UAE And Japan Forge Ahead With Strategic Partnership, Sign Key MoUs

Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, recently met with Japanese Prime Minister Fumio Kishida. The meeting included Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, and Shihab Al Fahim, UAE Ambassador to Japan. Dr. Al Jaber conveyed greetings from President His Highness Sheikh Mohamed bin Zayed Al Nahyan to the Japanese Prime Minister.

The UAE delegation's visit aimed to strengthen bilateral relations and conclude more partnerships and agreements. This effort supports enhancing trade exchange and exploring new investment opportunities for business sectors and companies. Dr. Thani Al Zeyoudi highlighted that Japan is a pivotal knowledge partner for the UAE in economic diversification and future economy sectors based on knowledge and innovation.

During the visit, new strategic partnerships were signed between the two countries. A Memorandum of Understanding was signed between ADNOC and the Japan Bank for International Cooperation (JBIC) for green financing worth $3 billion. This agreement supports ADNOC’s efforts in reducing emissions and adopting low-carbon solutions in its operations.

A Memorandum of Cooperation was also signed regarding strategic reserves between ADNOC and the Natural Resources and Energy Agency (affiliated with METI). This MoC aims to enhance cooperation in energy security and sustainability, supporting the growth of the Japanese economy by providing a strategic reserve to mitigate energy price shocks amid market fluctuations.

Dr. Sultan Al Jaber met with several Japanese officials including Kamikawa Yoko, Minister of Foreign Affairs; Ken Saito, Minister of Economy, Trade, and Industry; Taro Kono, Minister for Digital Transformation; and Yoshimasa Hayashi, Chief Cabinet Secretary of Japan. These meetings focused on strengthening economic cooperation between the two countries.

Discussions covered various aspects such as trade, investment, energy, renewable energy, industry, advanced technology, and digital transformation. Both sides affirmed their commitment to cooperating in these fields to serve mutual interests.

Energy Sector Collaboration

The UAE is a reliable source for supplying Japan with energy sources and is considered a strategic partner in various fields. In April 2023 alone, the UAE exported about 35.8 million barrels of oil to Japan, representing over 45 percent of Japan’s imports during that month.

The UAE also exported the world's first certified shipment of low-carbon ammonia to Japan through cooperation between Vertiglobe and Mitsui. This shipment is part of ADNOC's efforts to develop global value chains for low-carbon hydrogen and ammonia.

Investment Initiatives

Mubadala Investment Company announced its first renewable energy projects in Japan through PAG REN I platform specializing in solar energy services in Asia-Pacific region with a primary focus on Japan. The UAE accounts for about 60 percent of foreign direct investment flows to Japan from the Middle East in 2023.

The UAE attracted approximately 82 percent of total Japanese investments in Middle Eastern countries during 2023—a 71 percent increase from 2022—covering diverse sectors such as technology, renewable energy, and transportation.

Bilateral Trade Growth

Total trade exchange between the two countries amounted to about $47.4 billion in 2023 (including petroleum products), while non-oil trade exchange reached about $15.6 billion—achieving a growth rate of 6.1 percent compared to 2022.

The UAE is considered as the first trading partner to Japan within GCC countries regarding exports and imports as it receives 47 percent of Japan’s exports to GCC nations.

The visit underscores both nations' commitment to sustainable economic growth through enhanced cooperation across various fields within their comprehensive strategic partnership initiative launched during H.H Sheikh Khaled bin Mohamed bin Zayed Al Nahyan's visit to Japan in September 2022.

With inputs from WAM