Saudi Arabia and Japan: An enduring relationship

RIYADH: Despite the absence of cultural, historical or religious bonds, Saudi Arabia and Japan have become close strategic partners as well as strong allies with progressively growing commercial and cultural links.
This relationship is set to reach new heights following the visit of King Salman to Japan, at a time at which Tokyo’s Middle Eastern foreign policy, which has been traditionally passive, has now shifted toward a more active role.
Given that Japan imports more than 80 percent of its crude oil from the Gulf Cooperation Council (GCC), of which Saudi Arabia is part, stability in the Middle East is of great interest and concern to Japan.
“Saudi Arabia has been the largest crude oil exporter in 2015 for Japan,” said Japanese Ambassador Norihiro Okuda. Japan imported 1.1 million barrels per day of crude oil from Saudi Arabia in 2015.
Referring to the trade and investment relations between the two countries, Ambassador Okuda said: “I hope to see more investments both inbound and outbound as well as joint investments to promote business opportunities outside the Kingdom.” As of 2010, cumulative foreign direct investment (FDI) from Japan to Saudi Arabia was $14.5 billion, which ranks the Kingdom as the fourth largest investing country.
The main focus of Japan’s FDI has been on the Saudi petrochemical sector, of which the highlight is Petro Rabigh, with total joint investment of $16 billion. Meanwhile, there has been an increasing number of investments from Japan in the manufacturing sector, such as truck, power generation turbine, pipes, valves, subsea high voltage power cables and water treatment.
SoftBank Group, the Japanese telecommunications giant and technology firm, is establishing a $100 billion technology investment fund, in which Saudi Arabia’s Public Investment Fund (PIF) has pledged $45 billion. The fund will seek investment opportunities all over the world, mainly in the IT and high-tech sector.
“We have no doubt that Japan’s FDI to Saudi Arabia will keep increasing,” said Okuda, adding that Japan also welcomes Saudi FDI in various sectors.
The two countries have also forged closer ties on the cultural front. The Japanese embassy in Riyadh plans to hold a Japan Cultural Week in April this year.
In addition, Japan is also planning to further accelerate exchanges in the sports field within the framework of Tokyo Olympic and Paralympic Games to be held in 2020. Japan dispatched four karate experts to the Kingdom in January and it plans to send judo experts in near future.
“My big dream is that, this way, Saudi judo and karate players will be able to win some gold medals in Tokyo,” the ambassador said.
Since the establishment of diplomatic relations between Saudi Arabia and Japan in 1955, bilateral relations have taken a smooth course.
The visit to Japan by former Saudi Defense and Aviation Minister Prince Sultan Bin Abdulaziz in 1960 marked the beginning of bilateral visits by dignitaries of both nations, and in 1971 King Faisal visited Japan.
Deputy Crown Prince Mohammed bin Salman, second deputy premier and defense minister, visited Japan last September.