Building Strategic Partnership
The Kingdom of Saudi Arabia and Japan have In the spirit of mutual benefit and co- developed strong diplomatic relations since prosperity, both FRXQWULHV have recognized the 1955, when both countries first established importance to cooperate to realize their political ties. The two countries have gained respective visions. In September 1st, 2016, mutual benefits as Saudi Arabia has been the HRH Deputy Crown Prince Mohammed bin largest and stable oil supplier for Japan, and Salman and Prime Minister Shinzo Abe Japan has been one of the largest customers for decided to set up the Joint Group for Saudi Arabia. Similarly, strong mutual ties were “Saudi-Japan Vision 2030 (SJV 2030)”, developed through trade and transfer of high heralding a new era of partnership between quality products, technologies and projects. the two FRXQWULHV.
Today, both FRXQWULHV are building on their mutual trust developed through understanding of each other’s culture to deepen and broaden the existing bilateral relations and establish a solid strategic partnership.
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The Joint Group is chaired by five ministries:
Saudi Arabia’s Ministry of Economy and Planning (MEP), Ministry of Commerce and Investment (MCI), and Ministry of Energy, Industry and Mineral Resources (MEIM), and Japan’s Ministry of Economy, Trade and Industry (METI) and Investment and Eng. Khalid A. Al-Falih, Minister Ministry of Foreign Affairs (MOFA). The first of Energy, Industry and Mineral Resources from Joint Group meeting was held in Riyadh, on the Kingdom of Saudi Arabia and Mr. Hiroshige October 9th 2016, headed by Eng. Adel M. Fakeih, Seko, Minister of Economy, Trade and Industry Minister of Economy and Planning, Dr. Majid Bin and Mr. Kentaro Sonoura, State Minister for Abdullah Al Kassabi, Minister of Commerce and Foreign Affairs from Japan.
1 The Joint Group strives to serve as the platform for cooperation and exchange among subgroup representatives from the Kingdom of Saudi Arabia and Japan. While subgroups themselves display the national platforms for cooperation and exchange on projects, the individual subgroup leaders and project managers cooperate with their respective counterparts from the partner country to oversee the development of opportunities to be explored in both countries. During the first Joint Group meeting, it was decided that all cooperation opportunities shall be allocated to one of five theme-based subgroups (SG 1,2,3,4, and 5). An additional subgroup (Subgroup 0) was established to provide an enabling platform for the implementation of the partnership projects.
Minister of Energy, Minister of Economy Minister of Commerce Minister of Economy, Minister of Foreign Industry and Mineral and Planning and Investment Trade and Industry Affairs Resources
Sub-group 0: Sub-group 1: Sub-group 2: Sub-groupS 3: Sub-groupSb 4: Sub-group 5: Enablers Trade and Investment Investment and Finance Energy and Industry SME and Capacity Building Culture, Sports & Education
MEP METI MCI METI PIF METI MEIM METI SME Auth. SMEA GSA MOFA MOFA MOFA SAGIA MHLW TADAWUL FSA ARAMCO ANRE MCI MOFA MOE MEXT MCI JCCME MEWA MLIT SIDF MOFMOF KACST JCCME MLSD JICA MLSD JICA MEIM JETRO MOH MAFF MOFMOF JBIC NICDP TVTC SCTH MOHO JCCME SAGIA INCJ KACARE HRDF MOT JETRO JPX SASO SDB MCIT SEC
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Saudi Sub-group members Japan Sub-group members
MEP: Ministry of Economy and Planning METI: Ministry of Economy, Trade and Industry MCI: Ministry of Commerce and Investment MOFA: Ministry of Foreign Affairs MEIM: Ministry of Energy, Industry and Mineral JCCME: Japan Cooperation Center for the Middle East Resources JETRO: Japan External Trade Organization MOFA: Ministry of Foreign Affairs MHLW: Ministry of Health, Labour and Welfare SME Auth.: SME Authority MLIT: Ministry of Land, Infrastructure, Transport and Tourism SAGIA: Saudi Arabian General Investment Authority MAFF: Ministry of Agriculture, Forestry and Fisheries MEWA: Ministry of Environment, Water and FSA: Financial Services Agency Agriculture MOF: Ministry of Finance MOHO: Ministry of Housing JBIC: Japan Bank for International Cooperation MOT: Ministry of Transport INCJ: Innovation Network Cooperation of Japan MCIT: Ministry of Communications and Information JPX: Japan Exchange Group, Inc. Technology ANRE: Agency for Natural Resources and Energy TADAWL: Saudi Stock Exchange SMEA: Small and Medium Enterprise Agency SIDF: Saudi Industrial Development Fund JICA: Japan International Cooperation Agency MOF: Ministry of Finance MEXT: Ministry of Education, Culture, Sports, Science and ARAMCO: Saudi Aramco Technology KACST: King Abdulaziz City for Science and Technology NICDP: National Industrial Clusters Development KACARE: King Abdullah City for Atomic and Renewable Energy SASO: Saudi Standards, Metrology and Quality Organization SEC: Saudi Electricity Company MLSD: Ministry of Labour and Social Development TVTC: Technical and Vocational Training CorporationHRDF: Human Resource Development Fund SDB: Social Development Bank MOE: Ministry of Education SCTH: Saudi Commission for Tourism and National Heritage
