Germany

Last updated: February 23, 2023

The Federal Republic of Germany is located in Central Europe and is an attractive location due to its central position. Neighboring countries are – clockwise starting in the north – Denmark, Poland, Czech Republic, Austria, Switzerland, France, Luxembourg, Belgium and the Netherlands. Since the reunification of East and West Germany in 1990, the Federal Republic has been divided into sixteen federal states, which occupy a strong position in the constitutional structure. The capital is Berlin with about 3.7 million inhabitants. The total population is about 84 million.

Germany is a founding member of the European Union as well as 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, founded in 2008, which builds on the Barcelona Process begun in 1995. Since 2021, the affairs of state have been run by a Social Democratic-Green-Liberal coalition led by Chancellor Olaf Scholz. The head of state since March 2017 has been German President Frank-Walter Steinmeier, who was elected for another term in 2022.

Germany is the largest economy in Europe and the fifth largest internationally. Real gross domestic product (purchasing power parity) in 2021 was estimated at around 4.24 trillion euros. Growth has slowed in the wake of the Covid 19 pandemic and the Russian invasion of Ukraine. GDP is expected to decline by 0.6% in 2023.

Germany has repeatedly ranked among the top three exporting countries in the world since 2021. The Arab countries also represent a major sales market for products “Made in Germany”. According to the Federal Statistical Office, the five Arab countries to which Germany exported the most in 2021 are the United Arab Emirates, Saudi Arabia, Egypt, Morocco, and Tunisia, with an export volume of 24.7 billion euros. Of all the Arab countries, only Comoros, Algeria, Iraq, Tunisia and Libya export more to Germany than they import from there.

Some of the trade relations with individual countries in the Mediterranean and Middle East regions go back a long way. Trade relations between Morocco and Germany can be traced back to the beginning of the 16th century. This can be traced back to the beginning of the sixteenth century. At that time, trading families and merchants such as the Fuggers already had their own representations in the port city of Safi, where they loaded saffron and wheat. Towards the end of the 17th century, negotiations between the Empire of the Sherif and the Hanseatic cities of Hamburg, Bremen and Lübeck led to a treaty on securing sea routes. From then on, ships from these cities enjoyed free passage along the Moroccan coast.

German-Turkish economic relations also have a long tradition. In 1761, Frederick the Great and Sultan Mustafa III concluded a treaty of friendship, shipping and trade. In 1856, Siemens established the first telegraph office in Istanbul. Deutsche Bank also participated in the construction of the Baghdad Railway from Anatolia to the Middle East. Relations between Germany and Iran also date back to the 19th century. Even today, Hamburg is still the city with the most Iranian residents in Europe after London.