RIYADH: A Japanese business mission has called on Saudi and Japanese companies to set up joint projects, especially small and medium enterprises (SMEs) which constitute about 80 percent of members registered with the Riyadh Chamber of Commerce and Industry (RCCI).
The SMEs, which can be viable business propositions at this hour of global financial recession, also represent 99.5 percent of over four million business companies and entities currently operating in Japan.
This was disclosed by Takashi Mitsuka, vice secretary general of the Japan-Saudi Arabia Industrial Cooperation Task Force, during a reception this week.
“The SMEs sector should be the preferred area for cooperation at this time,” said Mitsuka, a key delegate among the 49 members of the Japanese business mission.
The mission, organized by the Riyadh chapter of the Japan External Trade Organization (JETRO), featured industry, construction and banking among many other fields.
The reception, which was held in honor of the business delegation, provided an opportunity for Saudi and Japanese businessmen to interact with each other and explore the possibilities of business tie-ups and joint ventures. The event was also attended by Yasuyuki Murahashi, director general of the Riyadh-based JETRO office, Shin-Inchiro Fukushima, executive director of Dubai-based JETRO office, Ryo Yamasaki, managing director of Kawasaki Heavy Industries — Middle East, besides a large number of businessmen from both sides.
Asked about the possibilities of Japanese companies coming to Saudi Arabia at this time, Mitsuka said: “Three Japanese companies, while defying the challenges of global recession, have already started working with their Saudi counterparts to set up joint ventures in Saudi Arabia.” He did not provide details of the companies. Mitsuka, however, said that the Japanese companies would transfer millions of riyals in funds and innovative technology within a few months from now.
To this end, he pointed out that these companies are amongst the 40 short-listed Japanese companies within the framework of the mandate of Japan-Saudi Arabia Industrial Cooperation Task Force. One such joint venture will be in the form of a training project called “Saudi Electrical and Household Appliances Institute,” he added. He pointed out that more than 4,000 Japanese companies had contacted the Task Force and evinced keen interest to boost commercial relations with the Kingdom’s companies.
Asked about the composition of the task force, Mitsuka said that the joint task force had been set up as part of a broader initiative of Saudi and Japanese governments, which have intensified efforts to boost commercial links further.