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Roads Air Railway Maritime German-Saudi Business Magazine November 2015 Infrastructure in Saudi Arabia

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Roads Air Railway Maritime

German-Saudi Business Magazine November 2015

Infrastructure in Saudi Arabia

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German - Saudi Business Magazine

Alexander DobrindtMember of theGerman BundestagFederal Minister of Transportand Digital Infrastructure

Editorial

Alexander Dobrindt

Dear readers,

Saudi Arabia, as the largest economy in the Gulf region, and Germany, as the largest economy in the European Union, are both facing the same question. What are the future drivers of growth, prosperity and jobs? The wealth pyramid of modern economies provides us with a clear answer to this question:infrastructure and mobility are the foundation of future growth. They are the prerequisite for well-functioning and globally connected flows of goods, of passengers and of data. There can be no prosperity without mobility this funda-mental principle of economics applies to both Europe and the Arabian Peninsula.

The Government of the Kingdom of Saudi Arabia has realized that mobility is inextricably linked to economic growth and, for many years, has thus been heavily investing in upgrading its transport infrastructure. Airports, seaports, high-speed rail lines and road construction projects amounting to more than ten billion euros are currently under construction or being planned. I am delighted that, for many years, German businesses have been supporting Saudi Arabia in this process with their expertise and state-of-the-art technologies"Made in Germany".

With increasing globalization and our economies and societies becoming more and more digital, we are now facing a true mobility revolution. We will see major traffic growth and innovation leaps in the years ahead, on the way towardsMobility 4.0. Autonomous and connected driving is in the starting blocks, the shift in drivetrain technology towards electric mobility is on the way and digital innovations such as the 3D printer are determining the future of aviation. In all these innovative fields, Germany is a pioneer for the digital mobility era.

We would like to shape the future of mobility together with Saudi Arabia and continue to strengthen our foundation for growth, prosperity and jobs - with state-of-the-art Mobility 4.0 technology from Germany. In addition, we would like to enhance our partnership in the field of vocational training. For this reason, we offer our support in establishing and operating vocational training organizations for the rail, transport and logistics sectors in Saudi-Arabia. Because the future of our competitiveness will crucially depend on the recruitment of skilled workers and the promotion of young professionals.

The "German-Saudi Business Magazine" is an important platform for exchanging ideas, providing impetus to new projects and communicating best practiceexamples of successful cooperation.

I hope you enjoy reading it and I wish you all the best.

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

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German - Saudi Business Magazine

Andreas HergenrötherDelegate of GermanIndustry & Commercefor Saudi Arabia, Bahrainand Yemen

Editorial

3AHK Saudi Arabia - www.saudiarabien.ahk.de

Dear readers,

Due to its high importance we like to dedicate this edition of our German – Saudi Business Magazine to the transport and logistics sector of the Kingdom of Saudi Arabia. The huge transformation process towards a modern industrial and knowl-edge economy comes along with great opportunities for German businesses.

When I started to work here in Saudi Arabia in 2010 many plans for the transport and infrastructure projects were still under preparation. In 2015 many projects like the Metro in Riaydh or the expansion of the airporty in Jeddah are being realized. I am very confident that German-Saudi business relations will grow continuously as they did in the past five years: Very positive regarding thedevelopment of German-Saudi commercial relations is the fact that German companies doing business in Saudi Arabia have nearly doubled from 360 to 700 since 2010 and the bilateral trade relations grew by about 40 % in the same period: In 2010 German companies exported goods worth 7,7 bn. USD. In 2014 the value of exported goods rose to 11,8 bn. USD. The first seven months of 2015 have seen an increase in the German exports to Saudi Arabia by more than 10 % compared to the same period in 2014.

The next ten years alone will see investments accumulating to 140 bn. USD in the transport infrastructure according to H.E. Abdullatif Al-Othman, Governor of SAGIA (Saudi Arabian General Investment Authority). At the end of the current decade rail networks will connect the cities, economic cities, ports, airports, mines and the industrial areas in Saudi Arabia. Light rail, metro and bus systems will provide modern and fast transportation for the growing population in the major cities. The renewed and expanded airports will serve as state-of-the-art gateways into Saudi Arabia all over the country. The Saudi ports will be able to handle yet even larger container ships and will support the global trade flow even faster. German businesses could be an ideal solutions provider and partner for the needed transfer of know-how and technology. German companies are engaged in many transport and logistics projects like Siemens and Dornier Consulting (Railway Masterplan), Hochtief (Riyadh Airport), DB International (e.g. Haramain Highspeed Rail) and Rail.One (the SAR Project). And DHL for example provides a dense network of services in the kingdom’s logistics sector and employs more than 3000 people.

Last but not least, it is time for me to say goodbye to you and to Saudi Arabia. The past five years have been fascinating, mind-blowing and challenging. The friend-ships I gained here will surely last a life long. My next destination after being in the MENA region for more than fifteen years will be Taiwan where I will be the Executive Director of the German Trade Office in Taipei from 1st ofNovember 2015.

I wish you all the best.

Andreas Hergenröther

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Editorial by Alexander Dobrindt

Editorial by Andreas Hergenroether

AHK Saudi Arabia

Past five years of AHK Saudi Arabia

Transport and logistics projects in Saudi Arabia

BMW

DHL

Gerber Architekten

German-Saudi cooperation in the port sector

Herrenknecht

Hellmann Worldwide Logistics

HOCHTIEF Infrastructure

Kuehne + Nagel

Lufthansa

Lufthansa

AHK Saudi Arabia

MAN Diesel

MAN Truck

Miebach Consulting

RAIL.ONE

S.A. TALKE

SIEMENS

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Volkswagen

AlZamil & AlKharashi Law Firm

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Disclaimer:German–Saudi Business Magazine(GSBM), Issue November 2015

Editor-in-Chief Andreas Hergenröther

Head of Public RelationsSören Kohse

Responsible for PrintingAHK Saudi Arabia © Copyright GSBM 2015. All rights reserved.

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

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The Delegation of German Industry & Commerce for Saudi Arabia, Bahrain 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). GESALO is part of the German Chamber Network and the official German Foreign business promotion. With 130 offices world-wide AHKs offer their experience, connections and services to German and companies of their partner countries. With a staff of 20employees, GESALO supports Saudi and German companies with its services. AHKs are closely connected to the Chambers of Industry and Commerce (IHKs) in Germany. Together, they represent in total 3.6 million companies in Germany. GESALO is the official representative of the 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 sectorinformation, matchmaking, business consulting, organization and repre-sentation of trade shows, issuing business publications, legalinformation, medical treatment support and vocational training, etc. On average, GESALO organizes 250 individual Business Partner Searches annually. This opens investment opportunities to Saudi companies as well as partnerships for technology and knowledge transfer. Numerous information events are being held by GESALO staff in Germany to promote Saudi Arabia as an invest-ment location and advocate for technology partnerships with Saudi companies. This contributes remark-ably to making Saudi Arabia visible

HISTORY

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The official representation of the German economy in Saudi Arabia

German - Saudi Business Magazine

AHK Saudi Arabia

in the German economy. GESALO’s connections to the internationally important German fair sites foster the making of contacts between Saudi companies and German business partners with innovative technologies. For this reason, GESALO organizes numerous business delegations for Saudi Arabian exhibitors and visitors to trade fairs, aiming at promoting export and connecting Saudicompanies with German cooperation partners.

By delivering key technologies and providing know-how “Made in Germany”, German companies have been contributing for many years to the realization of projects that are of strategic value for Saudi Arabia, for example in the oil and gas sector, in petrochemicals, in the construction of power plants and grids, but also in border hedging.

Beyond this, the matter of vocational training has gained importance for Saudi Arabia. Also in this field, German companies and German know-how belong to the global top. GESALO has established itself as important relay station for optimized knowledge transfer and will continue to hold that position.

Both countries are the major players in their respective regions. Bilateral trade has risen from 4 bn USD in 2003

to 10.8 bn USD today by more than 170 %. Not only has the economic opening brought this success about, but also did the work of GESALO as a catalyst for business have a decisive share in that intense cooperation.

Unlike bilateral trade, the field of investments is still waiting for more mutual engagement. GESALO is in the focus here, too. It serves asimportant contact point for both sides, to accompany potentialinvestors professionally.

Since October 2010 AndreasHergenröther is the current Delegate of the German Economy for Saudi Arabia, Bahrain and Yemen. In December 2010 the first German-Saudi Arabia Desk has beenestablished at the Bielefeld Chamber of Industry and Commerce. It functions as an information platform about Saudi Arabia for all German companies. GESALO organized over the course of the last 4 years more than 150 business delegations, confer-ences and B2B-events. In January 2014 GESALO and the Asharqia Chamber of Commerce of the Eastern Province have set up a German desk at the Jubail branch of the Asharqia Chamber in order to serve the German and Saudi Arabian companies of the Eastern Province in a more appropriate way.

The past five years have seen asignificant number of activities to support the German – Saudi Arabian business relations by the German-Saudi Arabian Liaison Office for Economic Affairs (GESALO).

GESALO’s activities cover big events like high ranking political and business delegations with the partici-pation of German Federal Ministers, crowded B2B meetings with the CEO’s of both Saudi Arabian and German companies, the regular catalogue shows in important Saudi business centers like Riyadh or

Dammam and conferences with big partners like the European Union.

To further strengthen the economic relations between Saudi Arabia and Germany GESALO does organize smaller events and lots of them. GESALO covers the big German trade fairs like the Hannover Messe, Innotrans or Domotex and GESALO invites Saudi Arabian businessmen and women to accompany us and to boost the economies of both Germany and our host country. Another impor-tant activity is the business partner research. German companies

interested in doing business in Saudi Arabia will receive all the help they need to find an ideal business partner.We use our insights into the Saudi market and German economy to organize high profile businessdelegations to connect Germany’s world class producers with the decision makers in the thriving Saudi sectors like transport and logistics, agriculture, petrochemicals, construc-tion and mining.

The following pictures will give you an insight into the past five years of GESALO.

Past five years of AHK Saudi Arabia

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German - Saudi Business Magazine

AHK Saudi Arabia - www.saudiarabien.ahk.de

Past five yearsof AHK Saudi Arabia

2012 – Visit of H.E. Philipp Rösler

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German - Saudi Business Magazine Past five years of AHK Saudi ArabiaPast five years of AHK Saudi Arabia

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AHK Saudi Arabia - www.saudiarabien.ahk.de

2012 – Catalogue exhibition in Jeddah

2013 – Meeting with H.E. Peter Ramsauer at transport and logistics trade fair

2013 – Meeting with H.E. Al-Zamil at fruitlogistica trade fair

2013 - Establishment of the Saudi-German business Forum by Abdullah Al-Mobty (CSC chairman)and Dr. Eric Schweitzer (DIHK president)

2013 – Hannover Messewith H.E. Dr. Taufiq bin Fozan Al-Rabia'ah,

Saudi Arabian Minister of Commerce and Industry

2014 – Grüne Woche withH.E. Dr. Fahad bin Abdulrahman Balghanem,

Saudi Arabian Minister of Agriculture

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AHK Saudi Arabia - www.saudiarabien.ahk.de

2015 – Delegation headed by H.E. Sigmar Gabriel, German Federal Minister for Economic Affairs and Energy

2015 – Meeting with H.E. Alexander Dobrindt, German Federal Minister of Transport and Digital Infrastructureat the transport and logistics trade fair

2014 – Meeting with Saudi students in Frankfurt 2015 – Catalogue exhibition in Riyadh

Transport and logistic projects in Saudi Arabia

This decade will see the complete renewal of the Saudi Arabian transport and logistics infrastructure. The biggest projects in Saudi Arabia are infrastructure projects. These are the Riyadh Metro, the Haramain High Speed Rail and the King Abdulaziz airport in Jeddah. By 2040 the rail network will cover of more than 10,000 km and the airports are either receiving important upgrades like the new Terminal 5 at the King Khalid airport in Riyadh, the big expansion project at the King

Abdulaziz airport in Jeddah or are new projects like the planned PPP airport in Taif. The ports will see major enhancements like the ongoing works at the King Abdullah port or the just expanded King Fahad port in Dammam whose rail connections with the dry port in Riyadh are currently upgraded. The Saudi ports are able to handle the biggest container ships in existence. And of course will all the major ports and airports be connected with thenew rail network.

This issue of our GSBM magazine will not only give you an overview of the projects in these sectors butwill also portrait many German companies who are active in Saudi Arabia and its infrastructure and logistic projects. Some of them are in the Kingdom for more than fifty years, are providing thousands of jobs for Saudis and are training young Saudis.

