German-Saudi Business Magazine
October 2011
German Investment in Saudi Arabia
AHK Saudi Arabia
Investment
Trade
German - Saudi Business Magazine
Editorial
Dear reader,
Germany’s economy is the world market leader in many industrial branches. In
2010 German exports reached almost one trillion Euros and increased more than
20% compared to the previous year. The German economy was the second most
important exporter worldwide. German exports to Saudi Arabia rose by 20% to
almost 5.6 billion EUROs. This trend has continued in the first half of 2011 where
goods worth 3.1 billion EUROs had been exported to Saudi Arabia. This was an
increase of 17% compared to the first six month in 2010. These numbers prove
that Saudi Arabia is Germany’s most important trading partner in the whole
MENA-Region. This partnership remains not only on trade but also on
investments German companies make since decades.
Andreas Hergenröther
Delegate of German
Industry & Commerce
for Saudi Arabia and Yemen
Due to the fact that Saudi Arabia has been by far the biggest economy and market
in the MENA-Region, German companies’ engagement in the kingdom has
grown rapidly during the last ten years. By now more than 700 German companies
are established in Saudi Arabia. Most of them built up sustainable business
partnerships with Saudi Arabian enterprises. Yet the market still offers many
opportunities for companies in various fields. Low costs for energy, the easy access
to fossil resources combined with large and prudent investments by the Saudi
government for instance in the country’s infrastructure and education system
create best conditions for companies who are interested in doing business with the
Middle East, North Africa and Asia. Because of its outstanding location as chain
between the Mediterranean Levant, the Red Sea and the Arabian Gulf Saudi Arabia
can be seen as a bridge between Europe, Asia and the East African coast.
German enterprises have successfully contributed to the economic development in
Saudi Arabia by investing, training local expertise and transferring technologies and
know-how. German companies like Siemens, Mercedes or Henkel are well known for
their work in Saudi Arabia but also small and medium-sized companies (SME) like
Bischoff+Klein, V-Line or Zeppelin are doing well in the market. By creating jobs
and interacting with local enterprises these companies make a contribution to the
positive development of the Saudi economy since years. The German Delegation of
German Industry and Commerce (AHK Saudi Arabia) is officially charged to
promote German-Saudi business relations. As the official representation of German
economy in Saudi Arabia we assist Saudi and German companies regarding their
investments and business in Saudi Arabia and Germany. To create a better awareness
of the tight German-Saudi business relations we would like to present existing
German investments in Saudi Arabia, important players and information regarding
the bilateral trade and finally the work of AHK Saudi Arabia. We believe successful
cooperation always starts with the knowledge of the opportunities.
Andreas Hergenröther
AHK German - Saudi Arabia - www.saudiarabien.ahk.de
5
Contents
6
50
13
22
Editorial
05
V-Line MRO on the Move
32
German-Saudi business relations
06
MAN Trucks
34
AHK Saudi Arabia
06
Mercedes (NAI)
36
Investments in Saudi Arabia
08
Allianz Saudi Fransi
38
Siemens
10
Deutsche Bank
40
Merck Serono
12
German Trade to Saudi Arabia
42
Draeger Arabia
14
DHL
43
Bischof+Klein
16
Kuehne+Nagel
44
SIG Combibloc Obeikan
18
45
The Linde Group
20
Testing, Inspection
and Certification
Zeppelin Gulf Co.
22
SAP
47
ThyssenKrupp
24
AHK Services
49
Henkel Arabia
26
51
Evonik
27
Your contact persons at
AHK Saudi Arabia
Cassidian
28
Detecon Al Saudia
30
27
34
367
43
25
Published by:
18
26
www.fawazadvertising.com
In accorance with a (GESALO)
Disclaimer:
German–Saudi Business Magazine
(GSBM), Issue October 2011
Editor-in-Chief
Andreas Hergenröther
Frontpage Photograph Source:
Bundesbildstelle
Responsible for Printing
AHK Saudi Arabia
© Copyright GSBM 2011.
All rights reserved.
Head of Public Relations
Florian Mader
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
German-Saudi business relations
German-Saudi economic relations have a
long tradition. German global players like
Siemens or Mercedes have been active in
the Kingdom since more than 75 years.
The transfer of know-how and technology
has also been supported as an expression
of political and economic partnership by
government representatives in both
countries. For instance the first President
of the Federal Republic of Germany,
Theodor Heuss, met with Saudi Arabia’s
King Saud ibn Abd al-Aziz during his term
in office. German chancellors like Helmut
Schmidt or today’s chancellor Angela
Merkel followed suit and tried to express
Germany’s close relation to Saudi Arabia.
AHK
Saudi
Arabia
has
been
established as a bridge between Germany
and Saudi Arabia and in the meantime it is
part of the German foreign trade policy.
The foreign trade policy system of
Germany has a very unique structure.
Beside the economic sections of the
embassies and Germany Trade and Invest
Source: Bundesbildstelle
Chancellor Helmut Schmidt hosts King Khalid bin Abdul-Aziz Al Saud in 1980
the AHK network, consisting of the
Chambers and Delegations of Industry
and Commerce abroad, is officially
assigned to promote German economic
relations outside of Germany. With the
additional support of the German
Federal Ministry of Economics and
Technology this makes AHKs the
official representation of German
economy abroad.
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 under the name of German-Saudi
Arabian Liaison Office for Economic
Affairs (GESALO). AHK Saudi Arabia is
part of the German Chamber Network.
With 120 locations in 80 countries around
the world, the members of the German
Chamber Network (AHKs) offer their
experience, connections and services to
German and foreign companies. AHKs
are located in all countries of particular
importance to German companies. With a
staff of 18 permanent employees, AHK
Saudi Arabia supports Saudi and German
companies with its services.
6
AHKs are closely connected to the
Chambers of Industry and Commerce
(IHKs) in Germany. Together, they
support German companies with building
up and extending their business relations
to foreign countries representing in total
3.6 million companies in Germany. The
umbrella organization of the IHKs is the
German Association of Chambers of
Industry and Commerce (DIHK), which
also coordinates and supports the AHKs.
Furthermore, the cooperation with various
German trade associations strengthens the
link from AHKs to business and markets.
The Delegation of German Industry and
Commerce for Saudi Arabia and Yemen is
the official representation of the German
economy in Saudi Arabia and carries out
the tasks of an AHK in Saudi Arabia
and Yemen.
business relations. These members give
them the authority needed when
interacting with politics, business and
administration in terms of promoting the
bilateral business relations.
3. Service Providers to Companies
Under the brand “DE international”
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
1. Official Representation of German sector
information,
matchmaking,
Companies
business consulting, organisation and
AHKs are the key players of German representation of trade shows, issuing
foreign business development on behalf business publications, legal information
of the Federal Republic of Germany. They and vocational training, etc.
represent German business interests
abroad and they inform about and The AHK – being officially acknowledged
promote Germany and the partner as an instrument of German foreign trade
country as a business location.
policy - has of course also a pivotal role in
terms of advocacy and dialogue with the
2. Member Organizations
government in its endeavour to improve
AHKs are member organizations for and strengthen the terms of business,
companies actively involved in bilateral investment and commerce.
German - Saudi Business Magazine
HISTORY
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
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. Saudi businessmen
are informed about the opportunities.
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
Germany’s Federal Minister of Transport, Building and Urban Development,
Peter Ramsauer in a meeting with a delegation of Saudi businessmen in Munich 2011
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 Saudia 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: Year one for
Andreas Hergenröther
Since
October
2010
Andreas
Hergenröther is the new 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 one the way to go to
deepen 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. Besides
the reopening of the branch in Jeddah it is
planned to establish a German-Saudi
Business Council as a member
organization that will serve the member
companies for more efficient and
sustainable cooperation in order to
develop a strong German-Saudi business
network. Especially the Saudi private
sector shall benefit from the network
AHK Saudi Arabia is offering. Under the
lead of Mr. Hergenröther more than 30
events in Germany and Saudi Arabia has
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.
AHK German - Saudi Arabia - www.saudiarabien.ahk.de
7
German - Saudi Business Magazine
German - Saudi Business Magazine
Investment in Saudi Arabia
The Kingdom of Saudi Non-oil Sector
Arabia offers investors a The government’s economic diversification
is beginning to yield good results.
highly competitive invest- plan
Non-oil GDP reported a 3.7% growth in
ment environment and a 2010. The growth was the effect of Saudi
strategy of attracting foreign
destination with vast invest- Arabia’s
investment and encouraging the private
ment opportunities.
sector.
Investment
Opportunities in
SaudiArabia
• The IFC’s “Doing Business 2011” report
ranks Saudi Arabia as the 11th best country
worldwide for doing business, the best in
the region, and ahead of several European
countries such as Spain, Portugal and Italy.
• Saudi Arabia occupies 6th rank for ease
of paying taxes, the number of taxes to be
paid and the tax rate on profit.
• It is 1st best for ease of registering
property, the top performer in this
category.
• Saudi Arabia remains the most lucrative
Arab economy for foreign companies with
over US$ 624 billion worth of planned
projects until 2020.
An Economic Boom
Saudi Arabia’s oil boom in the seventies,
when revenues from oil exports peaked,
laid the groundwork for one of the most
economically dynamic regions of modern
times. The Kingdom of Saudi Arabia is
now the largest free market economy in the
Middle East holding 25 per cent share of
total Arab GDP. It has a continuously
expanding domestic market which is
benefiting from a young and consuming
population. High oil prices, coupled with
the government’s commitment to enhancing the non-oil sector contribution have
sparked a second renaissance for Saudi
Arabia. Real GDP growth is estimated to
be at 6.5% in 2011, much higher than the
3.7% growth of the previous year, as per
the International Monetary Fund. Continued strong activity brought along inflationary pressures, yet the Saudi Arabian
Monetary Authority (SAMA) successfully
countered all odds, brought inflation rate,
although slightly progressing to a low rate,
compared to the Kingdom’s Gulf
neighbors’.
Oil Sector
8
The Kingdom is a world leader not only in
terms of oil reserves, but also in terms of
production, exports and refining capacity.
Oil revenues reached $ 153 billion in 2010,
and a predicted $ 324 billion for 2011. The
Kingdoms significant investments in the oil
sector reflect a determination to maintain a
vital role in supporting the global economy.
Driven by the need for job creation and a
diversification of the economy, authorities
have gradually reduced the number of
industries previously barred to foreign
investors and are making great strides in
improving the regulatory environment and
reforming the tax system. The new
investment environment in the Kingdom’s
Foreign Investment Law allows 100
percent foreign ownership of projects and
real estate in most industries. Saudi Arabia’s
recent accession to the WTO carries a
confident message to investors signaling
the Kingdoms commitment to a strong
multilateral trading system guaranteeing a
level playing field to foreign investors
hence insuring the same treatment,
protection and incentives accorded to
national capital. This, together with the
Kingdom’s infrastructure, sets the stage for
a promising investment dynamic.
Saudi Arabian General
Investment Authority
(SAGIA)
The Saudi Arabian General Investment
Authority (SAGIA) was created by the
Saudi Government on April 10, 2000 as
part of a series of measures geared towards
formalizing the process of economic
liberalization. SAGIA is responsible for
managing the investment environment in
the Kingdom with the aim of achieving
rapid and sustainable economic growth by
creating a pro-business environment,
providing comprehensive services to
investors and fostering investment
opportunities in key sectors of the
economy including energy, transportation,
ICT and know-ledge-based industries. In
pursuit of this mission, SAGIA has
embarked on an ambitious program to
raise competitiveness, “10 X 10”. The
program aims to place Saudi Arabia among
the world’s top 10 competitive investment
destinations. SAGIA has institutionalized
this process by creating the National
Competitiveness Center, which benchmarks the performance of Saudi Arabia’s
investment environment to more than 300
indicators as measured by global
competitiveness publications such as the
World Bank’s “Doing Business” report, the
World Economic Forum’s “Global
Competitiveness Report”, and the IMD’s
“World Competitiveness Yearbook”.
Moreover, at the heart of the drive towards
achieving the goals of competitiveness, job
creation Saudi Arabia’s competitive
advantage as the energy capital and its
strategic location as a major hub between
East and West. The Economic Cities will
offer investors an unrivalled businessfriendly environment with globally competitive regulatory framework and incentive
and incentives offering and economic
diversification offered in the “Economic
Cities”.