3 Saudi-Japan Vision 2030 Statement, Pillars, Themes and Enablers
Background A thriving economy – Overview of Saudi Vision 2030 By focusing on building an educational system aligned with market needs, providing opportun- Recently, the Kingdom of Saudi Arabia has unveiled ities for entrepreneurs and SMEs and developing Vision 2030, an economic and social blueprint promising economic sectors, the Kingdom seeks aiming to reinforce and leverage the Kingdom’s to ensure a thriving and diversified economy capabilities and unleashing its full strengths to build a diversified and sustainable economy. An ambitious nation – Building an effective, transparent, account- In Vision 2030, the Kingdom emphasizes its able, enabling and high-performing govern- objective to be the heart of Arab and Islamic ment helps develop the adequate environ- worlds, utilize its investment power to create a ment for all stakeholders in the Saudi society more diverse and sustainable economy and to capitalize on its strategic geographic location to be an integral driver of international trade Vision 2030 will shape the future of Saudi by connecting three continents. Saudi Arabia Arabia by transforming the Kingdom’s national aims to accomplish these strategic objectives economy through a multitude of implementation by focusing on three themes: progress initiatives across various economic sectors. Furthermore, the Kingdom aims to revitalize its socio-cultural landscape by A vibrant society – focusing on ambitious initiatives in education, Protected by caring families and supported tourism, sports and entertainment. by empowering social and healthcare systems, a vibrant society living in moderation and proud of its national identity is a strong foundation for economic prosperity
Overview of Japanese Growth Strategy Overview of Japanese as the “Growth Strategy” 2)Boost employee productivity Growth Strategy In early including structural reforms to overcome supply 2013, the Government of to boost economic growth. regulations and workforce Japan unveiled a shortage resulting from a comprehensive economic When reaching the “Growth decrease in population policy package under the Strategy”, which targets name “Abenomics” to an annual GDP of JPY 600 sustainably revive the trillion per year, in 2016, Japanese economy while the country defined three 3) “Enhancing the capabilities maintaining fiscal discipline. requirements to achieve of individuals” to facilitate The program is centered on its ambitious growth: a transformation of the the three “policy arrows”; industrial structure Japan introduced an 1)Strategic expansion into Ten strategic public-private aggressive monetary policy, a additional “promising markets” flexible fiscal policy as well 4 projects are defined as Facilitating productivity The Japanese government “promising markets” increase in the in parallel aims at providing by the Japanese service industries a favorable environment government, namely: for the realization of these Modernizing. SMEs to strategic projects by: 1.Facilitating the comply with global standards transition towards the 4th a)Introducing the Industrial Revolution .Fostering expansion necessary regulatory and into and export from the institutional reforms 2.Moving towards a world local agricultural, forestry leader in healthcare and fishery sectors b)Fostering innovation and research and development promoting the development .Reinforcing tourism of human resources; and 3.Overcoming environmental as the centerpiece of and energy-related regional revitalization c)Supporting the economic constraints while boosting expansion into growing sector-related investments .Fostering public-private markets outside the country. cooperation to stimulate 4.Developing the domestic consumption. sports sector into a prospering industry
5.Introducing reforms to revitalize the local real estate market
Leveraging Synergies through the Saudi- Japan Vision 2030
Both countries are currently undergoing a competitiveness. Similarily, the Saudi-Japanese paradigm shift to realize robust cooperation would help the Japanese economy economic growth under the banner of identify and develop opportunities to further Saudi Vision 2030 and Japan’s Growth upscale Japanese investments in Saudi Arabia, Strategy, both of which are comprehensive thereby enabling an accelerated spin of the reform agendas with considerable level of positive economic cycle in Japan. commonalities. The mutually-beneficial economic relationship In view of the mutually would also inspire the two FRXQWULHV to complementary relationship developed over explore untapped opportunities in third the years, enhancing cooperation between the countries, particularly in MENA, Africa and two countries has a substantial potential to Asia. Both nations aspire through such yield benefits which each country alone comprehensive collaboration to boost their would not be able to realize. bilateral strategic partnership to the next As Saudi Arabia seeks opportunities to level diversify and strengthen its economy by Driven by these fundamentals, Saudi Arabia and capitalizing on advanced and cutting-edge Japan have decided to pursue a joint “Saudi- technologies, Japan is the ideal partner to Japan Vision 2030”, which aims to achieve the comprehensively contribute to this national socio-economic YLVLRQVRI ERWKH development with its knowledge FRXQWULHV E\ FDSLWDOL]LQJ RQFRPPRQDOLWLHV capital, and technological DFWLYDWLQJ FRPSOHPHQWDULWLHVDQG PD[LPL]LQJ V\QHUJLHV
