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German-Saudi Business Magazine May 2014 German Investments in Saudi Arabia Petrochemicals Automotive ICT Infrastructure
  • German-Saudi Business Magazine May 2014

    German Investments in Saudi Arabia

    Petrochemicals Automotive ICTInfrastructure

  • German - Saudi Business Magazine

    Andreas HergenrtherDelegate of GermanIndustry & Commercefor Saudi Arabia and Yemen


    Andreas Hergenrther

    Dear readers,

    Saudi Arabia has been focusing more and more on promoting transfer of know-how and technology to diversify its industrial landscape outside the hydrocarbon sector. The government needs strong partners for sustainable long-term business relations. German economy can be a major ally in this process. Made in Germany is renowned around the world for its attributes of premium quality, state-of-the-art technology and know-how. The latter takes a pivotal role in the success story that made in Germany achieved and it is here that the German industry is a strong partner for many industries and regions, helping spread it to local production sites. As the worlds second largest exporter, the German economy is recognized worldwide for high quality products and services and as a guarantee for sustainable and fair business. German enterprises have successfully contributed to the economic development in Saudi Arabia by investing, training Saudi Arabian employees and actively transferring technology and know-how.

    For example, German investors like Siemens, Mercedes, Linde, Evonik or Henkel are well known through their production sights in Saudi Arabia but also small and medium-sized companies (SME) like Bischof+Klein, V-Line, Erndtebrcker Eisenwerk GmbH or SIG Combibloc are successful investors. In 2012 Siemens took the next step towards a massive expansion of its activities in Saudi Arabia, breaking ground on a landmark manufacturing facility for gas turbines and compressors. This creates job opportunities for young Saudis, serving as aknowledge transfer hub for new Siemens technology and supporting the countrys industrialization drive. Another example is DHL supply with more than 1,700 employees in Saudi Arabia which illustrates its commitment to innovation, service excellence and providing customers in Saudi Arabia with superior logistics solutions. And for over ten years now, the successful joint venture undertaken by German family-owned company Bischof+Klein and three Saudi partners have been producing FFS packaging solutions on the basis of co-extruded films as well as stretch hood and shrink films. The plant in Dammam has a total output of almost 24,000 metric tons. Evonik Industries and Saudi Acrylic Acid Company (SAAC) have established a joint venture called Saudi Acrylic Polymers Company (SAPCo) for the production of superabsorbents. SAAC is a joint venture of the Saudi companies National Industrialization Company (Tasnee) and SaharaPetrochemicals. The production facility has an annual capacity of 80,000 metric tons. Other major investments were made in the automotive sector by thesuccessful joint ventures of Mercedes with Juffali and MAN with Xenel Group assembling trucks in Jeddah.

    By creating jobs and interacting with local enterprises these companies make a contribution to the positive development of the Saudi Arabian economy. To create a better awareness of the high potential of German-Saudi Arabian business relations we would like to present in this current edition the portfolios of some of the major German companies investing in the Kingdom.

    1AHK Saudi Arabia - www.saudiarabien.ahk.de

  • Editorial

    AHK Saudi Arabia

    German Desk Opens in Jubail

    Government Support

    Investments in Saudi Arabia

    Industrial Cities



    Bischof + Klein

    Henkel Polybit

    Evonik Industries

    SIG Combibloc




    Deutsche Bank






    E. A. Juffali & Brothers

    Information & Communication


    Detecon Al Saudia Co. Ltd.


    DB International



    KSB Pumps Arabia

    SSI Schaefer


    AHK Services

    Your contact persons at

    Trade Fairs










































    Design & Developed by:

    In accordance with GESALOwww.fawazadvertising.com

    Disclaimer:GermanSaudi Business Magazine(GSBM), Issue May 2014

    Editor-in-Chief Andreas Hergenrther

    Head of Public RelationsChristian Engels

    Responsible for PrintingAHK Saudi Arabia Copyright GSBM 2014. All rights reserved.

    No part of this magazine may be reproduced without GSBMs written permission.The opinions expressed in GSBM do not necessarily reflect the views of the German Delegation of Industry and Commerce forSaudi Arabia and Yemen (AHK Saudi Arabia).GSBM is not responsible for the validity of contents in articles written by external authors.

    AHK Saudi Arabia



    48 47


    for the Private Sector Technologies

  • The Delegation of German Industry & Commerce for Saudi Arabia and Yemen (AHK Saudi Arabia) has been founded in 1978 by Royal decree under the name of German-Saudi Arabian Liaison Office for Economic Affairs (GESALO). AHK Saudi Arabia is part of the GermanChamber Network and the official German Foreign business promotion. With 120 offices worldwide AHKs offer their experience, connections and services to German and companies of their partner countries. With a staff of 20 employees, AHK Saudi Arabia supports Saudi and German companies with its services. AHKs are closely connected to theChambers of Industry and Commerce (IHKs) in Germany. Together, they represent in total 3.6 million companiesin Germany.

    AHK Saudi Arabia is the official representative of German economy in Saudi Arabia. Besides this AHKs are service providers to companies under the brand DEinternational AHKs provide services to companies both from Germany and their host countries in order to support their foreign business activities. These services include conducting market studies and providing sector information, matchmaking, business consulting,organization and representation of trade shows, issuing business publications, legal information, medical treatment support and vocational training, etc.

    AHK Saudi Arabiamore 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 tradecommission in Saudi Arabia. On August 22nd 1978 was the inauguration of the first office for GermanSaudi 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



    The official representation of the German economy in Saudi Arabia

    German - Saudi Business Magazine German - Saudi Business Magazine

    AHK Saudi ArabiaRiyadh. 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 worlds number one venue for organizing international trade fairs it was a logical step to found an own trade fair department.

    Establishing AHK-Services

    His successor Dr. Rainer Herret (1991- 1998) put the focus on a second issue, which is of high importance for the bilateral economic relations: With the implementation of a legal department AHK Saudi Arabia was able to assist German companies regarding legal questions like customs regulations, taxes and the legal framework of launching branches, founding a Joint Venture with a Saudi company or establishing a liaison office. Since then Saudi businessmen are able to get assistance in the visa process for Germany via the AHK office when they are to visit or exhibit on trade fairs or need to travel for business trips. AHK Saudi Arabia acts also as a mediator in cases of commercial disputes between German and Saudi business partners with the aim to solve disputes without harming the long term business relations. Under the lead of Michael Tockuss (1998-2001) AHK Saudi Arabia ameliorated its services for German companies in the region. Since then todays 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 Rothgnger (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 againdue to the uncertain circumstances.Nevertheless Saudi Arabia recovered and paved its way to participate in the World Trade Organization (WTO), which can be seen as a great success. In the term in office of Delegate Gerd Doepner (2005- 2010) 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. Since2009 German business relations with Bahrain, Kuwait and Qatar is organized by AHK UAE.

    New Challenges:Andreas Hergenrther

    Since October 2010 AndreasHergenrther is the current Delegate of German Industry and Commerce for Saudi Arabia and Yemen. Under his lead the German-Saudi business relations tightened within one year even more and many projects are on the way deepening these relations. In December 2010 the first German-Saudi Arabia Desk has been established at the Bielefeld Chamber of Industry and Commerce. It functions as an information platform about Saudi Arabia for all German companies. Under the lead of Mr. Hergenrther more than 100 events in Germany and Saudi Arabia have been organized by AHK Saudi Arabia in order to promote German-Saudi business relations. With its services for German and Saudi companies AHK Saudi Arabia is in a key position for the bilateral economic relations. Every businessman, who is interested in doing business in Saudi Arabia or in Germany will find an individual concept of entering the market, promoting its business through trade fairs and find the perfect business partner from the other country.

    AHK Saudi Arabia - www.saudiarabien.ahk.de

    The German Desk opened at the Jubail Branch of Asharqia Chamber aiming at facilitating transfer of technology for the industrial development at the twin citiesof Jubail.

    Dr. Peter Ramsauer, Chairman of the Committee of the German Parliament for Economic Affairs & Energy, inaugurated the event last month. Mr. Hassan M.Al Zahrani, Vice-Chairman of Asharqia Chamber, Michael Ohnmacht, Acting German Ambassador to the Kingdom and Mr. Andreas Hergenrother, Delegate of German Industry and Commerce for Saudi Arabia were present.