The Economic Cities
In developing the Economic Cities
concept, over a thousand of the world’s
free zones were surveyed. The sixty most
successful zones were selected and studied
to determine key success factors. The result
is the Economic Cities concept. An
ultimate innovation in Public-PrivatePartnership (PPP), the Economic Cities are
comprehensive, fully integrated developments featuring a “live, work and play”
design. They are cities and not zones. The
objectives of the Economic Cities are to:
- Promote balanced regional
- Achieve economic diversification
- Upgrade competitiveness development
- Create jobs
SAGIA, under the direction of the
Custodian of the Two Holy Mosques and
the Crown Prince, has launched a total of
four integrated Economic Cities, one each
in Rabigh (King Abdullah Economic City),
Hail (Prince AbdulAziz bin Mousaed
Economic City), Madinah (Knowledge
Economic City)
and
Jazan (Jazan
Economic City). Specifically, SAGIA’s
vision for the Economic Cities is to
contribute between a quarter and a third of
the aspired national growth rate, to create
over a million jobs, and to become home to
4 to 5 million residents by 2020.
The Pillars of Global
Competitiveness
To achieve these ambitious aspirations, the
Economic Cities were strategically
designed around nine “pillars of
competitiveness”. Together, these ten
strategic pillars will complement one
another to en-sure that investors have what
it takes to succeed and that the Economic
Cities achieve rapid and sustainable growth
in line with the economic scale and targets
set by SAGIA.
AHK German - Saudi Arabia - www.saudiarabien.ahk.de
9
German - Saudi Business Magazine
German - Saudi Business Magazine
Energy Sector
The world’s largest greenfield integrated
state-of-the-art water and power project,
the Shuaibah Project near Jeddah, utilizes
one of Siemens’ cleanest steam power
plants to generate power and desalinate
water for the region of Makkah, Taif,
and Jeddah.
Siemens recently completed a project for
Saudi Electricity Company (SEC) to
provide harmonized grid solutions for a
major substation in Saudi Arabia. The
380-kV substation adds 1,000 MVA of
secure power transmission capacity to the
Saudi Arabian grid, helping the country
keep pace with the rapidly growing demand
for power. As the project’s turnkey partner,
Siemens provided technical solutions
at all stages of the construction,
installation, testing and commissioning of
the substation.
“We are dedicated and remain
committed
to
continue
our
contribution to the development of
infrastructure and human capital in
Saudi Arabia.”
Arja Talakar, President & CEO,
Siemens Saudi Arabia.
For more than 75 years, Siemens has been
active in Saudi Arabia, where it’s Industry,
Energy and Healthcare Sectors hold
leading positions. Siemens currently has
about 1,800 employees in Saudi Arabia.
Siemens in Saudi Arabia has scored major
successes in all three Sectors:
Industry Sector
Siemens Mobility Division contributed to
the automation of the railway line between
10
the port city of Dammam and the capital
Riyadh by providing cutting-edge signaling
and telecommunications technology. The
449-km-long section of the line reserved
for passenger service was equipped with
the European Train Control System
(ETCS), marking the first-ever use of this
technology in the Arab world. The installed
hardware was adapted to the extreme
temperature conditions in Saudi Arabia.
Furthermore, Siemens completed Phase I
of the Mashaaer Mugaddassah Metro
Project (MMMP), a rail transportation
solution allowing pilgrims to significantly
reduce the travel times between the holy
sites during Hajj. Siemens has delivered the
whole power supply system, traction
substations and the entire overhead
cable system.
Siemens’ Industry Solutions Division has
received an order to provide demineralization and condensate polishing equipment
for the new Marafiq Yanbu power plant in
Yanbu. The new plant will allow Marafiq to
increase its power generation capacity to
better serve industries based in the cities of
Yanbu and Jubail. The multi-million-dollar
water treatment systems are scheduled for
start-up in 2011.
We have traditionally and continuously
maintained a strong relationship with large
local companies and government
institutions. Recently, a strategic procurement agreement was signed with Saudi
Aramco to strengthen the cooperation
between the two companies and give them
access to our Oil and Gas Division’s
rotating equipment and services. This
will in turn lead to more cost efficiency
for both companies due to reduced
project times.
Siemens has signed one of the largest
orders recorded by Siemens Energy in the
Middle East. The order is worth over US $
1 billion and we will supply the Ras Al
Khair power plant near the Jubail area with
twelve gas turbines, five steam turbines and
many other components.
Healthcare Sector
Siemens in Saudi Arabia is committed to
supporting the careers of young Saudis
through targeted professional recruitment
programs. Our global program, Siemens
Caring Hands, provides socio-economic
support to under-privileged communities.
The Siemens Generation21 program
strongly supports educational activities
with its innovative Discovery Box initiative
aimed to inspire tomorrow’s young
Siemens provides more than 50% of MRI scientists, engineers and doctors.
systems and Lithotripters to hospitals in
Saudi Arabia. Almost every hospital in the
country uses Siemens medical equipment.
Siemens’ Healthcare Sector executed a
turnkey project for the King Faisal
Specialist Hospital & Research Centre in
Jeddah. The renovation and upgrade of the
complete radiology department required
various Siemens medical products, systems
and solutions that enable the hospital to
optimize its workflows and improve the
efficiency and quality of patient care.
In terms of one of the most significant
projects in the Kingdom, together with our
partner E.A. Juffali & Brothers we are
going to establish a manufacturing facility
in the Eastern province. The factory will
enable the local production of gas turbines
and rotating equipment for the Saudi
Arabian market. The factory will be both a
job machine and a center of excellence
for engineering.
AHK German - Saudi Arabia - www.saudiarabien.ahk.de
11
MERCK
German - Saudi Business Magazine
Merck Serono
Living science, transforming lives
Saudi market is the ultimate playground for successful businesses…



Sheikh Yasser Al-Naghi: "Our focus is on development of national talent and expertise to meet the growing demand
in the industry"
Merck Serono Moves Closer to Saudi Arabia…
“Great places to Work” …. In 2010 Merck Serono was awarded the No.1 position amongst pharmaceutical companies
in the Middle East.
Jeddah, Saudi Arabia, 21 June 2011 - The
pharmaceutical field, as well as the Saudi
market, in Jeddah, celebrates the inauguration of the new offices of Merck Serono a biopharmaceutical division of Merck
KGaA, Darmstadt, Germany, a global
pharmaceutical and chemical company.
On the 21st of June, 2011, Merck Serono
commemorated the opening of its new
offices in Jeddah under the venerable
supervision of Mr. Wayne Paterson, the
Senior Vice President of Emerging
Markets, Executive Member of the Board
and Head of Cardio Metabolic Care
Business Unit, attending on behalf of
Merck family, with the presence of MS
Saudi partner Sheikh Yasser Al-Naghi,
President of Cigalah Group, and his
Excellency Mr. Ulrich Maier, Consul of
12
Federal Republic of Germany, in addition
to representatives of Saudi media
and press.
After welcoming attendees, Mr. Yasser
Tawfik, the Managing Director of Merck
Serono in Saudi Arabia explained: "This
occasion marks the inauguration of our
new offices in Jeddah as part of Merck
Serono's intercontinental platform and
boosting our presence in the kingdom,
which has been lasting for 30 years.” He
added: "This important step aims at
offering greater focus on KSA specific
issues and needs, being closer to our
patients and healthcare professionals and
providing smoother supply of medicines to
the
Kingdom.
Through
locally
manufacturing in Saudi Arabia we are also
aiming to build and train national expertise
and talents in the field, to provide best in
class medications for chronic regional
diseases, and to build long term partnerships with the Ministry of Health, the
Saudi Food and Drug Authority (SFDA),
and other healthcare bodies".
Sheikh Yasser Al-Naghi, President of
Cigalah Group, commented: "We were very
pleased with our long-lasting partnership
with Merck Serono in KSA in providing
best in class patient care and we will
continue to invest in the development of
our systems to match and surpass the
global standards for pharmaceutical
distribution within our partnership with
the Ministry of Health and other
authorities in providing complete,
world-class healthcare solutions to patients
in KSA".
Mr. Karim Smaira, Vice President of
Merck Serono Intercontinental Region,
highlighted that Merck Serono has moved
the regional office from Geneva to Dubai
for providing greater focus on the region.
He added: "The aim is to continue to
address regional healthcare issues, identify
and capitalize on synergies in the region
especially Saudi Arabia being the largest
country in the Middle East.” He continued:
"Part of Merck Serono's commitment to
society is healthcare professionals’
education, which can be seen by Merck
Serono’s
founding
of
"Serono
International Foundation" a not-for-profit
organization that coordinates and accredits
medical education around the globe".
Mr. Wayne Paterson has confirmed that
MerckSerono's presence in Saudi Arabia
shows that Merck Serono will continue to
invest and partner with local stakeholders
to enhance the medical services provided
to the Saudi people. He added: "Merck
Serono's products are commercialized in
150 countries around the globe and we are
part of Merck Group, which operates in
four
divisions,
Pharmaceuticals,
Performance Materials, and Merck
Millipore and Consumer Health. Our
vision is to focus our expertise around one
enduring commitment; to transform
medical science into breakthrough
solutions that make a difference to people’s
lives, while showing our great awareness of
our responsibility towards society and
environment. We partner with different
German - Saudi Business Magazine
global authorities and bodies, such as
WHO, United Nations Global Compact to
ensure access to treatment in developing
countries, fight counterfeit medicines,
promote and enforce fundamental values
in human rights, fair labor relations,
environment and fight against corruption".
The importance of such an event lies in the
international grandeur of Merck Serono
and its insistence on centralizing in the
Saudi market. Indeed, this reflects not only
the overwhelming growth of business in
Saudi Arabia, but also the beneficial
investment as it is targeted on health and
welfare.
About Merck Serono
Merck Serono is the biopharmaceutical
division of Merck KGaA, Darmstadt,
Germany, a global pharmaceutical and
chemical company. Headquartered in
Geneva, Switzerland, Merck Serono
discovers, develops, manufactures and
markets prescription medicines of both
chemical and biological origin in specialist
indications. In the United States and
Canada, EMD Serono operates as a
separately incorporated affiliate of
Merck Serono.
Merck Serono has leading brands serving
patients
with
cancer
(Erbitux®,
cetuximab), multiple sclerosis (Rebif®,
interferon beta-1a), infertility (Gonal-f®,
follitropin alfa), endocrine and metabolic
disorders (Saizen® and Serostim®,
somatropin),
(Kuvan®,
sapropterin
dihydrochloride), (Egrifta™, tesamorelin),
as well as cardiometabolic diseases
(Glucophage®, metformin), (Concor®,
bisoprolol), (Euthyrox®, levothyroxine).
Not all products are available in all markets.
With an annual R&D expenditure of over
€ 1bn, Merck Serono is committed to
growing its business in specialist-focused
therapeutic
areas
including
neurodegenerative diseases, oncology,
fertility and endocrinology, as well as new
areas potentially arising out of research and
development in rheumatology.
About Merck
Merck is a global pharmaceutical and
chemical company with total revenues of
€ 9.3 billion in 2010, a history that began in
1668, and a future shaped by more than
40,000 employees in 67 countries. Its
success is characterized by innovations
from entrepreneurial employees. Merck's
operating activities come under the
umbrella of Merck KGaA, in which the
Merck family holds an approximately 70%
interest and free shareholders own the
remaining approximately 30%. In 1917 the
U.S. subsidiary Merck & Co. was
expropriated and has been an independent
company ever since.
For more information, please visit:
www.merckserono.com
or www.merck.de
AHK German - Saudi Arabia - www.saudiarabien.ahk.de
13
German - Saudi Business Magazine
Dräger
Dräger
Patient monitoring in anesthesia:
One look at the display and the anesthetist
is informed about numerous parametres
and their development.
One system next to the other: In a special
area the systems are submitted to a
stress test.
14
Technology
For Life
Dräger is an international leader in the
fields of medical and safety technology.
The family-owned company was founded
in Lübeck, Germany, in 1889. Over the
past five generations, Dräger has evolved
into a publicly traded, worldwide group.
The company’s long-term success is based
on the four key strengths of its
value-driven culture: customer intimacy,
professional
employees,
continuous
innovation and a commitment to
outstanding quality.
“Technology for Life” is the guiding
philosophy. Whether in the operating
room, in intensive care or emergency
response services, Dräger products protect,
support and save lives.
