Japanese Ambassador to Asharq Al-Awsat: Riyadh, Tokyo in Consultations to Strengthen Energy Supply Chains

Saudi-Japanese ministerial roundtable meeting held in January last year (File photo: X)
Saudi-Japanese ministerial roundtable meeting held in January last year (File photo: X)
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Japanese Ambassador to Asharq Al-Awsat: Riyadh, Tokyo in Consultations to Strengthen Energy Supply Chains

Saudi-Japanese ministerial roundtable meeting held in January last year (File photo: X)
Saudi-Japanese ministerial roundtable meeting held in January last year (File photo: X)

As international trade faces mounting disruptions, Japan's Ambassador to Saudi Arabia, Yasunari Morino, revealed that Riyadh and Tokyo are engaged in intensive consultations aimed at strengthening the resilience of energy and critical materials supply chains against current regional tensions. He stressed that energy security is no longer merely a conventional issue, but has become a strategic priority requiring greater cooperation and closer coordination.

In an exclusive interview with Asharq Al-Awsat, Morino said Japan highly appreciates Saudi Arabia's leading role in promoting de-escalation across the region and advancing diplomatic solutions to conflicts, as well as its pivotal role in ensuring the stability of the global oil market. He reaffirmed Tokyo's commitment to expanding bilateral ties across various sectors, moving beyond the traditional scope of oil trade and petrochemicals toward broader opportunities in technology and investment.

The Saudi-Japanese Business Council held a meeting in Riyadh several days ago at the Federation of Saudi Chambers to discuss ways to enhance business cooperation between the two countries and review the current business environment.

Morino said the long-standing economic relationship between Saudi Arabia and Japan is a source of shared pride, noting that Saudi crude oil supplies are critically important to Japan, while Japanese investments in the Kingdom's petrochemical sector are substantial.

"As Saudi Arabia embarks on ambitious structural reforms to diversify its economy, Japan is exploring new opportunities to expand our economic relationship in line with the Japan-Saudi Vision 2030 launched in 2017, which complements Saudi Vision 2030," he said.

The ambassador added that bilateral cooperation holds significant promise in advanced technologies, including artificial intelligence, healthcare, entertainment, sports, and food. He noted that the strategic importance of the relationship was further strengthened after the two governments agreed in February to establish the Strategic Partnership Council, co-chaired by Saudi Crown Prince and Prime Minister Prince Mohammed bin Salman and the Prime Minister of Japan.

He also expressed Japan's strong interest in contributing to the success of Riyadh Expo 2030, particularly as Japan handed over the hosting torch of the global event to the Kingdom.

Japanese Ambassador to Saudi Arabia Yasunari Morino (Embassy)

Trade by the Data

Morino highlighted official data reflecting the depth of trade ties between the two countries.

Trade in December 2025: Saudi exports to Japan reached SAR22.7 billion ($6 billion), accounting for 11.7 percent of the Kingdom's total exports that month. The exports were mainly mineral fuels and organic chemicals. Saudi imports from Japan totaled SAR3.6 billion ($960 million), representing 4.3 percent of total imports, led by vehicles and parts, followed by machinery and mechanical equipment.

Full-year 2025 exports: Saudi exports to Japan totaled SAR133.3 billion ($35.5 billion), led by mineral fuels and oils worth SAR129.8 billion ($34.6 billion), followed by organic chemicals valued at SAR1.2 billion ($320 million), and copper and copper products worth SAR936.1 million ($249.6 million).

Annual imports from Japan: Saudi Arabia imported goods worth SAR38.2 billion ($10.1 billion) from Japan in 2025. Vehicles and parts ranked first at SAR26.6 billion ($7 billion), followed by boilers, machinery, and mechanical equipment at SAR3.9 billion ($1 billion), and electrical equipment at SAR1.8 billion.

Japanese Ambassador to Saudi Arabia Yasunari Morino addresses the Saudi-Japanese Business Council meeting last Monday (Japanese Embassy in Riyadh)

Non-oil exports and foreign direct investment

On the growth of non-oil trade, Morino said Saudi non-oil exports to Japan reached SAR47.7 million ($12.7 million) in April 2026. The main exports included base metals and articles thereof worth SAR35.4 million ($9.4 million), plastics and rubber worth SAR5.8 million ($1.5 million), and chemical products worth SAR4.4 million ($1.1 million).

On investment, Morino said Japan's foreign direct investment stock in Saudi Arabia declined slightly to SAR23.1 billion ($6.1 billion) at the end of 2024, compared with SAR23.6 billion ($6.2 billion) in 2023. He said joint investments are expected to expand in the future, supported by new initiatives and agreements between the two countries.



World Bank Projects Lebanon Economy to Contract by 6.4% Due to War

People inspect a damaged building after an Israeli airstrike on the village of Ansar, southern Lebanon, 15 August 2026. (EPA)
People inspect a damaged building after an Israeli airstrike on the village of Ansar, southern Lebanon, 15 August 2026. (EPA)
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World Bank Projects Lebanon Economy to Contract by 6.4% Due to War

People inspect a damaged building after an Israeli airstrike on the village of Ansar, southern Lebanon, 15 August 2026. (EPA)
People inspect a damaged building after an Israeli airstrike on the village of Ansar, southern Lebanon, 15 August 2026. (EPA)

The World Bank on Friday projected that Lebanon's economy would contract by 6.4 percent this year, as the latest Israel-Hezbollah war derailed the country's efforts at recovery.

