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    Home > Finance > Germany's Merz heads to Saudi, Gulf in quest for new partners
    Finance

    Germany's Merz heads to Saudi, Gulf in quest for new partners

    Published by Global Banking and Finance Review

    Posted on February 4, 2026

    3 min read

    Last updated: February 4, 2026

    Germany's Merz heads to Saudi, Gulf in quest for new partners - Finance news and analysis from Global Banking & Finance Review
    Tags:partnershipHuman Rights

    Quick Summary

    Chancellor Merz visits the Gulf to strengthen energy and arms ties, aiming to reduce Germany's reliance on the U.S. and China.

    Table of Contents

    • Germany's Strategic Partnerships in the Gulf
    • Energy and Arms Cooperation
    • Human Rights and Regional Stability
    • Germany's Role in Middle East Relations

    Chancellor Merz Visits Gulf States to Strengthen Energy and Arms Ties

    Germany's Strategic Partnerships in the Gulf

    BERLIN, Feb 4 (Reuters) - German Chancellor Friedrich Merz began a tour of Saudi Arabia, Qatar and the United Arab Emirates on Wednesday aiming to forge energy and arms partnerships as Europe's biggest and richest economy sought to reduce dependence on the U.S. and China.

    Energy and Arms Cooperation

    "We need such partnerships more than ever at a time when politics is increasingly being determined by major powers," Merz said at the start of his three-day trip, adding the aim of such alliances was to preserve freedom, security and prosperity.

    Human Rights and Regional Stability

    "Our partners may not all share the same values and interests, but they share the view that we need a world order in which we trust agreements and treat each other with respect," he added.

    Germany's Role in Middle East Relations

    The tour, which follows visits to Brazil and South Africa last year and India last month, is part of a broader German initiative to diversify global alliances.

    "In such a network of partnerships, we reduce unilateral dependencies, mitigate risks and create new opportunities together for our mutual benefit," said Merz.

    In the Gulf, Merz said he wanted deeper cooperation in the energy and armaments sectors, adding Berlin was adopting a less restrictive approach on arms exports. Germany's economy minister prepared the ground last week.

    QATAR ALREADY ONE OF GERMANY'S BIGGEST FOREIGN INVESTORS

    Relations with Saudi Arabia deteriorated after the killing of Saudi Arabian journalist Jamal Khashoggi in 2018. Merz said while some improvements in human rights had taken place, there was more to be done and he would discuss this.

    The Gulf states, with large sovereign wealth funds, already play a role in Germany's economy. Qatar is one of the largest foreign investors in Germany, holding stakes in companies such as Volkswagen, utility RWE and shipping group Hapag-Lloyd.

    Merz said he would address broader regional issues, calling for greater peace, stability and cooperation, including normalization with Israel.

    "One day, Israel should also be a welcome part of this order, not a rejected foreign body," said Merz, addressing the balance Gulf states maintain on Israel and Palestinians.

    On Iran, Merz said he had three demands: that Tehran stops violence against its own people, halts its military nuclear programme and ends destabilizing activities in the region.

    Germany remains one of Israel's closest allies in Europe, while Gulf states have navigated differing approaches to Iran, particularly since the Gaza war.

    (Writing by Madeline Chambers; Editing by Bernadette Baum)

    Key Takeaways

    • •Chancellor Merz visits Gulf states for energy and arms partnerships.
    • •Germany aims to reduce reliance on U.S. and China.
    • •Focus on human rights and regional stability in discussions.
    • •Qatar is a major investor in Germany.
    • •Merz addresses broader Middle East issues, including Iran.

    Frequently Asked Questions about Germany's Merz heads to Saudi, Gulf in quest for new partners

    1What are arms exports?

    Arms exports involve the sale of weapons and military equipment from one country to another, often regulated by national and international laws to prevent misuse.

    2What is a sovereign wealth fund?

    A sovereign wealth fund is a state-owned investment fund that manages a country's reserves, often investing in various assets to generate returns for future generations.

    3What is regional stability?

    Regional stability refers to the absence of conflict and the presence of cooperation among countries in a specific area, contributing to peace and security.

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