Dräger offers its customers anaesthesia
workstations, medical ventilation, patient
monitoring as well as neonatal care for
premature babies and newborns. With
ceiling supply units, IT solutions for the
OR, and gas management systems the
company is at the customer’s side
throughout the entire hospital.
Emergency response services, law and
regulatory enforcement and the industry
trust in Dräger’s integrated hazard
management, in particular for personal
protection and plant safety. This includes:
respiratory
protection
equipment,
stationary and portable gas detection
systems, professional diving equipment
and systems, as well as alcohol and drug
impairment detection. In collaboration
with its customers Dräger develops customized solutions, such as entire fire training
systems, training concepts and workshops.
Draeger Arabia Co. Ltd., based in Riyadh
was founded in 1999. Around 80
employees work in life cycle solutions and
infra structure projects for the hospitals of
Saudi Arabia. Draeger Arabia has three
branch offices in Riyadh, Jeddah and
Dammam. Service engineers are located in
all Provinces and Cities of the Kingdom.
Draeger Arabia Co. Ltd. and her partners
offer medical technology products for
hospitals and doctor’s offices. That is, for
Emergency Rooms mobile ventilators, in
the Operating Theatres anesthesia systems
and consumables like ventilator masks as
well as OR-lights and Boom arm Systems.
In Intensive Care our company offers units
for the monitoring and ventilation of
patients. For neonates we provide
incubators and specially developed
ventilators supporting their ventilation.
Draeger Arabia and her partners work as a
solution provider for governmental and
private hospitals.
Dräger has about 11,300 employees
worldwide and is currently present in more
than 190 countries. The company has sales
and service subsidiaries in over 40
countries. Its development and production
facilities are based in Germany, Great
Britain, Sweden, South Africa, the USA,
Brazil, the Czech Republic and China.
Bischof + Klein
German - Saudi Business Magazine
Bischof + Klein B+K MEC Joint Venture
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
fam-ily-owned 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 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 op-eration. 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,
16
B+K MEC offers the most state-of-the-art film production in the region
Filipinos, Indians, Bangladeshi, Egyptians and
Sudanese. Freddie de Mey has been head of
production since 2010. The Belgian national
was previously employed 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-the-art 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 packag-ing 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/
co-extrusion, gra-vure/flexographic printing,
solvent-based/solvent-free lamination and
coating as well as for extru-sion lamination and
coating.
Highly-developed
conversion
technology with product-specific facili-ties 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-and-coming
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
TÜV Rheinland Arabia LLC
Member of TÜV Rheinland Group
Tel: +966-02-657-1416
Fax: +966-02-651-4281
Al-Ruwais Dist., Al-Andalus Street
P.O. Box 11488, Jeddah 21453
E-mail: info@sa.tuv.com
Web: www.tuv.com
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.
Obeikan Investment Group of Saudi Arabia and SIG Combibloc
can look back on ten years of successful co-operation in their joint venture
“SIG Combibloc Obeikan”, and are looking forward to a very promising future.
The joint venture supplies aseptic carton packs and filling machines for
long-life food for customers in the market area represented by the
Gulf
Cooperation
Council
(GCC)
states
(Saudi
Arabia,
Kuwait,
the United Arab Emirates, Bahrain, Oman and Qatar), the Levant region,
Africa and South Asia.
18
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.
German - Saudi Business Magazine
SIG Combibloc Obeikan
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.
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.
SIG Combibloc is one of the world’s leading system suppliers
of carton packaging and filling machines for beverages and food.
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.
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.
AHK German - Saudi Arabia - www.saudiarabien.ahk.de
19
German - Saudi Business Magazine
The Linde Group
The Linde Group
A success story that began with the separation of air.
The Linde Group is a world leading
supplier of industrial, process and speciality gases and is one of the most profitable
engineering companies. Linde products
and services can be found in nearly every
industry, in more than 100 countries.
The Group comprises three Divisions:
Gases and Engineering (the two core
Divisions) and Gist (logistics services).
Gases Division
The Linde Group is a world leader in the
international gases market. We offer a wide
range of compressed and liquefied gases as
well as chemicals, which makes us an important and reliable partner for a huge variety
of industries
.
Our gases are used, for example, in the
energy sector, steel production, chemical
processing, environmental protection, and
welding, as well as in food processing, glass
production and electronics.
We are also investing in the expansion of
our fast-growing Healthcare business, i.e.
medical gases, and we are a leading global
player in the development of environmentally friendly hydrogen technology.
Engineering Division
Our Engineering Division is successful
throughout the world. It focuses on
promising market segments such as olefin
plants, natural gas plants and air separation
plants, as well as hydrogen and synthesis
gas plants.
In contrast to virtually all our competitors,
we are able to call on our own extensive
20
process engineering expertise in the
planning, project development and
construction of turnkey industrial plants.
Linde plants are used in a wide variety of
fields: in the petrochemical and chemical
industries, in refineries, fertiliser plants and
in the pharmaceutical industry. Linde also
constructs plants to recover air gases,
produce hydrogen and synthesis gases and
treat natural gas.
Linde in
Saudi Arabia : SIGAS
The Linde Group has acquired in the year
2008 51 percent of the shares in the familyowned industrial gases company SIGAS
(Saudi Industrial Gas Co. ltd.).
“We are delighted to be entering into this
partnership with one of the leading
industrial gas companies of the dynamic
Saudi Arabian market”, explained Dr Aldo
Belloni, member of the Executive Board
of Linde AG. “This geographical
expansion of our gases business combined
with the strong presence of our Engineering Division in the whole Arabian
Peninsula will fundamentally strengthen
our position in a highly attractive region
and demonstrates our commitment to the
area.”
Linde-SIGAS, which employs about 400
people, is the second biggest industrial
gases company in Saudi Arabia and
achieved sales of around 40 million euro in
the 2010 financial year. The industrial gases
market in Saudi Arabia is expected to grow
by more than 10 percent per annum.
Established in 1955, Saudi Industrial Gas
Co. Ltd. (SIGAS) is the first industrial gases
company to be set-up in the Kingdom of
Saudi Arabia. Today, Linde-SIGAS is the
leading manufacturer of all Bulk,
Industrial, Medical and Specialty gases for
the growing needs of the Kingdom, with
operational and Sales outlets spread
throughout major cities of Saudi Arabia.
The Specialty Gases Division (SGD) of
Linde-SIGAS manufactures Ultra High
Purity and Carrier Grade pure gases having
purity of 99.9999%; mixture gases including Calibration gas mixture, Medical gas
mixture, Environmental gas mixture and
welding gas mixture using highly reliable
and gravimetric technology. Our Specialty
gas products are of international standards
and traceable to NIST - USA (National
Institute of Standards & Technology)
standard.
The Projects Division has developed
in-house expertise in building and settingup of Piped Medical & Industrial Gases
Supply Systems.
Linde-SIGAS supplies Refrigeration gases
of various grades under the brand
SIGRON. Imported brands SOLKANE manufactured
by
SOLVAY
FLOUR(Germany), GENETRON –
manufactured by HONEYWELL (USA),
FORANE manufactured by ARKEMA
(France) in addition to Linde brand which
is filled by leading manufacturers, SIGAS
has the ability to supply in various packing
- ISO tanks, 1-ton tanks, refillable and
disposable cylinders.
The Linde Group
Linde-SIGAS provides value addition to its
customers through a wide product range
of hardgoods which include welding
consumables,
oxy-fuel
equipments,
accessories and safety products imported
from leading manufacturers around the
world.
The company has expanded its reach,
through active export to other GCC
countries, Syria, Egypt, Yemen, and other
parts of Middle-east, currently export
business represents considerable share of
total turnover and includes all the
product range.
Linde-SIGAS is an ISO 9001:2008
organization and our products meet
international standards. This is achieved
through highly sophisticated process
monitoring, Quality Control & Assurance
procedures and systems and a trained
workforce. Over the years, the company
has been catering to the changing needs of
the customers Kingdom wide from a
spectrum of industries – Oil & Gas
Exploration,
Refineries,
Defense,
Petrochemicals, Energy, Water Conversion,
Steel, Power Plants, Telecom, Dairy, Chemical, Aerospace, Glass, Plastic, Aluminum,
Fire Fighting, Refrigeration & AirConditioning,
Cement,
Agriculture,
Construction, Process industries, Food &
Beverage, Health care, Research Institutes
and others.
Linde-SIGAS is recognized as a market
leader in their chosen business, it has
achieved this recognition through
Customer Service, Cost Leadership, Innovation, and Technology Enhancement,
accomplished by a professional business
team totally dedicated to SIGAS' vision.
Mr. Thamer Radwan, MD of LindeSIGAS gives an insight into the core values
of the company:
German - Saudi Business Magazine
“The statement of Vision and Mission for
Linde-SIGAS is a product of the thoughts
of the people who work here. Our Values
reflect some of the principles which guide
the management behaviour. Our actions
are based on the ethics and heritage of the
company spanning more than 50 years of
service to industry and people. Business
integrity and customer service are
considered to be two of the Value pillars at
the foundation of management behaviour
towards customers and shareholders.
Linde-SIGAS’s commitment to act by the
rules and regulations of the country in
which we operate is the third pillar of
VALUE system. Linde-SIGAS manages
expenses and investments in a way that
stimulates growth and is aware of the fact
that shareholders money is spent. This
forms the fourth pillar of our VALUE
system.
Linde-SIGAS believes that customer
satisfaction should exceed expectations
both internally as well as externally in
transactions that promote business that
take us beyond the goals. In order to
achieve this, the Quality Policy helps
develop thinking within the company to do
right things, all the time.
Our Safety Policy is to lead by example –
both within and beyond company walls. We
are equally committed to the health and
occupational safety of our employees and
environmental protection at large. Putting
Safety, Health& the Environment first is
our goal and we also actively support our
partners and customers in achieving this,
SIGAS has been warded certification from
Presidency of Meteorology andEnvironment of operating with compliance to the
kingdom environmental regulations.
company. Our employees are considered to
be our prime assets and their development
core to our values. We see People
Excellence as a great opportunity for us as
company and for every individual: our
people that are ready to take upon new
challenges are the heart and soul of a
successful business, especially in the
demanding and fast changing world in
which we operate.
While shaping our destiny we also focus on
products and gases applications that help
the Environment that we live in. For
building the future of the world, we make
changes in the products and services that
help sustain the Nature.“
The Linde Group is a world-leading gases
and engineering company with around
49,100 employees working in more than
100 countries worldwide. In the 2010
financial year, it achieved sales of EUR
12.868 bn. The strategy of The Linde
Group is geared towards long-term
profitable growth and focuses on the
expansion of its international business
with forward-looking products and
services. Linde acts responsibly towards its
shareholders, business partners, employees,
society and the environment – in every one
of its business areas, regions and locations
across the globe. Linde is committed to
technologies and products that unite the
goals of customer value and sustainable
development.
For more information,
see The Linde Group online at:
www.linde.com or see SIGAS at
www.linde-gas.com.sa
Linde-SIGAS Management Philosophy is
involving the people who represent the
AHK German - Saudi Arabia - www.saudiarabien.ahk.de
21
German - Saudi Business Magazine
ZEPPELIN
The ZEPPELIN Group is a company
with more than 100 years of tradition. The
roots go back to the founder of the Airship
Technology Ferdinand Count Zeppelin.
Today the Zeppelin Group employs more
than 6000 people at 190 locations
worldwide and achieved sales of Euro 2.0
billion in the financial year 2010. Zeppelin
is the provider of leading technology
products in the markets served, and of the
best service for these products. Zeppelin
delivers to its customers the highest added
value in the industry, enabling them to
reinforce their own competitive strength.
ZEEPELIN Systems is the world market
leader in the development, production and
construction of systems for handling
(storage, conveying, mixing, dosing and
weighing) – of high value bulk materials.
Headquarter is located in Friedrichshafen
Germany with approx. 1100 employees,
working out of 19 subsidiaries worldwide.
Zeppelin Systems supplies plants to the
Polymer-, Plastics Processing-, Rubber
and
Tire-,
Foodand
Liquids
Processing Industry.
The GCC countries especially Saudi Arabia
is an important market for Zeppelin
Systems to supply bulk material handling
plants. One of the main products supplied
22
Zeppelin Gulf
GULF COMPANY LTD.
with this plants are large Aluminum Silos
and Blenders to store bulk materials such
as polymer powders and pellets, general
chemicals as well as raw materials for the
Food Industry. In the past the silos had to
be built directly on the customer site
because the silos were shipped in parts and
welded together on site. Already in 2006
Zeppelin Systems decided to execute an
order containing more than 50 large silos
and 20 km of piping not on customer site.
