Saudi-Japan private sector urged to boost cooperation
Published: Feb 24, 2010 01:14 Updated: Feb 24, 2010 01:14
RIYADH: The 11th Japan-Saudi Arabia Business Council on Tuesday emphasized the growing cooperation between the two countries' private sectors.
During a meeting at the Council of Saudi Chambers of Commerce and Industry, Japan's Ambassador to the Kingdom Shigeru Endo summarized existing business and economic relations between Japan and Saudi Arabia. He added that 2009 had been a very important year for bilateral relations.
He said in June last year the two countries had agreed to a draft tax treaty. An air service agreement also came into effect in July.
He said he believed that the swift establishment of a necessary basic framework for strengthening bilateral economic relations could play a great role in cultivating further trade exchanges between the two countries' private sectors.
"I would like to move forward with the early conclusion of the Japan-GCC free trade agreement, not to mention the tax treaty and bilateral investment agreement, through our active and continued discussions," he said.
Endo added that last year, the Japan-Saudi Industrial Cooperation Task Force, established in July 2007, also had had great success in supporting more than 70 Japanese firms in Saudi Arabia.
He said that four companies had just launched businesses in the Kingdom, dealing with different goods such as mobile content, membrane filters for desalination, submarine power cables, and high-density ductile iron pipes.
Endo also said that last year in the field of human resources, the two countries already had multi-layered cooperative relations involving the governments and private sectors of both countries.
He cited projects that were all currently successful, including the Saudi-Japan Automobile Higher Institute that was inaugurated in 2002, the Higher Institute for Plastics Fabrication that opened in 2007 and the Saudi Electronics and Home Appliances Institute that opened for students last year.
Deputy Minister for Industry Khalid Sulaiman discussed the Kingdom's national industrial strategy, adding many projects were under way.
"Looking down at the Kingdom from 30,000 feet up, you'll note that it is the biggest economy in the region and it is where many international companies have a presence," he said.
The reasons for the Kingdom's buoyant economy during the world financial meltdown include the construction of economic cities under the leadership of Custodian of the Two Holy Mosques King Abdullah, he said.
He added that the Kingdom also managed to send its youths to study abroad. There are around 50,000 Saudi nationals currently studying in different countries.
He expressed optimism that Saudi Arabia would be among the World Bank's top companies.
"There's a rosy picture. We have been on the path to economic diversification and we're in the process of achieving that goal," he said.
He added that the Kingdom had created a global petrochemical industry that needed to expand, adding that the contribution of manufacturing to the economy is very low even though there are good opportunities for the sector to improve.
"But we have to be innovative if we are to be among the key players in the manufacturing sector," he said.
"The two sides agreed to step up cooperation in energy, financing and banking systems and industrialization," Dr. Fahd Sultan, secretary general of the CSCCI, told Arab News.
Other big names in business and industry including the Minister of Economy and Planning Khalid bin Mohammed Al-Gosaibi, also spoke at the meeting.
About 100 Saudi delegates and 110 Japanese delegates attended the meeting.