Transport and logistic projectsin Saudi Arabia

Biggest transport projects in Saudi Arabia

Project Project Owner Contract Value ($m)

Main Contract

Award

Main ContractCompletion

Riyadh Light Rail Transit (Riyadh Metro): Lines 1 & 2

Arriyadh Development Authority

9,450 Q3 2013 Q4 2018

Haramain High-Speed RailNetwork: Phase 2

Saudi Railways Organisation

8,396 Q3 2011 Q2 2016

Riyadh Light Rail Transit (Riyadh Metro): Lines 4, 5 & 6

Arriyadh Development Authority

7,820 Q3 2013 Q4 2018

Riyadh Light Rail Transit (Riyadh Metro): Line 3

Arriyadh Development Authority

5,210 Q3 2013 Q4 2018

Jeddah King Abdulaziz Intl. Airport: Phase 1: New Terminal: Package 1

Saudi Arabia General Authority for Civil Aviation

4,034 Q4 2010 Q2 2015

Jeddah King Abdulaziz Intl. Airport: Phase 1: New Terminal: Package 2

Saudi Arabia General Authority for Civil Aviation

3,194 Q4 2010 Q2 2015

Riyadh King Khalid Intl. Airport Expansion: Terminals Upgrade

Saudi Arabia General Authority for Civil Aviation

2,900 Q3 2014 Q3 2018

Haramain High-Speed RailNetwork: Phase 1: Package 1 (Civil Works)

Saudi Railways Organisation

2,871 Q1 2009 Q4 2016

King Abdulaziz Road Project in Mecca: Infrastructure

Umm Al Qura for Development & Construction

1,786 Q2 2015 Q4 2019

Source: Meed 2015

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On January 1st 1990, Mohamed Yousuf Naghi Motors was awarded as the official BMW Group importer in the Kingdom of Saudi Arabia, giving them the legal rights to import and sell BMW Group automobiles. 25 years on throughout 2015, the importer celebrated the successful partnership with BMW Group with the attendance of the Founder and Chairman Sheikh Mohammed Yousuf Naghi, Chief Operations Officer of Mohamed Yousuf Naghi & Brothers Group, Zouhair Eloudghiri, and Senior Vice President Automotive Premium Sector of Mohamed Yousuf Naghi & Brothers Group, Anees Jamjoom and Stavros Paraskevaides, Managing Director of Mohamed Yousuf Naghi Motors.

Addressing the management team, Sheikh Mohamed Yousuf Naghi, Chairman of Mohamed Yousuf Naghi & Brothers Group, commented: “We are delighted to have reached this significant milestone and I would like to thank our customers for theirunwavering loyalty and support over the years, which has helped to make us one of the best performing BMW Group importers in the Middle East, achieving year-on-year success. I also want to thank each and every one of our 750 employees for their relentless dedication over the years.”

Johannes Seibert, Managing Director of BMW Group Middle East, said: “This is a significant milestone to achieve. Over the past 25 years we have seen sustainable growth in the Kingdom due to the company’s commitment to invest on all levels of the business. I would like to give a special thanks to Sheikh Mohamed Yousuf Naghi, Chairman of Mohamed Yousuf Naghi & Brothers Group and his management team for their continued support and dedica-tion to making this long lasting partnership one of success and

BMW

Mustafa Younes,Mohamed Yusuf Naghi MotorsTel: +966-2-6695 333 [email protected]

prosperity. My team and I look forward to continuing our fruitful relationship to take the BMW Group brands to greater heights inthe Kingdom.”

Since 1990, the BMW Group has experienced robust growth and prosperity in the Kingdom with the support of Mohamed Yousuf Naghi Motors, seeing car sales go from 265 in 1990 to a total of 4,239 cars sold in 2014. The partnership started with a showroom and aftersales facility in Riyadh, Jeddah and Al Khobar. This gave full brand exposure and servic-ing to the importers customers in the Western, Eastern and Central region.

The next three years saw demand increase considerably, and additional investments were made with the opening of three new pre-owned BMW cars showrooms in Riyadh, Jeddah and Al Khobar between 1991 and 1993. Fast forwarding to 2004 and a new showroom and aftersales centre was opened in Holy Makkah to service customers in the city, in addition to a fast lane service centre being built in Jeddah aiming to offer customers precise and flexiblescheduling for the maintenance on their vehicle, with the shortest possible turnaround time.

The year 2008 was another significant year for Mohamed Yousuf Naghi Motors, investing 300 million SAR into expanding and improving infrastructure across all facilities in addition to building the world’s biggest BMW Group Service facility and a new showroom and aftersales service centre in Holy MadinaAl Monawarah, further highlighting the importer’s commitment to continually offer its customers the highest quality service.

Between 2009 and 2012 the importer further enhanced infrastructure with

new showrooms in Riyadh andthree new pre-owned showrooms, covering the Eastern and Western regions, the expansion and refurbish-ment of its flagship facility in Riyadh on Khorais road and the refurbish-ment of its main Jeddah showroom, the most historical BMW location in the Kingdom.

In 2014 the regional expansioncontinued, with the addition of theAl Qaseem showroom and aftersales centre in the Central region.

In 2014 Mohamed Yousuf Naghi Motors propelled the BMW and MINI brands to great heights, achieving a stellar annual sales performance with 4,239 vehicles sold across the Kingdom, representing 14% of the Group’s total sales in the Middle East and making Saudi Arabia the second biggest market in the region after the UAE. Furthermore, not only was BMW the leading premium brand in the Kingdom, with Mohamed Yousuf Naghi Motors selling more vehicles than any other German premium automotive manufacturer, but Saudi Arabia was also BMW Group’s biggest market in the Middle East for BMW 7 Series sales.

Marking the occasion, StavrosParaskevaides, Managing Director for Mohamed Yousuf Naghi Motors added: “We will be offering our customers a number of exclusive offers throughout 2015 in all of our showrooms across the Kingdom, so we encourage everyone to visit our showrooms to avail these offers.”

For more information please contact:

DHL Express has been present in Saudi Arabia for 37 years. Covering almost every part of the kingdom we have been partners in logistics to all of our customers for a very long time. Being a German Organization we have been aiding the trade lanes between Germany and KSA for many years and we will always continue in doing so. Geoff Walsh the DHL Express KSA country manager believes that our multimillion Euro investments in our infrastructure here in Saudi Arabia whether it’s in our new facilities in Riyadh (King Khalid international airport) Dammam (Kind Fahd International airport) or Jeddah (King AbdulAziz international Airport) has

surpassed our competition and will enable us to better serve the Saudi Arabian market for both its inbound and outbound business.

At DHL we are committed toenhancing regional and international trade lane relationships to increase global connectivity for the benefit of the growing GCC economies. As the world’s leading logistic provider it is important for us to support and help build both domestic and international trade lanes. Our recent investment highlights the importance of Saudi Arabia as one of the major inbound trade countries in the region, given the rate at which the country isgrowing and its strategic position in the Middle East.

DHL

Mohamed Yousuf Naghi Motors celebrates25 years of BMW Group success in the Kingdom

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The King Fahad National Library is a modern library building that was built in Riyadh on behalf of the Kingdom of Saudi Arabia between 2008 and 2013 by Gerber Architekten. This library brings new and old together:

In its architectural competition entry, Gerber Architekten, an architect's office based in Dortmund, Berlin, Hamburg, Shanghai and Riyadh, presented its idea of preserving the old library building and of enclosing this cross-shaped building with a new ashlar-shaped structure to form a "house within a house" system containing the library's stack-room. Above the stack-room, on what used to be the roof of the old building, a large reading room in the form of a well-lit reading landscape was created.

From this reading landscape, visitors can cross over bridges in order to get to the open-access area on the third floor of the new building. This area is covered by a new roof perforated with skylights, beneath which there are white membranes to gently disperse the light over the entire interior.

Chipped to the right place

Preparations are currently underway to implement an integratedRFID (radio-frequency identification) solution in the library including an automated book returning, sorting and transporting system for library resources. This system is a consider-able improvement on the logistics within the new library compared to the old one. With the new system that is planned, books are automatically

Gerber Architekten

sorted by their subject areasand locations after being returned, and transported from the reading room and back into the stack-rooms using a transport system matched to the architecture of the building. This same transport system can also be used to spontaneously and speedily supply resources from the stack-room storage and into the reading rooms. During the system's automated journey through the library, the RFID of the books comes into play. The radio-frequency identification takes the form of a chip glued into every book. Thanks to this identification,

the automatic transport system "knows" the floor and area wherethe book needs to be "dropped off".

The chips have other additional advantages: for they make wrongly placed books a thing of the past. One advantage is that the location of a book left unused on a desk can be found out within seconds and the book returned to its place. Another advantage consists in the fact that employees can quickly and easily determine the location of a book that has been put back on the wrong shelf.

While high-tech logistics are set to appear in the building's interior, the library impresses on the outside with its captivating façade: An ornamental covering made of rhomboidal textile sails plays with the themes of opening and veiling. These sails act as a sunshade on the one hand, and at the same time echo the Arab tradition of tent structures in a technologically modern way, giving the National Library a distinctive exterior.

The German-Saudi cooperation in the port sector is of a special, long-term nature, dating back in the 1970s. It has been restructured in 1982, through a cooperation contract signed between the Saudi Ministry of Finance (MoF) with GIZ and its strategic partner Hamburg Port Consulting (HPC), then HPS (HPS Hanseatic port system, a consortium of HPC and Rogge Marine Consulting). The st rategic objective of the cooperation was the provision of comprehensive advisory services and technical support to the Saudi Ports Authority (SEAPA).

The cooperation has run successfully throughout the years, focusing mainly on the following types of services:

• Seconding long-term and short- term experts;• Preparation of technical concepts;• Project Implementation support;At technical level the areas of key importance have been identified as:• Port development strategy;• Market / traffic forecast studies • Feasibility studies;

• Management support of SEAPA in various reorganization and functional performance and efficiency issues;• Economic analysis of investment projects and concession contracts;• Monitoring the performance of SEAPA’s terminal operators;• Tender procedures, tendering, and contracting of services contracts;• Port safety and security;• Capacity building and institutional support;

Currently the Saudi ports still need to seriously improve towards higher port services efficiency and their more effective integration with the local, regional, and global supply chains and multimodal transport networks. The role and involvement of the private sector in future port development is highly valued by the Saudi government. Consequently, the GIZ / SEAPA cooperation is expected to continue focusing on key needs of the Saudi ports’ modernization, and more particular in areas such as:

German-Saudi cooperation in the port sector

Making misplaced books a thing of the pastEfficient processes in the King Fahad National Library thanksto modern library logistics a. Institutional reform of SEAPA and

of the Saudi port sector in general (independent port authorities / port regulator);b. Saudi ports’ integration into national and international supply chain and multimodal transport networks;c. Port infrastructure / superstruc ture development and port master planning;d. Development of effective port communities;e. Networking of Saudi ports with successful international ports for faster and effective adoption of international best practices;f. Port safety / health and environmental protection;g. Training;h. Introduction of ICT systems;Given the extensive range of SEAPA’s future needs and the longstanding successful cooperation, the future perspectives of the German-Saudi partnership in the port sector remain very substantial and optimistic.

German-Saudi cooperationin the port sector

(c) Gerber Architekten Fotograf Christian Richters

(c) Gerber Architekten FotografHans Georg Esch

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Herrenknecht Herrenknecht

Contact:Herrenknecht AG77963 SchwanauGermanyPhone +49 7824 302-0Fax +49 7824 3403

[email protected]

Herrenknecht Saudi Arabia Ltd.Al Dainy Plaza, 8th Fl., Madinah Rd.& Hera Str.Jeddah 21332Saudi ArabiaPhone +966 2 6127667

Underground infrastructures are increasingly forming the arteries of our global society. They provide for mobility, supply and disposal and explore raw materials. Herrenknecht has been paving the way for them for almost 40 years.

Herrenknecht is the leading premium provider worldwide for all-around technical solutions in mechanized tunnelling. Together with our customers we take on the toughest challenges. Our tunnelling systems render top performances for our clients’ road to success.

Metro, railway, road, utility, pipeline, hydropower, mining and explora-tion: Herrenknecht’s references include more than 2,600 completed

projects around the world. Our tunnelling technology helps to build tunnels, pipelines, shafts and produc-tion wells in all ground conditions with diameters ranging from 0.10 to 19 meters. Pioneering technology from Herrenknecht ensures safe progress when constructing modern infrastructures in all areas of applica-tion. Exactly where they are needed. In Saudia Arabia Herrenknecht tunnel boring machines and equip-ment are involved in several impor-tant projects aiming to match the requirements of the growing cities.

Riyadh: Revolution of the public transport system

Riyadh is building a metro system to provide a powerfull solution to the

city‘s public transport needs.Herrenknecht delivers in total6 tunnel boring machines for the five-year giant project. The new metro system consists of six lines, with a total length of 179 km and83 stations. It is planned to accommo-date 1.16 million passengers per day at the beginning of operation and3.6 million passengers per day after10 years.

Mecca: Challenges in the Holy City

The underground traffic and utility infrastructure of the metropolis is being expanded. To increase the capacity of the existing sewage system, two so-called EPB Shields from Herrenknecht are driving two 1.5 and 1.8km long tunnels. A new

Building the backbone of Saudi Arabia´s infrastructure

A Herrenknecht micro tunnelling machine starts its advance for the new sewage system in Jeddah.

Herrenknecht remote monitoring system allows a machine operator in Germany to monitor the drive in Mecca in real time around the clock via cameras and to provide maximum support,if needed.

Jeddah: Extension of the sewage system for a better quality of life

The large city of Jeddah on the Red Sea in Saudi Arabia is extending its sewage system with the help of a comprehensive master plan. Rapidly more and more households are connected to the sanitary system. Around 30 utility tunnelling machines by Herrenknecht areworking on the new tunnels and are paving their way through the soil. The local Herrenknecht subsidiary provided prompt supply with spare parts and fast service.

Al-Jubail: New pipelines for the black gold

Today, Al-Jubail is one of the most important industrial centers and ports of Saudi Arabia. Thanks to its oil occurrences the ancient village has become an ultra-modern city within 40 years. To feed the black gold from the offshore oil field safely to the refinery on land, two parallel pipelines had to be laid beneath the seabed. Therefore Herrenknecht delivered two powerful so-called HDD Rigs.