For this project Zeppelin Systems
established a manufacturing facility directly
in Saudi Arabia along the Dammam –
Jubail Highway to build the large silos and
do the pipe prefabrication. This set up was
appreciated by the local industry in Jubail
area and orders for new projects
where secured.
Systems and Silo – Technology including
Erection Work. To ensure reliable
operation of the supplied plants Zeppelin
Gulf provides local Service and
Maintenance to the customers. A range of
spare parts are kept on stock.
In 2008 ZEPPELIN GULF COMPANY
Ltd. was founded and German management established. The production facility
has been continuously developed and is the
only state of the art production plant for
aluminum silos and pipe prefabrication in
Saudi Arabia and the GCC countries of
its kind.
The next steps will be entering into the
Industrial Service sector. With its broad
knowledge in welding and non destructive
testing Zeppelin Gulf will start to provide
these services to the local industry.
Today Zeppelin Gulf has extended its
services to supply complete Bulk Material
Handling Systems, Pneumatic Conveying
The reference list includes Sabic and its
affiliates,
Tasnee,
APC,
Sahara
Petrochemicals, Aljabr - Talke, Natpet and
also customers in other GCC countries.
In total Zeppelin Gulf has produced more
than 200 silos and blenders the largest
2000 m³ and supplied successfully to the
customers. In addition to that several
thousand pipe spools where prefabricated
in accordance to isometric drawings and
erected in the field.
Contact:
Zeppelin Gulf Company Limited
P.O. Box 1495 Al – Jubail 31951
Kingdom of Saudi Arabia
E-mail: holger.stein@zeppelin-gulf.com
German - Saudi Business Magazine
German - Saudi Business Magazine
ThyssenKrupp
building across all floors. This innovative
solution has been installed in the CMA
Tower.
In our Business Area Plant Technology,
which includes the planning and construction of chemical plants, refineries and
other industrial plants, equipment for the
cement and minerals industry, machinery,
plant and systems for the mining, processing, handling and transportation of raw
materials and minerals. ThyssenKrupp
Polysius is a strong partner of the cement
and minerals industry, offering project
elaboration, engineering and design,
shipment, field assembly and commissioning, as well as comprehensive service
activities, for complete production lines,
individual products, plant conversions and
upgrades. Numerous cement producers in
Saudi Arabia, Yamama Cement Co. and
Eastern Province Cement Co. now rely on
our technology and innovative solutions.
The experience of ThyssenKrupp
Foerdertechnik in the mining, materials
handling
and
mineral
processing
industries makes us the partner of choice
from planning to operation. Numerous
plants have been engineered, supplied and
installed at sites of Riyadh Cement Co., Al
Safwa Cement Co., Southern Province
Cement Co., Saudi Cement Co. and
Yamama Cement Co.
ThyssenKrupp
in Saudi Arabia
ThyssenKrupp AG is a diversified
industrial group. It employs around
180,000 employees in over 80 countries
developing ideas and innovations into
solutions for sustainable progress. In the
fiscal year 2009/2010 ThyssenKrupp
generated sales of more than €42 billion.
For us innovations and technical progress
are key factors in managing global growth
and using finite resources in a sustainable
way. With our engineering expertise, we
enable our customers to gain an edge in the
global market and manufacture innovative
products in a cost and resource efficient
manner.
Since more than 6 decades, ThyssenKrupp
has been active in Saudi Arabia with own
subsidiaries and branches in Riyadh,
Jeddah, Al Khobar.
24
Our Steel, Stainless Steel and Materials
Business Areas serve our customers with a
wide range of material solutions, ranging
from carbon- and stainless steel, tubes and
pipes to nonferrous metals and plastics.
Combining project management expertise,
global connections, specific market knowledge and comprehensive services, our
Materials Services/ThyssenKrupp Materials International supplies customers
throughout the world with metals, alloys,
minerals, industrial gases and coke. We also
provide innovative technical and infrastructure services in railway equipment, civil
engineering, port construction, plant and
steel mill services covering all aspects of
industrial production. A recent reference
here is the supply of material and
equipment for the North-South Railway
project. Our portfolio also includes consultancy and planning services, equipment
hire, customer and spare parts services as
well as installation, maintenance and repair
of machinery, plant and technical
structures.
Our Elevator Technology Business Area is
active in the area of passenger. transportation systems. Its range includes passenger
and freight elevators, stationary and mobile
escalators, moving walks, passenger
boarding bridges as well as stair and
platform lifts. In addition to systems for
the volume market, the portfolio also
includes custom solutions as well as
service, maintenance and modernization
packages precisely tailored to customer
requirements. Some recent references are
the Mecca Clock Tower, Al Haramain Train
Station, VIP Mobile Escalators for SaudiAirlines, Princess Nora University, Unite
Towers and The Nation Tower. Our innovative TWIN is the first elevator system to
have two cabs running independently one
above the other in the same shaft. This
technology has many advantages over
conventional elevator systems, including
the fact that waiting and travel times are
reduced to a minimum – thanks in part to
the use of an intelligent destination
selection control system. In addition, the
higher capacity allows the number of shafts
needed to be reduced by up to a third,
freeing up additional useful space in the
With the construction of the world’s two
largest ammonia plants for our customers
Safco and Ma’aden, ThyssenKrupp Uhde
has succeeded in improving its clients’
reputation with their as yet unbeaten
capacity record. Furthermore, it is
represented in the Saudi Arabian market
with proprietary technologies (polyester,
electrolysis, ethylene dichloride) and other
products. In addition, ThyssenKrupp
Uhde has also invested in yet more on-site
competence in the form of local organisations and international partnerships which
enable us to keep up with the
ever-increasing number of customers on
the world market. Depending on the
project and the requirements of the
customer, we find tailor-made solution for
collaboration with local and international
suppliers and engineering partners. These
services cover our entire range from the
initial concept drafting, process orientation, and basic and detail engineering
packages to turnkey completion of the
plant. As a process-oriented company, we
combine the technical expertise from our
Uhde
wide range of processes with innovation
and value engineering. Our special brand
of corporate performance and efficiency
is based on the fact that the company can
offer complete process chains in many
technological fields and has consequently
accumulated a wealth of experience in
dealing with process-related tasks.
As an experienced plant construction
company,
ThyssenKrupp
Plant
Technology is well equipped to ensure
success and can rely on the extensive
competence of its diverse technical
divisions and our local organisations to
provide intelligent solutions. Moreover,
the team spirit of our motivated, highly
qualified employees guarantees optimum
service for our customers in Saudi Arabia.
AHK German - Saudi Arabia - www.saudiarabien.ahk.de
25
German - Saudi Business Magazine
Henkel Arabia
HENKEL Arabia
Henkel, a German based fortune 500
company and one of the top names in
brands and technologies, both in the
personal care and industrial-commercial
products, entered the Saudi market by
establishing Henkel Detergents Saudi
Arabia in 1998 and has since then
grown rapidly.
Today, Henkel employs more than 300
people in KSA with a strong local and
multinational work force and has also
established itself as the no.2 player in the
Home Care category. It operates a large
factory in Riyadh, Saudi Arabia, producing
Laundry and Home care products which it
also export to neighboring countries.
Furthermore, Henkel has a joint venture
company in the eastern province for the
Adhesive Technologies business sector.
This mix of German technology and local
talents led last year to Henkel Arabia being
awarded one of the top innovative companies in the Kingdom of Saudi Arabia – a
prestigious recognition among some of the
top brands in the country.
26
A German based,
FORTUNE 500 COMPANY
Saudi Arabia is becoming more and more
significant to Henkel as a whole and this
was highlighted during a recent visit by
Henkel CEO Kasper Rorsted and Henkel
members of the management board to
the region.
Henkel operates worldwide with leading
brands and technologies in three business
areas: Laundry & Home Care,
Cosmetics/Toiletries
and
Adhesive
Technologies. Laundry & Home Care has
always played an important role for Henkel:
The Company’s success story started with a
product from this business sector. For
consumers around the world, Henkel
brand names have become an integral part
of their daily lives. In the markets of
relevance to Henkel, the Laundry & Home
Care business sector enjoys leading
positions on a worldwide scale.
Henkel's cosmetic division also holds a
leading market position in all of
theinternational market segments. Schwarzkopf & Henkel stands for brand-name
products in the fields of hair colorants, hair
styling hair care and form, toiletries, skin
EVONIK INDUSTRIES
care, oral hygiene and fragrances.
Schwarzkopf Professional is among the
world’s four leading suppliers of hair salon
products.
Evonik Industries, Tasnee and Sahara
sign joint venture agreement to
produce superabsorbents in Jubail,
Saudi Arabia
Henkel is the world market leader in
adhesives, sealants and surface treatments
for consumers, craftsmen and industrial
applications.
August 17, 2011.
• Scheduled capacity of 80,000 metric
tons p.a.
• Start-up planned for late 2013.
• Efficient sourcing of raw materials
assured.
• Patrik Wohlhauser, member of the
Evonik Executive Board: "This is an
important step for Evonik in the Middle
East growth market."
Henkel has a long tradition and a
well-balanced portfolio of international,
regional and local brands. Henkel offers a
multitude of applications to satisfy the
needs of different target groups –
consumers as well as craftsmen and
industrial businesses.
Finally, Henkel is committed to satisfying
the Saudi market demand for its products,
which complies with international
standards and specifications for quality and
it continues to progress in this field. All the
three business sectors have made their
plans for further growth in Saudi Arabia
and to take advantage of the stability this
market enjoys especially after the global
economic crisis and the political unrest in
the region since the beginning of 2011.
German - Saudi Business Magazine
Evonik
Essen/Riyadh. 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 with an annual capacity
of 80,000 metric tons is scheduled to begin
production in late 2013. The total
investment will be in the triple-digit million
Euro range.
The SAPCo superabsorbent production is
part of a new acrylic acid and derivative
complex on the Tasnee premises of the Al
Jubail chemical park in Saudi Arabia and
will benefit from favorably priced propylene from the adjacent cracking facility
operated jointly by Tasnee, Sahara, and
Lyondell Basell. The EPC-contract will be
assigned to Fluor.
Patrik Wohlhauser, the Evonik Executive
Board member responsible for the
Consumer, Health & Nutrition reporting
segment, and Dr. Moayyed I. Al-Qurtas,
Deputy Chairman of the Supervisory
Board and CEO of Tasnee, signed the
corresponding joint venture agreement in
Riyadh today. "This is an important step
for our Group in the Middle East growth
market and will significantly boost our
leading position for superabsorbents," said
Wohlhauser. Evonik is a leading global
producer of superabsorbents, a key basic
material for the manufacture of diapers
and feminine hygiene products.
The joint venture will be equipped with
state-of-the-art Evonik superabsorbent
technology and will benefit from the
advantageous local source materials supply.
The acrylic acid for the production of
superabsorbents will come from an
adjoining SAMCO facility. SAMCO is a
joint venture of SAAC and Dow
Chemicals.
"This is the first superabsorbent
production plant in the region. We will
provide our customers with our usual
high-quality, up-to-date technology to
serve the growing market of the Middle
East. Together with our Saudi partners, we
are closing the supply chain from oil to
diaper production in Saudi Arabia," noted
Claus Rettig, the Head of the Evonik
Consumer Specialties Business Unit.
Company information
Evonik is the creative industrial group
from Germany. In our core business of
specialty chemicals, we are a global leader.
In addition, it has energy and residential
real estate operations. Our performance is
shaped by creativity, specialization,
reliability and continuous self-renewal.
Evonik is active in over 100 countries
around the world. In fiscal 2010 more than
34,000 employees generated sales of
around €13.3 billion and an operating
profit (EBITDA) of about €2.4 billion.
