Saudi Arabia and Japan embarked on a journey to establish joint investments spanning multiple nations, aimed at optimizing supply chains within the mining sector over the next two years.
A high-ranking Japanese official stressed the importance of Saudi Arabia as Japan's most significant strategic partner.
Japan's Minister of Economy, Trade, and Industry, Saito Ken, announced the positive outcomes of the Saudi-Japanese Investment Forum 2023, which recently concluded its work in Riyadh.
In an exclusive interview with Asharq Al-Awsat, Saito noted that the Saudi Minister of Investment, Khalid al-Falih, unequivocally affirmed that Japanese companies enjoy distinct competitive advantages when investing in significant projects within Saudi Arabia.
Saito described Saudi Arabia as a strategic partner for developing industries in the Kingdom.
He highlighted that his delegation comprised Japanese enterprises spanning various vital sectors.
- Strategic partnership
The Minister noted that Saudi Arabia's strategic geographic location as a significant hub linking Asia, Africa, and Europe is an advantage that can be harnessed to maximize strategic bilateral cooperation.
He indicated great opportunities to maximize mining cooperation and launch collaborative investments in several countries.
He said that Japan seeks to increase its partnership with the Kingdom in these areas and share its ambitions, adding that Tokyo is eager to explore Saudi investment opportunities for Japanese companies, especially in mining development in the Kingdom.
The Japanese Minister expressed great aspirations for bolstering joint bilateral investment cooperation in a third-party country.
The establishment of Manara Minerals Company in January was a significant development, as it is the entity primarily responsible for executing mining investments in foreign countries.
- Joint projects
Saito referred to the cooperation agreement between Manara Minerals Company and the Japan Organization for Metals and Energy Security (JOGMEC), which is affiliated with the Japanese government.
The memorandum aims to promote cooperative mining investments and establish projects in third countries, focusing on Africa and Latin America.
The Japanese Minister told Asharq Al-Awsat that Tokyo intends to establish new joint projects in third-party nations, starting with African countries, fortifying supply chains.
He aimed to enhance the Japanese-Saudi global partnership to reduce carbon emissions.
- Vital Japanese-Saudi discussions
According to Saito, the meetings in Saudi Arabia addressed the possibility of cooperation in the relevant sectors, considering both nations' substantial economic and industrial development prospects.
He also noted the firm desire to deepen relations and enhance bilateral collaboration aligned with the Japanese-Saudi Vision 2030, addressing numerous areas necessitating development as part of a plan to diversify industries.
Saudi Minister of Industry and Mineral Resources Bandar al-Khorayef and Saito signed a memorandum of cooperation between their ministries in mining and mineral resources at the ministry's headquarters in Riyadh.
- Trade and investment
Regarding bilateral cooperation in trade and investment, Saito disclosed that trade exchange in 2022 reached about $435 billion, indicating that Saudi Arabia is Japan's number one exporter of crude oil on a global scale.
Asharq Al-Awsat asked the Minister about investment cooperation, and he stressed Japan's intent to bolster industrial collaboration in both countries, referring to their great potential and efforts to advance qualitative joint investments in a third-party country.
- New Japanese ventures in the Saudi market
The Japanese Minister asserted that new businesses beyond banking, commerce, and energy enterprises, are poised to engage in investment and collaboration with their Saudi counterparts.
He explained that new industries, such as medicine, promising sectors, and space development, will be included in agreements.
Saudi Arabia and Japan signed 14 agreements and memorandums of understanding to enhance cooperation across various fields, including the last three domains above.
Saito concluded that Japan is looking forward to these current opportunities, anticipating them as the gateway to broader possibilities for deepening the joint strategic efforts between the two nations. This, in turn, aspires to contribute to the realization of the Kingdom's objectives through Japanese technology and expertise.
