13 May, 2017
Merkel was greeted by King Salman and other top officials upon her arrival at the western city of Jiddah.
It was Merkel's first trip to Saudi Arabia in seven years.
She said Saudi Arabia's war in Yemen also was discussed.
"Economic relations are solid but not shining".
Siemens signed a framework agreement with the Saudi National Industrial Clusters Development Program (NICDP) which the German group said could lead to equipping infrastructure projects worth at least a billion euros, reported Reuters.
Saudi Arabia and Iran also back opposite sides of the conflict in Syria.
The talks with Salman were also attended by Crown Prince Mohammed bin Nayef bin Abdulaziz, first deputy prime minister and minister of the Interior, who provided Merkel with in-depth information on regional security and the actions to fight terrorism.
The German leader's Saudi visit comes at a time when the United Nations is facing criticism over electing #SaudiArabia to serve on the UN Commission on the Status of Women, a body "dedicated to the promotion of gender equality and the empowerment of women".
A diplomatic briefing said the German leader, who faces a battle for re-election in September, would also focus on the upcoming G20 meeting in Hamburg, Saudi Arabia's reluctance to accept a sizeable numbers of refugees from Middle Eastern conflicts, and the continuing Riyadh-led military campaign in Yemen.
Saudi Arabia intends to refrain in future from asking for more weapons from Germany, and to concentrate instead on economic cooperation in other sectors, according to an interview in the German news magazine "Der Spiegel" published on Sunday.
Ms Merkel has called for the burqa to be banned in Germany, saying it was "not acceptable in our county".
Merkel is travelling with a business delegation that includes CEOs of major German companies. The kingdom is trying to attract greater foreign investment as it diversifies its economy away from oil, the backbone of its economy.
Haller said the business meeting at Jeddah Chamber of Commerce organized during the visit of Merkel shed light on the plans and policies of the Saudi government within the framework of the Saudi Vision 2030. While there is no German moratorium on weapons exports to Saudi Arabia, the German government does review deals on a case-by-case basis to ensure any defence equipment sold can not be used for internal repression.
