RIYADH: Leading Japanese bank Mizuho Financial Group, Inc. and state-owned Saudi Arabian Oil Co. (Saudi Aramco) have signed a major agreement for business cooperation with an aim to support Japanese companies investing in the Kingdom. The move will go a long way in expanding ties between the Kingdom and Japan, especially in energy sector.
“With the memorandum of understanding, Mizuho, the sole Japanese bank to have an office in Saudi Arabia, will work more closely with the Kingdom and provide enhanced support to Aramco, which works to transform its business portfolio,” the Tokyo-based financial group said in a press statement, while referring to the visit of Deputy Crown Prince Mohammed bin Salman to Tokyo.
The statement said that “Mizuho will use Aramco’s knowhow and network to introduce Japanese companies, in particular SMEs and middle-marketers which have unique technological advantages, to Aramco and other Saudi companies as their business partners.”
Saudi Arabia is currently promoting the national growth strategy called “Saudi Vision 2030” and Aramco is enhancing its business especially in the fields of renewable energy, privatization and capital markets.
“Under the vision as announced by the deputy crown prince, Saudi Arabia goes full speed to promote privatization of state-owned companies and sophistication and diversification of industries,” the bank said.
It also pointed out that the Middle East North Africa region has large potential with over 600 million population and Saudi Arabia in particular is expected to see rapid growth in near future.
On the other hand, Mitsubishi UFJ Financial Group Inc.’s banking unit and its two biggest Japanese peers plan to endorse a non-binding agreement with Saudi Aramco to expand lending to the state-run firm as it considers an initial public offering. Bank of Tokyo-Mitsubishi UFJ Ltd. President Takashi Oyamada and Sumitomo Mitsui Financial Group Inc. Chairman Masayuki Oku are expected to agree to a memorandum of understanding in Tokyo with executives of the Saudi Aramco, according to reports.
Tokyo-based lenders are seeking to get involved in Aramco’s IPO, according to reports published in a section of Japanese press. Japan’s Trade Ministry has asked the oil company to list its shares on the Tokyo Stock Exchange. MUFG and its rivals are accelerating efforts to grab larger clients abroad like Aramco to counter slowing loan demand and shrinking interest rates at home.
These developments are very important for the energy market and for Saudi-Japan ties as the deputy crown prince wraps up his visit to Japan and China this week, giving the Asian nations an opportunity to deepen energy ties as the Kingdom prepares what could be the biggest IPO ever. Aramco and Japanese government officials plan to discuss a potential Tokyo listing soon.
The banks are eyeing increased business in Saudi Arabia as Aramco diversifies its portfolio into alternative energy and Japanese companies race to provide technology and services. But according to people close to the discussions, the underlying aim of Japan’s financial titans — Mitsubishi UFJ, Sumitomo Mitsui Financial Group and Mizuho Financial — is to negotiate themselves closer to the world’s largest oil exporter and use tighter business ties as a springboard to greater involvement in its planned IPO.
On the other hand, Saudi Aramco and the Japanese government are set to agree on a massive expansion of crude oil storage capacity in Okinawa, used by the state-run firm to store oil, Saudi Aramco CEO Amin H. Nasser said Thursday. In return for providing free storage space, Japan gets a priority claim on the stockpiles in case of an emergency.
“It would be in the best interest for Saudi Aramco and Japan to increase the capacity,” Nasser told reporters in Tokyo. “We are looking at a couple of million (barrels) more than what we have now.”
A senior Japanese government spokesman confirmed the two sides had agreed to expand and extend the current storage deal, though details had not been decided. The deal is set to be signed in October.
Japan treats the crude oil stored at Okinawa as quasi-government oil reserves, counting 50 percent of the barrels stored by Aramco and ADNOC as national crude reserves.
Saudi Aramco has stored crude in Okinawa since February 2011, and has used the facility to supply crude oil to China, Japan and South Korea among others.
