German economy minister aims to deepen ties on visit to UAE and Qatar

German Economy Minister Katherina Reiche begins a four-day trip to the Gulf on Sunday with visits planned to the United Arab Emirates and Qatar.

Reiche is scheduled to chair a German-Emirati energy forum and hold talks with officials during the visit.

She is to be accompanied by an economic delegation including Martin Blessing, Chancellor Friedrich Merz's personal investment representative.

Both countries are important partners in the Middle East, Reiche said in Berlin shortly before her departure, calling them "economically ambitious and strong in technology and capital."

The minister said she expects concrete partnerships to be concluded during her trip, promising "a number of contracts signed involving major industrial cooperation."

Germany is also sending a clear signal with the visit, she argued. "We are returning to economic rationality, reforms and partnerships that focus on technology." 

The planned takeover of German plastics manufacturer Covestro by the UAE's state-owned Abu Dhabi National Oil Company (ADNOC) is likely to be a topic of discussion during Reiche's trip. The European Union has approved the deal, subject to conditions, but the German government's decision is still pending.

In Qatar, Reiche will likely turn her attention to the country's threat to freeze or halt the export of liquefied natural gas (LNG) to Europe because of the EU's planned supply chain law, which would require companies to address human rights and environmental risks in their value chains.

The original plans for the supply chain directive would have also required companies to draw up and implement climate plans, with heavy penalties for non-compliance.

However, the European Parliament on Thursday agreed on a reform to the planned law which would remove this obligation. The parliament is now entering into final negotiations with member states on the proposal.

According to the German Gas and Hydrogen Industry Association, LNG from Qatar accounted for around 10% of the EU's total LNG imports in the first half of this year.