    Germany is keenly interested inparticipating in the Kingdoms on-going economic development, said Dr. Peter Ramsauer adding that he was amazed witnessing tremendous industrial develop-ment in Jubail. German technology and industrial equipment are of high quality compared to other countries, he noted.

    Mr. Al Zahrani pointed out that the opening of the German Desk in the Kingdoms industrial hub of Jubail will give a fresh boost to the already strong trade and commercial relations between Saudi Arabia and Germany. Many globally recognized petrochemical plants built by the Saudi Arabian Basic IndustriesCorporation (SABIC) are based in the Jubail Industrial Cities-One and Two. In addition, Saudi Aramco has several large-scale new projects such as Sadara Chemical Company and Saudi Aramco Total Refining & Petrochemical Company located in the twin industrial cities, he said.

    German companies have strong presence in the Saudi market offering high-tech products and expertise. Over 100 German companies are now represented in Saudi Arabia and their combined investments, according to the Saudi Arabian General Investment Authority, reached over$8 billion, noted Mr. Zahrani.

    He invited German firms to take advantage of liberalized economic policy and a package of incentives announced by the Saudi government for foreign investors. The liberalized economic policy has made Saudi Arabia the most favorable country for businesses in the Arab world, Middle East and North Africa region, observed Mr. Zahrani.

    Currently, the annual two-way average trade has reached over SR42.7 billion , of which, Saudi imports from Germany are valued at around SR41.3 billion while Saudi exports to Germany are worth only 1.4 billion Riyal.

    Mr. Zahrani offered Chambers willingness to cooperate with German companies in order to support them in their effortsto identify trade and investmentopportunities in the Kingdom.

    Mr. Hergenrother noted that Germany is a key supplier of technology and know-how to the Kingdom particularly to its Eastern Province where many German companies have established their production bases. These German firms included Linde (industrial gases), Siemens (gas turbines), BASF (construction chemicals), Kenkel (industrial coatings), Evonik (suberabsorbants), Bischof & Klein (packaging) and Erntebruecker Eisenwerke (pipelines).

    Mr. Hergenrother mentioned the strong presence of the German logistic giant DHL which has become the largest German employer in the Kingdomemploying over 4,000 people. For creating employment opportunities, DHL has been honored with the Prince Nayef Award for the highest Saudization quota of a foreign company in the Kingdom.

    German Desk Opens in Jubail toFacilitate Transfer of Technology

  • The Ministry of Economy and Planning assists in formulating the five-yeardevelopment plans that set long-term economic goals.

    The Ministry of Finance supervises implementation of the nation's economic policies. The Saudi Arabian Monetary

    Government Support for the Private Sector Government Support for the Private Sector


    German - Saudi Business Magazine German - Saudi Business Magazine

    Agency (SAMA), the nation's central bank, oversees the country's fiscal policy.

    To facilitate the expansion of the private sector's role in the national economy, the government established five specialized credit institutions, which provide economic opportunities to many Saudis

    who were previously unable to compete in the marketplace. These financialinstitutions have provided loans to citizens for development projects in agriculture, industry and construction.

    In 1974, the Saudi Industrial Development Fund (SIDF) was the first government

    AHK Saudi Arabia - www.saudiarabien.ahk.de

    agency set up to provide interest-free soft loans to enable Saudi businessmen to establish industrial plants. These loans can be used to finance up to 50 percent of the capital for a new factory. SIDF loans have helped launch thousands of new factories and expand hundreds of existing facilities.Since it was founded in 1963, theSaudi Arabian Agricultural Bank (SAAB) has provided loans for agricultural projects, farm machinery and productionrequirements. The Real Estate Develop-ment Fund has been financing residential and commercial construction since 1974, with a unique program that provides interest-free loans repayable in 25 years. Launched in 1971, the Public Investment Fund offers credit to public and semi-public corporations. The Saudi Credit Bank was founded in 1973 to provide personal loans for home repair, as well as vocational and crafts training.

    In addition to the specialized creditinstitutions, the government offers an array of incentives to the private sector.A sweeping reduction in utility and public service fees, implemented in early 1992, lowered operating and production costs for private companies, making their products more competitive with foreign goods.

    Private entrepreneurs are also given access to government information systemsspecifically created to help localmanufacturers target the best market for their products. Government agencies such as the Saudi Consulting House, replaced in April 2000 by the broader Saudi Arabian General Investment Authority (SAGIA), provide free consulting and support services and publish lists of investment opportunities for the production of goods in demand in Saudi Arabia. In September 2000 SAGIA opened service centers in

    Jeddah and Dammam in addition to its headquarters in Riyadh.

    Government tenders also give priority to locally manufactured products and to Saudi companies. Saudi industries are exempted from paying customs duties on the import of machinery and supplies used in the production of goodsdomestically.

    To facilitate the transfer of technology and expand the operations of the private sector, the government also provides various incentives to foreign companies that enter into joint ventures with Saudi firms. Far-reaching new investmentregulations in 2000, including removal of the need for sponsorship, gave further encouragement to foreign investors.

    Government Supportfor the Private SectorThe government plays an essentialrole in industrial and economicdevelopment.

  • Saudi Arabia is currently working to develop its trade and investment laws with the intent of wooing more foreign direct investments and settling disputes between foreign investors and their local partners. Saudi Arabian General InvestmentAuthority (SAGIA), the countrys investment facilitator, spearheads the move by adding some points ofexplanation in the current law in addition to putting a set of new conditions. The Kingdom encourages successful investment projects as they can create more jobs for Saudis, said one SAGIA official. The plan goes well with the Labor Ministrys efforts to find more jobs for young Saudi men and women. The Kingdom has been making strenuous efforts to diversify its economy byencouraging investment projects in various sectors. It is worth mentioning Saudi Arabia received $16.4 billion in 2011. Fahd Al-Mashari, an economist, said many foreign investors aim to invest their money in Saudi Arabia because of the countrys strong and stable economy that has safely steered through global financial crises. The steady growth of the economy and the incentives being offered by thegovernment to foreign investors has strengthened Saudi Arabias chance to become a major hub for investment, he pointed out. The Saudi economy has responded quickly to the speedy global economic changes. We are one of the 20 largest economies in the world, holding 19th position. We are also the largest economy in the Middle East and North Africa (MENA) region and the largest recipient of foreign direct investment.

    Investments in Saudi Arabia


    German - Saudi Business Magazine

    Saudi Arabia is one of the highest growing economies in the world with a GDP growth rate of 6.8 percent in 2012. Saudi Arabia ranks 22nd out of 185 countries for the overall Ease of Doing Business. There are many reasons for investing in the strategic sectors where Saudi Arabia has great comparative advantages. Saudi Arabia is at the heart of MENA regions 400 million-strong populations. It is the largest free market in the Middle East, having 25 percent of the total Arab gross domestic product. Saudi Arabias good location makes it and easy access for the European, Asian and African markets, said a SAGIA official. Moreover, Saudi market has a high purchasing power and is expanding continuously. The Kingdom is one of the fastest-growing countries worldwide, with per capita income forecast to rise from $25,000 in 2012 to $33,500 by

    2020. Saudi Arabia has low inflation rates and pursues to conclude mutual agreements with a number of countries for promoting and protecting investment as well as preventing double taxation, the official said. Speaking about incentives, the official said investment applications are processed within 30 days; foreign investors will benefit from incentives and guarantees offered to local and national investors; and are allowed to transfer capital and profit abroad. Foreign investors are also eligible to apply for loans from the Saudi Industrial Development Fund and can benefit from corporative, collateral and massive agreements regarding taxation and investment with other countries. They are also allowed to transfer losses for future years in regard to taxes, he said.

    Investmentsin Saudi Arabia


    German - Saudi Business Magazine

    AHK Saudi Arabia - www.saudiarabien.ahk.de

    While Saudi Arabias economic basecontinues to be dominated by oil, the Kingdom has taken steps to diversify the economy.

    Today, industrial products make up more than 90 percent of the Kingdoms non-oil exports. Saudi Arabia exportspetrochemicals, plastics, metal goods, construction materials and electrical appliances to some 90 countries.