Herrenknecht in brief.The Herrenknecht AG is a family owned German company and a technology and market leader in the area of mechanized tunnelling systems. The Herrenknecht product range includes tailor-made machines for transport tunnels (Traffic Tunnel-ling) and supply and disposal tunnels (Utility Tunnelling). Herrenknecht also develops innovative machine concepts for mining and produces

state-of-the-art deep drilling rigs and plants for the exploration of energy resources such as oil and gas and geothermal energy. In 2014, the Herrenknecht Group achieved a total output of 1.082 billion euros. The Herrenknecht Group employs about 5,000 people worldwide, including around 200 trainees. With 80subsidiaries and associatedcompanies, Herrenknecht provides comprehensive services close to each project and customer. To provide our Saudi Arabic customers with prompt supply of spare parts and fast service, we established the subsidiaryHerrenknecht Saudi Arabia Ltd.in 2008.

Two Herrenknecht TBMs for the construction of metro tunnels in Riyadhafter the workshop acceptance in Germany.

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Our beginnings can be traced back to our founder, Carl Heinrich Hellmann, who back in 1871 formed Hellmann Logistics in the small town of Osnabruck, Germany.

Thanks to the dream and vision of Hellmann, a new organization was born with the commitment and vision to support its customer’s needs from beginning to end. Since 1871, Hellmann has evolved into Hellmann Worldwide Logistics. An organiza-tion that is global in its business presence and specialized within every major sector of the logistics industry. With 19,300 strong and passionate employees, Hellmann carries with it through present day, the commitment of over 4 generations of the Hellmann family. This serves as a continuation of the tradition of excellence started off by the late Carl Heinrich Hellmann.

Today, with 443 offices in over 157 countries, we are able to reach every major country and city in the world. We leverage our experience and strength to bring our customers the highest quality logistics services. Unique to the logistics industry, Hellmann has made the strategic decision to build a portfolio of services that bring value to the specific needs of our customers with a dedicated staff, using specialized information technology tools,reporting capabilities, and leveraging on the many years of experience in the supply chain logistics industry.

Unlike many larger logisticscompanies, Hellmann does not impose standardized processes or procedures on its customers. Hellmann’s consultative approach ensures that our service team fully understands our Customers unique

Hellmann Worldwide LogisticsHellmann Worldwide Logistics

Hellmann Worldwide Logistics144 years of Logistics experience at your service…

needs before custom-tailoring a logistics solution.

Hellmann’s Industry Solutions are designed to give our customers a competitive edge. Using teams of dedicated professionals who are familiar with the specific require-ments of that industry, we offer logistics solutions which are not just fast, and efficient, they also provide the peace of mind that your goods are being handled by specialists.

Hellmann's core range of industry-specific solutions are:

• Automotive Logistics• Fashion Logistics• Healthcare Logistics• Marine Solutions• Perishable Logistics• Project Cargo• Renewable Energy

In 2013 Hellmann WorldwideLogistics was established in Saudi Arabia as a foreign owned company through Saudi Arabian General Investment Authority with the Head office located in Jeddah. We currently operate out of our Head Office in Jeddah, a Branch office in Riyadh and a representative office in Dammam

which will be converted into branch office in early 2016.

The diversity of the Saudi Arabian Logistics industry means that no two customers are the same and there are different handling procedures for each port/airport and for each customers individual product. This is an advantage for Hellmann as we do not impose standardized processes for the country on our customers but instead work with a wide range of specialized subcontractors who know exactly how each product must be handled in each port/airport, or at customs. Internally we follow our ISO 9001 certified processes and our selection process ensures we only license the best subcontractors and enforce 100% regulatory compliance.In addition to our Freight Forwarding business, we have gained a strong foothold within the warehousing

business where we operate facilities all the way from King Abdullah Economic City to Riyadh Industrial Area. Keeping in tune with our customer’s requirements we offer warehousing services in our own facilities and/or manage ourcustomers own facilities where we have added HR/ADMIN services to our portfolio. The HR aspect of our business has proven increasingly important in a market with ever changing labor regulations as the warehousing business traditionally required a high ratio of expat labor. In corporation with Chamber of Commerce and Human Resource Development Fund we are able to offer solutions improving ourcustomers Saudization quota and leaving our customers to focus on what they do best.

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The world is growing. More andmore people are living in cities. The expansion of urban infrastructure is becoming essential good water and energy supply, and a functioning transportation system. Global trade demands well- developed trans-shipment centers: airports, container terminals, railway routes and highways.

Growth and economic success can only be achieved on firm foundations. In Europe and selected regions around the world, HOCHTIEF creates the foundations for well-planned, sustainable growth for example by building bridges, roads, railways, tunnels, airports, ports and urban infrastructure, all the way through to plants for the generation of conventional and renewable power. Over decades HOCHTIEF has gathered experience in the area of

HOCHTIEF Infrastructure

infrastructure, and has continuously expanded its know-how.

Saudi Arabia has a very specialimportance for HOCHTIEF: After all, between 1974 and 1981 the company built the Jeddah Airport there and this remains the company’s biggest single contract to date. Nearly three-and-a-half decades later, HOCHTIEF as part of a joint venture has once again been awarded a major contract in the kingdom: Another airport this time in the capital, Riyadh.

HOCHTIEF has been awarded to expand the city’s King KhaledInternational Airport (KKIA) by May 2019. The company has signed an agreement with the Saudi General Authority of Civil Aviation (GACA). As the technical and commercial lead of the “Riyadh Airport Expansion” joint venture, HOCHTIEF Solutions Saudi Arabia will work with an

Indian and a local Saudi construction company to redesign, upgrade and expand two existing terminals, and to demolish and refurbish other parts of the airport infrastructure. The contract is worth about EUR 1.3 billion. This project is only a part of the extensive program by GACA to develop and expand the airport’s facilities worth EUR 4 billion. Apart from refurbishing and expanding the existing Terminals 3 and 4, the contract also involves the demolition and reconstruction of the aprons inclusive of apron lighting and fueling facilities. The contract further covers the construction of newterminal lounges and operationbuildings, as well as the installation of baggage handling and security systems. HOCHTIEF will also be responsible for installing IT, fire protection and communication systems.

One of HOCHTIEF´s most legendary major projects in Jeddah, Saudi Arabia. The enclosed property is 105 squarekilometers and the installation´s core is made up of four terminals. One of them is the Pilgrim´s terminal,Its fascinating pavilion roof is the largest covered space in the world and has already provided shade for millionsof pilgrims to Mecca.

Starting operations in Saudi Arabia in 1976 as a 50/50 joint venture with E.A. Juffali & Bros. under the name of Orient Transport, Kuehne + Nagel developed steadily in the market. In 2007, Kuehne + Nagel acquired the remaining shares from the joint venture partner and since mid-July 2008 became the first global logistics provider to operate a wholly-owned subsidiary in Saudi Arabia registered as Kuehne + Nagel Ltd. Combining its international expertise for more than 37 years in the Kingdom with the best domestic practices, Kuehne + Nagel positioned itself as the top integrated logistics operator.

Well established since 1977

Kuehne + Nagel Saudi Arabia offers its customers a wide range of

domestic and global services. As a neutral, non-asset-based provider, Kuehne + Nagel can select suitable carriers, depending on the customers’ individual requirements. In addition, Kuehne + Nagel provides dedicated solutions for the world’s majorindustries including Aerospace, Automotive, High-tech and Pharma. Another important pillar of the product portfolio is the handling of perishable goods. The company is present in Jeddah, Riyadh and Dammam with fully operational set-ups in Seafreight and Airfreight, including Customs Clearance. The Kuehne + NagelDifference

Kuehne + Nagel Saudi Arabia offers tailor-made integrated and global

Kuehne + Nagel

Kuehne + Nagel: Over 37 yearsof presence in Saudi Arabia

solutions of outstanding quality. Its unique company culture, its customer oriented teams with a “Can-Do” attitude, and a decentralized structure allow for rapid decisions. Kuehne + Nagel is focused to provide integrated and innovative solutions to cater to all customer needs.

For further information please visit www.kuehne-nagel.com

We are building the world of tomorrowHOCHTIEF Infrastructure

With comprehensive end-to-end logistics solutions and global capabilitiesKuehne + Nagel has evolved from a traditional international freight forwarder to a leading global provider of innovative and fully integrated supplychain solutions.

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Lufthansa Lufthansa

Delighting our passengers with a premium in-flight service: that has always been very close to our hearts here at Lufthansa and is one of our most important aims during a flight. Our legendary ‘Senator First Class Service’ set high standards in this regard as early as 1958 by delighting passengers with a completely new service experience above the clouds. The new Lufthansa Business Class Restaurant Service will now continue this tradition under the motto of: “Exclusive by tradition. Excellent by passion”. With this service initiative on intercontinental flights, Business Class passengers will be able to experience more individual and personal attention on board which, in turn, will make their flight more enjoyable.

Courteous service with the personal touch

Every passenger in Business Class has their own wishes, their own ‘rhythm’: for example, they may want to focus on work or take theopportunity to relax, they may be early or late risers. To respond to this as effectively as possible, our new service will always provide one flight attendant for a manageable number of passengers. On certain flights and where there is a high occupancy rate, the number of flight attendants in Business Class will therefore be increased. The flight attendant will be on hand in person for his or her passengers during the flight and

will make sure that they arefeeling completely comfortable. With attention to detail and attentiveness to individual requirements, the flight attendant will look after themcourteously just as in a goodrestaurant.

Every moment counts from the welcome on board to saying goodbye

As usual, passengers will be treated with great respect and courtesy as soon as they board the aircraft. They will be given a warm welcome, their coat will be taken from them and hung up and they will be brought a welcome drink. In addition they will now receive the menu before take-off so that they can get an early overview of the choice of dishes available. Above all, however, it will be the personal attention that will give passengers the feeling of being in good hands on board. A feeling that will continue throughout the entire flight. For at every turn our flight attendants will prove themselves to be perfect hosts who, with their excellent service and their responsive-ness to their guest’s wishes, make the stay on board as pleasant as possible.

This new service will also be evident in the way food and beverages are served: on carefully laid tables without trays – just as one would expect from a good restaurant. At the same time, the serving of the food on china tableware will underline the high-quality of the cuisine. And the time when dessert is served or a wine glass refilled will be dictated by the wishes and the ‘rhythm’ of the individual passenger.

Even in the especially quiet moments on board, passengers will receive exactly the amount of attention that

they want. Whether it is another espresso as they are working, an extra pillow for a restful night’s sleep or skipping breakfast for an undisturbed lie-in – their personal flight attendant will take care of all their require-ments. And should passengers feel hungry between meals, there is a range of snacks laid out for them in the galley – to which, of course, they are welcome to help themselves.

The start of a new day is equally pleasant – from the gentle waking and the offer of an extra cup of tea or coffee to the provision of our usual high-quality amenity kit. So our relaxed and fully rested passengers will take a special experience away with them along with a personal goodbye: they will have enjoyed hospitality par excellence.

Introduction of the new service concept from August 2015

Lufthansa will start introducing the new Business Class Restaurant Service gradually from this August, beginning on all Airbus A380 flights from Frankfurt. This will be followed from 1 September by Boeing 747 flights from Frankfurt to and from Asia and the Middle East, and then from 25 October passengers on Airbus A340/A330 flights from Frankfurt and Munich to and from Asia and the Middle East will also be able to experi-ence this new service concept.

Lufthansa German Airlines offer its largest schedule ever with total of 24 weekly departures from Saudi Arabia providing a seamless connection between the key cities of the Kingdom and the airline’s hubs in Frankfurt and Munich. With these convenient connections, Lufthansa continues its long standing tradition of facilitating the closest of ties between the business communities of Germany and Saudi Arabia.

“What started 55 years ago, initially with flights between Frankfurt to Dhahran, has expanded into one of our most important operations globally,” said Harald Hahn, Lufthansa General Manager for Saudi Arabia & Bahrain, on occasion of German National Unity Day.

Daily flights are operated from Jeddah, Riyadh and Dammam. Three additional weekly flights are offered between Riyadh and Lufthansa’s Bavarian Hub, Munich the gateway to Southern Germany and the Alps.

Operating from Frankfurt and Munich, Europe’s most punctual hubs, Lufthansa offers business and leisure travellers from the Kingdom a global network this summer with over 200 destinations in 76 countries. Passengers from the Kingdom will find seamless connections through-out the Lufthansa network including those to the USA and Canada with 20 destinations offered from Frankfurt, making Lufthansa the leader in linking the Middle East with the North Atlantic’s most important financial centers.

“Our passengers’ convenience and comfort have always been paramount to us. More and more personalisation is being rolled out to provide our

Lufthansa - Connecting the Kingdom to Germanyand beyond providing world-class services

More individual and personal attention: the newrestaurant service in Lufthansa Business Class

customers a complete and individual-ized travel experience from the time they book up until their arrival. This fall, our customers will enjoy the full spectrum of our new product offerings on board, with the latestin cabin designs,” added Hahn. Lufthansa has invested one million Euros daily over the last three years on its on board products, including the retrofitting of over 100 long haul aircraft some of which serve the Kingdom, with Lufthansa’s First, Business, Economy Class as well as new Premium Economy cabin.

In fact, Lufthansa’s Premium Economy Class is already operating on many flights to the Kingdom, with full roll out on the Middle East long haul routes by the start of the 2015/16 Winter Season on October 25th.

“We are creating a completely new travel experience that combines affordability with greater comfort. The seats offer up to 50 percent more room than Economy Class,positioning Lufthansa as a leader in premium service in all four classes of service, Hahn noted proudly.

Lufthansa’s First Class passengers flying throughout Lufthansa’s network of destinations already enjoy the highest quality of service and comfort available. On a growing number of select destinations in North America as well as Asia, passengers will experience the award-winning First Class cabin on board the Boeing 747-8 – Lufthansa’s newest “Queen of the Skies.” On board, the superb comfort of the First Class cabin with its ergonomically contoured seat that converts into a fully flat, two-metre long bed has won a 5-star award from Skytrax.

