlande
Industries swapped places with Mecalux to
move up to the 5th position with revenue
of USD956 million.
The battle for the top 20 systems suppliers
remains as a heated race to the top for
2013. While some of the growth is the
result of mergers and acquisitions, it
became obvious that the results reflected 2
facts of life in this industry:
1) The big are getting bigger. To crack
into the top 10 spot, the No. 10th
position posted increase revenue of
about 57% in 2013 over the No. 10th
in 2011.
2) There is an apparent increase in
appetite for automation, largely driven
by e-fulfilment that isn’t explained by
industry consolidation.
The overall combined revenues of the top
20 material handling systems suppliers
showed a jumped of 6.5% over 2012 to
USD15.6 billion in 2013.
Making the list
To qualify for MMH's list, companies must
be suppliers of materials handling systems,
not just equipment providers. In addition
to manufacturing at least two major
handling system components, a company
must also employ full-time staff that
designs, installs and integrates materials
handling systems. These systems include at
least two of the following: transportation
devices, storage and staging equipment,
picking units, sortation systems, information management systems, data capture
technologies and other types of handling
equipment.
suppliers. They must also be able to report
their materials handling revenues to
MMH's editors.
For more information, please feel free to
contact:
SSI Schaefer Systems
International DWC LLC
Eli Danila – Junior Marketing Manager
Phone +971 4 8048 100
Fax +971 4 8879 305
Mobile +971 050 155 5130
e.danila@ssi-schaefer.ae
Companies must have a presence in North
America to be considered worldwide
AHK Saudi Arabia - www.saudiarabien.ahk.de
53
German - Saudi Business Magazine
V-Line
Local Focus on
MRO with Global Know-how
MRO Connection™ Middle East information-driven
solutions as add-on to V-LINE’s proven MRO supply
services. Andreas Hergenröther, Delegate of German
Industry and Commerce for Saudi Arabia and Yemen in
discussion with Arne Randt, Head of MRO Technology
Solutions at MRO Connection Middle East.
Hergenröther: Mr. Randt, a very warm
welcome from AHK Saudi Arabia. We
have seen you around at multiple SaudiGerman business meetings since April
2013. While you are part of the V-LINE
GROUP you are not in the market to
54
acquire new customers for spare parts
supply services, are you?
Randt: First of all I would like to thank
you, Mr. Hergenröther, as well as the
members of the German business circles
for indeed making me feel very welcome
in both Riyadh and Jubail. You are
absolutely right, I am not in the spare parts
business as such. Over the years, many of
V-LINE’s customers have come up with
questions regarding their Maintenance,
German - Saudi Business Magazine
V-Line
Repair and Operations that do not fall into
the core scope of a company focused on
fast and seamless supply of cross-border
MRO. That’s why we have created the
joint venture MRO Connection Middle
East where we focus on achieving deep
insight into our customers decisions on
“WHAT MRO to buy?” as opposed to the
V-LINE MRO supply models for “HOW
to buy MRO?”
Hergenröther: That makes sense. What do
you expect from the investment into this
new venture in Jubail?
Randt: Our clients are facing more and
more challenges that affect both them and
V-LINE’s supply processes. That’s why we
partnered with the MRO Connection
from the USA who have been successfully
delivering turn-key solutions to take on
those challenges.
Hergenröther: What are these solutions
and what are the challenges you are
referring to?
Randt: All of these solutions revolve
around the three questions: What, when
and how many spare parts should I
procure? Not being able to answer these
questions can create very painful
challenges. Worldwide more and more
data is collected in ERP and EAM
systems, such as SAP, Oracle or IBM
Maximo. This is great, but to make sense
of this data has become very difficult.
Both because the creation of meaningful
reports itself is difficult and let’s face it: A
lot of the data quality is very bad. The root
causes are to be found within the people,
the processes and the technology in place.
Hergenröther: How are you able to
resolve these problems and how does this
fit together with V-LINE’s existing
business?
Randt: At MRO Connection Middle East
we make sure to take all three factors into
account. We are able to assess the skillsets
of employees, the adequacy and logic of
the processes and the capability of a
client’s technology to support the first
two. Tailored to the clients’ needs we are
then providing on-the-job training and
online learning modules, redefine
processes and provide technology for
MRO-specific tasks, for example
Inventory Optimization and asset
management. This very hands-on
approach is harmonized with the more
academic management trainings we have
been conducting with our partner, the
Deutsche
Management
Akademie
Niedersachsen. Celebrating 35 years of
business in Saudi Arabia at the end of this
year, we embrace Saudization by localizing
global know-how and hope to keep
building long-term and mutually beneficial
business relationships.