    Petrochemical and other oil-based industries are concentrated at industrial cities in major urban centers. These plants use natural gas and natural gas liquids that were previously flared, as well as refined products from the oil industry tomanufacture products that would in turn feed non-oil industries.

    Concentration on industrial plants in specific areas also facilitates the provision of vital support services, such as water, power and transportation.

    Industrial Cities

    The Jubail Industrial City on the Arabian Gulf has dozens of factories and industrial facilities, including a desalination plant, a seaport, a vocational training institute and a college.

    The Yanbu Industrial City on the Red Sea has a modern port, refineries, apetrochemical complex and manymanufacturing and support enterprises.

    The government offered incentives for the establishment of private companies at the industrial cities. The Saudi Arabian Basic Industries Corporation (SABIC), created in 1976, set up non-oil industrial facilities that use as feedstock natural gas and natural gas liquids manufactured by the oil industry.

    SABIC is owned 70 percent by the Saudi government and 30 percent byshareholders from the six GulfCooperation Council (GCC) countries. SABIC quickly became the backbone of

    Saudi Arabia's successful industrialization. By 1994, it had 15 major plants operating in Jubail, Yanbu, and Jeddah, with an annual production of 13 million metric tons. By 2002, total production was 40.6 million tons of basic and intermediate chemicals, polymers, plastics, industrial gases, fertilizers, steel and other metals; this figure is expected to exceed 48 million tons by 2015.

    One of the most ambitious economic projects to date is the massiveKing Abdullah Economic City near Jeddah, which broke ground in December 2005. The residential and commercial megaproject will include a dedicated port, an industrial park, a residential and hotel complex, and educational facilities.

    In 2006, Custodian of the Two Holy Mosques King Abdullah launched similar economic cities in Rabigh, Hail and Madinah. Plans are also underway for an economic city in Makkah.

    Industrial Cities

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    German - Saudi Business Magazine

    AHK Saudi Arabia - www.saudiarabien.ahk.de

    for joining the petrochemical marketin the Kingdom.

    The country itself is holding an excellent starting position for reaching the political aim of being a powerful player on the global market of petrochemical products. Considering the economic circumstances and existing conditions it is realistic to reach the aim in a medium term. Driven by Saudi Arabia the members of the Gulf Cooperation Council (GCC) are evolving towards the worlds leading petrochemical location. The Kingdom already is the


    Saudi Arabias petrochemical sector registers a strong double digit growth since 2007. Ten percent of the globalpetrochemical export products have been manufactured in Jubail and Yanbu. Both cities form the centre of the petrochemical industry and have played a key part in the Kingdoms determination to develop hydrocarbon-based industries. Founded by Royal Decree in 1975, the RoyalCommission for Jubail and Yanbu(RCJY) has created the basic infrastructure for these two cities. In Jubail is the worlds largest industrial city for petrochemicals.

    RCJY is currently responsible for the construction of Jubail II, which will have the same size than Jubail. The industrial cities are characterized by physical closeness to oil fields to take advantage of short hauls.

    As the leading oil producer in theworld Saudi Arabia plans to duplicate its refinery and petrochemical capacity and therefore needs internationalinvestors. German companies, wellreputed for its extraordinary experience, know-how and quality, are well prepared

    German - Saudi Business Magazine Petrochemicals Petrochemicals

    PetrochemicalsStrong Growth Prospects

    Jubail is the largest industrial complex of its kind in the world

    largest producer of methanol und ranks on the second place among ethyleneproducers.

    The Saudi Arabian Oil Company (ARAMCO) and the Saudi Basic Industries Corporation (SABIC) are the major actors in the sector. Being the worlds largest oil producer ARAMCO is in a key position: The state-owned company invests in multi-billion-dollar projects, acts as a shareholder of many joint ventures and provides the feedstock for numerous petrochemical plants. SABIC as the biggest company in the entire Middle East was founded in 1976 to push the diversification of the local industry. Today it is the largest public company in Saudi Arabia as listed in Saudis stock exchange Tadawul, but theGovernment still owns about 70 percentof its shares.

    According to Gulf Petrochemicals and Chemicals Associaton, GCC member states were producing 39 million tons of petrochemical products in year 2000. Eight years later in 2008, the production increased to 100 million tons.Saudi Arabia as biggest and mostinfluential GCC member produced 60 million tons in 2011. That shows a world market share of 7-8 percent, which is likely to be raised up to 80 million tons in 2015. All in all, Saudi Arabia contributesthree quarters to the production of petrochemicals in the entire Gulf region.

    Saudi decision makers put unprecedented efforts in the diversification of the downstream industry to establish a labor intensive industry. SABIC and Saudi ARAMCO jointly with many additional players in Saudi Arabia are pushing the implementation process. In addition to increase the mass production of basic petrochemicals like polyethylene and polypropylene, Saudi Arabia focuses on expanding its downstream activities. Down-stream products like acetone, carbon oxide, polyethylene etc., which are the basis of higher value added products, shall be produced in the Kingdom. Within the next

    five years, the production of 120 new chemicals will begin. The Middle East business intelligence MEED lists26 projects in the Saudi petrochemical sector with an investment volume of15 billion USD that are underway. Another 42 planned petrochemical projects are46 billion USD worth.

    However, the preconditions for German companies are promising. Saudi Arabia has wide access to required raw materials and the costs for energy are low compared to other locations. Many German companies already use the advantages of site. An example how the future can look like is the Joint Venture Saudi Acrylic Polymers Company (SAPCo). In August 2011 the company was founded by Evonik, Tasnee and Sahara Petrochemicals to produce 80.000 tons p.a. of superabsorbent polymers in Jubail, starting in 2014. The Linde Group is also active on the Saudi market, operating with Sadara. The German company invests 380 million USD in Jubail to supply Sadara with carbon

    monoxide, hydrogen and ammonia at a chemical complex now being built by Sadara in Jubail.

    The SME Bischof + Klein produces flexible packaging solutions in Al-Khobar and Zeppelin is active in Jubail in the plant manufacturing business. The increase of downstream activities offers German companies good prospects for entering the Saudi Arabian market. Huge investments as well as projects with a volume of several billion USD are planned and make a long term growth of the petrochemical sector very likely. The petrochemical industry is expanding rapidly in Saudi Arabia. All in all, German plant and mechanicalengineering companies, providers of technology and external suppliers will find vast investment opportunities concerning the expansion of petrochemical plants in Saudi Arabia and the Gulf region.

    Technology and know-how by the German Linde Group: The Jubail Olefins Complex being developed by Tasnee Petrochemicals Company (Tasnee) and Sahara Petrochemicals Company (Sahara) in partnership with Basell Polyolefins.

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    German - Saudi Business Magazine German - Saudi Business Magazine

    AHK Saudi Arabia - www.saudiarabien.ahk.de

    Saudi BASF is part of the Germany headquartered multinational BASF the Chemical Company. Saudi BASF was incorporated in January 2001, when it started operations and production of construction chemicals in the Second Industrial Area in Dammam. This was followed by a second Saudi manufacturing plant which launched operations in Jeddah four years ago.

    Saudi BASF plays an active part in the Saudi construction landscape. It is the leading supplier of construction chemicals to prestigious projects such as theexpansion of the two holy mosques in Makkah and Madinah, the building of the King Abdul Aziz International Airport in Jeddah, King Abdullah Economic City,the Maaden Aluminium Smelter in RasAl Khair. It is also a supplier to prominent clients such as the Royal Commission for Jubail and Yanbu and Saudi Aramco.

    Saudi BASFs team of sales engineers provide technical support to ourcustomers in all areas of the kingdom

    where and when required at very short notice; they are known in the construction industry as the true solution providers. For example, our concrete admixtures Master-Glenium provide practical solutions to major challenges such as pumping concrete up to 600 meters high for the construction of landmark towers, while our high-performance grout have helped in anchoring rolling mill machinery at the aluminum smelter in Ras Al Khair, says Bashar Shaksheer, general manager of Saudi BASF.

    The company has nine sales offices supported by warehouses in every region of Saudi Arabia. BASFs Construction Chemicals division offers advancedchemicals solutions for new construction, maintenance and repair and renovation of structures. Its comprehensive portfolio encompasses concrete admixtures, cement additives, chemical solutions for underground construction, waterproofing systems, sealants, concrete repair and protection systems, performance grouts, flooring systems, tile fixing systems,

    expansion control systems and wood protection solutions.