The storage pact comes as part of a broad cooperation agreement between Prince Mohammed and Japan’s Prime Minister Shinzo Abe, who met Thursday to discuss the Kingdom’s drive to cut its reliance on crude oil exports among other issues. The two nations also agreed to set up a ministerial forum, called “joint group for Japan Saudi Vision 2030”, to discuss their collaborations.
The collaboration will mainly focus on industry, finance and energy to contribute to Japan’s growth strategy led by Abe as well as the Kingdom’s economic reforms driven by the deputy crown prince.
The first meeting will be held in Riyadh in October. Under the agreement, the Kingdom’s top sovereign wealth fund Public Investment Fund (PIF) and state-owned Japan Bank for International Cooperation (JBIC) and state-backed Innovation Network Corporation of Japan (INCJ) will also consider jointly investing in, and jointly financing, projects.
New era of Saudi-Japan relations
New era of Saudi-Japan relations
Al-Sudais launches presidency’s largest plan yet for Hajj season
- Sheikh Dr. Abdulrahman Al-Sudais, President of Religious Affairs, described it as the largest religious operational plan yet undertaken by the presidency
- The plan is focused on serving pilgrims, enriching their religious experience, creating a devotional atmosphere, and launching 120 religious enrichment initiatives during the Hajj season
MAKKAH: The Presidency of Religious Affairs of the Grand Mosque and the Prophet’s Mosque on Thursday launched its operational plan for the 2024 Hajj season.
Sheikh Dr. Abdulrahman Al-Sudais, President of Religious Affairs, described it as the largest religious operational plan yet undertaken by the presidency. The plan is focused on serving pilgrims, enriching their religious experience, creating a devotional atmosphere, and launching 120 religious enrichment initiatives during the Hajj season.
In his opening speech during the inauguration of the plan at the headquarters of the presidency in Makkah, Al-Sudais said: “This year’s plan is the largest since the establishment of the presidency with its purely religious specializations.”
He explained that the plan is the result of the efforts of the presidency’s teams through preparation, planning and study, as well as the achievements of past seasons. The plan is designed in harmony and integration with the various agencies working in the Two Holy Mosques, which collaborate and cooperate with the presidency to serve pilgrims.
The plan for the 2024 Hajj season, he said, revolves around various religious enrichment paths, which include numerous events and hundreds of religious programs encompassing scientific and guidance lessons.
Al-Sudais said the presidency’s plan this year is dedicated to promoting volunteer and humanitarian work, recognizing the Two Holy Mosques as attractive environments for such efforts. This focus is based on religious and Saudi values, which highlight the importance of generosity and hospitality.
A digital axis focuses on enhancing the religious digital experience provided by the Two Holy Mosques. This includes integrating religious digital services, investing in technology and artificial intelligence, and using applications and digital media. Specific religious initiatives are being activated to achieve digital leadership and to reduce the barriers of space and time through these applications.
Hajj pilgrims from Uzbekistan, Morocco, Niger and Iraq latest to arrive in Saudi Arabia
RIYADH: The first group of pilgrims from Uzbekistan, 950 in total, arrived in Makkah on Thursday ahead of Hajj.
Several expressed “gratitude to the Kingdom’s government for the services and facilities that have been provided to make their pilgrimage safe and reassuring,” the Saudi Press Agency reported.
Meanwhile, the Saudi ambassador to Morocco, Sami Al-Saleh, attended a farewell ceremony at Rabat-Sale Airport as the first group of Hajj pilgrims from the country set off for the Kingdom. He was accompanied by the Moroccan minister of endowments and Islamic affairs, Ahmed Toufiq, and other senior government officials.
Similarly, the Saudi ambassador to Niger, Zaid Al-Harbi, saw off the first group of Nigerien pilgrims as they departed from the capital, Niamey. The country’s prime minister, Ali Lamine Zeine, was also present.
Closer to home, a second group of Hajj pilgrims from Iraq arrived at the Arar border crossing in the Northern Borders Province on Thursday, where authorities said they received a warm welcome and benefited from a range of services and procedures designed to streamline entry procedures.