Hergenröther: Good luck with your
project here in Saudi Arabia and the wider
GCC region and thank you for the
interview, Mr. Randt.
AHK Saudi Arabia - www.saudiarabien.ahk.de
55
German - Saudi Business Magazine
AHK Services
Services of AHK Saudi Arabia
Small and medium-sized companies are
particularly supported by experienced
partners to enter foreign markets. The AHK’s
Service Brand DEinternational is present in
all 120 offices of the German Chamber
Network abroad. According to the services
of DEinterantional, AHK Saudi Arabia
offers German companies services to assist
them in the market entry and Saudi
companies to get in touch with German
businessmen. Important sectors like health
care,
infrastructure,
construction,
petrochemicals, metallurgical mills and plants,
food industry as well as energy related topics
are covered by one of our employees, who are
specialized in these fields.
Market Entry
1. Individual Market Advice
The individual market advice is our most
successful service. In a close dialogue with
German companies and on the basis of the
documents and product samples they
provide, we identify business and product
specific advantages on the Saudi market and
analyze their market opportunities.
56
2. Business Partner Search
Within the context of the business partner
search we take on the search for the right and
appropriate business partners.
3. Address Research
The AHK Saudi Arabia offers a verified
research of sectoral and address information
to simplify the establishment of contacts with
Saudi companies.
4. Direct Mailing Services
We offer you individual support in the search
for interested business partners and we will
take care of establishing initial contacts.
5. Business-Trips
AHK Saudi Arabia offers German companies
the possibility to take part in business trips of
different industrial sectors to Saudi Arabia.
During 3 to 4 days stay in Saudi Arabia the
aim of these business trips is to give a first
impression of the country and the market and
to make first contact with Saudi businessmen.
The main focus of an AHK-business trip lies
on business to business meetings (B2B). Saudi
businessmen who are interested in cooperation with German companies are cordially
invited to contact us.
6. Catalogue Show - Exhibition
AHK Saudi Arabia and Yemen presents
German companies in the most important
trade- and industrial centers in Saudi Arabia.
Saudi companies have the unique opportunity
to see a wide range of high quality products
“Made in Germany” at one spot. The
Your service provider for sustainable business
development with one of the world’s largest economies
Catalogue Show is usually combined with the
German breakfast. Traditionally high ranking
representatives of Saudi and German
economy attend the breakfast and enjoy
Germany’s delicious food and beverages.
In addition, we offer extrajudicial mediation
and offer our help when contacts to public
authorities and/or law firms are required.
Market Information
AHK Saudi Arabia assists Saudi Arabian
patients who wish to make use of health
treatment in Germany.
Knowledge about the Saudi Arabian market
and characteristics of its society and culture
are essential for a successful market entry.
Regarding this, AHK Saudi Arabia offers
Quick Market Checks and Market Surveys.
In cooperation with our partner Germany
Trade & Invest, we also help Saudi
companies, who are interested in business in
Germany.
Legal Information
and Support
1. Legal Information
In order to enter a market successfully, the
legal aspects should be considered carefully.
For this reason it is our pleasure to provide
German companies with the needed legal
services in diverse business-related aspects
reaching from customs and taxes to
investment, import and export regulation, etc.
German - Saudi Business Magazine
AHK Services
2. Health Treatment in Germany
3. Debt Collection
Long experiences with debt collection show
that extrajudicial proceedings offer faster and
more promising solutions than court
proceedings by civil law. AHK Saudi Arabia's
experts with long term experience in the
country can also help you to dissolve and
avoid misunderstandings due to different
perceptions of trade and business caused by
cultural differences or customs. Sustainable
damage of long year business partnerships
can easily be avoided by the debt collection
through AHK Saudi Arabia.
4. Mediation
AHK Saudi Arabia acts as a mediator in cases
of commercial disputes between the German
and the Saudi business partner. Our objective
is to solve disputes without harming the long
term business relations.
5. Visa Service
To help Saudi companies and businessmen
with the visa application process we offer
to provide exhibitors and visitors to
trade fairs in Germany with a letter of
recommendation
to
the
German
consulate/embassy. AHK Saudi Arabia
assists German companies and businessmen
in visa issues. We support business travelers
who stay temporarily in the Kingdom in
offering to act as the sponsor during their
stay. AHK Saudi Arabia requests the so
called E-Number at the Ministry of Foreign
Affairs and is the responsible institution
during the time of the visit.
