Saudi Arabia, Japan sign multiple MoUs to boost bilateral relations

Investment Minister Khalid Al-Falih addressed the forum, stating that there is ample room for future investment for Japanese banks within the Kingdom’s giga-projects and its stock exchange, Tadawul. SPA
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Updated 26 December 2023
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Saudi Arabia, Japan sign multiple MoUs to boost bilateral relations

RIYADH: Saudi Arabia and Japan have further strengthened bilateral relations by finalizing 14 agreements across multiple sectors. 

The Saudi-Japanese Investment Forum held in Riyadh on Tuesday saw the signing of several memorandums of understanding and announcements of critical projects between government entities and private sector players from both countries. 

The agreements addressed areas of cooperation in the financial, healthcare, water and energy sectors, among others. 

The Saudi Investment Ministry signed several deals, including an MoU with EIZO Corp., a Japanese technology company. 

Both sides mutually agreed to utilize EIZO’s product solutions to support the ministry’s business activities and contribute to expanding the Kingdom’s economy. 

Furthermore, the ministry signed an agreement with the Mitsubishi UFJ Financial Group Bank to enhance cooperation between both parties. 

This came as Investment Minister Khalid Al-Falih addressed the forum, stating that there is ample room for future investment for Japanese banks within the Kingdom’s giga-projects and its stock exchange, Tadawul. 

He said: “Today, we know that there is a great amount of financial resources in the sector, as the Japanese banks currently manage over $20 trillion in assets.” 

He added: “Thus, this (the giga-projects) will add an increased demand for borrowing within the Kingdom, with a value exceeding $1.5 trillion, a demand for borrowing which I am sure the Japanese banks and asset managers will continue to contribute to.” 

The forum also saw several agreements and letters of cooperation inked in the water sector, including the signing of an MoU between the National Water Co. and Japanese Fuji Clean Co., the world leader in manufacturing wastewater treatment systems, to localize treatment technologies in Saudi Arabia. 

An additional MoU was signed in the water sector between Olayan Financing Co. and DG TAKANO Co., which “aims to identify and pursue strategic, commercial and investment partnership opportunities in the Saudi Arabian market by leveraging both parties’ unique strengths,” a release by the ministry said. 

The parties further agreed on terms and conditions to trial DG TAKANO’s products in key Olayan-owned properties, such as hotels, compounds, restaurants and mosques,” the release added. 

Furthermore, the parties may continue their partnership by forming a joint venture or agreeing on additional commercial arrangements. 

According to the release, the parties are also collaborating on a new large-scale project for water conservation and total reuse to fulfill the needs of local agriculture. 

In the energy sector, Al-Falih noted that the Kingdom “expects investments to exceed $600 billion in petrochemicals alone by 2030.” 

Thus, multiple agreements were signed between bodies from the two countries in the energy sector, including an MoU between Saudi Arabia’s Aramco Ventures and the Japanese New Energy and Industrial Technology Development Organization to explore cooperation in energy and environment-related technology and innovation. 

A release by the ministry added that the MoU is expected to facilitate the exchange of information in related fields, the holding of workshops, and opportunities for interaction between Japanese startups and Aramco Ventures. 

The healthcare sector witnessed the signing of an agreement between the Patients Friends’ Association in Unaizah and Fujifilm Middle East. The association is actively working on developing a medical tourism plan for the city of Unaizah, intending to leverage international expertise. 

The goal is to provide cutting-edge technology supported by artificial intelligence, focusing on preventive examinations and enhancing the quality of life for visiting guests. 

Given Fujifilm Middle East’s extensive experience in the healthcare field, the two parties have mutually agreed to collaborate by establishing a center in Unaizah and working together in its operation. 

In the realm of trade and investment, a tripartite agreement was concluded between the Saudi Ministry of Culture, Riyadh Chamber, and the Japan External Trade Organization.  

This agreement is designed to streamline cooperation in bilateral trade and investment, involving the exchange of information on trade, investment, and economic matters. 

The agreement also encompasses mutual support through the provision of information, fostering networking, and backing events and activities such as forums, seminars, and exhibitions. 


Saudi Arabia sets global benchmark in AI modernization

Updated 15 January 2026
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Saudi Arabia sets global benchmark in AI modernization

  • Executives hail the Kingdom’s robust infrastructure and strategic workforce programs

RIYADH: Saudi Arabia is emerging as a global leader in artificial intelligence, according to executives from OpenText, one of the world’s largest enterprise information management companies. 

With 22 years of international AI experience, Harald Adams, OpenText’s senior vice president of sales for international markets, said the Kingdom’s modernization efforts are now setting a global standard.

“From my perspective, Saudi Arabia is not only leading the modernization towards artificial intelligence in the Middle East, I think it is even not leading it only in the MENA region. I think it is leading it globally,” Adams told Arab News.

In an interview, Adams and George Schembri, vice president and general manager for the Middle East at OpenText, discussed the Kingdom’s significant investments in AI during the inauguration of OpenText’s new regional headquarters in Riyadh.