    Among these is the Master Builders Solutions brand built on the experience gained from more than 100 years in the construction industry. Master Builders Solutions is backed by a global community of BASF construction experts, says Mohammed Shahin, managing director Saudi and Near East. To solve our customers specific construction challenges, we combine the suitable elements of our portfolio, our know-how across areas of expertise and regions, and draw on the experience gained in countless construction projects worldwide. We leverage global BASF technologies as well as our in-depth knowledge of local building needs, to develop innovations that help make our customers more successful and drive sustainable construction.

    Shahin attributes the success of Saudi BASF to the extensive range of high performance products offered as well as the excellent support provided, particularly

    its specification and marketing department which helps drive its success by getting BASF product technologies specified on projects by engineering firms during the design stage, and then following up by supporting its sales engineers to success-fully supply contractors with BASF products to the satisfaction of clients, specifiers and contracting companies.Saudi BASFs factories in Dammam and Jeddah produce most of these systems including admixtures, grouts, concrete repair products, and flooring and waterproofing systems, while other products such as the TPO membrane and pot bearings system come from its factories in Italy, Wabo architecturalexpansion joints from its facilities in the US, and the Alberia range of restoration systems from Turkey.

    Apart from these construction chemicals, BASFs Senergy Classic BP EIFS (exterior insulation and finishing system) system has gained wide acceptance in the Saudi market. BASF has provided around 70,000 sq m of BASF Senergy Classic BP EIFS system since 2012 to our major clients in the Saudi market including Saudi Aramco, government authorities such as Bahrain Causeway Authority and private

    sector clients, says Shaksheer. Our EIFS system has shown outstanding results in terms of thermal insulation, quality of applied product and efficiency in energy saving.

    Projects on which the product has been used include Manifa, a school and a 155-villa housing project in Ras Tanurah as well as a 38-villa housing scheme in Dhahran for Saudi Aramco; the Bahrain-Saudi Causeway (administration and information centre projects); Joaimah administration building; Al Osais head office in Dhahran; a private villa forAl Osais; Tanajeeb; and Rabiyah mosque in Dhahran.

    These and other projects were completed by BASF-approved applicators and contractors who received the required professional training on the systemapplication. These applicators are capable of completing huge projects within the set budget, time and using international EIFS system application standards, he comments.

    To meet the anticipated demand for its products in the region, BASF has plans to open yet another production facility in

    Rabigh, which is scheduled to becommissioned in 2017.

    BASF has an extensive portfolio of products that ranges from chemicals, plastics, performance products and crop protection products to solutions for the oil and gas sector. The worlds leadingchemical company has registered sales of about 74 billion ($102 billion) in 2013 and more than 112,000 employees as of the end of last year. Its construction divisions 5,700 employees form a global community of construction experts and tackle challenges from conception through to completion of a project by combining know-how across areas of expertise and regions and drawing on the experience gained in countless construction projects worldwide. It operates production sites and sales centres in more than 50 countries and achieved sales of about 2.1 billion($2.9 billion) in 2013.


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    German - Saudi Business Magazine German - Saudi Business Magazine

    AHK Saudi Arabia - www.saudiarabien.ahk.de

    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 family-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

    industrys strong growth and ouroutstanding 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 Kingdoms industriali-sation, 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 outproduction on nine FFS lines and two machines for the Smart-Flex stretch hood range. At the end of October 2011, two additional FFS film lines will enter operation. The company's annual capacity will then amount to 24,500 tonnes of FFS films and 5,400 tonnes of stretch films according to B+K MEC's managing director, Yousif Al-Suwailem. 30% of the regular workforce come from Saudi Arabia; their colleagues are Lebanese, Filipinos, Indians, Bangladeshi, Egyptians and Sudanese. Freddie de Mey has been head of production since 2010. The Belgian national was previously employed

    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 palletprotection 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 packaging and technical films which boasts a strong worldwide network. In 2010, B+K employed a total of around 2,400 staff at six production plants in Germany, France, the United Kingdom, Poland and Saudi Arabia. The company generated turnover of around 450 million Euros.

    The B+K-GROUPS 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/flexographicprinting, solvent-based/solvent free lamination and coating as well as for extrusion lamination and coating. Highly developed conversion technology with product-specific facilities for sealed, welded and adhesive designs enable individual production according tocustomers 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 thecreation 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 andtechnical films from traditional industrialpackaging and consumer packaging to special films for technical applications.

    If you have any further questions, please contact:

    Leading role in the regionBischof + Klein: B+K MEC joint venturevery successful in Saudi Arabia

    Gudula BenningKommunikationTel. +49 (0) 54 81/9 20 - 1 99Fax +49 (0) 54 81/9 20 - 98 1 [email protected]

    Middle East Company Middle East Company

  • 16

    German - Saudi Business Magazine

    Polybit Industries Ltd. was established in 1995 as a privately owned company in UAE. It entered into a joint venture agreement with Henkel KGaA, world leaders in adhesive technologies and building chemicals, in 2005 after which the company was renamed as Henkel Polybit Industries Ltd.

    We are able to offer the latest technologies and services to the customers in the fast moving and growing construction market in the region with the latest technical know-how from Henkel says Naveen Antony, General Manager Sales.

    Around 960 employees work at the Henkel Polybit Industries Ltd. Head office in Umm Al Quwain, UAE located 30 min by car from the regional MEA Henkel HQ in Silicone Oasis, Dubai. Henkel Polybit is known as the market leader in the UAE for waterproofing, construction chemicals and innovative protection systems. With manufacturing facilities in Umm Al Quwain (UAE), Dammam (K.S.A.) and Cairo (Egypt) and offices in UAE, Qatar, Bahrain, Oman, Kuwait, the Kingdom of Saudi Arabia and Egypt, Henkel Polybit Industries Ltd. is well represented in the GCC and North Africa.

    Competitive advantage

    Henkel Polybit ,apart from an extensive range of waterproofing products , it also offers complete system solutions for tiling, flooring, PU Foams, sealants andconstruction chemicals. Roofcare, asubsidiary of Henkel Polybit, is one of the leading application contractors offering unique roof waterproofing/thermal insulation as well as external thermal insulation systems assuring state of the art application of high end products.

    We provide solutions. And this is possible because we manufacture all the products in our portfolio, unlike other manufactures in the waterproofing industry, whomanufacture only limited products of certain categories and compliment it with an array of outsourced products, explains Naveen Antony. Being innovative and having a lean structure and strong customer orientation, we are extremely competitive and maintain our leading position. This approach, aligned with Henkels global sustainability strategy, is the driver for all new product developments in line with international and GCC green building codes.

    Henkel Polybits technical service team works closely together with contractors, consultants and authorities to ensure close customer communication and react quickly to international market trends and demands.

    Our technical service team also conducts customer trainings to consultants and applicators to support them in

    understanding our products and itschemistry so that they have a better understanding of the scope of the product confirms Naveen Anthony.

    Henkel Polybit collaboration

    The Joint Venture (JV) is growing stronger and has enhanced the enterprise potential by leveraging the strength and competence of Henkel in the Middle East Africa region and implementation of international business practices.

    We have had many synergies in the JV which has worked in our favor says Naveen Anthony. The most prominent ones are in the promotion of Henkel products through our channels which resulted in our closing the largest wooden flooring job in the Middle East for the tallest tower (Burj Khalifa) in the world today. We have also had synergies in supply chain and logistics which has helped us to improve our efficiency in these domains.Working in a booming economy, the heady growth rates also tested the organization and stretched it to its limit and beyond to respond the market demands. Settling in with a JV where two different schools of thought strive to work together in such demanding situation was the biggest challenge, notes Naveen Anthony. Henkel Polybit Industries a most important Joint Venture for the construction and buildingadhesive world of Henkel.

    Henkel PolybitIndustries Ltd.

    Henkel Polybit

  • Description of company

    Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Profitable growth and a sustained increase in the value of the company form the heart of Evoniks corporate strategy. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technol-ogy platforms.

    Evonik is active in over 100 countries around the world. In fiscal 2013 more than 33,500 employees generated sales of around 12.9 billion and an operating profit (adjusted EBITDA) of about2.0 billion.