6. Translation Services
We offer translations of letters, documents,
company profiles etc. in the following
languages:
• German <> Arabic
• German <> English
We
also
offer
interpreting-services
German <> Arabic during AHKEvents and delegations.
Trade Fair Services
AHK Saudi Arabia is the official
representative of the Deutsche Messe AG,
Messe Munich, Messe Berlin GmbH, and
Spielwarenmesse eG in our region.
Exclusively for Saudi and Yemeni clients we
offer a wide range of services as we take care
of their preparation for trade fair
participation as an exhibitor or visitor. These
services includes selecting the suitable trade
fair, according to their company profile,
preparation of the application form, booth
rental, etc. for exhibitors. For visitors, we are
providing the admission ticket, issuing the
recommendation letter for the visa process,
providing info on visa application, flight and
hotel booking, etc.
For further information to the services of
AHK Saudi Arabia please contact:
German-Saudi Arabian Liaison
Office for Economic Affairs (GESALO)
P.O. Box 61695, Riyadh 11575,
Kingdom of Saudi Arabia
Tel.: 00966 11 4050201
Fax: 00966 11 4031232,
Email: info@ahk-arabia.com
www.saudiarabien.ahk.de
AHK Saudi Arabia - www.saudiarabien.ahk.de
57
German - Saudi Business Magazine
AHK Saudi Arabia
German - Saudi Business Magazine
AHK Saudi Arabia
Your contact persons at AHK Saudi Arabia
Your contact persons at AHK Saudi Arabia
Management
Public Relations & IT
Andreas Hergenröther
Delegate of the German Economy
for Saudi Arabia and Yemen
Stephan Blocks
Deputy Delegate of the German
Economy for Saudi Arabia and Yemen
hergenroether@ahk-arabia.com
Tel.: + 966 (0) 11 405 02 01
blocks@ahk-arabia.com
Tel.: + 966 (0) 11 405 02 01 Ext.115
Omar Hassan Hamza
Christian Engels
Legal Affairs
Assistant Delegate
& Head of Legal Affairs,
hamza@ahk-arabia.com
Tel.: +966 (0) 11 405 02 01 Ext. 106
Legal Affairs
engels@ahk-arabia.com
Tel.: +966 (0) 11 405 02 01 Ext. 107
Christian Engels
Dani Yussek
Head of Public Relations
Public Relations
mader@ahk-arabia.com
Tel.: +966 (0) 11 405 02 01 Ext. 107
Yussek@ahk-arabia.com
Tel: +966(0) 11 405 02 01 Ext.115
Mohammed Akbar
IT System Administration
akbar@ahk-arabia.com
Tel.: +966 (0) 11 405 02 01 Ext. 114
Accountancy
Trade Fairs
Al-Ameen Al-Dalali
Head of Trade Fair
and Export Promotion
al-dalai@ahk-arabia.com
Tel.: +966 (0) 11 405 02 01 Ext. 109
Asif Iqbal Ansari
Trade Fair Officer / Trade Fair
Coordinator for Visitors
ansari@ahk-arabia.com
Tel.: + 966 (0) 11 405 02 01 Ext. 112
Mohammed Khusro
Accountancy
khusro@ahk-arabia.com
Tel.: +966 (0) 11 405 02 01 Ext. 111
Mushtaq Ahmed
Administration
ahmed@ahk-arabia.com
Tel.: +966 (0) 11 405 02 01 Ext. 102
At your Service
DEinternational
Mohammed Faleel
Head of Business Promotion &
Business to Business Affairs
faleel@ahk-arabia.com
Tel.: +966 (0) 11 405 02 01 Ext. 105
Stefan Weiler
DEinternational Consultant
weiler@ahk-arabia.com
Tel.: +966 (0) 11 405 02 01 Ext. 108
Farook Hameed
Faisal Nalpurakkal
hameed@ahk-arabia.com
Tel.: +966 (0) 11 405 02 01 Ext. 100
faisal@ahk-arabia.com
Tel.: +966 (0) 11 405 02 01 Ext. 100
Address Research / Front Desk
Administration / Front Desk
Mohammed Riyas Gulcan
Tareq Qamhan
Intermediation of Health Services
qamhan@ahk-arabia.com
Tel.: +966 (0) 11 405 02 01 Ext. 118
