German Chancellor Friedrich Merz headed to Saudi Arabia on Wednesday to kick off a Gulf tour as the biggest EU economy seeks to diversify its key trade and energy partnerships. "In the geopolitical environment in which we operate, we must intensify our partnerships with important and influential states in the world. The Gulf states are among them," a senior German official said ahead of Merz's trip. Saudi Arabia and other Gulf states have meanwhile been moving to diversify away from oil and gas, investing heavily in sectors from renewables to tourism, logistics and AI. Regional tensions"In times of geopolitical tension and a global realignment, further intensifying relations with the Gulf States sends an important signal," said the Federation of German Industries.

Source: The Local February 04, 2026 15:22 UTC