EKG Report 366
Current situation in the Middle East
The Federal Government continues to closely monitor the situation in the Middle East. Applications for cover for deliveries and services to affected countries remain possible within the applicable policy framework. Existing export credit guarantees continue to be valid.
Export credit guarantees 2025: EUR 13 billion in new cover, Ukraine ranked 4th place
Despite challenging global conditions, the Federal Government’s export credit guarantees supported German exporters across many sectors and contributed to safeguarding employment and strengthening Germany as an industrial location.
Total volume in coverage in 2025 reached EUR 13.3 billion, below average due to delays in several major infrastructure projects, which are expected to be covered in 2026.
Billions in cover in the renewable energies sector
Turkey, a long-standing key trade partner for German exporters, leads the country ranking with EUR 2.1 billion in cover. Poland follows with EUR 1.8 billion - driven by two major renewable energy transactions supported by The Federal Government Brazil ranks third place with EUR 0.8 billion.
The ranking of Ukraine deserves special mention: in 2025, Ukraine recorded EUR 740 million in insured exports and reached fourth place in the country ranking.
Further figures will be published in the upcoming annual report on Export Credit Guarantees and UFK Guarantees which will soon be published on www.bundeswirtschaftsministerium.de and www.exportkreditgarantien.de.
OECD country risk classification: three improvements
In its 104th meeting, the OECD reviewed the country risks in Europe/CIS and the Middle East/North Africa regions. The seven-level country classification (1 = best category, 7 = worst category) was introduced at OECD level in 1999 and remains a key parameter for the premium calculation.
The following changes have occurred compared to the previous categorisations:
| Country | New category | Previous category |
| Armenia | 5 | 6 |
| Moldova | 6 | 7 |
| Oman | 3 | 4 |
SACE and Euler Hermes: agreement on closer cooperation
Germany and Italy have agreed to work more closely together in the area of export credit guarantees. Franziska Löke, Head of Department International Cooperation, Euler Hermes, and Michele Pignotti, CEO SACE, signed a declaration to this effect in mid-January on the fringes of the Italian-German Economic Forum in Rome. The aim is to deepen economic collaboration, leverage German and Italian value chains, and create new growth opportunities.
Joint focus on EU global gateway initiatives
Italy and Germany both commit to drive forward sustainable projects of strategic importance - particularly within the framework of the EU Global Gateway Initiatives. Closer cooperation was also agreed in the area of critical raw materials and the reconstruction and economic strengthening of Ukraine.
New Reinsurance Agreement Concluded with Saudi Arabia – Strengthening Stability and Growth in International Trade
Cooperation between Euler Hermes and Saudi EXIM
Germany and Saudi Arabia agreed on enhanced cooperation in government-backed export credit insurance. A reinsurance agreement to this effect was signed by Edna Schöne, Member of the Board of Management of Euler Hermes AG, and H.E. Eng. Saad Alkhalb, CEO of Saudi EXIM Bank, signed the agreement in Riyadh on 14 January 2026.
Edna Schöne: "With this agreement, we deepen economic cooperation between Germany and Saudi Arabia and create attractive market opportunities for both sides in exports for industry and SMEs along the entire value chain."
Saudi Arabia: Diversifying the national economy - strengthening foreign trade
Saudi Arabia aims to strengthen its foreign trade and promote the import of high‑quality capital goods through reinsurance agreements of this kind. According to H.E. Eng. Saad Alkhalb, this agreement enables the Saudi EXIM Bank to reinforce its role in supporting Saudi non‑oil exports and to expand its network of international partnerships in line with the objectives of Vision 2030, which seeks to diversify the national economy and enhance the Kingdom’s position in global trade.
Long-term prospects for exporters and importers
The newly concluded reinsurance agreement offers long‑term prospects for German exporters, both for deliveries to Saudi Arabia and for transactions in third countries involving Saudi suppliers. Saudi buyers and project sponsors benefit from attractive financing conditions and access to high‑quality technologies and solutions made in Germany.
Reinsurance agreements enable government-backed cover for transactions with high foreign content
In an environment shaped by diversified supply chains and cross-border project participation, reinsurance agreements are becoming increasingly important. They provide a reliable legal framework for international transactions, enable government‑backed cover for projects with high foreign content, and lay the groundwork for deepening economic relations and expanding foreign trade policy options. They also facilitate risk sharing between export credit agencies.
Germany and Saudi Arabia
Germany is currently Saudi Arabia’s most important economic partner within the European Union, with bilateral trade exceeding ten billion euros. The attractiveness of the Saudi market is reflected in its continuously increasing import volume. However, the structure of supplier countries is shifting noticeably in favor of Asian competitors. The reinsurance agreement is one of several measures aimed at counteracting this trend.
In 2025, the Federal Government covered deliveries and services to Saudi Arabia amounting to nearly 500 million euros through export credit guarantees, placing Saudi Arabia eighth in the country ranking. Further details on cover options for Saudi Arabia can be found in the country information section.
"The reinsurance agreement provides a basis for sustainably expanding bilateral trade between the two countries and diversifying supply relationships over the long term."
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