Saudi-Japanese Investment Agreements to Expand Economic Relations

 A group photo of participants at a Saudi-Japanese investment roundtable (Asharq Al-Awsat)
A group photo of participants at a Saudi-Japanese investment roundtable (Asharq Al-Awsat)
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Saudi-Japanese Investment Agreements to Expand Economic Relations

 A group photo of participants at a Saudi-Japanese investment roundtable (Asharq Al-Awsat)
A group photo of participants at a Saudi-Japanese investment roundtable (Asharq Al-Awsat)

Saudi Arabia and Japan have embarked on a new era in their partnership, which began in 2016, under the “Saudi-Japanese Vision 2030.” They have signed 26 agreements in various fields during the official visit of Japanese Prime Minister Fumio Kishida to the Kingdom on Sunday.

This marks a significant milestone in their evolving collaboration, paving the way for enhanced cooperation and shared goals between the two nations.

For its part, Saudi Arabia reaffirmed its commitment to supplying Japan with oil and expressed its ongoing cooperation in areas such as clean hydrogen, ammonia, and the development of infrastructure for circular carbon economy applications.

This demonstrates the Kingdom’s dedication to advancing sustainable energy solutions and fostering a mutually beneficial partnership with Japan in pursuit of environmental conservation and economic growth.

Kishida had arrived in Jeddah on Sunday for an official visit to the Kingdom, aimed at enhancing strategic relations with Saudi Arabia.

This visit signifies a concerted effort to strengthen the bilateral ties between the two nations, emphasizing the importance of cooperation and collaboration in various fields of common interest.

Additionally, this visit marks the first-ever visit by the Japanese premier to the Middle East since his appointment in 2021. Kishida commenced his trip in Saudi Arabia and will subsequently proceed to the UAE and Qatar.

This tour represents a significant step towards strengthening Japan’s diplomatic relations and engagement with the Middle Eastern region, underscoring the growing importance of cooperation and dialogue between Japan and the Gulf nations.

In Jeddah, a Saudi-Japanese investment roundtable was held with the presence of Kishida, Saudi Investment Minister Khalid Al-Falih, the Chairman of the Japan External Trade Organization (JETRO), and several officials from government and private sectors of both countries.

The meeting witnessed the highest representation from both nations with over 250 individuals in attendance.

During the roundtable, joint projects were reviewed, and presentations were made regarding the investment environment in Saudi Arabia, the business climate, and the Special Economic Zones in the Kingdom.

Additionally, successful joint projects, partnerships between the Saudi private sector and the Japanese private sector, as well as collaborations between the Japanese private sector and the Saudi government were highlighted.



OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters
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OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters

OPEC cut its forecast for global oil demand growth this year and next on Tuesday, highlighting weakness in China, India and other regions, marking the producer group's fourth consecutive downward revision in the 2024 outlook.

The weaker outlook highlights the challenge facing OPEC+, which comprises the Organization of the Petroleum Exporting Countries and allies such as Russia, which earlier this month postponed a plan to start raising output in December against a backdrop of falling prices.

In a monthly report on Tuesday, OPEC said world oil demand would rise by 1.82 million barrels per day in 2024, down from growth of 1.93 million bpd forecast last month. Until August, OPEC had kept the outlook unchanged since its first forecast in July 2023.

In the report, OPEC also cut its 2025 global demand growth estimate to 1.54 million bpd from 1.64 million bpd, Reuters.

China accounted for the bulk of the 2024 downgrade. OPEC trimmed its Chinese growth forecast to 450,000 bpd from 580,000 bpd and said diesel use in September fell year-on-year for a seventh consecutive month.

"Diesel has been under pressure from a slowdown in construction amid weak manufacturing activity, combined with the ongoing deployment of LNG-fuelled trucks," OPEC said with reference to China.

Oil pared gains after the report was issued, with Brent crude trading below $73 a barrel.

Forecasts on the strength of demand growth in 2024 vary widely, partly due to differences over demand from China and the pace of the world's switch to cleaner fuels.

OPEC is still at the top of industry estimates and has a long way to go to match the International Energy Agency's far lower view.

The IEA, which represents industrialised countries, sees demand growth of 860,000 bpd in 2024. The agency is scheduled to update its figures on Thursday.

- OUTPUT RISES

OPEC+ has implemented a series of output cuts since late 2022 to support prices, most of which are in place until the end of 2025.

The group was to start unwinding the most recent layer of cuts of 2.2 million bpd from December but said on Nov. 3 it will delay the plan for a month, as weak demand and rising supply outside the group maintain downward pressure on the market.

OPEC's output is also rising, the report showed, with Libyan production rebounding after being cut by unrest. OPEC+ pumped 40.34 million bpd in October, up 215,000 bpd from September. Iraq cut output to 4.07 million bpd, closer to its 4 million bpd quota.

As well as Iraq, OPEC has named Russia and Kazakhstan as among the OPEC+ countries which pumped above quotas.

Russia's output edged up in October by 9,000 bpd to about 9.01 million bpd, OPEC said, slightly above its quota.