AHK German - Saudi Arabia - www.saudiarabien.ahk.de
27
German - Saudi Business Magazine
Cassidian
CASSIDIAN
partner of the Kingdom of Saudi Arabia
Cassidian, an EADS company, is a
worldwide leader in global security
solutions and systems, providing Lead
Systems Integration and value-added
products and services to civil and military
customers around the globe: air systems
(aircraft and unmanned aerial systems),
land, naval and joint systems, intelligence
and surveillance, cyber security, secure
communications, test systems, missiles,
services and support solutions. In 2010,
Cassidian – with around 28,000 employees
– achieved revenues of € 5.9 billion. EADS
is a global leader in aerospace, defence and
related services. In 2010, the Group –
comprising Airbus, Astrium, Cassidian and
Eurocopter – generated revenues of € 45.8
billion and employed a workforce of more
than 121,000.
Cassidian activities cover the following
sectors:
- Nationwide Security (intelligence and
surveillance, command and control
systems, secure communications, system
simulation and integration, border security)
- Security of Deployed Forces (intelligence
and surveillance, land and joint systems,
mobile support systems, deployed test
systems, missiles and air defence)
- Security of Critical Infrastructure and
Natural Assets (intelligence and surveillance, air systems, secure communciations,
critical infrastructure and site protection,
maritime security, coastal surveillance)
- Major Event Security (intelligence and
surveillance,
secure
communication,
system inegration and simulation)
- Communication Network Security
(control room solutions, cyber security,
professionnal mobile radio, mobile
data applications)
28
- Advanced Cyber Security and IT
Infrastructure Protection (cryptographic
solutions, identity management, secure
exchange gateways, consulting and
training)
- Through-life Services (consulting and
auditing,
system
integration
and
simulation, training, logistic support,
in-service support, managed services and
outsourcing)
Combining the know-how to design,
develop and implement overall systems,
Cassidian has been able to position itself as
leading security systems integrator. The
company has unrivalled experience in
securing today's world class events. Among
Cassidian's track records are the G8/G2
summit, Formula 1 Grand Prix, the
Olympic Games and the 2010 Soccer
World Cup.
Cassidian supports its partners and customers in Saudi Arabia in fulfilling their critical
mission to protect their people, borders,
infrastructures and deployed forces. Cassidian has commited to provide advanced
defense and security solutions in Saudi
Arabia through long-lasting partnerships.
The company is working to establish its
corporate citizenship and is commited to
becoming an attractive employer, building
on national talents.
Cassidian is proud to deliver the security
programme covering all of Saudi Arabia's
borders. Having been under contract for
the Northern border security, Cassidian has
been awarded (as a prime contrator) the
border security program covering the full
borders of the Kingdom of Saudi Arabia.
This contract will be excuted in the next
five years and is the largest contract ever
competed worldwide as a full solution. The
project has been strongly competed
through an international competition for
several years.
The Saudi border guard will benefit from a
leading edge solution, providing visibility
and operational awareness for about 9,000
km of borderline (mountains, deserts and
sea borders). The solution will ensure
border coverage is visible and managed at
the sector level, whilst simultaneously
providing situational awareness at the
regional and national level.
The EADS Group
in the Middle East
EADS, a global leader in aerospace,
defence and related services, has
representative offices in the United Arab
Emirates (UAE), Saudi Arabia, Egypt,
Oman, Qatar and Libya. The founding
companies of EADS have had a presence
in The Gulf region since the 1970s. EADS
has been a long-standing partner of the
Gulf Cooperation Council States and plans
to develop its partnership policy further for
future programmes.
The Middle East is playing an ever
important role in international business
and is already a key regional market for
EADS. The region generated €3.9 billion in
revenues during 2009 - or 9% of the group
total - with an order intake of € 4.9 billion.
(2010 figures are not yet available).
EADS is aiming to be a highly-valued long
term strategic partner in the region.
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 German
30
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
V-LINE MRO on the Move
Outsourcing maintenance, repair and operation?
V-LINE MRO on the Move
How is V-LINE transferring this MRO
supply & services knowledge?
Since V-LINE Saudi Arabia was formed,
V-LINE has been looking for strategic
alliances and has inquired new licenses to
adopt new services.
Andreas Hergenröther and Jörg Bode, Minister for Economics, Labor and Traffic of
the German Federal state of Lower Saxony, on their visit to the V-Line plant in Jubail.
The V-LINE Group of companies, is a
worldwide specialist for procurement of
maintenance, repair and spare parts of all
types for the maintenance of large
industrial facilities. The entity V-LINE
SAUDI ARABIA LTD. has been
established on 1st October 2008."This
important step was done at the right time"
says Detlev Daues, Group Managing
Partner. "The establishment of this 100%
subsidiary was a crucial achievement in the
business relationships with the Kingdom,
which have been on-going for more than
30 years.
V-LINE SAUDIA ARABIA set up its
headquarters in Al Jubail where the most
of the industry is concentrated - quickly
following with branches in Riyadh and
Jeddah. A branch in Mecca is coming soon.
The expansion of the local presence
enables V-LINE to provide valuable new
services to customers who want to
outsource their services. These new
services offer reduction of the customers
total procurement costs, including
inventory, without compromising reliability
or operational performance.
Custom-designed solutions for a
growing market with a promising
future
32
“With V-LINE SAUDI ARABIA LTD. we
are also able to offer international
industrial and technology manufacturers
and suppliers custom-designed supply
chain solutions for their sustainable
participation in the growth taking place in
the Near and Middle East” – this is how
Daues describes the Group's involvement
in the Middle East markets.
What does providing MRO services
mean in the future?
Managing Complexity!
The world of maintenance, repair and
operation (MRO) is changing from pure
parts delivery and execution of services to
comprehensive planning and coordination.
These latter services are performed by
integrated MRO service providers that
often take on additional responsibilities
such as coordinating multiple parts and
service categories and assuming responsibility for equipment performance.
Such highly integrated service providers
may take over responsibility for
manufacturers’
inventories,
existing
working processes, the human resources
for operations and for implementing IT
solutions to monitor the flow of MRO
products and services.
Besides selected manufacturer and supply
chain management alliances, there has been
a focus on the transfer of knowledge and
building a strong Saudi team. This has led
to establishing a relationship with the
Deutsche
Management
Academy
(DMAN), including an acquisition of
shares. Founded in 1989, DMAN offers
practice-oriented knowledge transfer that
qualifies managers for management in
international markets. DMAN is successful
in Germany, Middle and Eastern Europe
and Asia.
Through our manufacturer alliances
V-LINE SAUDI ARABIA started
organizing technical seminars for the
petrochemical industry, with topics such as
“Latest
Mixing
Technology
for
Petrochemical, Polymer and Chemical
Processes”. The mixing seminars have
been presented by alliance partner the
EKATO GROUP, who is specialized in
mixing technology and in manufacturing
agitator systems at their plant in
Schopfheim, Germany.
In addition, full-service contracts often
include meeting previously defined total
cost reductions in processes and purchased
parts. Essentially, integrated MRO service
providers have to master the complexity of
their clients‘ overall maintenance services
and parts requirements.
During the past year Detlev Daues could
see that new trends were taking hold
globally to manage MRO’s complexity in a
more efficient way. According to the report
‘MRO on the Move’ by the Chicago-based
global management consulting firm A.T.
Kearney,
many
leading
industrial
manufacturing organizations are shifting
from a ‘do-it-all internally MRO’ –strategy to
building networks of best product and
service suppliers with capabilities to deliver
cost effective and sustainable performance
on an outsourcing basis. This is where
Daues sees MRO heading today.
“With this clear vision we are preparing
V-LINE to keep the pole position in MRO
Supply” says Shahzad Haider GM of
V-LINE SAUDI ARABIA LTD. “We
studied North America and could see that
services there are more mature than even in
European markets. At the moment our
development team is in the process of
converting those best practices for
deployment in the Middle East.
“From my point of view – forward looking
industrial plant owners, original equipment
manufacturers and parts manufacturers
and suppliers will increasingly adapt to this
new way of thinking” Daues says.
“V-LINE SAUDI ARABIA sees part of its
role as a cross-border supply specialist as
being a catalyst in the transfer of MRO
global best practices to the MRO industry
in the Middle East region.”
GSBM
37
German - Saudi Business Magazine
MANTRUCKS
MAN Trucks
A plant and 1,000 MAN trucks for Saudi Arabia
(completely knocked down) vehicles. CKD
means disassembling a vehicle in order to
ship it to another site for final assembly.
MAN sees the “Truck in the Box” concept
as a logistical service because the complete
vehicle is commissioned for shipment and
components that are relevant to safety,
such as the brake system, for example, are
already pre-assembled. The vehicles of the
TGS-WW series are prepared for shipping
at MAN’s plant in Germany.
The MAN Group is one of Europe’s
leading
industrial
players
in
transport-related engineering, with revenue
of approximately €15 billion in 2010. As a
supplier of trucks, buses, diesel engines,
turbomachinery, and special gear units,
MAN employs more than 50,000 people
worldwide. Its divisions hold leading
positions in their respective markets.
The MAN Group's roots go back to 1758,
making it one of Europe’s oldest industrial
companies. In 1897, Rudolf Diesel built
the world's first functioning Diesel engine
at what was then known as the
Maschinenfabrik Augsburg AG, a predecessor company to MAN.
The delivery of the 1000th truck with
Ali Alireza, Managing Director of HHA,
and David Van Gran, Managing Director
of MAN Middle East
34
MAN Truck & Bus AG is the largest MAN
Group company and is a leading supplier
of commercial vehicles and transportation
solutions. This compromises trucks, city
and intercity buses as well as coaches.
The Company is linked to the Middle East
region through a long-standing tradition
and is facing an even greater future. MAN’s
foothold in the Middle East is displayed by
its strong presence in the individual
countries. In the Kingdom of Saudi Arabia
alone, MAN has been active for more than
25 years. The strong growth in Saudi
Arabia is of the greatest importance for
MAN. In 2010, MAN's retail market share
in the Kingdom for trucks over 16 tons was
approximately 25%.
In January 2009, MAN and its
long-standing Saudi Arabian importer Haji
Husein Alireza & Co. Ltd. opened a truck
assembly plant in Jeddah. The plant, run by
Haji Husein Alireza’s commercial vehicle
production company Saudi Automotive
Manufacturing Co. Ltd. (SAMCO),
assembles MAN TGS-WW trucks and
semi-trailer tractors. It meets the
requirements of advanced truck assembly
and is equipped in accordance with MAN
international standards.
The plant layout follows the “Truck in the
Box” scheme, MAN’s concept for CKD
It only took one year to construct the plant:
even before the opening in early 2009, the
first 150 MAN vehicles had already rolled
off the new plant's assembly line.
In December 2010, SAMCO commemorated the completion of its 1000th Saudi
Arabian MAN truck. At a ceremony held at
its Janubia plant, Sheikh Ali Alireza
complimented the small team of dedicated
professionals whose lean and lateral
thinking were responsible for bringing the
new company through this initial phase. He
went on to say that thanks to the high
construction quality, these locally built
trucks were completely accepted by the
discerning fleet owners who were already
placing repeat orders.
Mr. Dave van Graan, Vice President of
Sales and Marketing and Head of MAN
Centre Middle East, thanked Sheikh Ali
Alireza and Haji Husein Alireza Co. Ltd.
for the successful relationship the two
companies had enjoyed for the past 25
years and for the important role that
SAMCO staff had assumed in both
building their premium product trucks and
highlighting the strategic importance of
the companies in the Middle East. Mr. van
Graan also acknowledged that SAMCO’s
assembly procedures and internal
standards were the same as those
prescribed by MAN; their German audit
team having awarded the Jeddah built
vehicles an excellent A-1 status.
German - Saudi Business Magazine
Mercedes Benz
NATIONAL AUTO MOBILE INDUSTRY (NAI)
Assembling Mercedes-Benz Commercial Vehicles since 1977
Mercedes Benz
In 1977, a vision for the future, shared by
E.A. Juffali & Brothers and Daimler AG,
led to the establishment of their highly
successful joint venture company, the
National Automobile Industry (NAI). This
pioneering company based in Jeddah,
which assembles medium and heavy-duty
Mercedes-Benz trucks, is a symbol of
Saudi Arabia's impressive growth and
economic diversification.
The company presently assembles many
different versions of the well known
Mercedes-Benz “Actros” truck, ranging
from Tractor units to Tippers, Concrete
mixers and Off-road trucks.
Built on an area of 92,035 sqm it has a
built-up area of 28,636 sqm comprising of
an Assembly Hall, Storage Hall, Admin
building, Canteen and Support facilities.
NAI has about 200 employees, comprising
of 11 nationalities, of which Saudis
represent the highest number.
Intensive quality control is implemented at
every stage of the production process.
