Germany

Last updated: May 9, 2025

The Federal Republic of Germany is located in Central Europe, making it a strategically attractive location due to its central position. It is bordered by Denmark to the north, Poland and the Czech Republic to the east, Austria and Switzerland to the south, and France, Luxembourg, Belgium, and the Netherlands to the west. Since the reunification of East and West Germany in 1990, the country is divided into sixteen federal states, each of which plays a significant role in the constitutional structure. The capital, Berlin, has about 3.7 million inhabitants, and the total population is approximately 84 million.

Germany is a founding member of the European Union (EU) and is also a member of the UN, the Organization for Economic Cooperation and Development (OECD), and numerous other international and regional organizations, such as the Union for the Mediterranean, established in 2008, which builds upon the Barcelona Process that began in 1995. 

The previous coalition government, comprising the Social Democrats (SPD), the Greens, and the Free Democrats (FDP) under Chancellor Olaf Scholz, collapsed in November 2024. This led to a vote of confidence in December 2024, which Scholz’s government lost, prompting early federal elections held in February 2025. The elections resulted in a shift in power, with the center-right Christian Democratic Union/Christian Social Union (CDU/CSU) alliance emerging as the leading force. Subsequently, Friedrich Merz of the CDU was elected Chancellor on May 6, 2025, forming a grand coalition government with the SPD . Frank-Walter Steinmeier continues to serve as the President of Germany, a role he has held since March 2017. He was re-elected in 2022 and remains the head of state as of May 2025.

As of 2025, Germany remains Europe’s largest economy and ranks sixth globally in terms of real GDP based on purchasing power parity (PPP), with an estimated value of approximately €6 trillion at the end of 2024. The German economy has faced significant challenges in recent years. After a 0.3% contraction in 2023, GDP declined by an additional 0.2% in 2024, marking the first consecutive annual downturn in over two decades. 

Germany continues to rank among the world’s leading exporting nations, maintaining its position within the top three globally. The Arab countries remain significant markets for German exports, with the United Arab Emirates, Saudi Arabia, and Egypt being key trading partners.

Trade relations with certain Mediterranean and Middle Eastern countries have a long history. Trade between Morocco and Germany dates back to the early 16th century, with trading families such as the Fuggers setting up representations in the port city of Safi. In the late 17th century, the Empire of the Sherif and the Hanseatic cities of Hamburg, Bremen, and Lübeck negotiated an agreement to ensure safe sea routes for ships traveling along the Moroccan coast.

Similarly, Germany’s economic relationship with Turkey dates back centuries, with a treaty of friendship, shipping, and trade signed in 1761 between Frederick the Great and Sultan Mustafa III. In 1856, Siemens established the first telegraph office in Istanbul, and Deutsche Bank contributed to the construction of the Baghdad Railway connecting Anatolia to the Middle East.