The Iraqi pilgrims expressed their thanks and “commended the Kingdom’s leadership for the generous hospitality and exceptional services provided by the authorities responsible for Hajj affairs,” SPA reported.
They also praised the facilities at the crossing, which officials said will operate around the clock throughout the Hajj season to provide the best possible pilgrimage experience.
Saudi FM discusses Gaza, West Bank with Palestinian PM
RIYADH: Saudi Foreign Minister Prince Faisal bin Farhan on Thursday spoke to Palestinian Prime Minister and Minister of Foreign Affairs Mohammed Mustafa by telephone, the Kingdom’s Foreign Ministry said.
They discussed developments in the West Bank, Gaza Strip and its surrounding areas.
Oversight and Anti-Corruption Authority issues statement following Riyadh food poisoning incident
- Nazaha says royal directives mandate the holding of all responsible officials accountable
RIYADH: Following the recent food poisoning incident at a Riyadh restaurant, the Kingdom’s Oversight and Anti-Corruption Authority has said anyone found to be negligent in ensuring public health and safety will be held accountable.
The authority, also known as Nazaha, added on Thursday that measures will be taken against anyone found to have obstructed the investigation into the incident and concealed crucial information regarding the cause of poisoning.
Riyadh experienced a wave of food poisoning cases caused by clostridium botulinum at the end of April.
The outbreak was linked to the consumption of food from a Hamburgini fast-food restaurant and led to several hospitalizations and one death.
The Ministry of Municipal, Rural Affairs and Housing later announced that a Saudi Food and Drug Authority laboratory test found clostridium botulinum in the Bon Tum mayonnaise brand used by the food chain.
As a result, the distribution of the mayonnaise product was suspended and it was withdrawn from markets and food facilities across all cities in the Kingdom.
Operations at the Bon Tum factory producing the mayonnaise were halted in preparation for implementing statutory procedures.
Initial investigations by Nazaha “revealed attempts to conceal or destroy evidence, suggesting potential collusion by a small number of unscrupulous food establishment inspectors who prioritized personal gain over public health and safety,” the authority said on Thursday.
Nazaha said that royal directives mandate the holding of all responsible officials accountable, regardless of position.
“This applies to those who neglected or delayed fulfilling their duties, actions which may have contributed to the poisoning or hindered response efforts. Consequently, a high-level committee has been established to verify and oversee the implementation of these directives,” Nazaha said.
Nazaha added that comprehensive reports detailing the circumstances, causes, and those potentially responsible for the poisoning were produced around the clock after the incident.
The reports encompassed laboratory analyses of samples from various establishments and details of medical care provided to suspected victims, it said.
Precise laboratory testing, conducted by local and international foodborne illness specialists, swiftly identified the type and cause of the poisoning, the authority said.
Nazaha said the incident was contained and has been resolved.
Saudi Arabia secures membership in International Transport Forum
RIYADH: Saudi Arabia secured membership in the International Transport Forum on the sidelines of the event held in Leipzig, Germany.
Saudi Minister of Transport and Logistics Saleh bin Nasser Al-Jasser said that the membership symbolizes the Kingdom’s commitment to addressing transportation challenges through innovative and sustainable solutions. It also supports the Kingdom’s established role in developing the transport and logistics sector, he added, highlighting the Saudi Vision 2030 goal of benefiting from the country’s strategic location to become a global logistics center.
Al-Jasser said that the Kingdom has made significant strides in logistics, jumping 17 places to reach 38th place globally in the logistics services performance index. Additionally, the Kingdom achieved 13th place globally in the IATA’s international air connectivity index and 16th in the maritime navigation network connectivity index. He also noted the launch of a new air carrier, Riyadh Air, aimed at connecting the Kingdom to more than 250 international destinations.
The Kingdom is committed to enhancing the resilience of its transport infrastructure, promoting sustainable mobility and ensuring equitable access to transport services for all, Al-Jasser said.
Saudi membership of the ITF confirms its prominent position in the global transport sector, the minister added. This membership will enable the Kingdom to contribute to enacting legislation and regulations that improve and develop transportation on an international scale, he said.
