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

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.

"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.

"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.

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.