In addition, Lufthansa has retrofitted each and every long haul aircraft this year with the new Business Class offering a fully-flat bed, upgraded meal service a 15” inch TV monitors and one of the most advanced inflight entertainment systems in existence.

“With our product enhancements Lufthansa remains true to itscommitment of serving Saudi Arabia as a key pillar in the bourgeoning relationship between the Kingdom and Germany,” concluded Hahn.

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MAN Diesel

In November 2014, five giant trucks hauling huge monsters of steel rumbled through the desert between Saudi Arabia’s Jeddah Islamic Port on the Red Sea and the Al-SadiyaMountains. Their cargo was a 130-ton MAN 20V32/ 44CR diesel engine for a new cement plant under construc-tion in the limestone-rich Al-Sadiya site on behalf of the United Cement Industrial Company (UCIC), a Jeddah-based Saudi business established in 2013. MAN Diesel & Turbo had received an engineering, procurement and construction (EPC) contract to build an independent diesel power plant for the new facility. In its product portfolio, MAN Diesel & Turbo carries specifically engineered power plants for remote locations with no access to electricity grids (island mode) all over the world. And as these are the only source of power, technical excellence is essential. Supplied MAN engines for this project feature modern common rail technology, an electroni-cally controlled injection system that controls fuel consumption and emissions. For the UCIC project, MAN supplies not only the engines, but also all ancillary equipment – ranging from the machine control-room and cooling systems to the processing and disposal systems. The project was signed off in summer 2013, with construction commencing a year later and final power plant handover to the customer scheduled for February 2016. Saudi Arabia’s cement industry is flourishing, due to a construction

boom caused by demographic and macroeconomic factors. A growing population and changing family structures – such as the trend toward smaller households – are increasing demand for residential properties and new industrial areas, including big oil refineries. At the same time, the government vastly increased infrastructure spending since 2013, resulting from a great year for the oil industry in 2012 and an associated 20% surplus in GDP. This has turned the kingdom into the largest projects market in the Middle East, according to the “Saudi Arabia Projects Market 2014” issued by MEED, a Middle East business intelligence provider. “Saudi Arabia is a key market for our power plants division, where we have gathered decades of experience,” says Howard Barnes, Senior Vice President and Global Head of Sales Power Plants. The UCIC power plant will supply 55 megawatts, facilitating a cement production capacity of around 5,000 tons per day. The engines at UCIC were designed to withstand local conditions, including temperatures of up to 50°C. Special pulse filter systems in front of the air-intake ducts keep sand particles out, using compressed air to blow air filters free when sensors register a

loss of air-intake pressure, while a huge system of radiator coolers is designed to regulate the cooling water systems. Once the plant is finished, the service experts from MAN PrimeServ take over. In Saudi Arabia customers can rely on both, an experienced team and a strong local footprint. The PrimeServ office and workshop in Jeddah was opened up in November 2009. Today 18 experienced engineers and service staff members operate from a workshop, which meets the highest and latest quality standard. No matter, what kind of challenge the customer is facing, he can rely on 24/7 state of the art service.

MAN Diesel & Turbo SE, based in Augsburg, Germany, is the world’s leading provider of large-bore diesel engines and turbomachinery. The company employs around 14,900 staff at more than 100 international sites, primarily in Germany, Denmark, France, Switzerland, the Czech Republic, India and China. The company’s product portfolio includes two-stroke and four-stroke engines for marine and stationaryapplications, turbochargers and propellers as well as gas and steam turbines, compressors and chemical reactors. The range of services and supplies is rounded off by complete solutions like ship propulsion systems, engine-based power plants and turbomachinery trains for theoil & gas as well as the processindustries. Customers receive world-wide after-sales services marketed under the MAN PrimeServ brand.

MAN Diesel

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MAN Truck Miebach Consulting

The holistic optimization of individual logistics elements up to the whole supply chain is the core business of the world-wide operating supply chain consultancy Miebach Consulting. The company was established in 1973 by Dr.-Ing. Joachim Miebach in Frankfurt,specialized on planning andimplementing distribution centers and warehouses. With constantly changing customer requirements, Miebach has expanded their business to Supply Chain Management services, too: From developing the optimal supply chain strategy, through planning and implementing of logistics installations or ramp-up management, Miebach is supporting their customers in developing Supply Chain Excellence and sustaining competitive advantages. Today, 320 experts at 20 locations in 17 countries work for Miebach’s customers across a wide range of industries, from automotive to consumer goods and retail.

„Our company’s growth is based on the strategy to go wherever our customers need us. This philosophy was the reason why we expanded to Saudi Arabia; to ideally support

our customers locally, with aninternational network and German engineering expertise“ says Jürgen Hess, CEO of the Miebach Consulting Group.

Located in Dammam since 2011 „Saudi Miebach Co. for Storage Solutions“ supports companies from Saudi Arabia, Dubai and Bahrein with planning and implementing supply chains and logisticsinstallations. Miebach’s customers in the Middle East are, among others, Hidada, Ford, Redington Gulf,

Tusdeer Signature Group, Jatco/ Abudawood, Saudi Bulk Transport and Saudi Infrastructure Services Company.

„Our current projects in the Middle East, especially in Saudi Arabia, cover the areas business strategy, network design, storage and plant planning, warehouse design as well asautomatization. We want to grow and further expand our resources in this dynamic market“ adds Hess.

MAN Truck & Bus today announced an important milestone with the company celebrating 100 years of commercial vehicle manufacturing. In the Middle East, MAN Truck & Bus has built a leadership presence with operations across the GCC and Levant over the years. This year also marks the 30 year anniversary of MAN Truck & Bus’ association with its valued distributor Haji Husein Alireza Co. (HHA) in Saudi Arabia.

Franz von Redwitz, the newManaging Director of MAN Truck & Bus Middle East said, “Celebrating 100 years of commercial vehicle manu-facturing is a significant achievement and I am proud to lead MAN Truck & Bus Middle East during this historic occasion. MAN has a longstanding presence in the region and along with our valued distributor Haji Husein Alireza Co, we have earned a well-founded reputation as an innova-tive and reliable commercial vehicles manufacturer delivering high quality products to our customers in various industries in Saudi Arabia. As we look ahead to the future, we rededi-cate ourselves to maintaining this wonderful heritage by continuing to support our customers’ transporta-tion requirements with leading indus-try products and services.”

Ali Alireza, Managing Director of Haji Husein Alireza & Co Ltd. said “It gives us great pleasure to mark 30 years of partnership with MAN Truck & Bus in Saudi Arabia. Over the years, we have built an impeccable reputation in the kingdom for unmatched service quality and infrastructure combined with a deep understanding of customer needs to lead the industry. We look forward to building on this successful legacy by renewing our joint commitment to service excellence and delivering a great experience to support customer needs. We are proud to be associated

Miebach Consulting – German Engineeringfor Supply Chain Excellence

with an iconic partner like MAN Truck & Bus and look forward to also celebrating their 100 year anniversary of commercial vehicle manufacturing which is an incredible achievement.”

Into the future with MAN

The current drivers of product devel-opment are sustainability, the in-house climate goals of the company, general political conditions and the limited availability of fuel resources. MAN is therefore consider-ing further development of various, alternative drive concepts. Hybrid drives in commercial vehicles will be part of the drive concept of the future in all areas of application. A diesel/electric hybrid is already being a standard drive for the city bus. This is a concept vehicle for a TCO-optimised truck hybrid drive that might be used in long-distance transport. MAN has built the Metropolis research vehicle, a fully electrically operated heavy truck with a range extender for tasks in the city. It is currently in the test phase.

Compressed natural gas (CNG) and biogas are already available as alterna-tives. Engines suitable for CNG can also be operated with biogas in an almost CO2-neutral manner. An exam-ple is the new Lion's City GL CNG natural gas articulated bus, which won the "Bus of the Year 2015" award. The established range of natural gas city buses will be supplemented by trucks with a CNG drive in 2016.

The Department for Futures Research analyses global mega-trends and determines the direction for the devel-opment of future vehicle generations. MAN's developers are already work-ing on vehicles that no longer need a driver for certain activities, for exam-ple when a safety vehicle secures motorway building sites. MAN Truck & Bus will use these and completely

new ideas to ensure sustainabledevelopment of ultra-modern business vehicles in the future.

MAN Truck & Bus inMiddle East

Since 2006, MAN Truck & BusMiddle East has been the regional representative of MAN Truck & Bus AG which is headquartered in Munich, Germany and the largest company of MAN Group. It is a leading provider of commercial vehicles and buses that are renowned for their robustness, reliability and adherence to high standards of driver and passenger comfort and safety.

MAN Truck & Bus Middle East operates through an extensive network of private capital dealers and importers in 14 countries namely Afghanistan, Bahrain, Iran, Iraq, Jordan, Kuwait, Lebanon, Oman, Pakistan, Qatar, Saudi Arabia, Syria, United Arab Emirates and Yemen. The local coordination office is located in the UAE, Dubai Airport Free Zone and guarantees for efficient sales and after sales support in the Middle Eastern region.

Accommodating for the demanding operating conditions in the Middle East, MAN Truck & Bus Middle East provides full-fledged turn-key solutions for both goods andpassenger transportation by road through its light (TGL) , medium (TGM) and heavy-duty (TGS WW) ranges of trucks, and MAN and NEOPLAN buses and coaches that provide basic to VIP luxury transport and travel requirements.

100 years of MAN Truck and Bus: Ready for the future

Press contact:Miebach Consulting GmbHWiebke TillmannsTel. +49 69 273992-36E-Mail: [email protected]

With success and experience: MAN has been building efficient and reliable commercial vehiclesfor the past century. MAN also marks 30 year anniversary ofassociation with KSA Distributor Haji Husein Alireza Co. (HHA)

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RAIL.ONE S.A. TALKE

S.A. TALKE Ltd. is a joint venture company between the TALKE group from Germany, the SISCO group from Jeddah (Western Province) and the Al-Jabr group from Jubail (Eastern Province). The TALKE group was established in 1947 and has 68 years of industry experience in the logistics of chemicals and petrochemicals with more than 2300 dedicated staff in16 countries of Europe, the Middle East, India and China. In 2003 S.A. TALKE made apioneering move when entering into the first on-site outsourcing relation-ship in this sector in the GCC. The main focus of S.A. TALKE is to provide high quality logistic services for the chemical and petrochemical manufacturers in Saudi Arabia, with safety as top priority.

The three main business segments are: 1. Logistics, covering storage ofharmless and hazardous products (liquid, powder and granulates), container terminals and value-added services;

2. Logistic solutions, encompassing logistical analysis and consultancy, optimization of logistics processes and turn-key construction of logistics plants.

3. Transportation solutions, meaning individual transport solutions for

bulk liquids, dry bulk and packed products.

S.A. TALKE is always focused on providing high quality services and developing long-term partnerships with clients. While being part of a global organization with the highest quality and safety standards, services are tailored to suit the local needs of the customers, always in the right place and at the right time.

The TALKE Group has many locations across Europe and started with the first outsourcing of on-site plastics logistics at petrochemical producer Tasnee in Saudi Arabia. Then as the benefits of outsourcing became clear, there was significant growth of the concept in the region. The TALKE group now handlesmore than 10 million tonnes a yearin the GCC.

The on-site outsourcing concept further developed for liquidchemicals and S.A. TALKE currently handles three different sites in Saudi Arabia. At these sites, tank containers are loaded and unloaded, chemicals are drummed and a pastillation unit is operated.

Quality is the cornerstone of the success, whilst the safety of all employees and stakeholders is a non-negotiable priority. S.A. TALKE continues to raise the bar on safety

and achieved 2.5 million safe man-hours in the year 2014. With more than 10 successful years of operations, S.A. TALKE’s client portfolio consists of many industry leaders, covering a wide range of services from on-site/off-siteoperations for solid and liquid products together with many other logistic solutions.

Thanks to the German roots, S.A. TALKE maintains a close relationship with the AHK Saudi Arabia. On7 January 2015, S.A. TALKE Ltd. welcomed the German Delegation from North Rhine-Westphalia to visit their office and project sites located inside Jubail Commercial Port.

The German Delegation was sponsored by the German-Saudi Arabian Liaison Office for Economic Affairs (AHK Saudi Arabia). Among the chief guests of the GermanDelegation were Dr. Herbert Jakoby – Deputy Vice Minister for Economic Affairs – MWEIMH, Ms. Almut Schmitz - Managing Director, NRW. International GmbH and Andreas Hergenröther – Delegate of German Industry and Commerce of Saudi Arabia, Bahrain and Yemen.

S.A. TALKE will start operations in the Western Province of Saudi Arabia in Q1-2016 and at the same time has plans to expand their infrastructure and operations in the Eastern Province.

A modern rail infrastructure is one of the most important starting points for sustainable growth, employment and prosperity. This applies to both passenger, as well as cargo transporta-tion. Not only the expansion of the European Union, but also similar tendencies in other areas of the world, for example but not limited to the Gulf Corporation Council on the Arabian peninsula lead to immense challenges with respect to environ-mentally sound mobility solutions due to limited resources and perma-nently growing demands.

Rail mobility is the means of transpor-tation that provides the best possible solution to meet these demands. Central requirements are the construc-tion of reliable and top-quality infrastructure solutions, as well as continual maintenance and moderni-zation of existing railway lines.

Technological innovations are high in demand, in particular with respect to sustainable quality and performance of the overall system. Low mainte-nance demands and optimized Life-Cycle-Cost will see increasing importance over the coming years, as these factors significantly influence the availability and economic viabil-ity of railway systems.