Over 450 individual checks take place
during the assembly of each truck.
Random audit checks take place, as well as
thorough final inspections. These measures
ensure that trucks built by NAI are not
only specially engineered to meet the tough
climatic and working conditions in the
Gulf, but also guarantee superb quality and
maximum efficiency along with safety and
comfort. Perhaps that's why customers call
Mercedes-Benz Actros trucks out of NAI production
trucks built by NAI the 'Conquerors of the
Desert'. NAI's performance has earned
recognition by Mercedes-Benz as one of its
best assembly plants worldwide.
Some important milestones in NAI’s
development have been:
1974 - E. A. Juffali & Bros. and DaimlerBenz AG. initiated the project.
1977 - First locally assembled truck left
the line.
1978 - Official inauguration by HM King
Khalid and HRH Crown Prince Fahad.
1982 - Highest annual production with
7,839 units.
1994 - Quality Certificate ISO 9002.
1999 - Start of ACTROS assembly
2010 - 75,000th vehicle assembled in NAI
NAI was chosen to receive the King
Khaled Award for the Ideal Factory
because of the clean, spacious and modern
facilities that entitle NAI to Saudi
Government Class A Status. In addition,
NAI is dedicated to maintaining an
36
environmental
program.
safety
and
awareness
Mercedes-Benz commercial vehicles are
distributed throughout Saudi Arabia by the
Juffali Industrial Products Company
(JIPCO). Juffali has built a strong
reputation for providing quality service in
the three major areas of after-sales service,
service maintenance and spare parts
availability. The company has subsidiaries
in Jeddah, Riyadh, Dammam, Abha
and Hofuf.
Contact
National Automobile
Industry (NAI) Ltd.
Madinah Road, Kilo 14
P.O. Box 5938, Jeddah 21432
Tel: (02) 682-2000
Kingdom of Saudi Arabia
GSBM
41
German - Saudi Business Magazine
Allianz Saudi Fransi
Allianz Saudi Fransi
The insurance market in Saudi Arabia has
been witnessing vigorous growth and
improvement over the past few years.
Widespread communication of the impact
of recurring natural disasters e.g. floods,
earthquakes, tsunamis etc. is creating
higher public awareness and acceptability
of financial protection using Insurance.
Support from Government and Regulators
by mandating certain kinds of Insurance
viz. Health and Motor has also paved the
road for highlighting the role insurance
plays in societies especially when it comes
to protection and provision.
All this has helped create a competitive
market in KSA with over 30 players vying
to provide Products and services in all
major lines of Insurance business to the
customers.
In 2010, Gross Written
Premiums (GWP) in the Saudi insurance
market reached SR 16.4 Billion, up from
SR 14.6 Billion in 2009. Health Insurance
contributed 53% while General Insurance
formed 41% of the market with the
balance 6% coming from Protection &
Savings (P&S).*
Allianz Saudi Fransi Cooperative Insurance
Company was established in 2007 as a joint
venture between Banque Saudi Fransi and
Allianz Group. The Company provides
comprehensive insurance solutions to
corporate and individual customers in all
lines of business namely Health, Motor,
Property & Casualty, Protection & Savings
(P&S) and Employee Benefits. Within
P&S our major individual products
include Retirement & Education plans.
Founded in Germany in 1890, Allianz
Group is today one of the leading global
services providers in Insurance and Asset
Management. With over 151,000
employees worldwide, Allianz Group
serves more than 75 million customers in
more than 70 countries. On the insurance
side, Allianz is the market leader in
Europe and worldwide. With more than
120 years of experience and an
outstanding pool of knowledge enabling it
to develop customized solutions, Allianz
knows how to best manage the risks and
opportunities of its clients.
Banque Saudi Fransi (BSF) is a Saudi
Arabian Joint Stock company established
in 1977. BSF is affiliated with Calyon, a
full-fledged member of the Crédit
Agricole Group, the second largest bank
in France, and seventh amongst banks of
the Euroland by total equity. As one of the
leading banks in Saudi Arabia, BSF
provides all types of commercial banking
service to both domestic and international
customers.
Allianz Saudi Fransi Mission Statement is
to “Create Trust - Deliver Excellence from
A to z.” Our Vision is “To be amongst top
Saudi Insurers with global expertise and
local insight, Providing world class
products and services in all lines of
business, With nationwide reach using
diverse channels of distribution, Through
highly trained and motivated employees.”
Our Values are “Expertise, Integrity and
Sustainability.”
Allianz Saudi Fransi’s philosophy is clear
and customer centric. We provide “The
Right Insurance Solutions for our
Customers’ Needs” through tailor made
products that will allow them to plan
ahead for their future.
We aspire to be amongst top insurers in
the Kingdom of Saudi Arabia by
combining strong local insights of Banque
Saudi Fransi with the global expertise of
the Allianz Group. We are fully committed
to ensuring customer satisfaction and
sustainable development within the Saudi
Insurance market. We invest strongly in
our new recruits, who receive ongoing
training from our in-house team of
professionals with a strong focus on
Customer Service and Satisfaction.
* According to the Saudi Insurance Market Report 2010 - SAMA
38
.
German - Saudi Business Magazine
Deutsche Bank
Deutsche Bank
Deutsche Bank in the Kingdom: A
Strong Commitment and a Lasting
Partnership By Jamal AlKishi
The move by Deutsche Bank into Saudi
Arabia came as a concrete translation of an
historically long and strong commitment to
the Kingdom, and as a clear manifestation
of our confidence in its economy.
Ranked as one of the top 15 places for ease
of doing business by the World Bank, the
Kingdom’s financial markets are of high
strategic importance to Deutsche Bank, by
virtue of being one of the world’s largest
economies, and as the largest recipient of
foreign direct investments in the GCC.
In 2006, Deutsche Bank was among the
first of ten foreign banks licensed to
operate in the Kingdom by the Saudi
Arabian Monetary Agency ("SAMA").
Shortly thereafter, Deutsche Bank became
the first global broker on the Kingdom’s
stock exchange. 2007 saw the establishment of its investment banking and brokerage arm, Deutsche Securities Saudi Arabia
("DSSA"). As such, Deutsche Bank Group
presently owns fully and operates two legal
entities in the Kingdom: Deutsche Bank
AG Riyadh Branch regulated by SAMA
and DSSA regulated by the Capital Market
Authority ("CMA").
40
market products and services, mergers and
acquisitions advice and financing,
corporate loans and debt capital market
financings, foreign exchange, risk hedging
products in relation to commodities,
foreign exchange and interest rates and a
wide array of asset yield enhancement
products. In addition, the Bank offers
global transaction banking services, such as
trust services, cash management, trade
finance and custody services.
Through DSSA Deutsche also offers
private wealth management products and
services to a select group of ultra-high-networth individuals and family offices, and
asset management services to large institutions and corporates.
A key point to note is that Deutsche Bank
Riyadh Branch and DSSA have unfettered
access to and are seamlessly integrated into
Deutsche Bank's best global capabilities in
industry knowledge, financial products,
structuring, trading and risk hedging and
distribution. And therefore a client of
Riyadh Branch or DSSA can be assured of
the highest levels of service and product
technology that Deutsche offers anywhere
in the world.
In addition to the two entities referred to
above, Deutsche Bank is a 40%
shareholder in Deutsche Gulf Finance, a
Saudi-registered residential mortgage
finance company. Deutsche Bank led the
establishment of this company in large
measure to help in the development of the
Saudi mortgage market.
In April 2011 Deutsche Bank completed
the installation of an advanced banking
system in Deutsche Bank Riyadh Branch
that will enable greatly enhanced delivery
of its various products and services.
Deutsche decided to deploy this cutting
edge system in Saudi before it's rolled out
to other DB operations globally, signifying
the weight Deutsche places on Saudi and
its belief in the market's potential.
Through its SAMA-licensed branch and
CMA-licensed DSSA, Deutsche Bank in
the Kingdom offers: corporate and
investment banking services covering the
whole spectrum from Initial Public
Offerings (IPO) and other equity capital
Furthermore, in 2011 Deutsche Bank
Group decided to increase the capital of its
Saudi-based securities firm DSSA to SAR
500 million to enable the company to
underwrite large capital market issues in the
Kingdom.
Deutsche Bank has invested heavily in its
enterprise in the Kingdom, and will
continue to do so out of our strong
conviction in the strength and resilience of
this market. We also have an unwavering
commitment to the development of Saudi
investment banking talent and local
capital markets.
In the span of 5 years we have grown our
presence
tremendously
and
have
introduced products and services that offer
our clients access to the Saudi and
international markets through Deutsche
Bank’s global platform, and we plan
to broaden and complement these
services further.
Since starting our Saudi operations, we
have marked a few significant milestones.
In 2009, we celebrated 50 years in the
Middle East, which were preceded by six
long decades of cooperation kicked-started
by our financing of the Hijaz railway
project at the end of the 19th century.
During the same year, Deutsche Bank
launched its research coverage of Saudi
listed companies. In 2008, DSSA was one
of the first brokers to transact a total return
swap agreement with a foreign investor on
a Saudi listed stock. We were also the first
to take a Saudi private sector issuer to the
US debt capital markets and lead the first
project sukuk in Saudi Arabia.
Overall, Deutsche Bank continues to be
extremely positive in its outlook for
Saudi Arabia, not only due to the
macro-economic elements, but also due to
the continued focus of the government on
public spending and infrastructure
projects. The Saudi stock market
dominates those of the region, with a
capitalization that was almost 50% of the
total GCC market capitalization in 2010.
Jamal A. Al Kishi
Deutsche Securities Saudi Arabia
Phone: +966 1 273 9725
Mobile: +966 50 411 3406
German - Saudi Business Magazine
German Trade
German Trade to Saudi Arabia
The German economy developed well
during the last year and especially the
exporting industry profited of the
economic relief of economies around the
globe. Volker Treier, Head of the Foreign
Business Affairs Department of the
Association of German Chambers of
Industry and Commerce (DIHK), expects
German exports to reach a new historical
peak this year. According to the numbers
of the German Federal Statistics Office
goods in the value of 98.3 billion Euros
have been sold in March 2011. Not only
was it a surplus of 15.8 percent compared
to March 2010 but it also beat the peak of
April 2008 by 10 billion Euros. Right now
the Head of the Foreign Business Affairs
Department expects a new record “One
trillion will be reached for the first time this
year”.
42
Regarding this prognosis Saudi Arabia
plays a key role for German trade in the
Middle East and North Africa (MENAregion). In the first half of 2011 about one
fourth of all German exports to Arabian
states were destined for Saudi Arabia,
which means that more than 18% of all
German exports to the MENA-region
went to the Kingdom. These figures would
be higher if one takes into account the
large amount of goods “Made in
Germany”, which are transferred to Saudi
Arabia by trading companies based in the
United
Arab
Emirates
(UAE).
In summary one can say Saudi Arabia is
Germany’s most important trading partner
in the region.
Compared to 2010 the amount of both,
imported and exported goods has risen
significantly. With exports worth 3.1 billion
Euros from January to June 2011 the total
exports grew about 17% compared to the
year before. During the first six months the
numbers of exports to Saudi Arabia were
constantly higher than those to the United
Arab Emirates (UAE), which therefore
only places second in the list of the most
important trading partners in the MENAregion. The imports in the time of January
until June 2011 reached a total worth of
326 Mio. Euros and the market for Saudi
Arabian imports has grown by 26.8% in
comparison to last year.
Like Germany and the European Union,
Saudi Arabia also has distinct regulations
regarding the import of goods. The Saudi
Drug and Food Authority (SFDA) is in
charge for drugs and food standards as well
as registering products and giving a licenses
for trading in Saudi Arabia. The import of
all other goods is regulated by the Saudi
Arabian Standard Organization (SASO).
SASO defines mandatory standards for
products regarding the safety, consistence
and product characteristics. International
norms like DIN, EN, and ISO/EIC serve
as an orientation to the SASO standards.
Importers to Saudi Arabia have to prove
that their goods apply to these standards.
This can be done either by SASO and its
laboratories directly or by distinct
companies in Germany as TUV, SGS,
Intertek, Bureau Veritas and many more.
The government investments in the
infrastructure and the diversification of the
domestic economy created a positive
economic environment, which is attractive
to all kinds of businesses. Additionally, the
country’s ideal location as a link between
the Levant, the Red Sea and the Arabian
Gulf makes Saudi Arabia an ideal hub for
any logistic company. This is why German
global players in the field of logistics like
DHL and Kuehne+Nagel decided to
launch their businesses in Saudi Arabia.