5 Saudi-Japan Vision 2030
“Achieving the national socio-economic visions of both countries by building on commonalities, activating complementarities and maximizing synergies
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Three Partnership Pillars: DIVERSITY, INNOVATION and SOFT VALUES The partnership under the Saudi-Japan Vision 2030 is based on three pillars: DIVERSITY, INNOVATION AND SOFT VALUES
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6 DIVERSITY: Achieving the Kingdom has collaboration covers a highly- sustainable growth also set out clear goals mixed portfolio of projects, by establishing a for the development and where the two countries broad and reliable privatization of its vital could co-invest. Saudi industrial landscape industries such as education, Arabia and Japan will also healthcare, entertainment utilize the world-renowned and tourism. Japan on the Japanese “KAIZEN” principle Both Japan and Saudi other hand is aiming to which lays down the Arabia are undergoing a boost exports, investments sustainable basis for fundamental shift in their and tourism in particular improvement of quality and macro-economic business by exploring new growth productivity in public and models. Saudi Arabia on markets beyond its private institutions thus the one hand is targeting domestic and neighboring contributing to diversifying to diversify its economy markets. Consequently, the the industrial landscape in and reduce its reliance on envisaged partnership the Kingdom. All these oil by fostering growth provides an ideal platform efforts by the two and job creation across for achieving the goals of countries will help achieve various non-oil related economic diversification and sustainable growth across industry sectors. Under new markets access. The various economic sectors. Saudi Vision
INNOVATION: and Medium Enterprises innovation aspect of the Enhancing the (SMEs) play a more active joint vision of competitiveness of role across the economy. partnership. the economic sectors In addition, SMEs in by capitalizing on Japan aims to secure its both countries have a technology & innovation position as a global leader in crucial role to play in the technological research and innovation aspects of this With the increased adoption development across partnership. While Saudi andintegration a wide range of economic Arabia is aiming to of technology and sectors, including healthcare, promote the role of SMEs innovation, various sectors manufacturing, tourism, and in its economy, Japanese are undergoing major agriculture. On the other SMEs are seeking new transformations and enjoying hand, determined to growth and expansion significant competitive optimize key economic opportunities advantages resulting in sectors, the Kingdom of in the Saudi market. The enhanced quality and greater Saudi Arabia continues to early involvement of SMEs efficiency with lower costs invest heavily in technology will play an essential role in of products and services. development “The 4th the planned digital Such innovative endeavors Industrial Revolution” transformation by driving also help Small technologies. This bottom up innovation. complementarity is key to underpinning the
7 SOFT VALUES: Revitalizing the social 2030 emphasizes the Kingdom’s position as and cultural landscapes by setting the center of the Islamic world while stressing strong cooperation fundamentals various socio-cultural elements including education, sports and entertainment as main Both Saudi Arabia and Japan value cultural and areas of focus for fostering an adequate social aspects including people’s wellbeing as a environment for the development of the Saudi basis for a sustainable economy. youth. Also, through “Warm Saudi” concept, the Kingdom is seeking to promote its hospitable In fact, Japan’s “Cool Japan” initiative primarily identity and culture to the world. The aims to promote the Japanese culture worldwide envisaged partnership will capitalize on the thereby boosting the tourism industry and soft values of Saudi Arabia and Japan to contributing to helping Japanese businesses unleash the potential of revitalizing both overseas. On the other hand, Saudi Vision FRXQWULHV’ respective social and cultural values.
