Saudi Arabia seems to charm Asian giants as the Kingdom inks 15 new deals with Japan

RIYADH, Saudi Arabia - The Kingdom of Saudi Arabia seems to be expanding its trade ties with Asian and African nations. After China, now comes Japan where Saudi Arabia signed 15 strategic investment agreements spread across various industries.

These deals were sealed and signed during the Japan Investment Forum held in Riyadh, as both countries look to deepen business ties.

The agreements were signed to drive investment in the sector of metals, marine, petrochemicals, and automotive among others, with around 99 Japanese companies investing in Saudia Arabia.

Saudi Minister of Investment Khalid Al-Falih who was speaking during the forum said the two countries have bolstered their relationship with tremendous dedication as the Kingdom targets $3.3 trillion worth of investments with Japan by 2030.

He further added that the Kingdom will utilize its relationship with the east Asian country to build more than 500,000 electric cars annually by the end of the decade.

At the same time, Saudi Minister of Energy Prince Abdulaziz bin Salman, and Japan’s Minister of Economy, Trade and Industry Nishimura Yasutoshi, signed a memorandum of cooperation in the circular carbon economy and carbon recycling fields as well as hydrogen, fuel ammonia, and derivatives.

Both ministers agreed to focus on emissions reduction rather than energy sources through the effective deployment of carbon recycling and a circular carbon economy.

The dialogue also expressed the two countries’ ambitions to collaborate in the fields of petrochemicals to maximize integration across the value chain.

Nishimura who is visiting Saudi Arabia and Oman for discussions on the supply and stabilization of oil and liquefied natural gas.

“We will encourage Saudi Arabia and Oman to stabilize the international crude oil market and secure a stable supply of LNG,” Nishimura said in a Twitter post. “We will also strengthen cooperation in areas such as hydrogen and ammonia.”

The two sides also revealed their intentions to continue to collaborate in the energy sector with a focus on electricity, renewable energy, energy efficiency, and innovation.

Earlier Japanese media reported that with China trying to draw closer to Arab countries, Japan plans to strengthen relations with Middle East countries in such areas as decarbonization and infrastructure, as well as the stable procurement of energy.

The forum included bilateral meetings between major companies and representatives of the private sector from both sides.

Japan depends on the Gulf countries for most of its crude oil and natural gas needs, and relations with Arab countries are crucial for the Japanese economy.

After visiting the Middle East, Nishimura will head to Malaysia for discussions on ensuring a stable supply of LNG, the Asia Zero Emission Community Initiative, the Indo-Pacific Economic Framework, and other matters following the recent change of government there.

GAROWE ONLINE