Riyadh – Sharikat Mubasher: Michael Kindsgrab, the German Ambassador to Saudi Arabia, stated that work is currently underway with Saudi Arabia to build one of the largest hydrogen plants in the world in NEOM, with Germany’s Thyssenkrupp Nucera responsible for its construction.
In an interview with Al Eqtisadiah, Kindsgrab added that both sides are also collaborating to enable investments in decarbonizing energy-intensive industries and developing innovative waste management technologies; an important step toward building resilient and low-carbon energy supply chains.
As part of Saudi Arabia’s efforts to diversify its energy sources and increase the share of renewables to 50% of the electricity mix by 2030, German companies are providing advanced technologies in waste management, electrolyzers for green hydrogen production, and circular economy concepts.
He also highlighted the historic agreement between ACWA Power and SEFE to establish a hydrogen bridge between Saudi Arabia and Germany, starting with the supply of 200,000 tons of green hydrogen annually in the first phase.
Saudi Arabia aspires to become one of the world’s largest producers and exporters of hydrogen, aligning with Germany’s growing demand for green hydrogen as a sustainable solution to reduce emissions and achieve decarbonization.
Additionally, the German ambassador emphasized that there are numerous major investment opportunities in Saudi Arabia, particularly in renewable energy, healthcare, and logistics.
Kindsgrab noted that Riyadh is Germany’s second-largest trading partner in the Arab world, with bilateral trade growing by more than 20% between 2022 and 2024. In 2023, Germany’s total investments in the Saudi market reached 2.052 billion euros.
In a related context, the ambassador pointed out that Saudi Arabia is witnessing an increase in the number of companies establishing local production facilities, including family-owned small and medium-sized enterprises (SMEs) investing with a long-term commitment to growth in the region.
Regarding the technology sector, Kindsgrab highlighted that it is one of the fastest-growing areas for German investment in Saudi Arabia, driven by the Kingdom’s ambitions to become a regional innovation hub. This includes smart city projects, digital transformation, and the development of Saudi Arabia’s tech ecosystem. The Saudi technology market is expected to grow at an annual rate of 9.8%, reaching a value of $6.2 billion by 2025.