Saudi Arabia has all but stopped doing business with German companies as relations between the countries have deteriorated in the past six months.
"For Germans, the doors in Riyadh have suddenly been closed," a German businessman in the Saudi capital told Der Spiegel.
The once-positive relationship between Saudi Arabia and Germany hit the skids in November, when then-German Foreign Minister Sigmar Gabriel spoke of spreading "political adventurism" in the Middle East. Many thought the remark was aimed at Saudi Arabia, which gave some the impression that it was trying compel Lebanese Prime Minister Saad Hariri to resign.
Saudi crown prince Mohammed bin Salman appears to be "deeply offended" by the German government, said businessman Detlef Daues, who runs a virtual department store for original replacement parts. About two-thirds of his business comes from Saudi Arabia.
Sources inside the palace in Riyadh say they are expecting an "apology,” Der Spiegel reported. Six months ago, Riyadh withdrew its ambassador from Germany and he still hasn't returned.
Germany's role is complicated with the Saudis amid the current wrangling over a multi-country deal with Iran to halt its nuclear program. Berlin is determined to stick with the agreement after U.S. President Donald Trump announced a withdrawal from it. In addition, the Saudis distrust the government in Tehran.
Meetings with delegations from Germany that were set up before the crisis are being canceled.
The "German government has succeeded" in "upsetting the country so badly that German firms are being excluded from being awarded contracts," Daues wrote in a letter to Bernd Althusmann, the economics minister for the state of Lower-Saxony, where his company is located.
Crown prince Salman is determined to transform his country for an era when the world economy becomes less reliant on oil.
Germany remains Saudi Arabia's most important European trading partner. Some 800 German companies are active in the country, and 200 have offices in Saudi Arabia with a total of 40,000 employees. In 2017, the volume of German exports to Saudi Arabia was 6.6 billion euros. But the mood is shifting.
German Chancellor Angela Merkel had a phone conversation with the crown prince in which she assured her personal regard for him, and said she was looking forward to cooperate with the kingdom.
Death Rumor
The Saudi Royal family this week released a photograph of crown prince Salman to quash speculation propagated by the Iranian and Russian media that he was assassinated, according to the Daily Mail.
Salman had not been seen since April 21. Iranian media reported that there had been a coup attempt against him. Video were posted on social media showing heavy gunfire outside the palace in Riyadh with claims of an uprising underway at the royal palace.
Iranian media speculated that Prince Salman had been arrested or that he was even killed during the "coup."
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