RAIL.ONE is a leading manufacturer of modern concrete railway sleepers and system provider for innovative and reliable ballastless track systems. Being involved in the railway indus-try for almost 100 years, the RAIL.ONE Group has focused on technological developments and advancements in particular in the last decades. Since then, the group has realized significant developments for railway systems of the future and implemented a convincing and customer-oriented portfolio of high-quality products, innovative track systems and expert services. Approx.

S.A. TALKE, Chemical Logistics Expertisefrom a Single Source

300 patents and other IP-rights document the high technological competence of RAIL.ONE as a partner for all means of railtransportation from tramway systems, conventional railway lines, high-speed rail to heavy haul. In the Kingdom of Saudi Arabia, RAIL.ONE has found a home away from home since 2008. Starting with the supply of approx. 850,000 sleepers for one section of the North-South-Railway-project, RAIL.ONE Saudi Arabia LLC has been able to grow its local business with supplies to Makkah Metro (Mashaaer Mena, Mozdalefah & Arafat), further sections of the North-South-Railway-Project and even with first exports to neighboring countries, when approx. 20,000 RHEDA City light-rail sleepers were supplied to the Doha Education City Tramway project in Qatar.

Engineering expertise and mature technologies allow RAIL.ONE to maintain their quality standards even when faced with country- or customer-specific requirements, high axle loads or high speeds or under severe climatic conditions. Intelligent logistic concepts and localized production solutions facilitate in-time availability of products.

RAIL.ONE offers a comprehensiveportfolio of different products and solutions: from pre-stressed concrete sleepers for ballasted tracks, ballast track solutions for high-speed trains to special solutions for high-axle loads.

Flexible production methods facilitate compliance with all technologicalrequirements.

Good performance today can be defined as a combination of four main parameters: quality, cost, speed and sustainability. A good example here is RAIL.ONE’s slab-track technology RHEDA 2000®. Being the only system that has a proven record from all main high-speed trains, the German ICE, the French TGV, the Japanese Shinkhansen and the Spanish Talgo, the system stands for the compatibil-ity and simplicity that RAIL.ONE had in mind in its engineering and design undertakings. The latest application of this well-proven track system on the prestigious Haramain High-Speed Line, connecting the two Holy Cities of Makkah and Medinah marks an important milestone in a long line of outstanding projects realized since the systems first introduction in 1999 and makes RAIL.ONE looking forward to many more years inSaudi Arabia.

Press Contact S.A. TALKE Ltd. Babar Ahmad Sales and Marketing Manager Tel.: +966 (0)3-3618317 Ext.119 Mobile: +966 (0)554480523 E-mail to: [email protected]

RAIL.ONE Saudi Arabia LLCP.O. Box 593581432 HailKingdom of Saudi Arabia+966 558869710+966 [email protected]

Perfect solutions for every application

Further informationplease finder under railone.com

S.A. TALKE Management team with German DelegationLocation: Jubail – Saudi Arabia. S.A. TALKE’s Administration building, located

inside Jubail Commercial Port, January 7, 2015

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SIEMENS

Urbanization, one of today's key megatrends, imposes some enormous challenges globally. Cities around the world currently consume 75% of the world's energy and generate about 80% of its greenhouse gases. When considering further megatrends, such as demographic change, climate change and digitalization, cities around the globe will have to re-evaluate their strategies and plans for urban development to meet the ever-growing and changing demand for urban services.

The world population, approximately 7 billion today, is estimated to grow to 9 billion by 2050. The demographic change will result in citizens, aged 65 or above, growing threefold of today’s level; thus calling for solutions in the healthcare infrastruc-ture as well. With 150,000 people moving from the countryside to the cities daily, 70% of the world’spopulation will live in cities by 2050 and already by 2025 the world will have 37 megacities.

During the past 50 years, cities in Saudi Arabia have rapidly developed from scattered small towns to megaci-ties and metropolises. Cities like Riyadh, Jeddah, Jubail and Dammam are today hubs for economic activities in major industries. Since then, the overall population of the country has exceeded 30 million with a current growth rate of 2.55% per annum and 82% of the total population moving to cities. And while infrastructure is an advantage for some cities, it creates a challenge for Saudi Arabian cities. Reported traffic accidents, caused by inefficient infrastructure, resulted in damages worth more than SR87 billion (USD 23 billion) in 2013.

It is crucial for cities’ sustainability and competitiveness to take intelli-gent and urgent measures to keep the consequential costs within limits and to capture the opportunities to position themselves as cities of choice for businesses and citizens. While

cities today generate about 80% of global economic output, infrastruc-ture becomes the backbone of the world’s economies. It moves people and goods; it powers our lives and fuels growth. Whether it is a reliable transport system, electrical grids that provide a dependable energy supply or buildings that offer space for housing or commerce: safe and efficient infrastructure is the founda-tion on which an economy is built.

While developing countries struggling to build new infrastruc-ture, developed countries cannot overlook the need to replace aging infrastructure. Between now and 2030, an estimate minimum of $50 trillion in infrastructure investments will be required to fuel globaldevelopment. An intelligent digital infrastructure can enhance existing systems in cities and transform them into “smart cities”.

Smart Cities apply state-of-the-art solutions enabled and improved by Information & Communication Technology (ICT) to enhance the quality of life among citizens, residents and visitors, to maximize performance of urban servicesand to reduce costs and resource consumption.

Siemens offers valuable Digital Solutions for cities; intelligence that can be integrated into a city’s infrastructure and successfully boost performance of buildings, transport and energy systems, while at the same time ensuring the safety and security of people and assets. What we need is intelligent infrastructure that optimizes energy generationand distribution, makes buildings smarter, and keeps traffic flowing.By combining engineering anddata expertise, Siemens is ideally positioned to enable customers to make informed decisions when answering the challenges that urban and industrial infrastructures face today. We make real what matters.

Siemens in Saudi Arabia: Siemens has been active in the Kingdom of Saudi Arabia for more than 85 years. From the verybeginning, we are proudly delivering innovative solutions to ourcustomers, partners and the society,significantly contributing to thedevelopment of the Kingdom’s infrastructure. Together with our shareholder and long-term partner, E.A. Juffali and Brothers, Siemens continues to carry on to itscommitment and contribution to the development in Saudi Arabia. Today, over 2,000 Siemens employeesare working in the Kingdom ofSaudi Arabia.

Siemens is a global powerhouse positioned along the electrification value chain from power generation, transmission and distribution to smart grid solutions and the efficient application of electrical energy as well as in the areas of medical imaging. And with our outstanding strengths in automation, we’re well equipped for the future and the age of digitalization.

“We make real what matters.” That’s our aspiration. That’s what we stand for. That’s what sets us apart. Areflection of our strong brand, it’s the mission that inspires us to succeed.

Smart Cities of Tomorrow

Contact Baschar KassarPhone: +966 11 277 8316e-mail: [email protected]

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SSI SCHAEFER Volkswagen

Innovation awards in five additional categories won by Volkswagen: "Most innovative company 2015", "Networked vehicle", "Vehicle concepts", "Conventional drives" and "Safety systems"

The tenth presentation of the annual AutomotiveINNOVATIONS Awards for exceptional innovative achieve-ment in the automotive industry. The Volkswagen Group emerged as one of the evening's big winners, securing the award for "Most innovative car manufacturer 2015" as well asreceiving a special award for "Mostinnovative car manufacturer of the decade". Volkswagen Group develop-ers also achieved first place in the categories for "Networked vehicle", "Vehicle concepts", "Conventional drives" and "Safety systems". The Automotive INNOVATIONS Awards are presented each year by the Center of Automotive Management (CAM) in cooperation with the auditing and consultancy firm PwC.

The Volkswagen Group stands for superior technological expertise and a wide portfolio of innovative brands. This was the conclusion of the latest report by the CAM, which this year again names the Wolfsburg group as the world's most innovativeautomotive company. The Group's innovative strength over the past decade was also commended in the study. The official explanation by CAM and PwC for the award acknowledged that "1251 individual innovations, 212 of which were world firsts, have been developed by Volkswagen in the last ten years. Highlights among these include the XL11, a platform for new technology; the Bugatti Veyron2, the most power-ful and fastest production vehicle; Audi's LED matrix headlights; and the first dry dual clutch 7-speed gearbox to go into series production."

At the awards ceremony, Professor.Dr. Ulrich Hackenberg, Board

Member for Technical Development at Audi and responsible for cross-brand development coordination within the Volkswagen Group, said: "I share this award with the 600,000 employees of all the 12 brands of the Volkswagen Group in Germany and all our locations around the world. They are creating the mobility of tomorrow. It is their high-leveltechnical expertise, great creativity and the excellent quality of theirwork that make the Volkswagen Group a leading innovator in the automotive field."

Dr Heinz-Jakob Neußer, Board Member for development of the Volkswagen brand and head of drivetrain development of the Volkswagen Group, said: "The key to a company's success is its innovative strength. We will continue to extend our technological leadership and meet the technological challenges of the future with sustainable products."

Volkswagen Group secured the award for best manufacturer in the "Conventional drives" category. Among other things, the study commended the high proportion of engine innovations with start/stop and recuperation technologies that facilitate to reduce fuel consumption by an average of 14 per cent. Moreo-ver, the wide range of efficient engines also finds its way into the Group's various brands very quickly.

The Volkswagen Group also reaffirmed its pioneering status in the "Safety systems" category, thanks to its numerous driver assistance and safety systems. Many innovations are finding their way into the new Audi Q7, including the avoidance assistant, night vision assist (which recognises animals and people) and cross-traffic assist (which protects the driver from colliding with oncoming vehicles when turning across the flow of traffic and at low speed). Special mention is also made of the current Passat's

highlights, which include theworld's first Emergency Assist system, and the new Trailer Assist, whichfacilitates manoeuvring with a trailer.

The CAM study also reveals a clear lead of the Volkswagen Group in presenting the most innovations in the "Networked vehicle" category as well. Here the trend has been towards new operating and display concepts, such as the "Virtual Cockpit" in the Audi TT. The control concept vehicle Volkswagen Golf R Touch in which a number of touchscreens replace the conventional controls also came in for praise.

The study also gave a positive rating in the field of "Vehicle concepts / body". In the current Passat the use of lightweight metals in the bodywork and chassis has yielded savings of up to 85 kilograms in weight. Moreover, the high-strength steels and aluminium used in the Audi Q7 have led to weight reductions of up to 325 kilograms. In the "Vehicle concepts" section the Audi TT Sportback concept car a mixture between a sports car and a 4-door coupé was singled out for praise.

For more information contact:

SSI SCHAEFER is the world’s leading supplier of warehouse and logistics systems. The services it offers range from concept design and warehouse fittings with its own products to the implementation of complex logistics projects as a general contractor.The pooling of collective skills under the umbrella of SSI SCHAEFERlays the foundation for the develop-ment of market-oriented, industry-overlapping warehouse systemsand for the conception of complete intralogistics solutions.

The product range of SSI Schaefer/Fritz Schaefer GmbH of Neunkirchen, which is also the international HQ of the SSI Schaefer Group, covers the core business of warehouse fittings, plus workshop, factory and office equipment, waste management and recycling. Typical products are storage and transport containers, static racking, pallet racking, racking for long goods and mobile racks, which in turn form the basis for manually operated and fully automatic warehouse systems. The SSI Schaefer Group emerged from the company Fritz Schaefer GmbH, which was established in 1937 by Fritz Schaefer. Today, the group has offices all over the world including numerous subsidiaries throughout Germany.

The company SSI Schaefer Noell GmbH, which is a globallysuccessful general contractor, completes the range of services. The core competence of the business comprises the realisation of complex logistic systems, starting from system planning and analysis to a turn-key system and a customised after-sales service. These services are rounded off with innovative IT solutions based on our own standards as well as those of SAP technology.

SSI Schaefer Peem GmbH in Graz, Austria specialises in modular picking technology. The company plans, develops and produces highly dynamic small parts conveying systems and automatic picking systems, including the associated software.

As a general contractor, Salomon Automation GmbH in Friesachnear Graz provides complete,customised solutions for manual and fully automated warehouse systems. The company supports its customers in every aspect, from the solution-finding and software implementation process through to the training of warehouse staff. With its WAMAS logistics software, SalomonAutomation contributes to the comprehensive visualisation and

optimisation of the customers'warehouse processes.

SSI Schaefer wins order forlogistics centre in Saudi Arabia

FLOW, Jeddah, one of the most dynamic third-party progressive logistics companies in theKingdom of Saudi Arabia, has commissioned SSI Schaefer to construct a new logistics centre.

The ultra-modern e-commerce fulfilment centre is being constructed 100 km north of Jeddah in the King Abdullah Economic City, the kingdom's new trading centre. FLOW will run the new fully automatic system as a contract logistics supplier for the IKEA furniture distribution business. The general contractor order for SSI Schaefer includes a five-aisle high bay warehouse (HBW) with a total of 39,000 pallet storage locations for industrial pallets and2 m long large IKEA pallets. Another five-aisle automated small-parts warehouse (Miniload) providescapacity for the handling of 66,000 bins. In addition, SSI Schaefer is also to supply and install the bin and pallet conveying systems and lifts required for material flow purposes. The WAMAS® logistics software from SSI Schaefer will provide optimum process control, transparent stock management and efficient order fulfilment. “The collaboration with SSI Schaefer one of the world's leading intralogistics specialistshas strategic significance for us and our customers”, is how Saud Al Sulaiman, Managing Director Flow, explained the background to the placing of the order. “Besidesextending our own national sales network, the new distribution centre will play a key role in our strategy of becoming the market leader for contract logistics and e-commerce fulfilment in Saudi Arabia. We have therefore entrusted the project to a strong and reliable partner.” The new distribution centre is expected to start operations by the end of 2016.