Nine Themes to Explore The identified pillars will be achieved along nine main themes.
Competitive Industry
Saudi Arabia has not only one of the fastest Developing the Saudi local manufacturing growing manufacturing industries worldwide, industry by leveraging Japanese capabilities but also several areas of excellences such as the and technologies will boost the Kingdom’s petrochemical industries. To fuel and enable this localization initiatives while strengthening its growth, the Kingdom has been investing heavily position as a regional technology development in technology. On the other hand, Japan is the hub. On the other hand, Japan will reinforce third largest economy in the world sustained its footprint in the Saudi market and a range by diverse sectors out of which automotive, of other satellite markets in the region where heavy industry, and electronics hold special Japanese presence is still limited. The benefits significance to the economy. Private entities of such collaboration could be extended within each sector have managed to attain beyond manufacturing to cover the services global ranking and secure pole positions. sector
8 Energy Japan and Japan continues September 2016. In its quest to be one of the largest to further develop its oil and Saudi Arabia plays an customers for Saudi Arabia. gas sector and to diversify outstanding global role in Strengthened partnership its energy sources including the energy sector, leveraging between both countries, renewables and alternative its rich resources and well through continuous energies, Saudi Arabia proven knowledge and exchange of expertise and can venture into win-win expertise. Saudi Arabia technical cooperation, could collaborations with Japan. and Japan will continue be leveraged to maximize to gain mutual benefits the benefits of enhancing which have been already energy security, building achieved through close on the Memorandum of partnership, as Saudi Arabia Cooperation for Energy continues to be the largest Sector between Japan METI and stable oil supplier for and Saudi MEIM concluded in
Entertainment & Media Animation and more under the themes “Warm specifically Manga are known Saudi” and “Cool Japan”. Saudi Arabia aims to increase worldwide; global gaming household spending on consoles are produced cultural and household in Japan, and Japanese entertainment activities entertainment expos are inside the Kingdom from anticipated across the world. the current level 2.9% to Japan’s ambition is to further 6.0%. Moving forward, the strategically promote its Kingdom aims to develop culture and entertainment its own content under the industries under the concept of “Warm Saudi”, concept of “Cool Japan”. which will portray the Kingdom’s cultural values This partnership presents and its projects unde Vision a perfect platform for the 2030. Japan’s entertainment collaboration to develop both sector is well-established. entertainment industries and cultural exchange
Healthcare & Medicals among the world’s leading 7KHWZRFRXQWULHVVHHNWKH countries in healthcare as FROODERUDWLRQLQWKHDUHDVRI The Kingdom is aiming reflected by its record life PHGLFDOWUDLQLQJDQGUHVHUFK to become a regional span globally, high quality H[FKDQJLQJRIH[SHUWVLQWKH hub for healthcare and healthcare services and PHGLFDOVHFWRUVDQG pharmaceutical solutions world renowned H[FKDQJLQJRIH[SHULHQFHLQ by creating an attractive healthcare devices/ KHDOWKFDUH environment for both local technologies. and international investors. On the other hand, Japan is
9 Quality Infrastructure MENA region. Moreover, projects such as “the last Saudi Arabia plans to mile”, Japan offers great Saudi Arabia is heavily maximize the private sector opportunities for partnering investing in its primary participation in infrastructure to enhance the Saudi efforts infrastructure (especially development in order to to transform the Kingdom’s power and water) and worked accelerate the achievement infrastructure. The will of to improve its logistical of the Kingdom’s ambitions. both countries in enhancing capabilities and ultimately Today, Japan is globally their infrastructures greatly become a regional logistical recognized for its high contributes to support other hub for the Gulf and wider quality infrastructure. With themes of the collaboration.