These companies have a lot of experience
in moving goods from all over the world to
the biggest economy in the MENA-region.
They are not only in charge for importing
goods but also for the transfer of goods,
warehousing and value added services
within the Kingdom. By focusing on the
bilateral trade and the related industries one
can see once more the tight relations
between the German and the Saudi
economy.
DHL
DHL
One of three emerging triangles of trade
identified by DHL, the Middle East is a
vast and diverse region with logistics
requirements to match its cultural and
economic intricacies. In order to access the
growing opportunities, companies need
both a unique entry point and a logistics
specialist with first-mover knowledge,
expertise and experience: that’s why Saudi
Arabia and DHL make the perfect
partnership.
At the heart of the Middle East, Saudi
Arabia
supports
diverse
business
development, with growth driven by
the
oil
industry,
petrochemicals,
telecommunications, power generation –
and logistics. Saudi Arabia possesses 20%
of the world’s overall oil reserve, ranks the
largest exporter of petroleum, and plays a
dominant leading role in OPEC. Saudi
Arabia has been a member of the World
Trade Organization (WTO) since 2005,
and the government has begun establishing
six Economic Cities in different regions of
the country to promote foreign investment
and plans to spend $373 billion between
2010 and 2014 on social development and
infrastructure projects to advance Saudi
Arabia's economic development.
Perched on both the Arabian Gulf and the
Red Sea, Saudi Arabia has the region’s best
German - Saudi Business Magazine
The Deutsche
Post covers Kingdom
transport links, providing great leverage on
shipping. And through the King Fahad
Causeway, the Middle East Regional Hub
in Bahrain is only a 27 kilometer drive away
from Khobar City and 4 hours away from
the capital city of Riyadh. The causeway
serves as a major contributor to Saudi
Arabia’s status as a business destination for
surrounding regional markets.
As part of the Deutsche Post DHL group,
DHL is a global logistics leader with local
market knowledge and expertise. Leading
as the world’s number one express
company with a presence in over 220
countries and territories and a specialist
staff of about 300,000 people, DHL has
been operating in Saudi Arabia since 1976,
pioneering the development of the
logistics industry in the Kingdom and 19
countries in the greater region. Today,
DHL operates 40 facilities throughout the
Kingdom and employs over 1,000
employees, of which 40% are Saudi
citizens, thus, contributing to the development of local human resources. DHL
capabilities include an extensive domestic
network in Saudi Arabia, allowing the
delivery to more than 300 locations, with
five Transported Asset Protection
Association (TAPA) “A” certified facilities.
DHL has the largest lion share in both
inbound and outbound volumes, playing a
vital role in the growth and development
of the Saudi Arabian economy.
As a result of its long experience,
established connections and expertise,
DHL leverages every advantage that Saudi
Arabia offers for access to the Kingdom
and the region including free transit areas,
free trade zone with duty free access to
neighbouring GCC countries. DHL offers
market-leading
customs
clearance
capabilities, express services and transit
times. A variety of Time Definite and Day
Definite International products ensures
DHL has the right solution to meet every
customer need.
Through DHL’s global network and
dynamic partnership with local authorities
in Saudi Arabia, companies have
unparalleled access to Saudi Arabia and the
Gulf region, and a seamless conduit to the
global market place. As a result and despite
the recession, over the past three years,
DHL’s Middle East Hub has seen steady
growth in shipment weight. With Saudi
Arabia as our strategic partner in the
Middle East, we know that this is just
the beginning.
AHK German - Saudi Arabia - www.saudiarabien.ahk.de
43
German - Saudi Business Magazine
Kuehne + Nagel
German - Saudi Business Magazine
Testing, Inspection and Certification
Conformity certification in the Kingdom of Saudi Arabia
KUEHNE + NAGEL
Over 30 Years of Experience in Saudi Arabia
In Saudi Arabia, Schindellegi/Switzerland based Kuehne + Nagel
International AG has its own offices in Jeddah, Riyadh
and Dammam. Having entered the market with a joint venture
back in 1977, the company now offers its customers a wide range
of forwarding and logistics services.
Kuehne + Nagel started operations in
Saudi Arabia in 1977 as a joint venture with
the leading trading company E.A. Juffalli &
Bros. Trading successfully under the name
of Orient Transport Company, the jointly
owned firm developed steadily. In 2007,
Kuehne + Nagel had the opportunity to
acquire 100% of the shares and thus
became the first global logistics provider to
operate a wholly-owned subsidiary in this
country. Since then the national company
has been registered in Saudi Arabia as
Kuehne + Nagel Ltd. With the new ownership, the company is fully connected to
both the global transport network and
IT-systems of the Kuehne + Nagel Group,
generates significant advantages for the
customers in Saudi Arabia.
Well established since 1977
Kuehne + Nagel Saudi Arabia offers its
customers a wide range of local and global
services, from seafreight over airfreight to
warehousing & value added services,
overland & regional distribution, customs
brokerage and international project
forwarding. Furthermore, the company
provides a portfolio of sophisticated
contract logistics services. As a neutral,
non-asset-based provider, Kuehne + Nagel
44
can select and manage suitable carriers,
depending on the customers’ individual
requirements. To name just a few, the
company offers contract negotiations and
contract management, tracking & tracing,
domestic and regional distribution, express
and shuttle services as well as contract
domestic transportation.
Special know-how
and industry expertise
Jeddah, Riyadh and Dammam are fully
operational seafreight and airfreight
set-ups, cooperating with well established
preferred carriers. Next to import and
export services, they have acquired special
expertise in handling cargo for customers
from industries such as aerospace,
automotive, pharmaceutical and healthcare.
Another important pillar of the product
portfolio
is
the
handling
of
perishable goods.
A dedicated team of experts is responsible
for the management and execution of
industrial project shipments. This includes
the flexibility to adjust immediately to
changing requirements during all stages of
the project process, in-depth expertise of
all local rules and regulations and the
know-how to safely transport heavy lift
cargo and out-of-gauge shipments.
With some 100 employees, Kuehne
+ Nagel has a well-established position in
the Saudi Arabian market. To cater for the
increasing customer demand, the company
has started providing services to the Oil &
Gas industry. In the field of contract
logistics, a modern warehouse in Jeddah
has been acquired, and there are plans to
gain additional storage and logistics space
in both the Dammam and Riyadh area.
With over 60,000 employees at 900
locations in over 100 countries, the Kuehne
+ Nagel Group is one of the world’s
leading logistics companies. Its strong
market position lies in the seafreight,
airfreight, contract logistics and overland
businesses, with a clear focus on providing
IT-based lead logistics solutions.
For further information please visit
www.kuehne-nagel.com
In June 2006 the Ministry of Commerce
and Industry issued a notice advising the
implementation of the Ministerial Resolution No. 6386 regarding the International
Conformity
Certificate
Programme
(ICCP).
Under the new scheme all consignments
are subject to the conformity certification
during the import to Saudi Arabia.
Conformity certificates may be issued by
approved inspection bodies like Bureau
Veritas.
Bureau Veritas in Riyadh, The exporting
company should present documents
showing the conformity of their products
in accordance with the specific standards.
The verification of conformity service
involves physical inspection and checking
whether the goods comply with the
required SASO-Standard.
This programme is intended to provide
safety for citizens of the Kingdom of
Saudi Arabia and improve environmental
health protection.
The verification programme facilitates
customs transactions during the importing
process. It minimizes further inspection
and testing on arrival, thereby reducing
overall costs and possible delay of customs
release as well as the risk to be forced to
re-export the goods due to a lack of
conformity.
Bureau Veritas Germany will carry out
shipment inspections in the exporting
country to verify the conformity of goods.
Exporting companies may contact Bureau
Veritas Industry Services – Division
Governmental Services in Hamburg or the
buyer / importing company should contact
The verification of conformity aims to
improve product safety and quality, simplifies customs clearance, prevent unfair
competition and detect counterfeit goods.
Governments today give high priority to
promote international trade while
TUV
Rheinland Arabia
TUV Rheinland Arabia – a member of
TUV Rheinland Group – started offering
testing, inspection and certification
services for various sectors of business and
industry in the Kingdom of Saudi Arabia
in 2005. Our market access services help
importers, exporter, manufactures and
trading companies understand and fulfill
regulatory requirements of the markets of
their interests. One such service is the
Certificate of Conformity (CoC) for
products imported to Saudi Arabia.
The Certificate of Conformity (CoC) is a
mandatory requirement for each shipment
of consumer products. Any consignment
not accompanied by a CoC or that with a
CoC issued by a non-approved body will be
subject to mandatory inspection and
samples will be taken for testing at local
laboratories.
With its vast global network of accredited
offices and laboratories, TUV Rheinland
group is eligible to issue CoC and all the
steps including document review, registration, testing, pre shipment inspection (PSI)
and certification are handled within TUV
Rheinland group.
Examples of the
products covered:
- Electrical and electronic equipment,
appliances, tools, components and
accessories
- Toys, child care and playground
equipment
- Mechanical products and machinery
- Sports and recreational equipment
- Cosmetics, hygienic products, textiles,
and chemical products for consumers’
use.
- New motor vehicles
Special Saudi requirements
There are some specific requirements that
need to be considered for the products to
be exported to Saudi Arabia:
• Products need to comply with Saudi
Arabian Standards Organization (SASO)
standards or in absence of SASO stand
ards, GSO / IEC / EN / ISO or
equivalent standards.
protecting consumer health, safety and
environment. The governments call for an
intervention of independent third-party
companies as a way to maintain full control
on goods entering the domestic market.
Bureau Veritas is member of IFIA
(International Federation of Inspection
Agencies) and is accredited by national
bodies in more than 60 countries around
the world. In addition to Saudi Arabia
Bureau Veritas has earned the trust of
other governments in the Middle East and
operates similar programs in Egypt, Iran,
Iraq, Kuwait and Lebanon.
Bureau Veritas is one of the world’s leading
providers of conformity assessment and
inspection services. With a network of
47000 people working in 1000 offices in
more than 140 countries Bureau Veritas
can offer a tailormade and professional
service in close proximity to your
production plants.
• Electrical ratings on the products
intended to be operated from AC mains
supply should include AC 127V or 220V
/ 60 Hz.
• The power plug configuration for nonindustrial use products should comply
with SASO 2203 (for 220V, similar to BS
1363) or SASO 2204 (for 127V, similar to
NEMA 5-15P or NEMA 1-15P).
• Equipment used outdoors should
comply with requirements for tropical
climate conditions.
• For most of the electrical products,
rating marking in Arabic or English is
required. For some products (e.g.
cosmetics) marking in Arabic or both
Arabic and English languages is required.
• Instruction manual is required in both
Arabic and English languages
for
consumer end products.
• Any pictures, text or objects that are
offensive to the Islamic religion should
not be used.
For detailed information about Saudi
Arabia Certificate of
Conformity
regulations and requirements, please visit
our website (www.tuv.com) or contact the
nearest TUV Rheinland office.
AHK German - Saudi Arabia - www.saudiarabien.ahk.de
45
German - Saudi Business Magazine
Testing, Inspection and Certification
SGS WHEN YOU NEED TO BE SURE
Product Conformity Assessment
of goods to be exported to the
Some countries like Saudi Arabia have Kingdom of Saudi Arabia
Imports to Saudi Arabia
exporters and make sure their shipments
conform with applicable requirements.
provisions that products to be introduced
to each market must comply with national
or international standards. In Saudi Arabia
these are e.g. SASO (Saudi Arabian
Standards Organization) or GSO
(Standardization Organization for GCC).
The evidence of maintaining these
standards requires a product conformity
assessment by an independent testing
company. SGS is authorized by the
Ministry of Commerce and Industry in the
Kingdom of Saudi Arabia to implement
audits and issue the required certificates.
SGS – the company
Conformity
Assessment
provides
confidence that products match with the
regulations and accepted standards of the
importing country. The program avoids
importation of dangerous and inferior
goods to protect the consumer and also the
use of unfair practices and reduces the risk
of flooding local markets with counterfeit
products. Its extensive experience in managing Conformity Assessment Programs
around the world enables SGS to offer
efficient, comprehensive and tailored
solutions to provide assistance to the
PRODUCT
The Kingdom of Saudi Arabia has
implemented a Product Conformity
Programme for exports to the country.