    German - Saudi Business Magazine German - Saudi Business Magazine

    Evonik has been very successful in the Middle East and North Africa for more than four decades and has erectedproduction facilities in this region. In view of its attractive geographical position between Europe and Asia and the plentiful supply of petrochemical feedstock in the Gulf States, we regard this region as strategically important. We intend to participate in regional growth and expand our presence considerably.

    In Saudi Arabia, Evonik has established Saudi Acrylic Polymers Company (SAPCo), a joint venture with Saudi Acrylic Acid Company (SAAC), with capacity to produce 80,000 metric tons of superabsorbents a year. SAAC is a joint venture of the Saudi companies National Industrialization Company (Tasnee) and

    Sahara Petrochemicals. Total investment runs into triple-digit millions of euros, and Evoniks share is in the double-digit millions range. SAPCos superabsorbent production facilities uses Evoniks state-of-the-art superabsorbent technol-ogy and is part of a new acrylic acid and derivatives complex at the Tasnee site in the Al Jubail Chemical Park in Saudi Arabia. They benefit from low-costpropylene from the neighboring cracker operated by Tasnee and Sahara inconjunction with LyondellBasell. The acrylic acid required to producesuperabsorbents is supplied from a neighboring plant operated by a joint venture between SAAC and DowChemicals. The facility in Al Jubail strengthens our global leadership in this business and meets the rising demand for

    hygiene products in the fast-growing markets of the Middle East and in parts of Africa and Asia.

    Employee number total and local

    Evonik Industries (2013) ca. 33,500 employeesEvonik MENA region ca. 60 employees

    Key Production Facilities (Plants) and Products list

    Consumer, Health & Nutrition

    The Consumer, Health & Nutrition segment produces specialty chemicals, principally for applications in the consumer goods, animal nutrition and healthcare sectors. It comprises the Consumer Specialties and Health & Nutrition Business Units.

    AHK Saudi Arabia - www.saudiarabien.ahk.de

    Resource Efficiency

    The Resource Effciency segment provides environment-friendly and energy-effcient system solutions. It consists of the Inorganic Materials and Coatings & Additives Business Units.

    Specialty Materials

    The heart of the Specialty Materials segment is the production of polymer materials and intermediates, mainly for the rubber and plastics industries. This segment is composed of the Performance Polymers and Advanced Intermediates Business Units.

    Please refer to our homepage for more detailed product information:


    Regional HQ address and contact details:

    Kingdom of Saudi Arabia, Riyadh, address and contact details:

    Evonik IndustriesEvonik Gulf FZEDubai Silicon Oasis Office E-107Phone +971 4 372 4169Fax +971 4 372 4175P.O. Box 341256Dubai UAEwww.evonik.com

    Evonik Tasnee Marketing Company Ltd.Phone +966 11 2108266Fax +966 11 455-9854Qurtuba Business Gate, Building C2King Khalid International Airport Road11496 RiyadhSaudi Arabiawww.evonik.com

  • 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 worlds leading systemmanufacturers 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 Combiblocs sales in the region have grown to 2.8 billionpacks in 2010.

    In 2001, SIG Combibloc and the Obeikan Investment Group entered into a joint venture to market aseptic carton packs and the filling machines for long-life beverages and food. The Obeikan Investment Group is a major player in the printing, packaging and publishing industries starting in 1982. The group has more than 3,000 employees and more than 15 representation offices in the Middle and Far East and Africa.

    Dr. Franz-Josef C ollin, now Managing Director of SIG International Services GmbH: The very first talks with Obeikan were extremely valuable for both future partners in the joint venture. At the ANUGA FoodTec trade fair in 2000, we jointly worked out the key points for the framework agreement for a joint venture, and just a year later we kicked off our partnership with a 50:50 joint venture.Both partners recognised the growing trend among the region's consumers to look for foods packaged for long life aspects of quality, hygiene and convenience played a key role here. For both partners, the partnership between the Obeikan Investment Group of Saudi Arabia and SIG Combibloc meant regional market entry with aseptic carton packs and additional growth in the Middle East region.The partnership began initially in sales and distribution and was later expanded to include production activities, with the building of a packaging materials plant in Riyadh. SIG Combibloc now employs 222 staff in Saudi Arabia.

    The establishment of a local packaging production was evidence of the positive


    German - Saudi Business Magazine

    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 after71 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 anadditional branch in Algiers (Algeria) inFebruary 2011.

    Closer to the market, quicker to the customer.

    A particular decisive step for the joint venture was the start of its cooperation with food manufacturer Almarai in 2005. For this company, the largest producer and exporter of milk and milk products in the Middle East, SIG Combibloc Obeikan

    provided complete filling and downstream solutions for a newly establishedproduction facility in Riyadh. Theflexibility offered by the new filling machines enabled the entire range of the companys 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 Combiblocs flexible fillingtechnology. Thus, Juhayna, Egypts 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 Dairy- Belle, South Africas 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 andnon-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.

    SIG Combibloc Obeikan

    A decade of success in the Middle EastSIG Combibloc Obeikan: Joint venture enjoys continued growth

  • Linde Linde


    German - Saudi Business Magazine German - Saudi Business Magazine

    Linde Engineering, a division of The Linde Group, is present in Saudi Arabia since 1984 and has its offices in Al Khobar and Al Jubail. Over the years, a great number of beneficial businessrelationships have been established between Saudi Arabian customers and Linde. Thanks to the local presence, Linde is dedicated to adding value to both the clients plants and to the Kingdom of Saudi Arabia as a whole. Furthermore, know-how is transferred into the Kingdom in line with Lindes commitment to thinking globally and acting locally.

    The following excellent projects were successfully mastered by Linde in the recent years:

    In July 2005, Linde was appointed to construct the ethylene plant at Al-Jubail for Tasnee Petrochemicals. Withthis and other orders in UAE, Lindesignificantly improved its marketposition in the growth region ofthe Arabian Gulf and confirmedits global technology leadership when it comes to ethylene plants. Mechanical completion of the Tasnee cracker was

    achieved on 15 July 2008, six weeks ahead of schedule.

    In September 2005, Linde signed the contract for a polyethylene plant at Al Jubail for the Eastern Petrochemical Company SHARQ, a joint venture with SABIC and a Japanese group. The plant with an annual capacity of 800,000 tonnes HDPE and LLDPE was handed over to the customer in September 2009.

    In November 2005, Linde was awarded the contract for the turnkey delivery of two air

    AHK Saudi Arabia - www.saudiarabien.ahk.de

    separation plants to produce pure oxygen by National Industrial Gas Company (NIGC), a subsidiary of SABIC.

    In November 2009, Linde publicised the first successful commercialisation of the SABLIN technology for producing linear alpha olefins, which was developed jointly by both companies.

    In October 2010, Linde was given the order to build an acrylic acid plant inAl Jubail. The plant has been delivered turnkey lump-sum to Saudi AcrylicMonomer Company SAMCO at theend of 2013.

    In April 2012, Linde's Engineering Division was awarded a major contract by the Group's Gases Division. This order is for the turnkey lump-sum construction of a two-stream HyCo plant (hydrogen and

    carbon monoxide) plus a single-stream ammonia plant with a large storage tank. The new plants will enable Linde to provide long-term supplies of these products to Sadara Petrochemical Company Sadara in Jubail at one of the worlds largest chemical complexes.

    In August 2013, Linde was awarded a contract to build the worlds largest carbon dioxide purification and liquefaction plant for Jubail United Petrochemical Company UNITED, a manufacturing affiliate of SABIC. The plant will be located in Al Jubail and will be designed to compress and purify around 1,500 tonnes per day of raw carbon dioxide coming from two nearby ethylene glycol plants. The purified gaseous CO2 will be pipelined through the piping corridor of the Royal Commission of Jubail to three SABIC-affiliatedcompanies for enhanced methanol and

    urea production. The plant will also be capable of producing 200 tonnes per day of liquid CO2 with food grade quality which will be stored and thereafter supplied by truck to the beverage and food industry. It is the first carbon capture and utilization (CCU) project of this size to be realised in Saudi Arabia.