Agriculture & governments and investors Saudi and Japanese Food Security in farming projects. On the government agencies and other hand, Japan houses investors will be identified The arid nature of the land many public and private to work together to upgrade of Saudi Arabia drives the entities with advanced agricultural production and Kingdom to import 70% of knowledge and technologies, food supply to Saudi Arabia. its food needs. As such, producing high quality the Kingdom is seeking and innovative agricultural better control of its supply goods and services. by partnering with foreign Through this collaboration,
SMEs & Capacity Building expenditure, the Kingdom Today Japan’s government aims to actively support is seeking to increase the A significant portion of SME entrepreneurship, international footprint of Saudi Arabia’s workforce privatization and investments its SMEs and the Saudi- is employed by the into new industries. Japan partnership could public sector. In an effort Japan’s economy is be leveraged for that to vitalize the private prosperous by SMEs, purpose as well as to sector participation where more than seventy empower Saudi Arabia in and reduce dependence percent of the workforce developing its SMEs sector on the government today is employed.
Culture, Sports & Education Moreover, in order to position Japan, on the other hand, itself at the heart of the has progressively introduced Saudi Arabia has one of the the concept of "Cool Japan" youngest populations globally, Muslim world and promote its culture globally, the Kingdom and is focusing its cultural and, therefore, has developed development on identifying ambitious aspirations spanning is planning to develop the concept of "Warm Saudi" attractions to further engage culture, sports and education. its citizens and tourists. For example, as part of the locally and internationally. Saudi Vision 2030, several initiatives are underway to improve the quality of education in Saudi Arabia (e.g. DAEM, Noor, and Hassen).
10 Investment & Finance forward, the two countries investing in a 100 billion USD will work together to make joint tech fund and become Today, Saudi Arabia is high-value investments in the lead investment partner. Japan’s main investment Saudi Arabia, Japan or third With the establishment destination in the Middle countries. A recent example of the Soft%ank Vision East (around 70% of of the partners’ will to Fund, PIF will step up investments in the region). engage in such deals is the investments in technology Historically, Japanese conclusion of a memorandum companies globally. investments in Saudi Arabia of understanding (“MOU”) have focused on oil and gas, between Soft%ankJURXS infrastructure, water, and and the Public Investment power generation. Going Fund (PIF) under which PIF will consider Enablers to Facilitate the Vision
The cooperation themes will be further Organizational Support supported by enablers to create a more conducive environment, along four main dimensions Enhanced cooperation and communication (regulations, incentives, organizational support between agencies of Saudi Arabia and Japan and human capital). Both countries will would help the business in both countries jointly identify the challenges and areas of to seize opportunities in mutually-beneficial improvement to facilitate the execution of ways. Practical and effective solutions for this cooperation projects. purpose are worth examining by both countries. Also, more efficient administrative operations Regulations by organizations/agencies/public office would be helpful for Japanese and Saudi businesses in Regulatory reforms are considered critical to order to reduce time and complexity associated enable businesses between both countries. with the overall implementation of various Initiatives aiming to streamline companies’ projects. registration process, visa procedures, and required licenses would help ensure a business- Human Capital friendly environment that would encourage business entities (specifically SMEs) to expand Helping to build up the competitiveness of the into new markets. Other regulations including human capital in both countries would be a major labor regulations and customs clearance are enabler to the establishment of businesses. also being revisited to attract foreign direct Intensified capability building, including training investment in both countries. and review of educational programs, would support this process. Japan JICA, for example, Incentives is working with several government entities in Saudi Arabia to sharpen the overall human Providing financial incentives enhances the capital development framework in the Kingdom. motivation of Japanese companies to expand into the Saudi market. For example, the Saudi Other Incentives Industrial Development Fund (SIDF) provides medium to long term loans for manufacturing Other suggestions include hosting joint events and supporting industries. This helps in and launching joint initiatives in all themes of increasing job creation, supporting economic this partnership. Such efforts are vital to raise diversification, boosting GDP, and attracting awareness around opportunities in Saudi Arabia more foreign direct investment (FDI). Much of and Japan. the incentives can be in the form of special business-awarding to investors that provide more local value in their operations.
