Key officials from the United Arab Emirates (UAE) and Japan recently met to reaffirm their commitment to strengthen non-oil trade and investment ties.
The UAE Minister of State for Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi and Japan’s newly appointed State Minister of Economy, Trade, and Industry Iwata Kazuchika recently discussed ways of fostering new avenues for investment in a high-level meeting held in Abu Dhabi.
Trade and investment figures
As highlighted by Al Zeyoudi, UAE and Japan’s non-oil trade reached $7.4 billion during the first half (H1) of 2023. This reflects a 4.2 percent increase compared to H1 of 2022. In particular, UAE’s non-oil exports to Japan hit $718 million. On the other hand, UAE’s imports from Japan surpassed $6.3 million. Additionally, re-exports from the UAE to Japan amounted to $421 million.
“As the eighth-largest global trade partner of the UAE in 2022 and the fourth-largest among non-Arab Asian countries, Japan remains one of our most important foreign trade partners,” remarked the UAE foreign trade minister.
“With its rich legacy of innovation and strong spirit of collaboration, Japan is also a key knowledge partner that is helping the UAE to advance our economic diversification efforts. By working together more closely, we can look ahead to enhancing trade exchange between our two nations, and to providing new investment opportunities for ambitious businesses both in the UAE and Japan,” he further stated.
Read: Abu Dhabi’s non-oil economy surges 12.3 percent in Q2, highest level since 2014
In terms of investment, 2022 figures show that Japan is one of the UAE’s major investment partners. Specifically, Japanese investments in the UAE surpassed $3.3 billion. This constitutes 3 percent of the total foreign direct investment (FDI) inflow and 13 percent of investments from non-Arab Asian countries.
Meanwhile, the UAE’s investments in Japan were valued at $1.2 billion by the end of last year. This accounted for 42 percent of the total Middle East and North Africa (MENA) region investment in the said country.
Earlier in July, Japan’s Prime Minister Fumio Kishida visited the UAE. The trip generated bilateral agreements in various sectors. These include energy, industry, health, transportation, advanced technology, artificial intelligence, space, and the circular economy.
Saudi-Japan ties
Apart from the UAE, Saudi Arabia, another economic giant in the Middle East, is also solidifying its ties with Japan.
Recently, Saudi Arabia’s Crown Prince Mohammed bin Salman and Japanese Prime Minister Kishida had a phone conversation where they delved into various areas of collaboration and discussed shared interests.
This serves as a follow-up to their July meeting. At that time, the two leaders agreed on cooperating in major sectors.
Saudi Arabia is particularly keen on harnessing Japan’s expertise in energy technology, which includes solar power generation. Meanwhile, Japan’s engagement is primarily driven by its desire to secure a stable oil supply. Saudi Arabia provides approximately one-third of its total crude oil imports.
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