Saudi Arabia and Japan are hosting diplomatic talks, as the Prime Minister of Japan, Fumio Kishida arrives to the Royal Court in Al-Salam Palace in Jeddah early this week. The talks will discuss energy cooperation, a collaboration that was set in place at the end of last year.
Riyadh, Tokyo cooperation
Energy is on the forefront of Saudi-Japan 2030 talks. Among the priorities are promoting renewable energy, energy efficiency and conservation. At yesterday’s talks, Saudi officials expressed their commitment to securing oil supplies for Japan. Saudi will continue to supply Japan’s oil reserves.
“We continue to guarantee oil supply to Japan and maintain our position as the most reliable partner,” Minister Prince Abdulaziz bin Salman said. “Saudi is Japan’s biggest oil exporter fulfilling 40 per cent of its total needs.”
The Saudi energy ministry also reported that, alongside the Japanese industry and trade ministry, agreements were signed to develop clean hydrogen, production of ammonia and its derivatives, and recycled carbon fuels. The two countries have also agreed to jointly explore development projects in other nations. Further, Japan and the Gulf Cooperation Council will resume talks on a free trade agreement.
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“In NEOM, the world’s largest hydrogen project is being built and ARAMCO is investing to produce 11 million ton of blue hydrogen that is being done in coordination and consultation with Japanese companies,” Saudi Minister of Investment, Khalid Al-Falih stated at last year’s Sixth “Saudi-Japan Vision 2030” Ministerial Meeting.
The diplomatic talks covered many topics, most specifically in the fields of economics, trade, investment, and culture. Another MoC was signed between the Saudi Data and Artificial Intelligence Authority and Japanese company NEC, in regards to the fields of AI, biometrics, and “Internet of Things.”
Saudi-Japan Vision 2030
These talks are in line with the Saudi-Japanese Vision 2030, which was set up in 2016. The two countries have enjoyed strong diplomatic ties since 1958, and moving forward, will focus on the following pillars, including but not limited to, diversity, innovation, and soft values. The following industries; energy, entertainment and media, healthcare and medicals, agriculture and food security, SMEs and capability building, culture, sports, education, investment, and finance; are of top priority.
The two nations share strong trade ties, with a significant trade volume of $47.489 billion recorded in 2022. This resulted in a surplus of $34.052 billion for the Kingdom, as Japan imported Saudi exports valued at $40.771 billion, including $39.779 billion worth of oil exports. On the other hand, the Kingdom imported goods amounting to $6.719 billion.
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