quotes Economic ties between KSA and Japan head toward prosperity

01 June 2024
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Updated 01 June 2024

Economic ties between KSA and Japan head toward prosperity

A recent video call between Saudi Arabia’s Crown Prince Mohammed bin Salman and Japan’s Prime Minister Fumio Kishida affirmed the strong bilateral relationship between the two friendly countries.

Both leaders underscored the economic and trade relations between the Kingdom and Japan.

The crown prince affirmed that Saudi Arabia remains committed to stabilizing the crude oil supply to Japan and will continue to cooperate with Japan in other areas, including clean energy.

The Japanese prime minister expressed his gratitude for the Kingdom’s efforts to stabilize the supply of crude oil to Japan over the years and expected that Saudi Arabia will continue to play a leading role in stabilizing the global oil market and supporting the global supply chain for clean energy.

The two leaders discussed bilateral economic and investment cooperation between their countries, particularly in the energy sector, as well as entertainment, tourism, academia and sports.

They also addressed climate initiatives, environmental sustainability, environmental protection and mitigation of climate change effects.

The video call between the two leaders supported the remarkable results achieved from the Saudi-Japanese Investment Forum held on May 21 in Tokyo.

Saudi Arabia and Japan have signed more than 30 agreements and memorandums of understanding in the fields of energy, manufacturing and finance.

More than 100 Japanese companies operate in the Kingdom across multiple fields such as renewable energy, water, mining, entertainment and various others.

The bilateral trade between the two countries amounted to $47.5 billion in 2022, with a surplus of $34.1 billion in favor of the Kingdom. Saudi exports to Japan reached $40.8 billion, with $39.8 billion from oil exports. The Kingdom imported $6.7 billion worth of goods from Japan in 2022.

I believe the deep relations between the Kingdom and Japan will witness further enhancement and development for the benefit of both countries and their citizens, especially in line with the joint Saudi-Japan Vision 2030 launched in 2017, which encompasses nine major sectors.

The unprecedented achievements between the two countries over the past seven decades in multiple fields will strengthen the economic ties between Riyadh and Tokyo, especially considering the Kingdom supplies Japan with 40 percent of its oil needs.

As member partners in several of the world’s most powerful economies and international organizations, such as the G20 and WTO, the cooperation between the two countries enhances economic relations. This is evidenced by the growth in joint projects, which have tripled from 30 to 100.

Talat Zaki Hafiz is an economist and financial analyst.

X: @TalatHafiz