Saudi Arabia to exclude German firms from government tenders

Scorpion

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Saudi Arabia to exclude German firms from government tenders: Spiegel

FRANKFURT/RIYADH (Reuters) - Saudi Crown Prince Mohammed bin Salman has ordered that no more government contracts be awarded to German companies, in a sign of continued irritation over Berlin’s foreign policy in the Middle East, German magazine Der Spiegel reported on Friday.


Citing no sources, it said the move was likely to hit major companies such as Siemens (SIEGn.DE), Bayer (BAYGn.DE) and Boehringer Ingelheim as well as carmaker Daimler (DAIGn.DE).

Relations between Germany and Saudi Arabia have been strained, and Saudi Arabia last year summoned its ambassador in Germany home for consultations over comments by then-Foreign Minister Sigmar Gabriel about the political crisis in Lebanon.

Saudi Arabia is a significant trade partner for Germany, generating 2017 exports worth 6.6 billion euros ($7.7 billion), according to Germany’s statistics office.


Siemens last year won an order worth around $400 million to deliver five gas turbines for a combined heat and power plant being built in Saudi Arabia. Daimler soon after secured an order for 600 Mercedes‑Benz Citaro buses from Saudi bus operator SAPTCO.

A senior German businessman in Saudi Arabia, who asked to remain anonymous, told Reuters on Friday that especially the healthcare sector was currently feeling added scrutiny when applying for Saudi tenders.

“They have even been asking: Where are the products coming from? Are they made in Germany? Do you have other manufacturing sites? And as soon as this is made in Germany, they have been rejecting any German applications for tender,” the person said.

Bayer, Boehringer and Siemens declined to comment on the report by Spiegel. Daimler said it could not confirm the report and that its business was ongoing.

A Saudi government media office did not immediately reply to request for comment.

Bloomberg News had reported in March that government agencies had been told not to renew some non-essential contracts with German firms.

At the time, it cited sources as saying that Deutsche Bank’s (DBKGn.DE) mandates in the kingdom were among those at risk, including a potential role in Saudi Aramco’s (IPO-ARMO.SE) initial public offering, which could be the largest share sale ever.
 

A123

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So Saudis to stay away from owning the following cars?
  • Audi
  • Porsche
  • Mercedes
  • BMW
I doubt.
 

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So Saudis to stay away from owning the following cars?
  • Audi
  • Porsche
  • Mercedes
  • BMW
I doubt.
Actually those car making companies you mentioned above do heavily rely on Saudi SABIC for parts manufacturing but the news is referring to arms/tech/electronics manufacturing companies.
 

A123

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Actually those car making companies you mentioned above do heavily rely on Saudi SABIC for parts manufacturing
Heavily?

What is Saudi export volume of these parts in USD?
 

Scorpion

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Heavily?

What is Saudi export volume of these parts in USD?
Most parts are manufactured by SABIC not only car parts but other materials as well. I don't have any figure to give tbqh but total trade hits $9 bl per year excluding arm deals.

https://www.sabic.com/en check their website.
 

A123

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Most parts are manufactured by SABIC not only car parts but other materials as well. I don't have any figure to give tbqh but total trade hits $9 bl per year excluding arm deals.

https://www.sabic.com/en check their website.
I know this site.
My question was specific, on which you gave up it seems.
I am or was talking of car parts only. I know it (car parts trade) is lackluster. Germany does not buy much (car parts) from Saudi.

If you have figures, append them here.
 

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https://economictimes.indiatimes.com/industry/auto/news/passenger-vehicle/mercedes-clocks-production-of-1-lakh-cars-in-india/articleshow/64341084.cms

India manufactured 1,00,000th Mercedes-Benz and you are telling me that Saudi contributes in parts manufacturing "heavily"?

Car seats = Mercedes-Benz - RECARO

Disk braking system: http://www.brembo.com/en

Speedometer: http://www.vdo.com

Electrical system: Bosch including (famous single) windshield wiper. bosch.com

Electric fan for AC: AEG = https://www.aeg.de

Shock absorbers & struts: Bilstein Mercedes Comfort verses Heavy Duty Bilstein Shock Absorbers ...

What is Saudi up to?

@Scorpion
 

Scorpion

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https://economictimes.indiatimes.com/industry/auto/news/passenger-vehicle/mercedes-clocks-production-of-1-lakh-cars-in-india/articleshow/64341084.cms

India manufactured 1,00,000th Mercedes-Benz and you are telling me that Saudi contributes in parts manufacturing "heavily"?

Car seats = Mercedes-Benz - RECARO

Disk braking system: http://www.brembo.com/en

Speedometer: http://www.vdo.com

Electrical system: Bosch including (famous single) windshield wiper. bosch.com

Electric fan for AC: AEG = https://www.aeg.de

Shock absorbers & struts: Bilstein Mercedes Comfort verses Heavy Duty Bilstein Shock Absorbers ...

What is Saudi up to?

@Scorpion
Saudi contribution in parts manufacturing doesn't mean Gemrney relies on Saudi Arabia only. SABIC does provide high quality materials and has been a major supply to major world countries. Saudi Arabia decision came after unfortunate announcements by Germany FM regarding Saudi Arabia- Iran nuclear agreement, allegation of Saudi Arabia putting Lebanon PM under house arrest, Saudi Arabia operation in Yemen. We will see if Germany is going to behave rationally or will sacrifices its trade relation with Saudi Arabia to please Iran and its terror militias in Yemen and Lebanon.
 

Scorpion

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I know this site.
My question was specific, on which you gave up it seems.
I am or was talking of car parts only. I know it (car parts trade) is lackluster. Germany does not buy much (car parts) from Saudi.

If you have figures, append them here.
I don't have access to published figures thus I can really give a definitive answer.
 

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