11 Enablers supporting the themes of the Joint Vision 2030
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1 Possible Opportunities
10.Promotion of 1st Industrial City Under the nine themes, renewable energy Saudi and Japan will 21.Local manufacturing jointly carry out concrete 11.Human resource of eco-friendly houses cooperation projects and development in the in Saudi Arabia initiatives. Examples of nuclear energy sector possible opportunities 22.Introduction of are listed below. 12.Power generation and grid enabling technologies and systems for the housing Competitive Industry 13.Collaboration in studies sector in Saudi Arabia 1.Set up a partnership to on technologies toward co-develop the 4th Industrial low carbon energy system Agriculture & Food Revolution in Saudi Arabia (e.g. CCS and hydrogen) Security through Japanese technology 23.Agriculture and Food Entertainment & Media sector survey in Saudi Arabia 2.Develop an innovative 14.Knowledge sharing and and efficient supply content customization to SMEs & Capability chain system to enable develop the Saudi Arabian Building e-commerce platforms and Entertainment Sector to SME Policy trading in Saudi Arabia serve broader markets in the ,PSOHPHQWDLWRQ Arab and Islamic Worlds DQG&DSDFLW\%XLOGLQJ 3.Knowledge Sharing 25.KAIZENDissemination from Japanese Industrial Healthcare & Medicals Zones / Business Parks 15.Cooperation in the 26.Business Matching Field of Healthcare 4.Feasibility Study of 27.Cooperation for Social Automotive Manufacturing 16.Effective participation Development in Saudi Arabia of the private sector which contributes to 28.Joint Contributions 5.Formulation of the extending life expectancy in International domestic supply chain in Development Efforts the manufacturing sector Quality Infrastructure 17.Cooperation on Energy Desalination and Culture, Sports 6.Joint crude oil storage Reclamation of Water and Education capacity in Okinawa 29.Cooperation in Tourism 18.Megaton Water Project and National Heritage 7.Cooperation in the IPO of Aramco 19.Cooperation on Forward 30.Cooperation in the Osmosis technology Improvement of Education 8.Infrastructure for the development of petroleum 20.Exchange of expertise 31.Japan Cultural Week and natural gas and technology in Logistics to further develop 32.Cooperation for 9.Promotion of energy the infrastructure and the “Roads of Arabia” efficiency and conservation capabilities of Dammam exhibition in 2018
1 Enablers 42.Investment treaty 37.Establishment of an over- 33.Form a partnership 43.Setup a committee arching and sustainable to maximize synergies in to coordinate between structure - Enabler Subgroup, international sports (Karate, various stakeholders in Judo and related fields) Saudi-Japan Vision Office Saudi Arabia and Japan to & Producer Concept identify key topics for expos 34.Elite sports exchange 38.Launch of joint initiatives and exhibitions focused on unique opportunities Investment and Finance to enhance the ease of 35.Collaboration on doing business between investments Saudi Arabia and Japan 39.Implementation of anti- 36.Cooperation between counterfeit measures Saudi Tadawul and Japan JPX 40.Cooperation in the field of trade and investment between Saudi MCI and Japan METI 41.Improving visaFRQYHQLHQFH Front Runner Projects
Formulation of the The Kingdom of Saudi Arabia out a feasibility study to domestic supply chain in and Japan will place special assess opportunities for manufacturing Sector attention and enhanced the introduction of The support for projects with 4th Industrial Revolution Under a Memorandum significant policy priority, in the Kingdom of Saudi of Cooperation signed in strong socio-economic Arabia. The feasibility study September 2016, Saudi impact and high feasibility. aims at identifying areas MEIM and Japan METI will As a result, 31 out of the bearing synergy effects facilitate the formulation 43 possible cooperation for joint investment from of domestic supply chains opportunities have been Saudi Arabia and Japan. for the manufacturing selected as so-called sector in Saudi Arabia. front runner projects. The initiative will build on the accomplishments of Develop an innovative the Japan-Saudi Arabia Competitive Industry and efficient supply Industrial