RIYADH, 28 April 2007 — Custodian of the Two Holy Mosques King Abdullah will receive Japanese Prime Minister Shinzo Abe who will begin a two-day visit to the Kingdom today.
The visiting prime minister will also meet Crown Prince Sultan, deputy premier and minister of defense and aviation. They will discuss ways to enhance relations between the two countries and regional and international issues.
The Council of Saudi Chambers of Commerce has arranged a meeting of the Saudi businessmen with the Japanese premier and the 180-strong business delegation, representing leading Japanese companies, accompanying him. Minister of Commerce and Industry Hashim Yamani will also attend the meeting in which economic and trade issues, investment opportunities and economic cooperation in energy will be discussed.
Saudi-Japanese investments reached SR49.4 billion in 2005 while Japan’s GNP reached $3.56 trillion with a growth rate of 2.3 percent.
King Abdullah’s visit to Japan in 1998, when he was the crown prince, turned a new leaf in the development of relations between the two countries. During the visit cordial relations between the two countries was taken to a new height with the Saudi Equestrian Club and the Japanese Equestrian Federation agreeing to hold biannual horse races alternately in Tokyo and Riyadh.
The start of official diplomatic ties between the two countries date back to 1938 when the minister plenipotentiary at the Saudi Embassy in the UK Hafiz Wahbah represented the Kingdom’s delegation to inaugurate a mosque in Tokyo. In 1939, the Japanese government sent its Egyptian envoy Masayoki Yokoyama to Riyadh to meet with the late King Abdul Aziz. Prince Sultan was the first Saudi high-ranking official to visit Japan followed by an official visit by the late King Faisal in 1971.
Emperor Akihito and Empress Michiko made a first royal visit to Saudi Arabia in 1981. It was followed by a visit by Crown Prince Naruhito and his spouse Masako in 1994. Former Japanese prime ministers Tomichi Murayama and Junichiro Koizumi too visited the Kingdom in 1995 and 2003 respectively. The first economic cooperation between the two countries started in 1957 when the Arabian-Japanese oil company was franchised for oil exploration works in coastal areas in a buffer zone between Saudi Arabia and Kuwait for a period of 40 years. The franchise ended in 2000.
In 1975, the two countries signed an economic and technical energy agreement that led to the 15 percent ownership by Saudi Aramco of Showa Shell company that permitted 300,000 bpd to Japan. In the sphere of trade exchange, Japan is Saudi Arabia’s second largest trading partner. The commercial exchange in 2006 reached an amount of $41.8 billion. The trade balance is in favor of Saudi Arabia as it amounted to $14.8 billion. Saudi Arabia is the top oil exporter to Japan. Saudi Arabia, however, is importing vehicles, heavy-duty machines and electronics.
An agreement signed in 1975 allowed economic and technical exchange program between the two countries. The Japan International Cooperation Agency (JICA) and the Japan Cooperation Center for the Middle East (JCCME) agreed to send Japanese experts to the Kingdom and receive Saudi students for studies and training in Japan. Since 1960, more than 1,560 trainees benefited from programs in Japan mainly in the field of human resources development, environment preservation and medical care, industry and water resources management.