Munerah AlRasheedPR ManagerVolkswagenTel: 009655112180780 Mobile: 00966555117025 [email protected]

SSI SCHAEFER

FLOW, Jeddah, has commissioned SSI Schaefer to construct a new logistics centre.

Automotive INNOVATIONS Award 2015: Volkswagennamed most innovative car manufacturer of the decade

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ALZAMIL & ALKHARASHI LAW FIRM ALZAMIL & ALKHARASHI LAW FIRM

Kingdom of Saudi Arabia is the largest and fast growing economy in the Arab World. Being the world’s largest oil exporter, Saudi economy is oil based and heavily depends upon oil and gas, which according to some statistics, accounts for roughly 75% of the budget revenue. However, to further boost the economy, to reduce the overreliance upon revenues from oil and gas and to increaseemployment opportunities for the local population in various sectors and industries, in recent times, the government of Kingdom of Saudi Arabia, being represented by Saudi Arabian General InvestmentAuthority (SAGIA), has recognized and pursued various programs of economic diversification and reforms by encouraging foreign investment to conduct business in selected areas of the economy. Recent Royal Directives by Custodian of the Two Holy Mosques, King Salman Bin Abdul Aziz Al Saud, requiring SAGIA to assess the current procedures for

allowing foreign investors to expand their invest in wholesale andretail sector and to establish legal presence by having upto 100% foreign ownership is one such initiative. In this article, we will overview the different forms of doing business, which are available under the Saudi Law, with particular reference to Saudi foreign investment laws and developments introduced by SAGIA for purposes of facilitation to foreign investors. FORMS OF DOING BUSINESS IN SAUDI ARABIA

Foreigners, whether individuals or companies, who intend to invest and conduct business in Saudi Arabia, may do so either by establishing their permanent legal presence in Saudi Arabia or by entering into an agency relationship for the distribution and sale of their products without having any legal presence.

A. BUSINESS BY ESTABLISHING LEGAL PRESENCE IN SAUDI ARABIA THROUGH SAGIA

Any foreign investor, which intends to establish its permanent presence in the Kingdom of Saudi Arabia by way of establishing an entity can choose any of the legal structures, which are available under the Saudi Law. Legal Structures available to foreign investors, who intend to establish legal presence in Saudi Arabia

Foreign investors, which intend to establish their permanent presence in Saudi Arabia, can apply to SAGIA, which is the gateway to foreigninvestors for their investmentin the Kingdom, for any of thefollowing business forms:

1. Incorporation of a Limited Liability Company. 2. Incorporation of a Joint Stock Company.

BYEMAD SALEH ALKHARASHI

LAWYER / PARTNER ALZAMIL & ALKHARASHI LAW FIRM

3. Establishment of a Branch office.4. Establishment of a Technical and Scientific Office (TSO). 5. Obtaining Temporary Commercial Registration (TCR).

a) Limited Liability Company (LLC)

Incorporation of an LLC is themost common and favored business form amongst the foreign investors. An LLC must have minimum of2 and maximum of 50 shareholders. There is no minimum capitalrequirement. However, depending upon activities of the LLC andthe nature of license, SAGIA and Ministry of Commerce and Industry (MOCI), which registers LLCs, require LLCs to have certain minimum capital. In LLC,formation of Board of Directors is optional unless the shareholders in LLC are more than 20, in whichcase, it is mandatory for LLC to have Board of Directors with at least3 directors.

b) Joint Stock Company

A Joint Stock Company (“JSC”) is an entity with at least five (5)shareholders holding transferable shares. The minimum capitalrequirement is Saudi Riyals (SR) 2 million for a private JSC and SR 10 million for a public JSC. Private JSC, which is also termed as closed JSC, allows the shareholders to start with payment of only 25% of the capital and later to pay the remaining capital. There is a requirement to have Board of Directors with minimum of three (3) members. In JSC, unlike LLC,shareholders, who are foundingshareholders, are subject toa lock up period of 2 years, inwhich time, they cannot recover their capital until period of 2 years has elapsed from incorporation.

c) Branch Offices

Foreign companies may register a wholly foreign-owned Saudi branch office, provided that they obtain the requisite license from the SAGIA. The branch office may engage in any such activities, which are allowed by SAGIA. It can engage in both private and public sector projects inaccordance with its approvedactivities. Unlike LLCs, branch offices are not separate legal entities and are considered as extension of the parent company. Parent companies are responsible for all such activitiesof branch offices and can beexposed to liability at their place of incorporation.

d) Technical Scientific Office (TSO)

A foreign investor can alsoestablish its presence in Kingdom of Saudi Arabia through establishment of a TSO. However, TSO isgenerally incorporated by foreign investors, where foreign investors have executed a commercial agency or distribution agreement with a Saudi agent, which sells foreign investor’s products in theKingdom of Saudi Arabia. Basic objective for establishment ofTSO is to assist the Saudi customers, who use foreign manufacturer’s complex products, such asmedicines or pharmaceutical products.

e) Temporary Commercial Registration (TCR)

When any foreign investor is awarded a government contract and it does not have any registered legal presence in Saudi Arabia in one of the above discussed forms of business, it can apply to SAGIA for a Temporary Commercial Registration (TCR) for

performing such governmental contract. TCRs are limited in their scope and are granted only for duration of the contracts. The foreign investment license by way of TCR is generally issued more quickly than for a conventional branch office. Copy of the signed government contract is generally required bySAGIA for issuance of TCR.

B) BUSINESS IN SAUDI ARABIA WITHOUT LEGAL PRESENCE

A foreign company, which intends to gain access to the Saudi market without establishing any legal presence in the Kingdom, may conduct business throughfollowing ways:

i) Sale from its home country without establishing any legal presence in the Kingdom of Saudi Arabia through import by Saudi entities.ii) Sale through Saudi Commercial agents/distributors, franchisors by executing Agency / Distribution Agreements.

SAUDI ARABIAN GENERAL INVESTMENT AUTHORITY (SAGIA) AND FOREIGN INVEST-MENT LAWS SAGIA, which is the authorityresponsible for regulating foreign investment in Kingdom of Saudi Arabia and issues foreign investment licenses to foreign investors, was established in the year 2000 inaccordance with Foreign Investment Act, 2000. Any foreign investor, whether individual or legal entity, which intends to conduct business in the Kingdom of Saudi Arabia, by way of establishing legal presence, has to first obtain license from SAGIA.

FOREIGN DIRECT INVESTMENT IN KINGDOM OF SAUDI ARABIAAN OVERVIEW OF FORMS OF DOING BUSINESS AND RECENTDEVELOPMENTS INTRODUCED BY SAUDI ARABIAN GENERAL

INVESTMENT AUTHORITY (SAGIA)

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a) Activities permitted under Foreign Investment Laws and Negative List Under the Foreign Investment Act, foreign persons and entities were permitted to invest in all industries and services except for those which are specifically excluded from foreign investment. The exempted industries and sectors are mentioned in a negative list, which is continuously reviewed by the Saudi Supreme Economic Council and with passage of time, many of the sectors andindustries have been liberalized and opened for foreign investment. Some of the industries or sectors mentioned in negative list, where foreigninvestment is not allowed, include (without limitation), those related to the manufacture of military materials, equipment and explosives; oilexploration and production; services related to security, real estatebrokerage; distribution services; audiovisual and media services; recruitment and employment services; tourist orientation and guidance services etc.

b) 100% ownership allowed to foreign investors

Foreign investment law allows 100% foreign ownership of business entities subject to certain exception, where Saudi participation is a must. By this way, either foreign investors may wholly own approved foreign invest-ments, or a foreign investor and a Saudi national may jointly own them. Some of the businesses, where Saudi equity participation is a must include: commercial trading (25% Saudi participation), communications (40%), insurance (40%), reinsurance (40%), real estate financing (40%), engineering, procurement and

construction (EPC) (25%). Licensed businesses are also permitted to own the real estate necessary for the project and to house necessary staff (with the exception of Mecca and Medina, where foreign investorscannot own any real estate).

c) Activities, for which foreign investors may obtain licenses

Following are few activities, for which foreign investors may apply to SAGIA for obtaining license:

a) Industrial activity, b) Commercial trading activity, c) Agricultural activity, d) Real estate activity, e) Contracting construction activity, f) Specialized and non-specialized service activity, g) Communications and h) Consulting activity.

d) Minimum Capital Requirements for SAGIA licenses

The minimum capital requirements for projects licensed under the Foreign Investment Act are: SR 1 Million for industrial projects, approximately SR 27 Million for commercial trading projects, 25 million for agricultural projects, SR 100 Million for insurance, SR 200 Million for reinsurance, SR 200 Million for real estate financing and SR 30 Million for real estate develop-ment. For some project licenses, SAGIA has not prescribed minimum share capital requirements, however, depending upon projects, SAGIA requires foreign investors to have some share capital. Notwithstanding the different capital requirements, a project licensed under the Act enjoys the same privileges, incentives and guarantees as a national project,with the exception of taxation.

RECENT DEVELOPMENTS INTRODUCED BY SAGIA

i) Plan to allow 100% Foreign Ownership in Retail Sector

In his recent visit to the USA, the Custodian of the Two Holy Mosques, King Salman Bin Abdul Aziz Al Saud, while speaking to media in Washing-ton D.C. stated that his country plans to allow more opportunities to foreign investors for conducting business especially in wholesale and retail sector. In this regard, a Royal Decree has been issued, whereby SAGIA and other relevant depart-ments have been required to examine all trade and investment regimes so that foreign companies are attracted to invest in the wholesale and retail sector by allowing them to have up to 100% foreign ownership. Aim of the Royal Decree is to attract interna-tional manufacturing companies and to encourage them to manufacture their products in the Kingdom, to sell their products directly to the Saudi consumers and to make Kingdom an international centre for distribution, sale and re-export of products. It is likelihood that the joint team of SAGIA and other departments will provide a clear vision regarding the Royal Directives by start of new Hijri calendar year.

ii) Issuance of Criteria for Foreign Investment License SAGIA, with a view to encouraging only such foreign investors, which are genuine, dedicated in investment and wish to contribute to the Saudi economy, has launched a criteria, on basis of which every foreign investor’s application for grant of foreign investment license, will be

evaluated. According to this criteria, the objectives and activities of the foreign investor shall be measured inaccordance with following:

- Transfer and localization of technological know-how.- Diversification of the Kingdom’s economy. - increasing of exports and decreasing of imports.- Developing the Saudi human resources.- Reinforcing economic competitiveness and its products in both domestic and foreign markets. - Balanced development among the different regions of the Kingdom.

Foreign investors, which will be demonstrating the above mentioned will be granted special incentives and privileges to help promote excellence and sustainability. iii) Categorization of legal entities for measuring impact of foreign investment Foreign investors, which are licensed by SAGIA, will also be classified into different categories of i) strategic, ii) distinctive, iii) advanced, iv) limited and v) innovative and promising. This categorization would be on basis of sectors, where such foreigninvestors deepen the value chain, or on basis of number of Saudiemployees being hired by such licensed foreign investors, or on basis of registered patents.

It is on basis of categorization that licensed foreign investors will be granted advantages and benefits, such as duration of licenses, service priority in SAGIA business centers and annual financial fees associated with their services.

iv) Introduction of fast track services for certain foreign investors

To make the process of conducting business by foreign investors stream-lined, easier and cost effective, SAGIA has introduced a number of changes that will have an impact on all foreign investors. One of such development is introduction of “fast track service” for certain companies, such as multinational companies, publically listed companies on international stock exchanges,international companies with regional centers in Saudi Arabia, construction companies classified under first class in their countries or which have implemented a project with a value of not less than SR 500 Million or have manpower of not fewer than 2000 employees or total assets of not less than SR 50 Million or companies, which are classified as innovative companies. According to SAGIA, applications from qualifying investors will be reviewed within five working days from the date SAGIA notifies the investor that it has received all the required documents to process the application. Forqualifying investors, required documents will also very less than the documents, which are generally required by SAGIA.

CONCLUDING REMARKS FOR CONSIDERATION BY FOREIGN INVESTORS

Due to Saudi government’s vision for expansion of foreign investment, prosperous investment climate and SAGIA’s interest in ensuring smoother and faster completion of foreign investors’ applications, there has been a surge in foreigninvestment. Foreign investors are seeking to capitalize on the business

opportunities, which have been created by Saudi government’s initiatives of opening up previously restricted industries and of granting licenses within minimum possible time limits. Although, aims of Saudi government is to develop Saudi human resource, transfer and localize technology and diversify the Kingdom’s economy, however, SAGIA has devised stringent measures, which every foreigninvestor, who is either vying to or has obtained license for conducting business, has to comply with.SAGIA has introduced different categorizations, which will measure the impact of foreign investment upon Kingdom’s economy. SAGIA requires the prospective foreigninvestors to ensure that their offers include future manufacturing plans, time limits, plans for transfer of technology and programs for training of Saudi citizens. SAGIA also requires foreign investors to make sure that they will be able to meet SAGIA’s requirements on an on-going basis once, they establish their presence in Kingdom of Saudi Arabia. Foreign investors vying to capitalize on the business opportunities available in the Kingdom of Saudi Arabia would have to show that they are able to commence business, deliver their business plans on the timelines shared with SAGIA and bring additional value to theSaudi economy.