    In a nutshell, Linde Engineering has designed and constructed some 75 big industrial plants in Saudi Arabia in the area of petrochemicals, refineries, synthesisgas and air gases over the last three decades. Linde Engineering is a truly global engineering, procurement and construction (EPC) company. Owninnovative technologies form the basis of Linde Engineerings offering for the process industry.

    Linde Engineeringstrack record in Saudi Arabia

  • Lurgi Lurgi


    German - Saudi Business Magazine German - Saudi Business Magazine

    Air Liquide Global E&C Solutions is a premium strategic partner and a world leader in engineering and construction, able to meet constantly growing customer needs and to exceed their expectations through creative, safe, reliable and competi-tive solutions with an optimum balance of investment and operating cost, and with efficient project management.

    One stop shop

    Over the years, we have developed proven project execution processes and tools

    across the entire project lifecycle.We have gained a significant amount of experience in projects involving a variety of scenarios, from high-value projectsand EPC (Engineering ProcurementConstruction) scenarios, to complex designs involving multiple technologies.

    Present since decades in the Middle East, and very well know via its Lurgi brand (Lurgi was integrated in Air Liquide in 2007) Air Liquide Global E&C Solutions has the requisite operational and industrial experience, and a global understanding of

    your challenges in monetizing natural gas. Based on your specific environment and objectives, we create customized solutions based on our wide portfolio of natural gas conditioning technology.

    Natural gas is a growing energy source at the same an abundant feedstock. Natural gas offers diversified gas usages, such as LNG as well as downstream products (MeOH, MTP, DME). Since a lot of new sources of natural gas are sour and its composition varies widely, an appropriate treatment and processing is essential,

    AHK Saudi Arabia - www.saudiarabien.ahk.de

    defined to clients needs according to the mixture of impurities.

    Air Liquide Global E&C Solutions offers products that fit each clients challenges, relying on or knowledge and capabilities across the entire gas treatment value chain.

    Proven technology

    The worlds largest LNG plant in Qatar uses our gas treatment technology. The latest train started up in 2011 with a capacity of 1,577 MMSCFD of raw sour gas. The challenging part was not only to remove carbon dioxide and H2S; rather, in addition mercaptans and carbonyl sulfide (COS), present in levels too high to be processed in the downstream liquefaction unit had to be removed first.

    Air Liquide Global E&C Solutions supplied the integrated natural gasprocessing concept OmniSulf,including the acid gas removal , sulfur recovery unit, Lurgi Tail Gas treatment and Aquisulf. This allows to guarantee a sulfur recovery of more than 99.9% for the whole complex. Our design achieves less than 1ppm COS in the product gas as

    well as 10 ppm CO2 and 2 ppm of H2S. The clients challenge is to ensure that the end product specifications as well as environmental requirements are met.

    In its own plants Air Liquide is operating its own SRU (Sulfur Recovery Unit inoperational), using the in-house Lurgi sulfur management technologies. Through a constant operational feedback within our Group, we continuously optimize our processes and provide innovative solutions, which are tried and tested.

    Our references

    We have contracted:

    More than 170 Lurgi Claus plants More than 40 Lurgi OxyClaus burners More than 60 Lurgi tail gas treating processes More than 50 Aquisulf plants

    Contact information: Grgoire Nollet, Grgoire Nollet Vice President, Middle East, India Zone, Air Liquide Global E&C Solutions, www.engineering-solutions.airliquide.com

    The YASREF Refinery Project involves the construction and operation of a 400,000 barrel per day (bpd) integrated petroleum refinery in the Yanbu Industrial City located on the west coast of Saudi Arabia along the Red Sea, and Air Liquide Global E&C Solutions currently provides to its client Air Liquide Arabia project execution and process technology and equipment for the HGU (Hydrogen Generation Unit) Plant to supply YASREF with the required H2.

    Beginning of 2014 Air Liquide Global E&C Solutions got the order to license an Acid Gas Removal Unit in Jazan Areato reduce pollutants hazardous toenvironment and further production. The plant is planned to be operational 2016.

    Lurgi Saudi ArabiaSolutions for the Middle EastGenuinely committed to innovation byconstantly enhancing its comprehensiveportfolio of proprietary technologies.

    Your Challenge





    Our Solution

    Amine Units


    Lurgi SulfurManagement




    p S





    Membranes (Medal)





  • Saudi banks provide retail and corporate banking, investment services, brokerage facilities, and derivative transactions in addition to credit cards, ATMs andpoint-of-sale transactions.

    There are also banks in the Kingdom that provide Islamic banking services. Islamic banking is a system of banking that is consistent with the principles of Islamic law (Shariah). It prohibits usury, the collection and payment of interest and trading in financial risk.

    Saudi Arabia also has a thriving stock market. The total value of shares traded


    German - Saudi Business Magazine

    annually is some SR 60 billion [US $16 billion]. The Tadawul All-Share Index (TASI) of the Saudi stock market is one of the most highly capitalized stock exchanges in the Arab world. TASI was also one of the first exchanges globally to set up a full electronic clearing and settlement system with immediate transfer of ownership.

    The banking and finance sector is overseen by several government agencies. The Ministry of Finance supervises economic policies. The Saudi Arabian Monetary Association (SAMA) manages fiscal policy, issues the countrys currency, the

    Saudi Riyal and oversees the nations commercial banks.

    The government has also established five specialized credit institutions to provide loans to citizens for development projects in agriculture, industry and construction the Saudi Industrial Development Fund (SIDF), the Saudi Arabian Agricultural Bank (SAAB), the Real EstateDevelopment Fund, the Public Investment Fund and the Saudi Credit Bank.



    Saudi Arabia has a modern banking industrywith 13 commercial banks.

  • In April 2006, Deutsche Banks presence was established in the Kingdom of Saudi Arabia with the opening of a branch in the capital, Riyadh. The branch is regulated by the Saudi Arabian Monetary Agency and operates under a full commercial banking license. A second entity, DeutscheSecurities Saudi Arabia LLC (DSSA), was incorporated in December 2007. DSSAis regulated by the Capital MarketAuthority and is licensed to carry out securities business.

    Deutsche Bank Saudi Arabia offers the full range of investment banking, asset and wealth management, and globaltransaction banking services. Deutsche Bank Saudi Arabia is well recognized for


    German - Saudi Business Magazine German - Saudi Business Magazine

    its leading role on some of the most prestigious domestic transactions, and is the recipient of several regional awards in recognition for its achievements in investment banking and Islamic finance.

    Deutsche Bank Saudi Arabias core businesses are: Corporate Banking & Securities (CB&S) combines the sales, trading and structuring of a wide range of financial market products, including bonds, equities and equity-linked products, exchange traded and over-the-counter derivatives, foreign exchange, money market instruments, securitized instruments and commodities. CB&S is responsible for mergers and acquisitions, including advisory; debt and

    equity issuance; and capital markets coverage of Sovereign entities, Financial Institutions and large corporations. Country-focused teams ensure the delivery of the entire range of financial products and services to clients.

    Global Transaction Banking (GTB) serves financial institutions and corporates globally by effectively managing their commercial banking needs. GTB's range of services in the Kingdom includes domestic and cross-border payments, trade finance and the provision of trust and securities services. As a global bank, Deutsche Bank has an in-depth knowledge of all relevant markets, as well asplacing state-of-the-art technologies at the

    AHK Saudi Arabia - www.saudiarabien.ahk.de

    Deutsche Bank in Saudi Arabia Deutsche Bank in Saudi Arabia

    disposal of its clients. Indeed, as one of the world's leading providers oftransaction banking services, Deutsche Bank offers an end-to-end service to support national and internationaltransaction banking needs.

    Asset and wealth Management (AWM): Offering a wide range of traditional and alternative investment products, AWM helps private and institutional investors to secure and increase their wealth. AWM also offers tailored wealth management products and services to ultra high net worth individuals and families. Deutsche Asset & Wealth Management joins together all of Deutsche Bank's wealth and asset management capabilities to offer a comprehensive selection of world-class products and solutions. These are supplied in a streamlined, client-centric coverage model.

    The global focus of Deutsche Bank's social responsibility is reflected in its regional units and foundations.

