RIYADH: Economic ties between Japan and the Gulf Cooperation Council advanced with the successful completion of the first round of Free Trade Agreement negotiations in Riyadh on Dec. 12.

Led by Saudi Arabia’s General Authority for Foreign Trade, the discussions aimed to lay the groundwork for future trade agreements, covering key areas such as trade in goods and services, customs procedures, digital trade, rules of origin, intellectual property, and general provisions.

This milestone marks a significant step towards deeper economic collaboration between the two regions. Fareed Al-Asaly, deputy governor of International Organizations and Agreements at GAFT, underscored the importance of the talks, emphasizing that the agreement could lead to increased trade volumes and closer economic integration. He also noted that Japan is a key market for GCC exports.

The Saudi delegation included representatives from multiple ministries and government bodies, such as the ministries of energy, investment, environment, water and agriculture, industry and mineral resources, economy and planning, and interior.

Additionally, officials from the Saudi Authority for Intellectual Property, the Zakat, Tax, and Customs Authority, the National Cybersecurity Authority, the Saudi Export Development Authority, and the Saudi Central Bank participated in the discussions.

The conclusion of this first round of negotiations marks the beginning of a broader process aimed at strengthening trade relations and fostering economic cooperation between the GCC and Japan.

This year has already seen significant strides in the economic partnership between Saudi Arabia and Japan. In May, both nations agreed to collaborate on building global supply chains for clean energy resources, including hydrogen and ammonia. The goal is to establish a robust international network for clean energy.

In July, during Japanese Prime Minister Fumio Kishida’s visit to Saudi Arabia, the two countries exchanged 26 pre-signed economic agreements covering sectors such as healthcare, clean energy, mining, and digital innovation. Energy Minister Prince Abdulaziz bin Salman highlighted the long-standing energy partnership, noting that Saudi Arabia supplied around 40 percent of Japan’s oil in 2021.

In October, the Saudi Public Investment Fund signed five memorandums of understanding with Japanese financial institutions, with agreements worth up to $51 billion.

These deals aim to boost bilateral capital flows through both debt and equity, further solidifying the financial relationship between the two nations.

This continued collaboration signals a growing and mutually beneficial partnership between Japan and the GCC, with the potential to reshape regional economic dynamics and create new opportunities for growth and innovation.