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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

OPEC+ Decides on Fourth Oil Quota Hike Since Hormuz Closure

Vessels are anchored in the Strait of Hormuz as seen from Musandam, Oman, June 3, 2026. (Reuters)
Vessels are anchored in the Strait of Hormuz as seen from Musandam, Oman, June 3, 2026. (Reuters)
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OPEC+ Decides on Fourth Oil Quota Hike Since Hormuz Closure

Vessels are anchored in the Strait of Hormuz as seen from Musandam, Oman, June 3, 2026. (Reuters)
Vessels are anchored in the Strait of Hormuz as seen from Musandam, Oman, June 3, 2026. (Reuters)

OPEC+ agreed on Sunday a fourth increase in its oil output targets in as many months, even though the US war with Iran is still preventing several of the group's members from pumping more.

The war has cut oil flows via the Strait of Hormuz, creating the world's biggest-ever supply crisis as key OPEC+ members including Saudi Arabia have been unable to supply customers in full since the end of February.

Seven core members of OPEC+, which ‌groups ⁠OPEC and allied producers ⁠including Russia, have increased their output quotas from April to June by almost 600,000 barrels per day.

In reality, the group's production has collapsed due to export cuts by Gulf members, averaging 33.19 million bpd in April compared with 42.77 million in February, according to OPEC figures.

On Sunday, the seven members decided to increase targets by 188,000 bpd from July, OPEC said in a statement.

This is the same as the June hike, which was adjusted down from monthly increases ⁠of 206,000 bpd in May and April to take into ‌account the United Arab Emirates’ exit. The UAE left OPEC after almost 60 years.

On Friday, oil prices fell to around $93 a barrel as traders gained confidence that renewed conflict between the US and Iran was growing less likely. Prices were close to $72 before the war began.

The seven countries are ‌increasing production as part of the gradual unwinding of a 1.65 million bpd production cut that the group, which at the time ⁠included UAE, agreed ⁠in 2023.

The seven of 21 OPEC+ members who met on Sunday are Saudi Arabia, Iraq, Kuwait, Algeria, Kazakhstan, Russia, and Oman. In recent years, only the seven plus the UAE when it was a member have been involved in the group's output policy decisions.

Business

China’s Central Bank Extends Gold Buying Spree for 19th Month in May

Gold items are displayed at a jewellery shop in downtown Kuwait City on June 6, 2026. (AFP)
Gold items are displayed at a jewellery shop in downtown Kuwait City on June 6, 2026. (AFP)
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China’s Central Bank Extends Gold Buying Spree for 19th Month in May

Gold items are displayed at a jewellery shop in downtown Kuwait City on June 6, 2026. (AFP)
Gold items are displayed at a jewellery shop in downtown Kuwait City on June 6, 2026. (AFP)

China's central bank increased up its gold reserves for a 19th month in May, data from the People's Bank of China showed on Sunday.

The country's gold reserves rose to 74.96 million ‌fine troy ‌ounces by the ‌end ⁠of May, versus the ⁠previous month's 74.64 million ounces

China's gold reserves were valued at $340.75 billion by the end of last month, down ⁠from $344.17 billion the ‌month prior, ‌according to the PBOC data.

Spot gold prices logged ‌a third straight month of decline in May as peace talks between the United ‌States and Iran failing to yield results.

Inflation ⁠risks ⁠following rising oil prices kept the "higher-for-longer" interest rate theme alive, with the dollar remaining elevated.

Gold continued to decline in June and was most recently traded at near $4,330 an ounce.

Business

What is Expected from Today's OPEC+ Major Producers Meeting?

A view shows the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside its headquarters in Vienna, Austria, May 28, 2024. REUTERS/Leonhard Foeger/File Phot
A view shows the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside its headquarters in Vienna, Austria, May 28, 2024. REUTERS/Leonhard Foeger/File Phot
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What is Expected from Today's OPEC+ Major Producers Meeting?

A view shows the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside its headquarters in Vienna, Austria, May 28, 2024. REUTERS/Leonhard Foeger/File Phot
A view shows the logo of the Organization of the Petroleum Exporting Countries (OPEC) outside its headquarters in Vienna, Austria, May 28, 2024. REUTERS/Leonhard Foeger/File Phot

All eyes turn Sunday to a series of intensive and simultaneous ministerial meetings of the Organization of the Petroleum Exporting Countries (OPEC) and the OPEC+ alliance. These meetings are taking place under exceptional circumstances in global energy markets, as producers strive through these multiple platforms to lay out the foundations for a new phase of balance and strategic certainty.

Three consecutive meetings will be held today, reflecting the precise institutional nature of managing this phase. It begins with the OPEC Administrative Conference, followed by the 66th meeting of the Joint Ministerial Monitoring Committee (JMMC), responsible for monitoring compliance levels, ensuring alignment, and approving current compensation plans, culminating in the 41st ministerial meeting of the broader OPEC+ alliance—a meeting the global investment community is eagerly anticipating.

This coordinated effort is driven by positive momentum and close coordination, epitomized by the important meeting that brought together Saudi Energy Minister, Prince Abdulaziz bin Salman, with Russian Deputy Prime Minister Alexander Novak on the sidelines of the St. Petersburg International Economic Forum a few days ago.

The meeting reflected great optimism about the alliance's ability to lead the market with a flexible vision, with discussions focusing on the following positive points:

* Securing Energy Supplies: The Saudi affirmation that the world today needs "every molecule of energy" possible, reflecting the Kingdom's and the alliance's commitment to their role as a safety valve for the global economy.

* Flexibility and Readiness: OPEC+'s high ability to adapt and confront emergent geopolitical and logistical changes, while precisely revising future demand forecasts to ensure investment sustainability.

* Preparing for the Future: Coordination between the two poles aims to prepare a solid ground for the smooth and gradual return of supply flows once temporary logistical factors in the region subside.

Expectations and Targets

Instead of focusing on transient fluctuations, observers expect today's meeting to affirm collective commitment and reaffirm full solidarity among the seven major alliance countries – Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman – to ensure long-term market stability through the approval of flexible production policies. Sources told Reuters that production targets are expected to increase by approximately 188,000 barrels per day for next July, reflecting a cautious and measured approach that allows for quick and gradual intervention options based on daily market data.

Fitch

This flexible move aligns with the in-depth analysis presented by Fitch Ratings in its latest reports. The agency affirmed that the current closure of the Strait of Hormuz represents "a temporary and transient logistical shock" and in no way indicates a structural or permanent shift in global oil market trends.

The agency maintained its strategic view that global supplies will collectively exceed demand throughout 2026, based on the absence of any severe damage to oil infrastructure in the region, and the exceptional ability to achieve a rapid and intensive recovery of production in the Middle East once the strait is expected to reopen by the end of next July – assuming an actual closure period of approximately five months.

According to Fitch's base scenario, the average Brent crude price will hover around $87 per barrel throughout 2026, noting that the absence of production capacity due to the temporary logistical disruption will reduce supplies by approximately 2.9 million barrels per day compared to 2025.

However, the agency anticipates a sharp market rebound towards a surplus starting in September, with the surplus (oil glut) reaching approximately 4 million barrels per day in the last quarter of 2026, supported by strong growth from non-OPEC producers. This will exert downward pressure on prices, restoring the market to its natural equilibrium.

Fitch concludes that this dynamic lends significant effectiveness to OPEC+ plans, as the alliance possesses the ability to exceed previous quotas and pump additional quantities to ensure demand is met and prevent any structural shortages, solidifying the alliance's role as a strategic institution that transforms geopolitical challenges into real opportunities to support energy security, global economic growth, and sustainability.