Saudi Arabia is planning to curtail its involvement with some German businesses after diplomatic relations between the two trading partners soured late last year, Bloomberg News reported.
The report's sources said Saudi Arabian government agencies have been instructed not to renew some nonessential contracts with German companies in response to remarks in November 2017 made by Sigmar Gabriel, Germany's foreign minister at that time, which suggested that Lebanon was a "pawn" of Riyadh.
Deutsche Bank AG's business dealings in Saudi Arabia, including its possible involvement in oil giant Saudi Arabian Oil Co.'s historic initial public offering, are among the contracts that could be affected, according to the report, which also said that essential business will continue.
Tensions between the two countries could improve with the formation of a new German government, including the appointment of Heiko Maas as foreign minister, according to Bloomberg News' sources.
Without directly mentioning Saudi Arabia, Gabriel said in November 2017 that Europe "could not tolerate the adventurism that has spread there," Reuters reported. His remarks followed the surprise resignation of Lebanese Prime Minister Saad Hariri during a trip to Riyadh, which he later withdrew.
Saudi Arabia's ministry of foreign affairs slammed Gabriel's comments and called its ambassador to Germany home for consultation. It also handed Germany's ambassador in Riyadh a protest note.
