Air defence, energy and advanced robotics are industries set for growth and investment as Germany’s new ambassador gets to work on strengthening bilateral ties with the UAE.
Speaking before a state visit by President Sheikh Mohamed to Germany on Wednesday, ambassador Tobias Tunkel said his country was a proud trading partner with firm ambitions to build on innovative technologies.
Mr Tunkel has ambitions for bilateral trade deals to surpass the existing figure of around $15 billion during his posting, which began in August.
There is huge untapped potential to use the UAE’s artificial intelligence know-how with German manufacturing capability. Germany has historically been Europe’s industrial powerhouse.
“More and more of this trade is in non-oil related fields, so it becomes less dependent on volatile oil prices and other external factors,” he said.
“Growth in bilateral trade is pretty stable, and we believe that it's still just the beginning as the potential is much bigger.
“As we diversify our mutual investments, we will especially look at innovative technologies that the UAE is very much interested in, such as emerging new AI physical robotics.
“It is an emerging new technology in Germany, which basically combines AI with the industrial base that Germany has.”
Regional hostilities
In a time of regional crisis due to the Iran war, Mr Tunkel told The National the UAE and Germany had been drawn closer together due to similar threats posed by hostile neighbours.
“We have seen what the actions of Russia have done to our neighbourhood in Europe,” he said. “Russia has learnt from Iran how to use drones to attack Kyiv, now Iran is learning from Russia how to target the Gulf.”
“In our view, they are more or less two sides of the same metal. We have had an attack at Leipzig Airport which had Russian fingerprints all over it.”
Drone attack
A bomb-laden drone was found near the runway at Leipzig Halle airport on August 4, but it failed to explode due to a faulty detonator.
It was described by German counter-terrorism officers as a hybrid attack that posed a new level of danger on the continent, temporarily forcing the closure of one of Europe’s busiest cargo hubs.
No one was injured, but the incident highlighted the potential threat posed by emerging drone technology. Germany said last week that Russia was responsible for the attack.
Mr Tunkel, who previously served in the German embassy in Moscow as head of division for economic and commercial affairs, said Germany and the UAE were well placed to develop anti-drone technology to bolster regional security.
“Against the backdrop of the geopolitical situation we have a mutual interest in deepening our security ties, including joint ventures on air defence and anti-drone technologies, he said.
“To be very clear this crisis is not a crisis of the region only, it has affected the global economy. In Germany, we see inflation is going up along with prices at the petrol station.
“We are an export nation and rely on freedom of navigation, open waterways and international waters so we rely on a rules-based international order.
“In the UAE, we have a partner in exactly that, and we want to strengthen the UAE as a pillar of stability in this troubled region.
“We believe that the UAE, with our support and the support of other partners, can project more stability into this region.
“It's desperately needed, as Iran is more aggressive than ever.”
Long-term deals
Germany has long-standing economic ties with the UAE across multiple sectors.
A joint venture between Adnoc and Germany’s Linde has been operating since 2007 to produce and supply industrial gases such as nitrogen and oxygen.
The partnership has also involved German companies working alongside the UAE in renewable energy. It is another area primed for growth as Germany looks to alternative fuel supplies.
Since 2022, the country has looked beyond Russia for imported gas to supplies from Norway and the Netherlands. It has also shifted to more liquefied natural gas supplies from Qatar and the US.
“The big sovereign wealth funds are very interesting financial partners when it comes to investing in huge energy projects that support our energy transition in Germany,” Mr Tunkel said.
“Germany is a very strong proponent of international law when it comes to protecting global goods, and shares exactly the same position as the UN with regard to what international regime should regulate the Strait of Hormuz.
“We are pushing back against any attempt by Iran to manipulate this legal framework, and that is important.”