Lebanon has been dealing with an unprecedented financial crisis since 2019 and was still reeling from the 2024 Israel-Hezbollah war when the Iran-backed group drew it into the Middle East conflict by attacking Israel in March.

Israel responded with a heavy air campaign and ground invasion that Lebanese authorities say have killed more than 4,300 people.

Due to the war, "real GDP is projected to contract by 6.4 percent in 2026, reflecting the collapse in tourism, weaker consumption, disrupted supply chains, heightened insecurity, and prolonged displacement," the World Bank said in a report.

Inflation is also expected to rise to 17.5 percent this year, according to the report.

The World Bank said Lebanon's economy had strengthened before the latest conflict, with an estimated real GDP growth of 4.2 percent in 2025, "the fastest since the onset of the 2019 financial crisis".

"Advancing reforms -- particularly on banking sector restructuring and fiscal management -- will be critical to restoring confidence, protecting stability, and mobilizing the financing needed for reconstruction and recovery," Dahlia Khalifa, the World Bank's Middle East director, said.

The international community has been demanding that Lebanese authorities enact financial reforms in order to secure much-needed economic aid.

Last week, parliament passed amendments to a bank resolution law aimed at restructuring troubled banks and addressing the country's banking crisis.

The International Monetary Fund welcomed the law, describing it as "a very good step that reflects Lebanon's commitment to aligning its legislation with the best international practices".

Lebanon has been in discussions with the IMF, which said it would resume its meetings in Beirut next month.


Tunisia Olive Oil Exports Surge 55%, Bringing in $1.6 billion

Tunisian olive oil producer, Mustapha Mtiraoui, displays olives to be pressed at his oil mill in Kairouan, Tunisia February 24, 2024. REUTERS/Jihed Abidellaoui
Tunisian olive oil producer, Mustapha Mtiraoui, displays olives to be pressed at his oil mill in Kairouan, Tunisia February 24, 2024. REUTERS/Jihed Abidellaoui
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Tunisia Olive Oil Exports Surge 55%, Bringing in $1.6 billion

Tunisian olive oil producer, Mustapha Mtiraoui, displays olives to be pressed at his oil mill in Kairouan, Tunisia February 24, 2024. REUTERS/Jihed Abidellaoui
Tunisian olive oil producer, Mustapha Mtiraoui, displays olives to be pressed at his oil mill in Kairouan, Tunisia February 24, 2024. REUTERS/Jihed Abidellaoui

Tunisia's olive oil exports surged 55.3% to a record 368,000 metric tons in the first nine months of the 2025/26 season, bringing in $1.6 billion in export revenue, up 44.4% from a year earlier, official data showed on Friday.

The surge in olive oil shipments, a vital source of foreign currency and Tunisia's top agricultural export, will provide a much-needed boost to the country's finances as the government grapples with persistent economic and fiscal pressure.

The jump in exports was driven by strong global demand during the first nine months of the season, which began in November.

Extra virgin olive oil accounted for 83.6% of total shipments, the National Observatory of Agriculture said, Reuters reported.

The European Union remained the biggest destination, taking 57.1% of Tunisian olive oil exports, while North America accounted for 24%. More than 70 countries imported Tunisian oil during the period.

Exports to other markets included Saudi Arabia, which took 4.6%, Jordan with 3.1% and African markets at 3.8%, with Egypt accounting for 3.3%.

Bottled olive oil exports rose 50.8% to 51,500 tons, but bulk oil still accounted for the vast majority of shipments, underscoring Tunisia's challenge in capturing more value from one of its most important export products.


South African Rand Hits Strongest Level since Start of Iran War

South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS/Mike Hutchings/Illustration
South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS/Mike Hutchings/Illustration
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South African Rand Hits Strongest Level since Start of Iran War

South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS/Mike Hutchings/Illustration
South African Rand coins are seen in this illustration picture taken October 28, 2020. REUTERS/Mike Hutchings/Illustration

The South African rand strengthened on Friday to its strongest level since the United States and Israel launched attacks on Iran on February 28, as rising gold prices and a weaker dollar boosted the commodity-linked currency.

At 1229 GMT, the rand traded at 15.9925 against the dollar , about 0.8% stronger from its previous close.

Gold, one of South Africa's main exports, rose to a more than three-month high on Friday and was on track for a third straight weekly gain.

The precious metal was supported by a weaker dollar and the US Treasury's announcement that it would increase buybacks of longer-dated securities, Reuters reported.

US Treasury Secretary Scott Bessent said he may further increase the government's repurchases of Treasuries. That came after the Treasury said it would double the size of buybacks on longer-dated securities over the next quarter.

The US dollar was set to end a bumpy week lower, making greenback-priced bullion more affordable for buyers overseas.

Like other emerging market currencies, the rand has been at the mercy of global market sentiment, particularly since the start of the Iran war.

On the Johannesburg Stock Exchange, the Top-40 index was last up 2.2%.

South Africa's benchmark 2035 government bond was also firmer in early deals, as the yield fell 0.5 basis points to 8.56%.