Program

The State of Kuwait has established itself as a stable partner for international businesses in the region and the German-Kuwaiti business relations are a blue-print for the long-lasting partnership between Germany and the Arab countries. Since the 70’s, Kuwait has invested in German companies such as Daimler and AEG and is still a trusted partner for these flagships of the German economy. The trade exchange between the countries on the other hand, rose steadily to reach almost 1.4 bn USD last year. Despite budget cuts following the low oil price, the Kuwaiti economy has stayed buoyant. Within the framework of the Vision New Kuwait 2035, the government initiated investments in infrastructure as well as economic reforms. In this regard, the outlook for growing business opportunities stays promising. The International Monetary Funds (IMF) predicts a growth rate of more than 3.5 percent in the upcoming years. Kuwait has also created favourable conditions for investors, several mega projects exemplify the high potential for the future. This panel shall build on the longstanding partnership between Germany and the State of Kuwait and open up new doors to establish new cooperation for investments.

Investment needs a strategy and strategies that go beyond the core competence of hydrocarbons are often not easy to define. There is a general consensus for the need of further industrialisation in the Arab World but while the drive for diversification coincides with the Fourth Industrial Revolution, challenges are considerable. The success of each country’s strategy will depend also on several factors such as human resources, regional integration and a true opening of markets and a reliable framework for foreign investors. To identify the main obstacles in this development, this panel aims to discuss possible strategies for implementation and explains success stories in various Arab countries. It also looks into possible know-how transfer in selected industries from Germany into the Arab World, especially with the direct investments in mid-market companies.

Digital economies are the Middle East’s future. Few other regions have the potential to embrace digitalisation as quickly and comprehensively as the Middle East; the opportunities are great. However, there will be winners and losers in the fourth industrial revolution. Disruption to industries and business models will be the new norm, and the pace of change means companies and nations face great challenges to stay competitive. Each country will require a transformation roadmap matched to its specific needs. So how can governments and the private sector work together to build strong, stable, world-class digital economies? Where will the investment come from? And how do we make sure today’s youth are equipped with the skills they need to thrive in a digital future?

A strong infrastructure is the basic foundation for a future-proof economy. This has been particularly evident since many Arab countries established themselves as international trading hubs. Arab governments have recognised the need for efficient logistics and transportation structures as essential for any kind of economic activity, and hence substantially invested in their establishment and modernisation. Several Mega Projects, which shall be discussed in this panel, show evidence of this development. In Qatar for example Lusail City arises in the north of Doha to give a sustainable living environment for more than 200.000 people. The Jordanian Government is putting much effort to develop a special economic and touristic city under the name Ayla near Aqaba. In Egypt, not only is the Suez Canal Economic Zone growing, but also the New Administrative City near Cairo. Furthermore the 500 billion Dollar infrastructural project NEOM in the Northwest of Saudi-Arabia is being planned to be a regional hub which adds economic value. The new approach aiming to realise a future proof and sustainable lifestyle in the Arab countries is the focal point of this panel. Several experts discuss to identify cooperation opportunities for Arab and German enterprises.

With the advent of new technology and new methods of cultivation, the industrial model of agriculture has achieved impressive success in the past decades. High-yield crops increased global food production and helped prevent famines and epidemics, resulting in an unprecedented global population growth since the 1960’s. Yet, the barriers to shifting to regenerative farming practices are still numerous, especially in Arab countries where arable land is rare and population growth is immense. On the consumer side, demand for organic and unprocessed food is growing and goes hand in hand with the rising interest for fresh and locally produced food. This panel explains, why modern farming technology is highly on demand within the Arab countries. The production of high-quality herbs, fruits and vegetables associated with the diminution of storage space, transportation or waste is seen as a promising solution.

The Arab-German business relations are long lasting and fruitful. Trade exchange rose steadily to almost Euro 50bn yearly, but it is still in favour for German enterprises. On the other hand, Arab investments in Germany are standing high at around Euro 100bn. This is a promising starting point, but challenges remain. German investments into the countries for instance are still limited, except to some countries such as Tunisia, UAE, Morocco, Egypt or Saudi-Arabia. German companies avail from an excellent reputation in the Arab world and can play a valuable role in contributing to build up sustainable economies in the region, that take advantage of the young and motivated population. Therefore, know-how transfer education and direct investments play an essential role. The panelists will discuss, how economic cooperation can meet challenges such as unemployment, and migration to further enhance stability and how the framework for investments and economic cooperation can be further enhanced.