Japanese Companies Invest $6.3bn in Saudi Arabia with 18 Setting Up Regional HQs
82 companies operate in Riyadh and 36 in Jeddah spanning sectors such as petrochemicals, energy, electricity, water, automobiles, electronics, and titanium production.
Japanese firms have invested around SR23.6 billion ($6.28 billion) in Saudi Arabia, with 18 of them establishing regional headquarters in the Kingdom, according to a senior Japanese official.
Daisuke Yamamoto, consul general of Japan in Jeddah, stated that 82 companies operate in Riyadh and 36 in Jeddah across various sectors including petrochemicals, energy, electricity, water, automobiles, electronics, and titanium production.Bilateral trade has increased by 37.2 percent since 2020, reaching more than $36 billion, with Saudi exports making up the bulk at $29.9 billion, mostly petroleum and petrochemical products.
Japanese exports to Saudi Arabia amount to approximately $6 billion, including cars, appliances, equipment, and machinery, as per the Japanese consul.This investment aligns with Riyadh's regional headquarters program, initiated in 2021, offering incentives like a 30-year corporate tax exemption, withholding tax relief, and regulatory support for multinationals establishing regional HQs.
The objective is to increase exchanges between the two countries, particularly in the western region, through the comprehensive Saudi-Japanese Vision 2030 that comprises over 80 projects across nine sectors.Yamamoto expressed a desire to see more Japanese companies entering the vast Saudi market, noting its status as one of the world's largest economies and a G20 country.
The Japanese government is facilitating this by supporting companies in understanding the Saudi market through various channels such as JETRO in Riyadh, the Japan Cooperation Center for the Middle East in Jeddah, and the Japanese embassy and consulate.In January, a ministerial roundtable in Riyadh as part of the 'Saudi-Japanese Vision 2030' resulted in the signing of 13 memoranda of understanding - four involving government and private entities and nine between private sector companies from both nations.
Furthermore, Saudi Foreign Minister Prince Faisal bin Farhan and his Japanese counterpart Iwaya Takeshi co-led the second Strategic Dialogue session in February, with an MoU for a strategic partnership council between the two nations being approved by the Saudi Cabinet in May.Yamamoto highlighted these developments will bolster relations and exchanges between Saudi Arabia and Japan.
He also mentioned Japan's intention to support Saudi Arabia in hosting the 2034 FIFA World Cup by leveraging its experience from the 2002 tournament and advanced technical capabilities.
Additionally, Yamamoto stated that Japan would be represented at Expo Riyadh 2030 and praised Saudi Arabia's participation in Expo Osaka which attracted two million visitors.The cooperation between both countries extends to digital systems, technology, and artificial intelligence, with a memorandum signed in 2023 by the Saudi Data and Artificial Intelligence Authority and Japanese firm NEC.
This agreement aims to promote innovation and develop creative solutions for applications like smart cities, healthcare, and logistics.
Another MoU focused on the digital economy, advancing digital government, and accelerating the adoption of emerging technologies was also signed between the two nations.
Daisuke Yamamoto, consul general of Japan in Jeddah, stated that 82 companies operate in Riyadh and 36 in Jeddah across various sectors including petrochemicals, energy, electricity, water, automobiles, electronics, and titanium production.Bilateral trade has increased by 37.2 percent since 2020, reaching more than $36 billion, with Saudi exports making up the bulk at $29.9 billion, mostly petroleum and petrochemical products.
Japanese exports to Saudi Arabia amount to approximately $6 billion, including cars, appliances, equipment, and machinery, as per the Japanese consul.This investment aligns with Riyadh's regional headquarters program, initiated in 2021, offering incentives like a 30-year corporate tax exemption, withholding tax relief, and regulatory support for multinationals establishing regional HQs.
The objective is to increase exchanges between the two countries, particularly in the western region, through the comprehensive Saudi-Japanese Vision 2030 that comprises over 80 projects across nine sectors.Yamamoto expressed a desire to see more Japanese companies entering the vast Saudi market, noting its status as one of the world's largest economies and a G20 country.
The Japanese government is facilitating this by supporting companies in understanding the Saudi market through various channels such as JETRO in Riyadh, the Japan Cooperation Center for the Middle East in Jeddah, and the Japanese embassy and consulate.In January, a ministerial roundtable in Riyadh as part of the 'Saudi-Japanese Vision 2030' resulted in the signing of 13 memoranda of understanding - four involving government and private entities and nine between private sector companies from both nations.
Furthermore, Saudi Foreign Minister Prince Faisal bin Farhan and his Japanese counterpart Iwaya Takeshi co-led the second Strategic Dialogue session in February, with an MoU for a strategic partnership council between the two nations being approved by the Saudi Cabinet in May.Yamamoto highlighted these developments will bolster relations and exchanges between Saudi Arabia and Japan.
He also mentioned Japan's intention to support Saudi Arabia in hosting the 2034 FIFA World Cup by leveraging its experience from the 2002 tournament and advanced technical capabilities.
Additionally, Yamamoto stated that Japan would be represented at Expo Riyadh 2030 and praised Saudi Arabia's participation in Expo Osaka which attracted two million visitors.The cooperation between both countries extends to digital systems, technology, and artificial intelligence, with a memorandum signed in 2023 by the Saudi Data and Artificial Intelligence Authority and Japanese firm NEC.
This agreement aims to promote innovation and develop creative solutions for applications like smart cities, healthcare, and logistics.
Another MoU focused on the digital economy, advancing digital government, and accelerating the adoption of emerging technologies was also signed between the two nations.