All products require a Certificate of
Conformity also referred to as a SASO
CoC to be cleared through Customs.
Intertek supports The Ministry of
Commerce and Industry (MoCI) in Saudi
Arabia by being a service provider for its
Product Conformity Programme.
46
The Saudi Arabia Product Conformity
Programme, which covers all goods, has a
number of key objectives:
 Protection of public health
 Consumer safety
 National security
 Protection of religious and
public morals
 Protection of environment
 Prevention of deceptive
practices
Every consignment of imported goods
must be accompanied by a Conformity
Certificate from an authorised inspection
agency. Intertek is authorised to issue the
Certificates of Conformity (CoC). They
are needed to ensure customs clearance of
shipments and confirm that the products
comply with the relevant Saudi technical
Inspecting, testing, verifying and certifying
– the SGS Group is the worldwide leading
company in these areas. Founded in 1878,
the service provider with its headquarters
in Geneva now sets globally recognized
criteria for the highest standards. In
Germany SGS exists since 1920. The head
office is in Taunusstein near Frankfurt on
the Main – from north to south, from east
to west SGS has a nationwide presence.
Round about 2,900 employees are working
in 37 offices and laboratories.
Conformity Programme
for exports to Saudi Arabia
regulations and national, regional or
international standards.
All imported consignments must bear a
non-removable indication of origin. Those
that do not will be held by Saudi Customs
and the Importer will be asked to take
corrective action or provide an undertaking
that the offence will not be repeated.
Failure to do so could result in a fine or
goods being returned to their country of
origin. For full details, read the complete
Circular by Saudi Customs on Country of
Origin Marking.
Exporting New Vehicles to Saudi Arabia?
Saudi Customs have recently confirmed
that they will be reinforcing the
requirement for the Certificate of
Conformity (CoC) as per the MoCI decree
6386 for clearing shipments of new
vehicles.
Exporters who have been previously
issuing self Certificates of Conformity to
clear their shipments will no longer be able
to do so. Instead it will be mandatory for
exporters to obtain CoCs for new vehicles.
CoCs issued by Intertek are considered by
Customs, MoCI and SASO as being
compliant and accepted for Customs
clearance. Vehicles not covered by a CoC
will be held for further inspection and the
exporter liable for the additional costs of
inspection and storage of the vehicle and
face significant delays in clearance.
Exporting Cosmetics and Perfumes to
Saudia Arabia? Intertek have been
appointed by the Saudi Food and Drug
Authority to provide Conformity
Assessment Services for exports of these
products to the Kingdom. Intertek is
authorised to issue the mandatory
Certificate of Conformity which is
required for Customs Clearance.
Intertek has operated the Saudi Arabian
programme for over twelve years, issuing
over 1.5 million certificates and test reports
we have also issued nearly 3.5 million CoCs
for vehicles entering the Kingdom as well
as registered thousands of manufacturers.
Contact us to see how Intertek can help
your
organization
with
Product
Conformity Programme for Exports to
Saudi Arabia:
www.intertek.com/government/
product-conformity/
exports/saudi-arabia/
SAP
German - Saudi Business Magazine
SAP
SAP helps companies of all sizes and
industries run better. From back office to
boardroom, warehouse to storefront,
desktop to mobile device, SAP empowers
people and organizations to work together
more efficiently and use business insight
more effectively to stay ahead of the
competition. We do this by extending the
availability of software across on-premise
installations, on-demand deployments, and
mobile devices.
We believe that the power of our people,
products, and partners unleashes growth
and creates significant new value for our
customers, SAP, and, ultimately, entire
industries and the economy at large.
Our mission is to help companies of all
sizes and industries to run better. Our
vision is to help the world run better.
About SAP
Headquartered in Walldorf, Germany, SAP
is the market leader in enterprise application software. Founded in 1972, SAP
(which stands for "Systems, Applications,
and Products in Data Processing") has a
rich history of innovation and growth as a
true industry leader. SAP applications and
services enable more than 172,000 customers worldwide across over 25 industries to
operate profitably, adapt continuously, and
grow sustainably. With revenue (IFRS) of
€12.5 billion for the year 2010, SAP has
more than 54,000 employees and sales and
development locations in more than 75
countries worldwide.
SAP is listed on several exchanges,
including the Frankfurt stock exchange and
NYSE, under the symbol "SAP."
SAP dominates the EAS market globally
and has 30% - 100% penetration of the
Forbes 2000 list for any given industry. Its
dominance in the global market and close
interaction with the leading customers has
enabled SAP to gather industry know-how
and to transfer the knowledge into its
software products.
In 2009, SAP invested €1.6 billion in
research and development for business
software solutions. SAP further employs
~15,000 people people in software
development centers across 11 countries.
The largest of these SAP Labs is in
Walldorf,
Germany,
followed
by
Bangalore, India, and Palo Alto,
California, in the United States. With the
integration of SAP Business Objects
development centers, SAP now has three
new development centers in Canada,
Ireland; and France.
customers, partners, SAP researchers and
developers
to
experiment
with
technological research in real-world,
hands-on settings, turning ideas into
real solutions.
SAP further has a strong history of
co-innovation where the company has
been a forerunner in building a vibrant
ecosystem, supporting an open platform
and fostering communities of customers,
partners and individuals that collaborate
to solve industry specific business issues
for customers.
SAP MENA has recently delivered its
fourth quarter of consecutive growth in
Q2 2011 and today signs an average of 2-3
new customers per week. The company
has over 275 employees, 2100+
consultants and 75+ partners, covering 16
countries across the MENA region. In
November 2010, SAP MENA announced
it would double its resources within the
next two years, with the majority of
headcount focused on the delivery
of solutions.
The SAP Co-Innovation Labs offer a
hands-on
environment
for
SAP,
independent software vendors, system
integrators, and technology partners, to
work together with customers around
current and future technologies, and to
showcase how customers can increase
competitive advantage and improve
efficiencies by transforming their business
networks with enterprise service-oriented
architecture.
SAP Research, its global research
organization, identifies and shapes
emerging IT trends and generates
breakthrough
technologies
through
applied research. Its findings significantly
contribute to our product portfolio and
help us to maintain our technological
edge. Each SAP Research center is
collocated with either a partner university
or an SAP development center, creating a
solid foundation for collaborative
research.
SAP further supports 7 development labs,
and 15 research centers, also including our
Living Research Labs, which serve as
collaboration platforms for open
innovation.
They
bring
together
SAP in MENA
SAP Middle East & North Africa
(MENA) is recognized as one of the
fastest growing markets for SAP globally
and is a key investment area for the
company.
SAP in MENA is considered one of the
key technology players in the region and
has last year received the ‘Software Vendor
of the Year’ award by CPI, one of the
region’s leading publishing firms. IDC
further recently recognized SAP as the
number one Enterprise Application
Software market player in MENA.
The company’s dedication to promoting
the interest of the region and up-skilling
local talent is part of SAP’s Education
offerings and Academies which have been
developed to fast-track enablement and
deepen SAP expertise for new graduates
and professionals respectively.
SAP MENA today has over 20 universities
from across the region that are part of its
University Alliances program, which
provides university faculty members with
the tools and resources needed to teach
students how technology can enable
integrated business processes and strategic
thinking – and gives students the skills to
add immediate value to the market place.
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47
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.
DE international is present in 120 offices of
the Chamber of Commerce abroad,
delegations and representations of the
German economy. We offer 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, petro chemistry, 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.
48
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 for Saudi Arabia and Yemen offers
a verified research of sectoral and address
information to simplify the establishment of
contacts with Saudi companies.
4. Direct Mailing Services
We offer individual support in the search for
interested business partners and we will take
care of establishing initial contacts.
5. Business-Trips
DEinternational 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
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.
Market Information
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
AHK German - Saudi Arabia - www.saudiarabien.ahk.de
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German - Saudi Business Magazine
AHK Services
AHK Saudi Arabia Contact
German - Saudi Business Magazine
Your contact
persons at AHK Saudi Arabia
Management
Andreas Hergenröther
Delegate of the German Economy
for Saudi Arabia and Yemen
hergenroether@ahk-arabia.com
Tel.: + 966 (0) 1 405 02 01
Benjamin Godel
Deputy Delegate of the German
Economy for Saudi Arabia and Yemen
godel@ahk-arabia.com
Tel.: + 966 (0) 1 405 02 01 Ext.115
Legal Affairs
Omar Hassan Hamza
Assistant Delegate
& Head of Legal Affairs,
Andreas Hergenröther and Faisal Al Fadl,
Secretary General of Saudi Green Buildings Forum,
sign the "Official Supporting Partners" agreement
investment, import and export regulation, etc
In addition, we offer extrajudicial mediation
and offer our help when contacts to public
authorities and/or law firms are required.
is to solve disputes without harming the long
term business relations.
2. Health Treatment in Germany
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.
AHK Saudi Arabia assists Saudi Arabian
patients who wish to make use of 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
50
5. Visa Service
6. Translation Services
We offer translations of letters, documents,
company profiles etc. in the following
languages:
• German <> Arabic
• German <> English
• English <> Arabic
We
also
offer
interpreting-services
German <> Arabic during AHKEvents and delegations.
hamza@ahk-arabia.com
Tel.: +966 (0) 1 405 02 01 Ext. 106
Trade Fair Services
AHK Saudi Arabia is the official
representative of the Deutsche Messe AG,
Messe Munich, Koelnmesse International 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 61965, Riyadh 11575,
Kingdom of Saudi Arabia
Tel.: 00966 1 4050201
Fax: 00966 1 4031232,
Email: info@ahk-arabia.com
www.saudiarabien.ahk.de
Trade Fairs
Yousef Nahhas
Head of Trade Fair
and Export Promotion
nahhas@ahk-arabia.com
Tel.: +966 (0) 1 405 02 01 Ext. 110
Asif Iqbal Ansari
Trade Fair Officer / Trade Fair
Coordinator for Visitors
ansari@ahk-arabia.com
Tel.: + 966 (0) 1 405 02 01 Ext. 112
DEinternational
Mohammed Faleel
Mohamed Trad
Head of Business to Business Affairs
Director Energy and Environment
faleel@ahk-arabia.com
Tel.: +966 (0) 1 405 02 01 Ext. 105
trad@ahk-arabia.com
Tel.: +966 (0) 1 405 02 01 Ext. 101
Kariem El-Ali
Mohamed Saleh
Director Infrastructure
and Consumer Goods
el-ali@ahk-arabia.com
Tel.: +966 (0) 1 405 02 01 Ext. 109
Eng. Med. Consultant
saleh@ahk-arabia.com
Tel.: +966 (0) 1 405 02 01 Ext. 113
AHK German - Saudi Arabia - www.saudiarabien.ahk.de
51
German - Saudi Business Magazine
AHK Saudi Arabia Contact
Your contact
persons at AHK Saudi Arabia
Public Relations & IT
Florian Mader
Mohammed Akbar
mader@ahk-arabia.com
Tel.: +966 (0) 1 405 02 01 Ext. 107
akbar@ahk-arabia.com
Tel.: +966 (0) 1 405 02 01 Ext. 114
Head of Public Relations
IT System Administration
Accountancy
Mushtaq Ahmed
Mohammed Khusro
Administration
Accountancy
khusro@ahk-arabia.com
Tel.: +966 (0) 1 405 02 01 Ext. 111
mushtaq@ahk-arabia.com
Tel.: +966 (0) 1 405 02 01 Ext. 102
At your Service
Farook Hameed
Faisal Nalpurakkal
hameed@ahk-arabia.com
Tel.: +966 (0) 1 405 02 01 Ext. 100
faisal@ahk-arabia.com
Tel.: +966 (0) 1 405 02 01 Ext. 100
Address research / Front Desk
Administration / Front Desk
Delegation der Deutschen Wirtschaft für Saudi-Arabien und
Jemen (AHK Saudi-Arabien)
German-Saudi Arabian Liaison Office for Economic Affairs
(AHK Saudi Arabia)
52
Futuro Tower, 4th Floor, Al Ma'ather Street
P.O.Box: 61695
Riyadh: 11575
Königreich Saudi-Arabien / Kingdom of Saudi Arabia
Phone: 009-661-4050201
Fax:
009-661-4031232
Mail: info@ahk-arabia.com
Web: http://saudiarabien.ahk.de/