News from ASIA
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26.03.2024
Marie-Christin Gabel, Managing Partner MEAI at Departer, is committed to staying ahead of market trends and using the expertise of thought leaders to guide DACH companies operating in the Middle East and Africa. As part of this, she interviewed Dr. Alexander Koldau, Regional Director Middle East, North Africa and Türkiye at VDMA, a prominent member of Departer’s Expert Network. Dr. Koldau, who has been leading VDMA’s efforts in the region since 2016, shared his comprehensive insights into the opportunities and challenges for German machinery manufacturers.
Dr. Alexander Koldau: A Trusted Partner for German Machinery Firms
Dr. Koldau opened by introducing his role: “I work for VDMA, the machinery and equipment manufacturers association with 3,600 member companies from Germany and other European countries. Since 2016, I have been Regional Director for the Middle East and, North Africa and Türkiye. I support member companies in all aspects of doing business in these countries.”
VDMA provides a wide array of support services, including information on market developments, investment environments and establishing local connections. “I also publish a newsletter exclusively for members, organize meetings in Germany and various countries and create networking opportunities to foster exchange and collaboration among our members,” Dr. Koldau added.
Challenges: Localization and Competition
Marie-Christin and Dr. Koldau discussed the significant challenges German machinery firms face in the MEAI region. “Aside from competition, the biggest challenges are localization programs in various countries,” Dr. Koldau explained. “Most of our members are SMEs that primarily export from Germany. Analyzing market developments and deciding whether to set up manufacturing sites abroad is a complex task, especially when big customers demand local production.”
However, he highlighted the potential these localization programs create: “Hundreds of small manufacturing sites are being set up, requiring machinery, testing and logistics equipment. These smaller projects, while individually modest, collectively represent substantial opportunities as they grow rapidly and create further demand.”
Top Markets and Key Sectors
When Marie-Christin asked about the most promising markets, Dr. Koldau identified Saudi Arabia as a standout. “Saudi Arabia is the most promising market due to its size, economic power and the ambitious projects driven by Vision 2030. These initiatives drive demand for locally produced construction materials and equipment.”
He also pointed to other emerging sectors:
“These sectors present unique challenges due to the region’s natural conditions, like water scarcity,” Dr. Koldau noted. “However, our members have the expertise to provide specialized solutions for these problems.”
Sustainability: A Key Differentiator
Sustainability is a major focus across the MEAI region. “Alternative energy, particularly hydrogen, is at the top of the agenda in Saudi Arabia, the UAE and Oman,” said Dr. Koldau. “Our members supply almost all components needed for the hydrogen industry.”
He further explained how German machinery excels in sustainability: “German machines are optimized for resource efficiency and low energy consumption. While their initial costs may be higher, their total cost of ownership often makes them the best choice. Sustainability also extends to occupational safety, where German machinery leads in improving plant safety standards.”
Fostering Partnerships and Collaboration
VDMA plays an important role in facilitating partnerships. “We support German Pavilions at major exhibitions in the UAE and Saudi Arabia,” Dr. Koldau shared. “These pavilions, organized by the Federal Ministry of Economic Affairs, provide an excellent platform for German companies to connect with local partners. In 2025, we have seven such pavilions planned across the region.”
In addition to exhibitions, VDMA collaborates with German Chambers of Industry and Commerce to organize business delegations between Germany and the MEAI region. “These delegations foster invaluable exchanges of ideas and experiences,” he said.
For those seeking machinery suppliers or solutions, Dr. Koldau encouraged visiting VDMA’s Product Portal or contacting him via Departer for tailored assistance.
Technological Trends and Success Stories
Marie-Christin asked about the latest technological trends impacting the machinery industry in the region. Dr. Koldau highlighted the increasing focus on digitalization and automation in manufacturing, as well as advancements in hydrogen technologies.
While discussing success stories, Dr. Koldau underscored the resilience and adaptability of German companies. “Our members continue to set benchmarks in efficiency and innovation, creating sustainable solutions that cater to regional needs,” he said.
Advice for German Companies
Dr. Koldau concluded the interview with actionable insights, emphasizing the importance of collaboration and informed decision-making. As a valued member of Departer’s Expert Network, he is a vital resource and contact for DACH companies looking to navigate the complexities of the MEAI market. Please reach out to Departer as the first point of contact.
To gain access to experts like Dr. Koldau and receive comprehensive support for your MEAI market strategy, contact Departer. Together, we’ll help your business reach its full potential in this thriving and dynamic market.
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