Saudi Arabia has made some progress in facilitating foreign investment, but it has a long way to go if it wants to attract Japanese investors, according to Japanese Ambassador Yasuo Saito. In an interview with Arab News, the ambassador also countered criticism of Japan’s role in Iraq, stressing the humanitarian nature of the Japanese troops’ mission in the war-torn country.
Arab News: How do you evaluate Japan’s relations with the Middle East, including Saudi Arabia?
Yasuo Saito: It is an important region for us. We import 90 percent of our oil needs from the Middle East, and 25 percent of the crude oil imports come from Saudi Arabia. This clearly shows the importance of the stability of this region for Japan’s economy and prosperity. Our national interests lie in trying to help restore peace and stability in the Middle East, including Iraq. Prime Minister Junichiro Koizumi said recently in a major policy speech that the peace and safety of Japan cannot be ensured by Japan alone. The development and prosperity of Japan are intertwined with the peace and stability of the world. Japan will actively contribute to the reconstruction of Iraq.
Accordingly, we decided to send, initially, about 100 troops to Samawah Municipality in southern Iraq. They are now readying their camps to receive more troops. Altogether, we’ll have 600 troops in southern Iraq before the end of March.
They will render humanitarian assistance to the Iraqi people. They are not allowed to engage in military activities. Nor are they allowed to engage in the restoration of order in Iraq. What they will be doing is purely humanitarian and reconstruction assistance, mainly in sanitation, health care, water supply, rehabilitation, public facilities, reconstruction of roads and bridges, employment and education. They will also help in water purification, extend medical services to the needy, and provide equipment like police cars and water tankers necessary to restore normal life. Besides, we have committed $5 billion for the reconstruction of Iraq. The aid package was announced at the donors’ conference last October in Madrid. This will also include $1.5 billion in grants which will be used for Iraq’s immediate needs.
During the first Gulf crisis following Iraqi occupation of Kuwait, Japan contributed $13 billion. The Japanese government had introduced a new tax to raise funds. But we did not receive proper acknowledgement from the international community for our contribution of $13 billion. We learned at that time that financial contribution is not enough when people from other countries are fighting. We should engage in humanitarian assistance. Last July the Japanese Parliament passed a new law to enable Japanese troops to play a humanitarian role.
Q: Is this the first time that Japan sent its troops abroad?
A: We have sent troops to many countries and regions in the past within the framework of UN resolutions — to Cambodia, East Timor, Golan Heights, Mozambique, Rwanda and many other countries. The new law, passed in July, enabled our troops to play this humanitarian role.
Q: The US and British forces invaded and occupied Iraq against the will of the international community and the United Nations. President Bush said at that time that the US does not need the consent of the UN. Bearing that in mind and now that the regime has fallen, what is the reaction of the Japanese people to sending troops to Iraq?
A: When the new law was passed last July, the opposition parties were against dispatching troops to Iraq, since the Japanese Constitution prohibits the use of force to solve international disputes. Nine months later, more people are in favor of sending troops to Iraq. They have a better understanding of the Japanese troops’ mission, which is that they are not going there to fight. Rather, they are going there to help the Iraqis who are needy. I think the Japanese people, who were badly defeated in World War II, were helped by the international community in rising again from the ashes. So now it’s our turn to help the Iraqis.
Q: As for contracts in Iraq, are there any plans on the part of the Japanese companies to go into joint ventures with their Saudi counterparts?
A: Yes, we would welcome an opportunity of working in joint ventures with Saudi companies and those from neighboring countries with a rich experience of working there.
Q: What is your government’s policy with regard to the Middle East peace process?
A: We have spent more than $670 million to help the Palestinians since 1993 following the Oslo Accords. We also expect the Palestinian Authority to carry out reforms. Another pillar of our Middle East foreign policy is confidence-building measures between the Palestinians and the Israelis. We provide the venues for an exchange of views. We also invited the authors of the Geneva Initiative to Japan for the same purpose. This is in addition to Palestinian and Israeli youths who were invited for an exchange of views and promote a better understanding of each other.
Q: What are your government’s plans for reducing the budget deficit?
A: Well, that’s one of our top priorities. It has already started showing some early results. This year is expected to mark a turning point, according to statistics and indicators that are available. The economic situation seems to be taking a positive turn.
Q: In terms of bilateral relations, what are the directions of growth?
A: A good example of what we are doing in terms of human resources development is the Saudi-Japan Automobile High Institute in Jeddah, designed to train young Saudis as automobile mechanics to replace expatriates. This will facilitate technology transfer from Japan to Saudi Arabia and also promote Saudization. This is part of our program to identify projects within the framework of the Kingdom’s Development Plans.
Q: Has your government drawn up any programs for Saudi students, especially after Sept. 11?
A: Our Ministry of Education scholarships allow foreign students to pursue higher education in Japan. Within the framework of this program we have been accepting a number of Saudi students in various fields. This is in addition to private programs that are also available.
Q: The Kingdom would like to see more Japanese investment in this country. What is your strategy?
A: Japanese investors compare potential candidates from the point of view of returns on their investment before making up their mind. So one has to be competitive in order to attract Japanese investment. Now that Saudi Arabia is making rapid progress in its bid for membership of the WTO, the investment climate in the Kingdom will also improve significantly from foreign investors’ point of view.
Q: Do you think more needs to be done on the part of the Saudi Arabian General Investment Authority (SAGIA) to make the investment climate more competitive?
A: Yes, the process of issuing licenses, even though simplified by SAGIA, requires further streamlining at the level of ministries. There, it is still a time-consuming process.
Q: What are your suggestions for promoting Saudization in the private sector?
A: Saudization is not going to be easy unless young Saudis accept any job that is now held by the expatriates under the same conditions and salary. Productivity is important. The employers cannot afford to lose money. Otherwise, they will continue to hire expatriates.
They have to develop work ethics in order to make themselves productive and useful to the employer. Well— qualified Saudis willing to work hard are not many.