German Chancellor Angela Merkel, who arrived in Jeddah Tuesday evening, pledged to boost trade across the Gulf region, even as the euro zone struggles with its most serious economic crisis. She was received by Prince Saud Al-Faisal, Foreign Minister, at King Abdul Aziz International Airport in Jeddah. Merkel visited the King Abdullah University of Science and Technology (KAUST) in Thuwal where she was received by KAUST President Professor Choon Fong Shih. Later in the evening, King Abdullah, Custodian of the Two Holy Mosques, hosted a banquet in her honor. The Gulf Arab states support European efforts to stabilize the euro, she said in Abu Dhabi before leaving for Jeddah. Asked whether the European single currency could remain a model for efforts among Gulf nations to create their own joint currency, Merkel said: “Yes, of course,” adding that the subject had played a prominent part in her talks. In recent weeks, the euro has been hit by investor concerns about debt in a number of euro zone states. “It's understood here very well that a region like the European Union, which shares a currency, also needs to try to create a shared basis for economic performance,” she said. She said Gulf leaders have “a very good understanding” of the need to control deficits under a shared currency. She noted, however, that the region's oil and gas wealth allow it to “invest in the future.” “But one does know as well that we (the EU) have to improve our competitiveness. And this is the German position,” she told reporters during her first full day of talks on the trip. Merkel tried to keep the focus on bolstering economic links with the region — repeatedly noting Germany's interest in expanding the estimated 60 billion euros ($74 billion) in two-way trade between Germany and the entire Middle East. “While political ties and initiatives are important, it ultimately comes down to creating investment opportunities,” she said. German cars and consumer goods have a major presence in the Gulf, but efforts to further expand economic ties were underscored by the high-level business delegation accompanying Merkel on her four-nation trip. Merkel's talks in the region also are expected to address the Middle East peace process and Iran's nuclear program.