“So for us (OpenText), from our perspective, it was a strategic decision to move our MENA headquarters to Saudi Arabia because we believe that we will see here a lot of innovation coming out of the country, we can replicate not only to the MENA region, maybe even further to the global level,” Adams said.

The new headquarters, located in the King Abdullah Financial District, will serve as a central hub for OpenText customers and partners across the Middle East. Its opening reflects a broader trend of tech giants relocating to Riyadh, signaling the Kingdom’s rise as a hub for global AI innovation.

Adams attributed Saudi Arabia’s lead in AI modernization to a combination of substantial financial backing, a unified national strategy, and a remarkable pace of execution.

“I mean, a couple of things, because the ingredients in Saudi Arabia are of course, quite interesting. On the one hand side, Saudi Arabia has deep pockets and great ambitions. And they are, I mean, and they are executing fast, yeah,” he said.
“So from that perspective, at the moment, what we see is that there are, especially on the government side, I can’t see any other government organizations globally moving faster into that direction than it is happening in Saudi Arabia. Not in the region, not even on a global level, they are leading the game,” he underlined.

Schembri added, “Saudi’s AI vision is one of the most ambitious in the world, and AI on a national scale is not good without trusted, secured, and governed, and this is where OpenText helps to enable the Saudi organizations to be able to deliver on the 2030 Vision.”

“The Kingdom’s focus on AI and digital transformation creates a powerful opportunity for organizations to unlock value from their information,” Schembri stated.
“With OpenText on the ground in Riyadh, our customers gain direct access to trusted global expertise combined with local insight — enabling them to manage information securely, scale AI with confidence, and compete on a global stage,” he added.

DID YOU KNOW?

• Saudi Arabia ranks 5th globally and 1st in the region for AI growth under the 2025 Global AI Index.

• The Kingdom is also 3rd globally in advanced AI model development, trailing only the US and China.

• AI is projected to contribute $235.2 billion — or 12.4 percent — to Saudi Arabia’s GDP by 2030.

The inauguration of OpenText’s new regional headquarters was attended by Canada’s Minister of International Trade and Economic Development, Maninder Sidhu, and Jean-Philippe Linteau, Canada’s ambassador to Saudi Arabia. 

Sidhu emphasized the alignment of Saudi Vision 2030 with Canada’s economic and innovation goals.

“His Highness (Crown Prince Mohammed bin Salman) and Vision 2030, there is a lot of alignment with Canada, as you know, with the economic collaboration, with his vision around mining, around education, tourism, healthcare, you look at AI and tech, there’s a lot of alignment here at OpenText Grand opening their regional headquarters,” Sidhu told Arab News.

Saudi Arabia’s AI ambitions are projected to contribute $235.2 billion — or 12.4 percent — to its GDP by 2030, according to PwC. The Saudi Data and AI Authority, established by a royal decree in 2019, drives the Kingdom’s national data and AI strategy.

One flagship initiative, Humain, chaired by Crown Prince Mohammed bin Salman, was launched in May 2025 under the Public Investment Fund. It aims to build a full AI stack — from data centers and cloud infrastructure to models and applications — positioning Saudi Arabia as a globally competitive AI hub. The project plans to establish a data center capacity of 1.8 GW by 2030 and 100 GW of AI compute capacity by 2026.

Saudi Arabia is also expanding international partnerships. In May 2025, Humain signed a $5 billion agreement with Amazon Web Services to accelerate AI adoption domestically and globally, focusing on infrastructure, services, and talent development.

The Kingdom ranked fifth globally and first in the Arab region for AI sector growth under the 2025 Global AI Index, and third worldwide in advanced AI model development, behind only the US and China, according to the Stanford University AI Index 2025.

Education is another pillar of Saudi AI strategy. Starting in the 2025-26 academic year, AI will be taught as a core subject across all public school grades, reaching roughly 6.7 million students. The curriculum will cover algorithmic thinking, data literacy, and AI ethics.

OpenText executives emphasized their commitment to supporting Vision 2030 and the national AI strategy through workforce development.

“OpenText has put a lot of investment in the Kingdom, right. We brought cloud to the Kingdom, we’ve opened our headquarters in the Kingdom, we’ve basically hiring Saudis in the Kingdom, We basically building, if you like, an ecosystem to support the Kingdom. And on top of that, what we’re doing is we’re putting a plan together, if you like, a program to look at how we can educate, if you like, the students at universities,” Schembri said.
“So this is something that we are looking into, we are basically investigating and to see how we can support the Saudi nationals when they come into the workplace. And I’m really excited. I have Harry who is, our leadership who’s supporting this program.”
“It’s something that we are putting together. It’ll take some effort. So it’s still in play because we want to make sure what we put it basically delivers on what we're trying to achieve based on the vision of Saudi,” he added.

“The younger generation is sooner or later either working for us or maybe for a partner or for maybe for a customer. So that’s why we are to 100 percent committed to enable all of that,” Adams said.