Saudi Arabia and Japan Forge New Economic Alliances

Strategic Partnerships Bloom at Saudi-Japanese Investment Forum

In a significant move to bolster bilateral ties, Saudi Arabia and Japan have finalized 14 strategic agreements spanning various sectors. The Saudi-Japanese Investment Forum, which took place in Riyadh, was the venue for the signing of these memorandums of understanding (MoUs) and the announcement of key projects involving both governmental and private sector representatives from the two nations.

The collaborations cover a wide range of fields including finance, healthcare, water, and energy. The Saudi Investment Ministry was active in sealing deals, such as an MoU with Japanese tech firm EIZO Corp. The agreement aims to integrate EIZO’s innovative product solutions into the ministry’s operations to further propel Saudi Arabia’s economic growth.

Additionally, the ministry established a partnership with Mitsubishi UFJ Financial Group Bank to boost mutual cooperation. Investment Minister Khalid Al-Falih highlighted the promising opportunities for Japanese banks in the Kingdom’s large-scale development projects and its stock market, Tadawul.

Al-Falih remarked on the substantial financial capabilities of Japanese banks, which manage over $20 trillion in assets, and the Kingdom’s growing demand for financing, potentially surpassing $1.5 trillion. He expressed confidence in the continued contribution of Japanese banks and asset managers to meet this demand.

Several agreements in the water sector were also concluded. The National Water Co. of Saudi Arabia and Fuji Clean Co. from Japan, a leader in wastewater treatment production, signed an MoU to localize treatment technologies in Saudi Arabia. Another MoU between Olayan Financing Co. and DG TAKANO Co. was inked, aiming to explore strategic partnerships in the Saudi market and pilot DG TAKANO’s products in Olayan-owned premises.

The parties are also collaborating on a substantial project focused on water conservation and reuse to support local agriculture. In the energy domain, Al-Falih projected investments to surpass $600 billion in petrochemicals by 2030. In line with this projection, several energy sector agreements were signed, including one between Aramco Ventures and Japan’s New Energy and Industrial Technology Development Organization to promote cooperation in technology and innovation related to energy and environment.

The healthcare sector also saw the forging of a new alliance between the Patients Friends’ Association in Unaizah and Fujifilm Middle East to develop a medical tourism plan for the city of Unaizah. The partnership aims to establish a center that leverages advanced technology and artificial intelligence to enhance preventive healthcare.

On the trade and investment front, a tripartite agreement was secured involving the Saudi Ministry of Culture, Riyadh Chamber, and the Japan External Trade Organization. This deal is set to facilitate bilateral trade and investment through the exchange of information and mutual support in organizing forums, seminars, and exhibitions.

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