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Japan Looks Forward to Launching Joint Int’l Investments with Saudi Arabia

Ken Saito, Japanese Minister of Economy, Trade and Industry (Asharq Al-Awsat: Saleh al-Ghanem)
Ken Saito, Japanese Minister of Economy, Trade and Industry (Asharq Al-Awsat: Saleh al-Ghanem)
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Japan Looks Forward to Launching Joint Int’l Investments with Saudi Arabia

Ken Saito, Japanese Minister of Economy, Trade and Industry (Asharq Al-Awsat: Saleh al-Ghanem)
Ken Saito, Japanese Minister of Economy, Trade and Industry (Asharq Al-Awsat: Saleh al-Ghanem)

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.

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Business

IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.

Business

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.