RIYADH: Japanese companies have invested around SR23.6 billion ($6.28 billion) in Saudi Arabia, with 18 firms establishing regional headquarters in the Kingdom, said a senior Japanese official.
In an interview with Al-Eqtisadiah, Daisuke Yamamoto, consul general of Japan in Jeddah, said, 82 companies operate in Riyadh and 36 in Jeddah, spanning sectors including petrochemicals, energy, electricity, water, automobiles, electronics, and titanium production.
This comes as bilateral trade has grown 37.2 percent since 2020, reaching more than $36 billion, with Saudi exports accounting for the bulk at $29.9 billion, mostly petroleum and petrochemical products. Japanese exports to Saudi Arabia totaled roughly $6 billion, including cars, appliances, equipment, and machinery, according to the Japanese consul.
The expansion aligns with the government-backed Riyadh regional headquarters program, launched in 2021, which offers incentives such as a 30-year corporate tax exemption, withholding tax relief, and regulatory support for multinationals establishing regional headquarters.
“We seek to increase the volume of exchanges between us, especially in the western region, through the comprehensive Saudi-Japanese Vision 2030, which includes more than 80 projects in nine different sectors,” Yamamoto said, as quoted by Al-Eqtisadiah.
During the interview, Yamamoto confirmed the desire of more Japanese companies to enter the vast Saudi market, noting that it is “one of the world’s largest economies and a G20 country.”
The Japanese government is supporting these companies in understanding the Saudi market through several channels, including the JETRO office in Riyadh, the Japan Cooperation Center for the Middle East in Jeddah, and the Japanese embassy and consulate.
The Japanese consul underlined that in January, a ministerial roundtable held in Riyadh as part of the “Saudi-Japanese Vision 2030” resulted in the signing of 13 memoranda of understanding — four involving various government and private entities, and nine signed between private sector companies from both nations.
He added that later in February, Saudi Foreign Minister Prince Faisal bin Farhan and his Japanese counterpart Iwaya Takeshi jointly led the second session of the Strategic Dialogue, and in May, the Saudi Cabinet approved an MoU to form a strategic partnership council between the two nations.
Yamamoto highlighted that these steps “will support and strengthen relations and exchanges between Saudi Arabia and Japan in the future.”
He also expressed Japan’s willingness to extend full support to Saudi Arabia in hosting the 2034 FIFA World Cup, drawing on the country’s experience from organizing the 2002 tournament and its advanced technical and technological capabilities.
“Japan will certainly be represented at Expo Riyadh 2030. Saudi Arabia's participation in Expo Osaka will be a great support for its successful organization of Expo Riyadh,” the Japanese consul said.
He added, “The Saudi pavilion at Expo Osaka in Japan was a great success, attracting two million visitors. This success is due to the fruitful cooperation between the Japanese organizing authorities and the Saudi Embassy in Tokyo.”
In the areas of digital systems, technology, and artificial intelligence, Yamamoto emphasized the 2023 cooperation memorandum signed between the Saudi Data and Artificial Intelligence Authority and Japanese firm NEC, covering AI, biometrics, and the Internet of Things.
He noted that the memorandum is intended to promote innovation and develop creative solutions for various applications, including smart and secure cities, healthcare, and logistics, among others.
In the same year, both countries also signed another MoU focused on the digital economy, advancing digital government, and speeding up the adoption of emerging technologies.
