Oman and Germany’s relationship is rooted in economic cooperation and green energy projects, particularly in green hydrogen. German firms engage heavily in Omani infrastructure, while institutions like GUtech bridge educational ties, promoting shared sustainability goals and enhancing Germany’s foothold in Middle Eastern markets. H.E. Dirk Lorke shares his strategy to tight Omani – German ties.
As the Ambassador of Germany to Oman, with a vast international experience. What insights do you have regarding the Omani market, and how does your international background shape your vision for Oman?
HE Dirk Lölke: One of the first things that struck me upon my arrival last year was the Omani government’s deep commitment to planning the country’s transition. The leadership demonstrates a firm conviction in this endeavour. I’ve served in other nations, and the difference I sense in Oman is the government’s clear strategy for moving forward. This aligns with what we in Germany are currently attempting to navigate: a challenging transition. We feel a unique kinship with Oman in this respect. Additionally, the Omani government is eager for German investment and collaboration. His Majesty Sultan Haitham bin Tariq visited Germany, our Federal President and our Economy Minister both came here with big delegations, and we hosted Minister of Energy Mohammed Al Aufi, a crucial partner, in Germany. Oman has a smaller internal market, but its strategic location – looking south toward East Africa and east toward Asian markets – should position it as a hub for German business.
Could you highlight some recent developments in this partnership?
HE Dirk Lölke: We have a long-standing foundation for our trade agreements, including economic and industrial cooperation and a bilateral investment protection agreement. Furthermore, we will soon be transitioning from a bilateral air traffic agreement to a comprehensive air transport agreement with the European Union. Our airlines, Oman Air and Lufthansa, are closely partnered and facilitate travel between Frankfurt, Munich, and Muscat. In the logistics sector, several key German companies operate in Oman, including DB Schenker, and DHL. Siemens has won the bid for the signalling on the Hafeet Rail railway project linking Sohar and Abu Dhabi, demonstrating the significant infrastructure investment occurring here. Talabat is also the subsidiary of a German company.
Trade exchange is still lower than we would like. The focus should be on increasing German investments in Oman, particularly in energy, which will cement a robust economic relationship.
Are there any specific sectors of the economy that you see as potential for future agreements?
HE Dirk Lölke: Let’s return to the energy sector. In 2022, we signed a joint declaration of intent between the Governments of Oman and Germany, launching the German-Omani energy dialogue. This is crucial, particularly in renewable energies, including green hydrogen. This autumn, our Ministry of Economy and our bilateral Chamber of Commerce (AHK) are organizing an online workshop, together with the Government of the Sultanate on decarbonization standards in the steel sector. Additionally, this Embassy is organizing a Decarbonization Dialogue Event with the participation of H.E. Salim Al-Aufi, the Minister of Energy and Minerals, in Muscat on “Investing in Green Growth: Oman’s role as a front runner in the Green Hydrogen Market”.
Transport and logistics also present significant opportunities, and we are looking at promoting tourism, including for Omani visitors to Germany.
Can you share any specific projects currently in development?
HE Dirk Lölke: Our Embassy and our bilateral Chamber of Commerce (AHK) are working hard to increase the involvement of German enterprises in Oman’s energy sector. Germany has heavily invested in green hydrogen technology and renewable energy, with over 50% of our electrical energy coming from renewable sources. Since we cannot produce all the green hydrogen we need domestically, we have to import it. Oman is strategically positioned on our map of potential partners for this. We would, as a future off-taker, expect to be part of the production process with our German companies.
The impetus must come from German enterprises making concrete decisions to invest and engage in Oman’s market. For instance, Siemens Energy is one company considering assembling electrolysers in Oman, which would represent a significant step forward.
What are your key priorities for strengthening the relationship between Germany and Oman?
HE Dirk Lölke: Education is one of our top priorities. We are proud of the German University of Technology in Oman (GUtech), which collaborates closely with the Technical University in Aachen, Germany. This partnership allows Omani students to gain experience and fosters long-term ties to German technology and innovation. This Embassy has recently hosted a farewell reception for Omani government scholarship holders bound for Germany, which is a key initiative we support together with the German Academic Exchange Service (DAAD). Language is a challenge that Omani students will overcome by learning German at school, through the Goethe-Institut Muscat – or by choosing English-speaking university courses in Germany.
What advice would you give to Omani and Middle Eastern companies looking to enter the German market?
HE Dirk Lölke: I recommend as a first step for any Omani business new to Germany to consult our bilateral Chamber of Commerce in Muscat (AHK) for guidance. They have a dedicated team ready to assist in making essential connections.
HE Dirk Lölke: “Our embassy is facilitating a project known as “H2-diplo”, which aims to expand our collaboration in this vital area. Transport and logistics also present significant opportunities, and we are focusing on promoting tourism, both for Omani visitors to Germany and vice versa. Education is one of our top priorities. We are proud of the German University of Technology in Oman (GUtech), which collaborates closely with the Technical University in Aachen, Germany. This partnership allows Omani students to gain experience and fosters long-term ties to German technology and innovation. The German Embassy recently hosted a farewell reception for Omani government scholarship holders bound for Germany, which is a key initiative we support. Language should not be a barrier. There are opportunities for Omani students to learn German through the Goethe-Institut Muscat and or to choose English-speaking courses at German universities.”