    Through its Middle East Foundations, Deutsche Bank continues to bring Deutsche Banks unparalleled global commitment to the Saudi community. This is done by supporting local NGOs and charities to build social capital by creating opportunities, fostering talent and ensuring long-term viability. Initiatives list includes:

    - Partnering with Al-Holailah Charity Society to support its Humanitarian Rehabilitating and Training Center in Al Ahsa in the eastern province of the Kingdom in 2014. - Organizing an Eid Party for the kids of Bunyan Association in 2013. - Supporting the Intellectual Education Institute for Girls in East Riyadh by hosting an art exhibition and purchasing a communication device for the Institute in 2012. - Partnering with Edge of Arabia to showcased Saudi Arabias leading contemporary artists in a two-month exhibition in Turkey in 2010.

    Deutsche Bank inSaudi Arabia

    Boris Klckner, CIIAVice President | Investment Advisor

    Deutsche Bank AGWealth Management Europe,Middle East & Africa (EMEA)Taunusanlage 12, 60325 Frankfurtam Main, GermanyTel. +49 69 910-22217Fax +49 69 910-22297Mobile +49 174 2400309Email [email protected]

    Visit us: http://://www.pwm.db.com orhttp://://www.banking-on-green.com/en/content/greentowers.html

  • The Saudi government invests enormous sums in the construction of a state of the art transport infrastructure. With an amount of total 17.2 billion US-Dollars 9.3 percent of the 2012 budget is planned to be invested in construction and infrastructure. Main projects worth more than 726 billion US-Dollars are planned or under way in the first quarter of 2012 and many are linked to big infrastructure projects in the field of transport. The extension of the Saudi railway network, investments in new ports and berths, new roads more than 4000 km long as well as the expansion of different airports are demanding sufficient planning and implementation.

    Railways in Saudi Arabia

    Saudi Arabia plans to enhance its network of public and industrial transportation. The Saudi Railways Organization is the operator of the Saudi railway system. Modern railways were introduced in Saudi Arabia in 1947 to facilitate the transport of goods of Saudi Aramco from ports

    Infrastructure in Saudi Arabia Infrastructure in Saudi Arabia

    30 31

    located on the coast of the Arabian Gulf to warehouses in Dhahran. Several development projects have been completed since then, including an extension of the line to Riyadh,construction of several passenger terminals and the opening of a dry port in Riyadh. Apart from this traditional railway the Saudi government invested billions of dollars in covering the whole country with a railway network. Since late 2010 the Metro Mekka is connecting the most important stations of the Hajj that will transport annually millions of Muslim pilgrims from Mekka over the cities Mina and Muzdalifah to Arafat and back. German companies like DB international and Siemens contributed actively to this state of the art railway. Under the title of the North-South Line the Saudi Railway Company (SAR) is in charge forconnecting the Saudi capital and cities in the Eastern Province like Ras al-Khair with the bauxite and phosphate mines in the North of the country. First trains with minerals from Hazm near the northern border arrived in Riyadh in 2011. Like in

    other projects the work is also done by subcontractors as for example the French Thales group.

    The Haramain Speed Train Project or Western Railway will link the cities of Medina and Mecca via King Abdullah Economic City (KAEC) in Rabigh, Jeddah and King Abdulaziz International Airport. The double-track line will be electrified and the design speed is 360 kilometers per hour. On 26 October 2011, the Saudi Railways Organization announced that the Saudi-Spanish consortium Al-Shoula Group won the contract. The Public Investment Fund (PIF) plans to develop a railway that connects the port cities of Jeddah, Dammam and Jubail, passing through the capital city Riyadh and serving its dry port. The rail link is expected to have a profound impact on shipping patterns in the region and is estimated to cost about 7 billion US-Dollars just for planning. The Saudi Landbridge will have the capability of moving large quantities of cargo over long distances at competitive rates and will

    offer safe, comfortable, and fast overland passenger transport between the country's four major economic centers. Other plans foresee to develop a railway in the South West of Saudi Arabia in order to link Jazan with the cities of Khamis al Mushayt, Taif, Mekka and Jeddah. Railways play also an important role on a multinational level in the region: the Gulf Cooperation Council (GCC) plans to implement a GCC-Railway. The purpose of the project is to link the six GCC states together running from Kuwait to Oman. The project will start in 2013 and is expected to be completed by 2017.

    Saudi Ports - the core ofinternational transportin the Kingdom

    Ports and shipping play an important role for Saudi Arabian trade. With its favorable geostrategic position between the Arabian Gulf and the Red Sea, Saudi Arabia functions as a bridge between the Mediter-ranean, East Africa and Asia. Especially Saudi Arabias main export goods like oil and gas find their destinations abroad by ship. The Jeddah Islamic Port is one of the biggest ports in the region. Apart from being a plot for in and out coming goods it plays also a major role for pilgrims during hajj. Annually about 500.000 pilgrims enter the country via Jeddah. All ports in the Kingdom are planned to be expanded within the next decade for enhancing their capacities. For instance the King Abdullah Port of the King Abdullah Economic City (KAEC) will have a capacity for 20 million 20-foot equivalent units (TEUs) when it is finished. It will be the first international commercial port in the Middle East which is privately owned, developed, financed and operated. Currently the ports of

    Dammam and Jubail are Saudi Arabias connection to the Arabian Gulf. With the new port in Ras al-Khair the Kingdom will have the possibility to ship their fossil and refined Bauxite and Phosphate directly to the customers all over the world. Even the capital Riyadh is connected to the Gulf via the Dry Port Riyadh that is run by the Saudi Railway Organization. Currently, the biggest project is the expansion of the King Abdulaziz Port in Dammam. The expansion will cost more than 500 million US-Dollars and includes the construction of a second container terminal at the port to increase the container handling capacity from 1.5 million 20-foot equivalent units (TEUs) to 3 million TEUs. Combined with the railway projects the Saudi harbor network will be able to import and export smoothly, even if the Strait of Hormuz should be closed for any reasons.

    Roads of Saudi Arabia

    The Ministry of Transport had a budget of 2.9 billion US-Dollars for 2012 provided for 284 projects to construct 4,154 km of highways, secondary and branch roads in addition to conducting studies and designing of 2,139 km of roads. While some of the projects are new, others are just a completion of existing projects. Additionally, another 4 million US-Dollars has been allocated to conduct studies and designing of a publictransportation system for each city. The aim is to ease the rush of trafficparticularly in large cities. The new allocations include construction of 814 km of new roads and study and designing 759 km of roads in the Riyadh region. The western region around Makkah, Jeddah and Medina will get 804 km of new roads in addition to the study and designing of 170 km of roads. Qassim in the North will get projects for the construction of

    216 km and studies on 50 km. The length of new roads to be built in the Eastern region is estimated at 496 km and studies will be conducted for the construction of 175 km. New roads are also planned in the Asir region, around the cities of Tabuk, Jazan, Hail and Najran as well near the northern and southern border ofSaudi Arabia.

    Up in the Air

    The General Authority of Civil Aviation (GACA) regulates the aviation industry by managing and operating international and domestic airports in cooperation with subcontractors. GACA is owned by the Saudi government that massively invests in the expansion of its airports. One of the bigger projects is the expansion of the King Abdulaziz International Airport (KAIA) in Jeddah. The purpose of the project is to increase the airport's capacity from 15 million passengers per year to30 million passengers per year. The KAIA Development Project (KADP) is developed in three phases at a cost of 11.3 billion US-Dollars. Phase 1 is expected to be completed in 2014. Phase 2 is expected to be completed in 2020 with a capacity of 50 million passengers per year and phase 3 is expected to be completed in 2035 with an annual capacity of 80 millionpassengers. Another big airport project is the Madinah based Prince Mohammed Bin Abdulaziz Airport. With total investments of 1.5 billion US-Dollars the airport's capacity will be increased from 3.5 million passengers to 14 millionpassengers per year.

    The market for projects linked to the Saudi infrastructure is oneof the biggest growing markets in the Kingdom of Saudi Arabia.

    German - Saudi Business Magazine German - Saudi Business Magazine

    AHK Saudi Arabia - www.saudiarabien.ahk.de

    Infrastructure inSaudi Arabia

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    German - Saudi Business Magazine

    160 years ago, Werner Von Siemens once said I will not sell the future of my company for the quick profit. Since then innovations from Siemens have been changing the world and Siemens has been following this path together with its partner E. A. Juffali & Brothers for over 80 years in Saudi Arabia.