ALZAMIL & ALKHARASHI LAW FIRM ALZAMIL & ALKHARASHI LAW FIRM

Al-Zamil & Al-Kharashi Law FirmP.O. Box: 28330 Riyadh 11437Kingdom of Saudi ArabiaTel: +966 114733303Fax: +966 114733313Email: [email protected]

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Trade Fairs Trade Fairs

41AHK Saudi Arabia - www.saudiarabien.ahk.de

International Green Week - one-of-a-kind international exhibition for the food, agricultural and horticultural industries (15 – 24 Jan 2016, Berlin) http://www.gruenewoche.de/en/

Bazaar Berlin – The international trade fair for arts, handicrafts and natural products (18-22 Nov 2015, Berlin) www.bazaar-berlin.de/en

BrauBeviale – Covers the whole process of beverage production (10 – 12 Nov 2015, Nurnberg) www.braubeviale.de/

Euroguss – International Trade Fair for Die Casting (12 – 14 Jan 2016, Nurnberg) www.euroguss.de/en/

DOMOTEX – The world's leading trade fair for flooring & carpets industries (16-19 Jan 2016, Berlin)www.domotex.de

WIN EURASIA Metal Working –International trade fair for manufactur-ing industry (11 - 14 Feb 2016, Istanbul) www.win-metalworking.com/en

INHORGENTA – The international trade fair for jewelry, watches & lifestyle(02 - 03 Mar 2016, Nurnberg) www.inhorgenta.com

FENSTERBAU FRONTALE - world's leading trade fair for windows, doors and facades (16 – 19 Mar 2016, Nurnberg) www.frontale.de

POWTECH - World leading trade fair for processing, analysis, and handling of powder and bulk solids (19 – 21 Apr 2016, Nurnberg) www.powtech.de/en

IFAT – The world’s leading trade fair for water, sewage, waste and raw materials managements (30 May – 03 Jun 2016, Munich) www.ifat.de

CeMAT - the world's leading fair for Logistic, Material Handling, Automation in Industries, Intralogistics (31 May –03 Jun 2016, Hanover) www.cemat.de

ILA – One of the world’s largest aviation trade fair (01 – 04 Jun 2016, Berlin) www.ila-berlin.de

Hannover Messe – The world's leading trade fair for Industries- automation, technology & research (25 – 29 Apr 2016, Hanover) www.hannovermesse.de

analytica - International trade fair for laboratory technology, analysis, biotech-nology and analytica conference (10 – 13 May, Munich) www.analytica.de/

M+M 2016 China – Trade fair for metal and metallurgy (17 – 20 May, Beijing) www.mm-china.com/En/

HOLZ-HANDWERK - Trade fair for woodworking & wood processing(16 – 19 Mar 2016, Nurnberg)www.holz-handwerk.de ISPO MUNICH – The world's leading

sports business platform (24-27 Jan, Munich) www.ispo.com

Spielwarenmesse – The world’s leading trade fair for toys (27 Jan - 01 Feb 2016, Nurnberg) www.spielwarenmesse.de

Enforce Tac – Trade fair for law enforce-ment equipment (02 - 03 Mar 2015, Nurnberg) www.enforcetac.com

ITB Berlin – The world’s leading travel trade show (09 - 13 Mar, Berlin)www.itb-berlin.de

WIN EURASIA Automation – Interna-tional trade fair for manufacturing industry (17 – 20 Mar 2016, Istanbul) www.win-automation.com/en

BAUMA – World’s leading sector event for construction equipment (11 – 17 Apr 2016, Munich) www.bauma.de

conhIT – Trade fair for IT support of the health care sector (19 – 21 Apr 2016, Berlin) www.conhit.de/

CEBIT – The international trade fair for chemicals, biotechnology and environ-mental protection (14 - 18 Mar, Hanover) www.cebit.de

Fruitlogistica – International trade fair for fresh produce trade (03-05 Feb, Berlin)

Vivaness – International trade fair for natural personal care (10 – 13 Feb 2016, Berlin) www.vivaness.de

TRADE FAIRS REPRESENTED BY AHK Saudi Arabia - GESALO

FOR FURTHER INFORMATIONON THESE FAIRS PLEASECONTACT THE TRADEFAIR DEPARTMENT OFAHK: +966 11 4050201 [email protected]

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Next year the International Green Week (IGW) will be able to look back on a history spanning 90 years. From 15 to 24 January this special anniversary will be celebrated together more than 1,600 exhibitors from around 70 countries and over 400,000 trade visitors and members of the general public to attend the forthcoming Green Week. “Besides displaying a wider selection of regional specialities than any other trade fair the Green Week presents a global overview of food market products from all over the world“, said Dr. Christian Göke, CEO of Messe Berlin GmbH. The programme of conference events will focus in particular on the Global Forum for Food and Agriculture 2016 (GFFA) which takes place from 14 to 16 January. Around 70 ministers of agricul-ture, deputy ministers and

FRUIT LOGISTICA, the leading international trade fair for fresh produce marketing, attracts 65,000 top-notch trade visitors from more than 135 countries each year to the Berlin exhibition grounds. From 3 to 5 February 2016, more than 2,700 exhibitors from over 80 countries will showcase a complete range of products and services from all levels of the value chain along with a variety of interest-ing innovations. This unique event serves as a driving force for the retail trade and offers consumers even more diversity. Some 90% of FRUITLOGISTICA exhibitors and 80% of the visitors come from outside Germany, making the event one of the world's most international trade fairs.

The FRUIT LOGISTICA Innovation Award (FLIA) is presented each year for outstanding new advancements in the fresh produce sector and related service industries. Over the past ten years, the FLIA has gainedinternational recognition and an outstanding reputation in the

Clear early indications of strong and highly international DOMOTEX 2016 • Show almost fully booked, with four months yet to go• Wood Flooring Summit 2016 meeting with strong demand• Innovations@DOMOTEX to feature expanded choice of Guided Tours • Guest appearances by star international designers: architect and designer Piero Lissoni (Lissoni Associati) and architect Wolf D. Prix (Coop Himmelb(l)au)

DOMOTEX 2016 is shaping up nicely. Opening day is still a whole four months away, but there are already very clear indications that the world’s leading trade show for carpets and floor coverings will enjoy a particularly strong and international industry turnout. “The response from the market has been extremely positive,”

Staged annually in Hannover, Germany, CeBIT is the world's leading showcase for everything to do with digitization. Global enterprises, SMEs, startups and other companies and organizations take part in this unique exhibition/conference for insight into all the essential topics, such as Big Data & Analytics, Cloud Applications, Mobile Solutions, Social Business, IT Security and the Internet of Things. The parallel CeBIT Global Conferences offer a comprehensive array of

high-ranking members of the food and farming industries are expected to attend.

At the combined display of the two main organisations representing the German food industry, the Federation of Food Law and Food Science (BLL) and the Federation of German Food and Drink Industries (BVE), the focus will again be on the ‘Food Dialogue’. Visitors keen on exploring new culinary horizons can fully satisfy their desires at the various product markets. They include the BioHall, the Seafood Market and the Herbs, Spices and Tea Product Market.

The 81st edition of the Green Week will be looking back on a history spanning 90 years. Originally a mere local product market when it was launched

in 1926, it has now become the world's leading consumer show for agriculture, food and horticulture. Since that year, more than 84,700 exhibitors from 128 countries have presented their wide-ranging products from around the world to over 32.1 million trade visitors and the general public.

AHK is the official representativeof Green Week. For furtherinformation, please contact tradefair@ahk arabia.com,+966 11 4050201

commented Dr. Jochen Köckler, a member of the Managing Board of Deutsche Messe. “The show is already almost fully booked.” In terms of numbers, DOMOTEX 2016, which runs from 16 to 19 January, is expected to feature some 1,400 exhibitors from more than 60 countries.

Spread across 12 exhibition halls, the upcoming DOMOTEX will feature a uniquely rich and diverse array of products and materials an absolute bonanza for trade visitors from the flooring wholesale and retail sectors, architecture, interior design, the skilled flooring trades and the furniture and interior furnishings retail and whole-sale sectors. The show’s product lineup encompasses textile and resilient floor coverings for the residential and contract furnishing sectors, machine-woven and hand-made carpets and

rugs, parquet and laminate flooring, outdoor flooring solutions, and a comprehensive range of care,cleaning, installation and application technologies.

AHK is the official representativeof DOMOTEX. For furtherinformation, please contact [email protected],+966 11 4050201

Trade FairsTrade Fairs

International Green Week 2016: 90 years of the Green Week15 – 24 January 2016, Berlin

The IGW is a one-of-a-kind international exhibitionfor the food, agricultural and horticultural industries

Fresh business opportunities atFRUIT LOGISTICA 2016

The World’s leading Eventfor the digital world

The world's leading trade fair for flooring& carpets industries16 – 19 January 2016, Hannover

3 – 5 February 2016, Berlin

14 – 18 March 2016, Hannover

professional world. It is regarded as the most important award in the global fresh produce sector – not least because the selections are made by industry professionals.

A variety of conferences, seminars and panel discussions offers FRUITLOGISTICA trade visitors a chance to learn about the latest industry issues, challenges and trends. The launch event is the 35th Fresh Produce Forum titled “Climate Change – The Challenges For Global Production And Procurement” that takes place on2 February, one day before theexhibition opens.

FRUIT LOGISTICA 2016 is open daily from 9:00 to 18:00 from February 3 to 5. The 3-day pass including participation in the 35th Fresh Produce Forum costs EUR 90. Tickets include an exhibition guide and Hall Forum participation. Discount tickets are available with the FRUIT LOGISTICA-representative in Saudi Arabia: Al-Ameen Al-Dalali, 00-966-11-405 0201 Ext.110,

[email protected]. He will also support you with your travelpreparations and will provide you with further information. A free bus shuttle service to the exhibition grounds (North/South Entrance) is available from Berlin-Tegel/Schönefeld airports on 3 to 5 February from 8:00 to 19:00 in 15/30-minute intervals. FRUITLOGISTICA also offers a free bus shuttle between numerous hotels and the exhibition centre.

AHK is the official representativeof Fruit Logistica. For furtherinformation, please contact [email protected],+966 11 4050201

keynotes and forums addressing all of the hottest trends in the digitalindustry. Switzerland will be the Partner Country for the CeBIT 2016 from 14th to 18th of March. For details, visit www.cebit.de.

AHK is the official representativeof Cebit. For furtherinformation, please contact [email protected],+966 11 4050201

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HANNOVER MESSE is the world’s largest and most influential event for industrial technology, annually showcasing between 5,000 and 6,500 exhibiting companies and attracting more than 200,000 visitors and 2,500 journalists from all over the world.

HANNOVER MESSE deliverscomprehensive coverage of keyindustrial sectors all at one place and at one time and is the global torchbearer of Industrie 4.0, the digitalization of manufacturing. The fair’s lead theme for 2016, “Integrated Industry – Discover Solutions!”, declares that Industrie 4.0 has arrived and that visitors at HANNOVER MESSE will find real networked products and solutions for improving efficiency and productivity in their companies. The United States of America is Partner Country at HANNOVER MESSE 2016 and will present itself as a topdestination for investment and a global leader in high-tech manufacturing.

HANNOVER MESSE 2016 features four main exhibit sectors: industrial automation, energy and environmental technology, industrial subcontracting and lightweight design, and research and development. Companies from the same industry sector are grouped together for example, industrial

With a total exhibition space of 605,000 square meters, bauma is the largest trade show in the world. In 2013 bauma broke all previous records, attractinga total of 3,421 exhibitors from57 countries, and 535,065 visitors from over 200 countries. bauma takes place every three years in Munich.

Whether at construction sites, under-ground or on the seafloor: bauma shows the global industry what will influence, change and revolutionize construction and mining work in the future. The 31st Edition of the World's Leading Trade Fair for Construction Machinery, Building Material Machines, Mining Machines,

CeMAT, the world’s leading trade fair for intralogistics and supply chain management, is held every two years. The upcoming CeMAT, which runs from 31 May to 3 June 2016, is expected to attract around 1,000 exhibitors from every corner of the globe. The lead theme for CeMAT 2016 is Smart Supply Chain Solutions. In other words, the show will highlight the pivotal role of logistics in today’s increasingly digitized and integrated industrial value chains.

Dr. Andreas Gruchow, a member of the Managing Board of Deutsche Messe, explains: “Logistics is growing in importance because accuracy and flexibility of supply are fundamental to the growing Industry 4.0 trend. Soon, all parts containers, racks, materials

suppliers and subcontractors are located in Halls 4–6 at the eastern side of the fairgrounds which ensures that visitors find what they want quickly and easily.

HANNOVER MESSE’s supporting program features more than 1,000 conferences, forums, and special events that cover topics ranging from additive manufacturing, bionics and smart grids to technology transfer, jobs and skill development, and international trade.

HANNOVER MESSE at a Glance• 5,000+ exhibiting companies from 70 countries

• 200,000+ visitors from 100 countries• 150 international business delegations• 2,500 registered media representatives • 5.5 million business contacts in one week

Visit www.hannovermesse.com for more information.

AHK is the official representativeof Hannover Messe. For further information, please [email protected],+966 11 4050201

Trade FairsTrade Fairs

World’s leading sector event for construction machinery,building material machines, mining machines, constructionvehicles and construction equipment

The world’s leading event forindustrial technology

World leading trade fair for intralogisticsand supply chain management

Lead theme for CeMAT 2016 is Smart Supply Chain Solutions

11 – 17 April 2016, Munich25 – 29 April 2016, Hannover

31 May – 3 June 2016, Hannover

Construction Vehicles andConstruction Equipment attracts some 3,400 exhibitors to Munich, including more than 700 companies in thesector for mining and raw-materials extraction and processing.

17 exhibition halls and the entire outdoor exhibition site revolve around intense networking and a professional exchange. The bauma Forum focuses on world premieres and the latest technologies and trends in the mining sector. In 2013, 95 percent of Forum visitors were full of praise 25 percent even gave the Forum a top rating of "excellent."