Philipos Tedros
DEinternational Consultant
tedros@ahk-arabia.com
Tel: +966 (0) 11 405 02 01 Ext.103
Messenger
riyas@ahk-arabia.com
Tel.: +966 (0) 11 405 02 01 Ext. 101
Mohammed Aminul Islam
Jan Lutz Mueller
DEinternational Consultant
mueller@ahk-arabia.com
Tel: +966(0) 11 405 02 01 Ext.113
58
Caspar Matheis
DEinternational Consultant
matheis@ahk-arabia.com
Tel: +966 (0) 11 405 02 01 Ext.118
Facilities
info@ahk-arabia.com
Tel.: +966 (0) 11 405 02 01
Delegation der Deutschen Wirtschaft für Saudi-Arabien und
Jemen (AHK Saudi-Arabien)
German-Saudi Arabian Liaison Office for Economic Affairs
(AHK Saudi Arabia)
Futuro Tower, 4th Floor, Al Ma'ather Street
P.O.Box 61695, Riyadh 11575,
Königreich Saudi-Arabien / Kingdom of Saudi Arabia
Phone : 00966-11-4050201 - Fax : 00966-11-4031232
Mail: info@ahk-arabia.com
Web: http://saudiarabien.ahk.de/
AHK Saudi Arabia - www.saudiarabien.ahk.de
59
German - Saudi Business Magazine
Trade Fairs
June-October 2014
Saudi Arabia
Germany
08-11 Sep. 2014
Riyadh
Saudi Agriculture 2014 -The 33rd International
Agriculture,Water and Agro-Industry Show…
03-06 Jun. 2014
Munich
AUTOMATICA, International Trade Fair
for Automation and Mechatronics
08-11 Sep. 2014
Riyadh
Saudi Agro-Food 2014 - The 21th International
Trade show for food products...
08-11 Sep. 2014
Riyadh
Saudi Food Pack 2014 - The 4th International
Exhibition for food processing and packaging
27-30 Oct. 2014
Riyadh
Saudi Logistics, Transport and Freight Exhibition
27-30 Oct. 2014
Riyadh
Saudi Rail Show - The International Exhibition
for Rail, Metro Lines and Urban Transportation
10-13 Nov. 2014
Riyadh
Saudi Build 2014 - The 26th International
Construction Technology & Building Materials Show
04-06 Jun. 2014
Munich
Intersolar, the World's Largest Exhibition
for the Solar Industry
17-20 Sep. 2014
Nuremberg
GaLaBau, International Trade Fair for Urban Green
and Open Spaces/ Design - Construction
Maintenance + PLAYGROUND
23-26 Sep. 2014
Berlin
InnoTrans, International Trade Fair
for Transport Technology - Innovative
Components - Vehicles – Systems
30-02 Sep. 2014
Nuremberg
POWTECH + TechnoPharm, World-Leading Trade
Fair for Processing, Analysis, and Handling of Powder
and Bulk Solids + Int. Trade Fair for Life Science
Process Technologies
06-08 Oct. 2014
Munich
EXPO REAL, International Trade Fair
for Property and Investment
02-04 Dec. 2014
Wedding Arabia
Jeddah
07-09 Oct. 2014
Nuremberg
IT-SA, The IT Security Expo and Congress
02-04 Dec. 2014
Beauty Arabia
Jeddah
14-16 Oct. 2014
Nuremberg
Chillventa, International Trade Fair for Refrigeration,
Air Conditioning, Ventilation and Heat Pumps
06-09 Dec. 2014
Jeddah
Jeddah International Trade Fair
60
Trade Fairs
21-25 Oct. 2014
Hanover
EuroBLECH, International Sheet Metal
Working Technology Exhibition
For Trade shows in Germany the Official representation contact
German-Saudi Arabian Liaison Office for Economic Affairs (AHK Saudi Arabia)
Futuro Tower, 4th Floor, Al Ma'ather Street P.O.Box: 61695 Riyadh: 11575
Saudi-Arabien Tel: 00-966-11-405 0201 Fax: 00-966-11-403 1232
Email: info@ahk-arabia.com Internet: http://saudiarabien.ahk.de
Trade Fair Department
Mr. Al-Ameen Al-Dalali: al-dalali@ahk-arabia.com
Mr. Asif Ansari: Ansari: ansari@ahk-arabia.com
Tel.: 00-966-11-405 0201 Ext.110
Fax: 00-966-11-403 1232