    With its innovative technology, Siemens has been committed to developingsustainability through strong commitment to its customers and partners in Saudi Arabia and its technical expertise in the field of Energy, Healthcare, Industry and

    Infrastructure & Cities. Siemens currently has more than 2,050 employees inSaudi Arabia.

    Energy:Siemens Energy is a driving force for our daily lives through a wide range of products, solutions and services along with comprehensive know-how encompassing the entire energy conversion chain from power generation and transmission to distribution, plant-to-grid connections and much more with high focus on energy efficiency and sustainability. Siemens serves a broad spectrum of applications

    from utility to industry and from oil and gas to renewable energy, all required for a sustainable future of the power and water sectors in the Kingdom.

    In 2012 Siemens took the next step towards a massive expansion of its activities in Saudi Arabia, breaking ground on a landmark manufacturing facility for gas turbines and compressors. Planned for completion in late 2014, the center will create job opportunities for young Saudis, serving as a knowledge transfer hub for new Siemens technology and supporting the countrys industrialization drive.



    The power equipment manufactured at the plant will be supplied to the local Saudi market, where energy requirements are strongly increasing. Siemens and its local partner, E.A. Juffali & Brothers, is investing jointly a three-digit millionUS Dollar figure in the facility, which will be constructed on a 220,000 square-meter site in Dammam in the Kingdoms Eastern Region. The manufacturing facility isthe first of its kind for Siemens in the Middle East.

    Healthcare: Siemens Healthcare delivers hope each day to patients in Saudi Arabia and around the world and is trendsetter in medical imaging, laboratory diagnostics, medical information technology and hearing aids. Siemens offers its customers products and solutions for the entire range of patient care from a single source from prevention and early detection to diagnosis, and on to treatment and aftercare. By optimizing clinical workflows for the most common

    diseases, Siemens also makes healthcare faster, better and more cost-effective.

    Industry: Siemens Industry contributes through a board spectrum of products and solutions required in building factories and industries with its top notch integrated portfolio encompassing automation solutions, drive technologies and motion controls for greater productivity, energy efficiency and flexibility.

    Infrastructure & Cities:Siemens Infrastructure & Cities gearsfor making Saudi Arabia and itscities a place where people and business can thrive through a better quality of life. With a portfolio comprising mobility solutions, integrated building andsecurity systems, power distributions equipment, smart grid applications and low and medium voltage products among other sustainable technologies for metro-politan areas.

    Siemens in Saudi Arabia is committed to supporting the careers of young Saudis through targeted professional recruitment programs. The Siemens Generation21 program strongly supports educational activities with its innovative Discovery Box initiative reaching students of young age aimed to inspire tomorrows young engineers, doctors and scientists. Siemens, in association with Saudi Petroleum Services Polytechnic (SPSP) and Saudi Arabias Human Resources Development Fund (HRDF), offer a two-year technical apprenticeship program provided by SPSP, followed by one year of on-the-job training at Siemens. Depending on their job fields, students will be trained in various Siemens locations in Germany and the United States.


    German - Saudi Business Magazine

    AHK Saudi Arabia - www.saudiarabien.ahk.de

    Bildunterschrift: Siemens Energy is a world leader in industrial gas turbines forpower generation and mechanical drive applications

  • Saudi Arabia is a growing industry with huge potential and a well-positioned base for Western manufacturers wishing to sell vehicles both into the growing middle classes in Asia and Africa, as well as the rest of the Gulf region. The kingdom aims to build a large automobile and parts industry and the Saudi government is prepared to spend 1 billion US Dollars to develop the industrial city Yanbu as a Centrum for car manufacturing.

    Other car makers are already manufactur-ing in Saudi Arabia. Isuzu Motors hopes to produce around 25,000 trucks a year in Dammam and also Ratan Tata, chairman


    German - Saudi Business Magazine German - Saudi Business Magazine

    of Tata Motors which owns Jaguar Land Rover declared in summer 2012, to establish a plant in Yanbu by 2017. A big draw for Jaguar Land Rover is the aluminum smelter of the Ma'aden-Alcoa joint venture in Ras Al Khair. Further-more, there are already assembly plants of Mercedes, MAN and Volvo.

    Another major benefit are the abundant bauxite resources (the main source for aluminium) as well as the cheap electricity needed to fire its smelters and other low-cost raw materials. Petrochemicals giant SABIC is already working with companies like Volkswagen, Land Rover,

    Haji Husein Alireza & Co Ltds MAN Commercial Vehicle Division have a Continual Training program designed & approved in conjunction with MAN TB, to constantly asses & improve all aspects of our business, it is a Strategy that we at HHA firmly believe in, to continually Train & Educate our Most Valued & Important Asset Our Employees to help further their personal development Our Sales Teams attend a number of training seminars throughout the calendar year designed to improve productknowledge, competitor comparisons, communication skills & to develop the key skills required in the competitive market place that we operate in, these courses/seminars are held in our purpose built training center in Jeddah and our new training school at our newly expanded showroom & workshops in Riyadh.

    We have recently completed courses at both our centers in MAN BrandAwareness & Sales Dialogue Techniques, these particular courses are designed to focus our Sales Teams on the importance of the Brand Image and the importance of how to use that focus when negotiating with customers, to improve the customers perception of our products,

    All of courses are held and presented in both Arabic and English,

    As with our Sales Teams our Aftersales Team also follow a carefully planned program of training designed to keep our Technicians up to date with the everchanging technology. The MAN Service Training Academy ME currently offer a wide variety of technical face-to-face seminars from basic repairs to more advanced electronic training, E-learning programs are also offered coveringtechnical, non technical as well asmanagement courses.

    HHA MAN Aftersales division during 2012 completed a total of 51 days training which equates to approximately 4280 man hours training.. Additionally HHA with

    and Mitsubishi to provide new materials like lightweight engineering thermoplastics and enhanced fuel additives to their cars. Additional the Saudi government is likely to help with funding and cheap loans to build up an indigenous manufacturing industry.

    The domestic demand, coupled with demand from the Gulf and the wider Middle East, makes car manufacturing in the kingdom of Saudi Arabia feasible and Saudi Arabia will grow to an important position in the MENA region in the future.

    AHK Saudi Arabia - www.saudiarabien.ahk.de

    Automotive MAN

    MAN Service Academy will conduct two courses for customers who service and maintain their own fleets of MAN vehicles.

    One of the most exciting programs recently introduced by MAN ME is ProfiDrive, a driver training program that is designed to enhance a driver's practical capabilities, in conjunction with key theoretical knowledge in addition to fundamental economic driving techniques. The combined cost of fuel, tyres and maintenance make up well over half of the total cost of ownership of a truck. There-fore by adopting a driving behavior that shows an understanding of the vehicle, its driveline and engine performance, harsh braking, harsh acceleration and over speeding are eliminated. This produces a safer operation, making a considerable contribution to reducing operating costs. A number of HHA MAN customers have already taken advantage of this program and further ProfiDrive training dates are planned.

    At our Sister Company SAMCo Saudi Arabian Manufacturing Company Our MAN TB Approved World Leading Assembly Plant in Jeddah SAMCO uses its own on-the-job modular training programme T.R.A.I.N (Teach Record Asses Individual Needs) which gives credit

    to trainees for self development, showing the management each trainee's progress, serving as proof to official bodies of the employer's commitment to training staff, an objective reference for promotion, a motivational tool for both the TRAINEE and his peers, as well as being a daily reminder that their company embraces their career paths.

    All training is tested and certified by qualified Mentors to ascertain credibility and the independence and reliability of each worker. Certificates (and other incentives) are presented to the TRAINEE for each Module that is success-fully completed with Bronze, Silver or Gold grading. T.R.A.I.Ns on the job development of staff ensures man hours and production downtime are converted to positive uptime-meeting customer needs and expectations.

    Both HHA & SAMCO supportSaudisation and through its own SAMCO TRAIN programme it has now issued 92 T.R.A.I.N certificates to its SaudiNationals and has already certified two young Saudi men who had no previous experience in truck building to become certified team leaders, with otherssoon to graduate.


    Education & Training in KSA

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    In 1977, E.A. Juffali & Brothers, inassociation with Daimler-Benz AG of Germany, decided to set up a technology center to train young Saudis for