The Saudi-Japanese Investment Forum in Riyadh resulted in the signing of 15 agreements covering technology, artificial intelligence, industry and clean energy.
Riyadh and Tokyo announced they plan to move to a qualitative partnership as an essential pillar for joint future-building projects in industrial and digital transformation.
The forum stressed the need to move towards broad cooperation in qualitative fields and boost investment relations between Saudi Arabia and Japan in all areas.
Saudi Minister of Investment Khalid al-Falih and Japanese Minister of Economy, Trade, and Industry Nishimura Yasutoshi attended the event.
The forum underscored 40 Japanese investments that have taken place in the Kingdom since 1973 and another 40 memorandums of understanding (MoU) signed during a virtual meeting in 2019.
Falih revealed that 99 Japanese companies are investing in Saudi Arabia in specific sectors, acknowledging that the investment between the two countries falls short of aspirations.
He stressed that the two countries had bolstered their relationship with tremendous dedication as the Kingdom targets $3.3 trillion worth of investments with Japan by 2030.
E-sports
Falih said Saudi Arabia aims to become a major hub for gaming and e-sports by 2030 with content that can be exported to the region and globally, noting that the Kingdom sought to build the five largest marine industry parks in the world in Ras al-Khair.
The minister explained that Riyadh and Tokyo focus on several sectors, including energy, stressing that they plan to bolster cooperation through energy transformation.
He noted that the investment relationship between the two countries over the past seven decades focused on oil and petrochemicals, while the focus is now on new energies.
Saudi Arabia is focusing on manufacturing, said Falih, adding that the Kingdom is cooperating with Japan in four areas, including minerals, marine industries, petrochemicals, flexible global supply chain, and the automotive industry, which is targeting production of more than 500,000 electric vehicles (EV) annually by 2030.
The Saudi minister underlined that the 15 agreements signed on the forum's sidelines will increase mutual investments between Riyadh and Tokyo and achieve the goals of Saudi Vision 2030 that align with the strategic directions of the Japanese government.
The agreements signed in energy, hydrogen, and ammonia, will enable the two countries to build qualitative partnerships in energy in the long run.
Clean energy
Falih pointed out that the existing transformation would continue and accelerate in clean and new energy, explaining that Saudi Arabia is determined to be the major country in this field under the directives of Crown Prince Mohammed bin Salman.
Japan is one of the three largest investing countries in the Kingdom, affirmed the minister, noting that it boasts mega investments in Jubail factories, the electrical appliances field, and several sectors, exceeding billions of dollars.
Moreover, the Global Supply Chain Resilience Initiative (GSCRI), launched by Crown Prince Mohammed in October, aligns with Japan's need to expand production.
It will benefit from the Kingdom's competitive edge in terms of production cost, strategic location, and availability of primary materials, as well as the skilled Saudi workforce, which has proven its competitiveness in many companies, including Japanese ones.
Falih asserted that Japan is Saudi Arabia's friend because it is one of the most advanced countries in technology, industries, and logistics in global trade, digital technology, and quality of life.
Mutual investments
Furthermore, he pointed out that mutual investments between their countries started with Vision 2030 to move to new qualitative fields with advanced technologies, indicating that Crown Prince Mohammed directed officials to establish a joint committee to achieve partnerships with Japan and its private sector.
He added that Saudi officials held the last meeting several weeks ago in Tokyo. They met many leading companies in energy, hydrogen, and ammonia, adding that the two sides signed several agreements, establishing a qualitative model partnership.
The strong Saudi-Japanese relations relied over the past decades on energy, petrochemicals, and mutual investments between the two parties, said Falih, stressing that Saudi Arabia has a competitive advantage due to its strategic location, low costs of energy and raw materials, and the global initiative for supply chains.
Saudi Arabia intends to provide 500,000 cars, which provides a massive potential for Japanese companies to invest in the Kingdom.
Reliable partner
For his part, Nishimura stressed that the Kingdom is a reliable partner and the largest source of crude oil supplies to Japan.
He lauded Saudi Arabia's continuous efforts to promote stability in global oil markets.
The minister noted that the two countries plan to cooperate in strategic storage, noting that Japan signed with Saudi Arabia two memorandums of cooperation in circular carbon economy and recycling, clean hydrogen, and ammonia fuel and its derivatives.
He asserted that both countries should work together to reach zero carbon neutrality, adding that they will make a joint effort to reduce emissions.
Nishimura described a Japanese technology that converts carbon dioxide into essential products, such as plastics, and energy sources, through the practical application of the circular carbon economy approach and carbon recycling technologies.
Nishimura noted that both countries boasted several investment opportunities, which would contribute to the diversification of global supply chains through localization strategies that depend on relative strength.
Moreover, he said the Russian-Ukrainian war necessitated cooperation between Riyadh and Tokyo to restore energy market stability, stressing the importance of collaboration to extend strategic storage and partnership in the circular carbon economy.
Strategic directions
During panel discussions, the forum reviewed investment opportunities in major sectors to strengthen investment relations in various fields.
The forum also addressed cooperation and partnership opportunities and reviewed available investment opportunities in Saudi Arabia and Japan.
It included meetings between significant companies and representatives of the private sector from both sides, with the participation of representatives of government agencies, the private sector, and essential Saudi and Japanese companies.
The forum was attended by 400 investors from Saudi Arabia and Japan and heads of Saudi companies who underlined their intention to engage in Vision 2030, in line with the strategic directions of the Japanese government.