AHK is the official representativeof bauma. For further information, please [email protected],+966 11 4050201

handling and transport systems and even the materials themselves will need to be intelligent so that they can communicate with their surroundings and with machines and robots in down-stream and upstream production and assembly processes.” This, precisely, is the focus of the upcoming CeMAT with its lead theme of Smart SupplyChain Solutions.

The show will present automation and integrated control solutions for tomorrow’s intelligent, digital logistics processes. The scope will extend far beyond mere logistics optimization solutions because the digitization trend is revolutionizing entire value chains and creating completely new business models. CeMAT has a vitally important role to play in this revolution because it

is the only trade fair that provides a global perspective on the technology trends involved.

AHK is the official representativeof Cemat. For furtherinformation, please [email protected],+966 11 4050201

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With a large number of reference projects and over 220 transport technol-ogy firms, Berlin is the main focus of Germany's transport engineering industry and an ideal venue for InnoTrans, an international platform for buyers and sellers of passenger and freight transport technology. InnoTrans has become established as the interna-tional industry showplace focusing on Railway Technology. Other key InnoTrans segments include Railway Infrastructure, Interiors, Public Trans-port and Tunnel Construction. Just outside the exhibition halls, a wide range of railbound vehicles are presented on a comprehensive3,500-meter track system. The outdoor display is a unique feature of InnoTrans: exhibits include multiple unit trains, locomotives, freight vehicles, trams, and construction and two-way vehicles. In addition to ten standard gauge tracks, the Special Gauge Display showcases rail vehicles with broad and narrow gauges.

The InnoTrans Convention takes place in conjunction with the trade show,and has become firmly establishedas an international meeting placefor top decision-makers from the business, political and transportation communities. Featuring high-profile panel discussions and expert talks on current and future-focused mobility issues, the InnoTrans Convention is an ideal platform for face-to-facecommunication. This is wheretomorrow's transport concepts are explored on an international level.

AHK is the official representativeof InnoTrans. For furtherinformation, please [email protected],+966 11 4050201

JobXchange

The German-Saudi Arabian Liaison Office for Economic Affairs is the first port-of-call for recruiters and job seekers due to its key role in the trade relations between Germany, Saudi Arabia, Bahrain and Yemen. Our established relationships to the companies along with our interna-tional network enable us to find the best candidates for your company in the most efficient manner. Job seekers and interns who wish to use their professional and language skills in Saudi Arabia, Bahrain or Yemen can take advantage of our job portal. Our strong knowledge of Saudi Arabian, Bahraini, Yemeni and German markets makes us uniquely qualified to assess our applicant’s competency and compatibility.

With the official job seeking structures not well developedand the Nitaqat initiative of theSaudi government which requirescompanies to employ a certain number mostly depending on the company’s size of Saudi Arabian employees our service is becoming even more valuable.

We continuously keep track of the Saudi students in Germany. They are enrolled in different academic disciplines. With meetings like in 2014 at the Frankfurt chamber of commerce and industry we help them to connect with Germancompanies in Saudi Arabia in order

JobXchange and Vocational TrainingTrade Fairs

The world’s leading trade fairfor transport technology

Travelling in style: InnoTrans 2016 focuseson Travel Catering & Comfort Services

20 – 23 September 2016, Berlin

to gain first work experiences and strengthen the commercial relations between both countries.

Vocational Training

Germany is a country with very low unemployment rates. Especially the youth unemployment is with 7.1 % one of the lowest rates in the world. A main pillar of this success is the German dual vocational system.

The German dual vocational system consists of both learning in a vocational school and training in the company. The trainees will spend70 % of the three year traininginside the company working like a regular employee. The training contract a civil law training contract is between the company and the trainee and not between the trainee and the vocational training school. The trainees are paid a salaryby the companies.

Result on the one side are highly competent and flexible young people who can work at any company in their respective area of expertise. And on the other side the German approach ensures that there is a direct link between trainingcapacity and the demand for skilled labor and imposes low risk to the state budget.

Currently AHK Saudi Arabia and GIZ International Services incooperation with TVTC have a project to offer trainings for

mechatronics, IT-specialists and business administration accordingto the German dual system in Riyadh. Many German companiesin Riyadh have already confirmed their interest to participate in the program. The big advantage for the trainee is the practical approach. Under the guidance of qualified trainers the young Saudi Arabian trainees will learn the necessary skills not in a lab but in a real work environment. They will learn to cope with the constantly changing demands of the job.

The big advantage for the company is the direct influence on the training program and their traineesrespectively their future employees. The company has the free choice to employ who they want to. In so far the companies demand assures that training provided matches with the job offers in quantity and quality. Another point worth mentioning is the Nitaqat quota. A trainee will count as a full employee. The dual vocational training will also reduce labor search costs and lowerimplementation costs due to the familiarity of the workplace which the trainee already has gained. The big advantage for Saudi Arabia is a skilled workforce which is trained for the needs of the economy. The foreseeable reduction of youthunemployment and the financial participation of the businesses will also benefit the state budget.

JobXchange andVocational Training

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AHK Services AHK Services

Small and medium-sized companies are particularly supported by experienced partners to enter foreign markets. The AHK’s Service Brand DEinternational is present in all 120 offices of the German Chamber Network abroad. According to the services of DEinterantional, AHK Saudi Arabia offers German companies services to assist them in the market entry and Saudi companies to get in touch with German businessmen. Important sectors like health care, infrastructure, construc-tion, petrochemicals, metallurgical mills and plants, food industry as well as energy related topics are covered by one of our employees, who are specialized inthese fields.

Market Entry1. Individual Market AdviceThe individual market advice is our most successful service. In a close dialogue with German companies and on the basis of the documents and product samples they provide, we identify business and product specific advantages on the Saudi market and analyze their market opportunities.

2. Business Partner SearchWithin the context of the business partner search we take on the search for the right and appropriate business partners.

3. Address ResearchThe AHK Saudi Arabia offers a verified research of sectoral and addressinformation to simplify the establishment of contacts with Saudi companies.

4. Direct Mailing ServicesWe offer you individual support in the search for interested business partners and we will take care of establishing initial contacts.

5. Business-TripsAHK Saudi Arabia offers German compa-nies the possibility to take part in business trips of different industrial sectors to Saudi Arabia. During 3 to 4 days stay in Saudi Arabia the aim of these business trips is to give a first impression of the country and the market and to make first contact with Saudi businessmen. The main focus of an AHK-business trip lies on business to business meetings (B2B). Saudi businessmen who are interested in cooperation with German companies are cordially invited to contact us.

6. Catalogue Show - ExhibitionAHK Saudi Arabia and Yemen presents German companies in the most important trade- and industrial centers in Saudi Arabia. Saudi companies have the unique opportunity to see a wide range of high

quality products “Made in Germany” at one spot. The Catalogue Show is usually combined with the German breakfast. Traditionally high ranking representatives of Saudi and German economy attend the breakfast and enjoy Germany’s delicious food and beverages.

Market InformationKnowledge about the Saudi Arabian market and characteristics of its society and culture are essential for a successful market entry. Regarding this, AHK Saudi Arabia offers Quick Market Checks and Market Surveys.

In cooperation with our partner Germany Trade & Invest, we also help Saudicompanies, who are interested in business in Germany.

1. Legal InformationIn order to enter a market successfully, the legal aspects should be considered carefully. For this reason it is our pleasure to provide German companies with the needed legal services in diverse business-related aspects reaching from customs

Services of AHK Saudi Arabia

Legal Informationand Support

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and taxes to investment, import and export regulation, etc.

In addition, we offer extrajudicialmediation and offer our help when contacts to public authorities and/or law firms are required.

2. Health Treatment in GermanyAHK Saudi Arabia assists Saudi Arabian patients who wish to make use of health treatment in Germany.

3. Debt CollectionLong experiences with debt collection show that extrajudicial proceedings offer faster and more promising solutions than court proceedings by civil law. AHK Saudi Arabia's experts with long termexperience in the country can alsohelp you to dissolve and avoid misunder-standings due to different perceptions of trade and business caused by cultural differences or customs. Sustainable damage of long year businesspartnerships can easily be avoidedby the debt collection through AHKSaudi Arabia.

4. MediationAHK Saudi Arabia acts as a mediator in cases of commercial disputes between the German and the Saudi business partner.

Our objective is to solve disputes without harming the long term business relations.

5. Visa Service

To help Saudi companies and business-men with the visa application process we offer to provide exhibitors and visitors totrade fairs in Germany with a letter of recommendation to the German consulate/embassy. AHK Saudi Arabia assists German companies and business-men in visa issues. We support business travelers who stay temporarily in the Kingdom in offering to act as the sponsor during their stay. AHK Saudi Arabia requests the so called E-Number at the Ministry of Foreign Affairs and is the responsible institution during the time of the visit.

6. Translation Services

We offer translations of letters, documents, company profiles etc. in the following languages:

• German <> Arabic • German <> English

We also offer interpreting-servicesGerman <> Arabic during AHK-Events and delegations.

Trade Fair ServicesAHK Saudi Arabia is the officialrepresentative of the Deutsche Messe AG, Messe Munich, Messe Berlin GmbH, and Spielwarenmesse eG in our region. Exclusively for Saudi and Yemeni clients we offer a wide range of services as we take care of their preparation for trade fairparticipation as an exhibitor or visitor. These services includes selecting the suitable trade fair, according to their company profile, preparation of the application form, booth rental, etc. for exhibitors. For visitors, we are providing the admission ticket, issuing the recom-mendation letter for the visa process, providing info on visa application, flight and hotel booking, etc.

For further information to the services of AHK Saudi Arabia, please contact:

Your service provider for sustainable businessdevelopment with one of the world’s largest economies

German-Saudi Arabian LiaisonOffice for Economic Affairs (GESALO)P.O. Box 61695, Riyadh 11575,Kingdom of Saudi ArabiaTel.: 00966 11 4050201Fax: 00966 11 4031232, Email: [email protected]

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Andreas HergenrötherDelegate of the German Economyfor Saudi Arabia, Bahrain and Yemen

[email protected].: + 966 (0) 11 405 02 01

Legal AffairsManagement

Tareq QamhanIntermediation of Health Services

[email protected].: +966 (0) 13 3472473 Ext. 1526

DEinternational

German - Saudi Business Magazine

Omar Hassan HamzaAssistant Delegate& Head of Legal Affairs,

[email protected].: +966 (0) 11 405 02 01 Ext. 106

Trade Fairs

Asif Iqbal AnsariTrade Fair Officer / Trade FairCoordinator for Visitors

[email protected].: + 966 (0) 11 405 02 01 Ext. 112

Mohammed FaleelHead of Business Promotion &Business to Business Affairs

[email protected].: +966 (0) 11 405 02 01 Ext. 105

AHK Saudi Arabia - www.saudiarabien.ahk.de

Your contact persons at AHK Saudi Arabia

Al-Ameen Al-DalaliHead of Trade Fairand Export Promotion

[email protected].: +966 (0) 11 405 02 01 Ext. 110

Jan Lutz MuellerHead of German Desk in Jubail

[email protected].: +966 (0) 13 3472473 Ext. 1525

Anton BondarewHead of DEinternational& Public Relations

[email protected]: +966 (0) 11 405 02 01 Ext. 118

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Delegation der Deutschen Wirtschaft für Saudi-Arabien undJemen (AHK Saudi-Arabien)German-Saudi Arabian Liaison Office for Economic Affairs(AHK Saudi Arabia)

Futuro Tower, 4th Floor, Al Ma'ather StreetP.O.Box 61695, Riyadh 11575,Königreich Saudi-Arabien / Kingdom of Saudi ArabiaPhone : 00966-11-4050201 - Fax : 00966-11-4031232Mail: [email protected]: http://saudiarabien.ahk.de/

Mohammad Al-AdeebTrade Fairs Officer

[email protected]: +966 (0) 11 405 02 01 Ext. 109

Mohammed AkbarIT System Administration

[email protected].: +966 (0) 11 405 02 01 Ext. 114

Your contact persons at AHK Saudi ArabiaPublic Relations & DEinternational Consultant

At your Service

Anton BondarewHead of DEinternational

[email protected]: +966 (0) 11 405 02 01 Ext. 118

Farook HameedAddress Research / Front Desk

[email protected].: +966 (0) 11 405 02 01 Ext. 100

Mohammed Riyas GulcanMessenger

[email protected].: +966 (0) 11 405 02 01 Ext. 101

Accountancy

Mohammed KhusroAccountancy

[email protected].: +966 (0) 11 405 02 01 Ext. 111

Faisal NalpurakkalAdministration / Front Desk

[email protected].: +966 (0) 11 405 02 01 Ext. 119

Mohammed Aminul IslamFacilities

[email protected].: +966 (0) 11 405 02 01

Sören KohseDEinternational Consultant& Public Relations

[email protected].: +966 (0) 11 405 02 01 Ext. 108

Sören KohseDEinternational Consultant

[email protected].: +966 (0) 11 405 02 01 Ext. 108

Hendrik DepenauDEinternational Trainee

[email protected].: +966 (0) 11 405 02 01 Ext. 113

Ricardo WagnerDEinternational Trainee

[email protected].: +966 (0) 11 405 02 01 Ext. 115

Nabil BenahseneDEinternational Consultant

[email protected].: +966 (0) 11 405 02 01 Ext. 117

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www.fawazadvertising.com

P.O. Box 7301, Riyadh 11427, Kingdom of Saudi ArabiaTel: +966 11 270 4102 - Fax: +966 11 270 4103

[email protected]

+966 11 270 4102