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Economic Relations Between Germany and the Middle East

Despite limited direct energy dependence, the region remains economically significant for German exporters and investors. We have compiled data on the Gulf region, Iran, and Israel.

Gulf Region (GCC)

  • Trade volume in 2025 was around 30 billion euros (approximately 1 percent of Germany's foreign trade), comparable to trade volumes with India (31 billion EUR) or South Korea (30 billion euros).
     
  • German exports in 2025 amounted to 24.8 billion euros, comparable to export volumes to South and Central America (27 billion euros).
     
  • German imports in 2025 totaled 4.3 billion euros, comparable to imports from Australia (4.6 billion euros).
     
  • According to the AHKs, approximately 1,800 German companies are currently active in the region, either locally established or in partnership with a local partner.
     
  • These companies employ over 66,000 staff members (source: Bundesbank).
     
  • The stock of direct investments (2023) exceeded 7.6 billion euros.
     
  • German companies generated revenues of 21 billion euros in the region in 2023.

Iran

  • In 2025, the German trade volume with Iran amounted to approximately 1.2 billion euros. German exports (mostly machinery, pharmaceutical, and chemical products) fell by 24.3 percent compared to the previous year. Imports from Iran, primarily food items, remained stable, resulting in an overall trade volume drop of over 20 percent compared to the previous year.
     
  • Trade with Iran has been on a significant decline since 2018 and is now at a low level. Compared to 2016, the trade volume has decreased by around 60 percent – from approximately 2.8 billion euros to about 1.7 billion euros in 2019. Trade is restricted to humanitarian goods. Since September 2025, further constraints are in place, with the reactivation of UN and EU sanctions ('Snapback'). The E3 states (Germany, France, United Kingdom) triggered this mechanism after Iran repeatedly violated key JCPOA commitments. The Snapback reinstated comprehensive restrictions on trade, finance, and transport.

Israel

  • The trade volume between Germany and Israel in 2025 was approximately 8.7 billion euros, marking a 6.7 percent increase compared to 2024 (including 5.6 billion euros of German exports and 3.1 billion euros of German imports). Germany mainly exports machinery, data processing equipment, and motor vehicles and parts, while importing data processing equipment, chemical products, and pharmaceuticals from Israel.
     
  • The stock of German direct investments in 2023 was approximately 6.4 billion euros. 117 German companies actively operate in Israel with significant capital assets, employing around 14,000 staff.

Contact

Strahl, Elisabeth_quad

Elisabeth Strahl

Director Middle East and North Africa

Trach, Rima_quad

Rima Trach

Head of Department for AHK Voluntary Work and Cultural Development