Cooperation Task chain system to enable Force established in 2007, Set up a partnership e-commerce platforms and which has supported 11 to co-develop the trading in Saudi Arabia direct investment projects foundation for the 4th by 13 Japanese companies Industrial Revolution in Japan Post will develop a currently operating in Saudi Arabia through proposal for a cross border Saudi Arabia. The objective Japanese technology e-commerce platform is to strengthen the in cooperation with “win-win” relationship Saudi Arabia’s national e-commerce entities in Saudi between Saudi Arabia R&D centers, including Arabia and Saudi Post. and Japan by promoting Saudi KACST and Japan local manufacturing and METI will jointly carry infrastructure projects implemented by Japanese companies, which contributes to Saudi Arabia’s
1 development. The two sides Promotion of energy Power generation and will Exchange knowledge and efficiency and grid support to enable Japanese conservation companies to expand Saudi The National Grid Saudi Arabia industrial capabilities. Saudi Energy Efficiency Arabia (NG) and Japanese Cooperation on Desalination and Ebara Corporation and Toho Center (SEEC) and Japan counterparts will cooperate Reclamation of Water Titanium Co.,Ltd. establish METI will continue their in the areas of electricity andstart a new IDFWRU\LQ cooperation in ongoing infrastructure development 6DXGL$UDELD؝ initiatives in the Kingdom in the Kingdom of Saudi of Saudi Arabia under the Arabia for long term basis respective Memorandum of in the following areas with Energy Cooperation for the energy the support of MEIM, sector signed in September Saudi Electricity Company Joint crude oil storage 2016. Both Saudi MEIM and (SEC) and Japan METI: capacity in Okinawa Japanese METI will follow up on the cooperation activities •Developing the Standards Saudi Aramco and Japan of Saudi SEEC and the and Specifications. METI revised the existing Energy Conservation Center, basic arrangement for Japan (ECCJ) to promote •Optimization of cooperation in the field energy efficiency and Engineering and Design Megaton Water Project of crude oil storage in conservation in Saudi Arabia. October 2016. Under this •Asset Management revised basic arrangement Promotion of according to the both countries decided to Renewable Energy international standard extend the cooperation ISO55000. among Saudi Aramco and Saudi MEIM and Japan Japan METI / Japan Oil, METI decided, under •Training & Development Gas and Metals National the Memorandum of of Staff Skills Corporation (JOGMEC) for Cooperation signed for the three years and expand energy sector in September •Localization of Industry the storage capacity in 2016, to continue sharing in Saudi Arabia. Okinawa by 2 million barrels. knowledge and following up on the communication •Technical Exchange Forums. Cooperation in the between Japanese and IPO of Aramco Saudi Arabian companies •Technology Road map. in the field of renewable Japan ANRE as well as energy. In particular, the Saudi MEIM discussed Saudi Renewable Energy Healthcare & Medicals the potential listing of Project Development Cooperation in the Field of Saudi Aramco on Tokyo Office (REPDO) and the Healthcare Stock Exchange (TSE). As Japan METI will cooperate Saudi Aramco and TSE will in the promotion of Japan MHLW and Saudi evaluate the establishment renewable energy usage. MOH will cooperate in of a joint study group the field of healthcare for the IPO, Japan ANRE such as medical training and Saudi MEIM decided and research, exchanging to continue following up of experts in the medical on the development of sectors and exchanging of the discussions among experiences of healthcare. both stakeholders.
1 Quality Infrastructure
Cooperation on Desalination and Reclamation of Water
Saudi MEWA and Japan METI will cooperate in the field of water desalination and reclamation. Both countries will intensify their efforts towards the implementation of demonstration projects for an efficient desalination and a reclaimable water plant using Japanese technology. In addition, both sides will establish a platform to exchange expertise and experiences on desalination in Forward Osmosis (FO) technology.
Megaton Water Project
Saudi Water Conversion Cooperation (SWCC) and Japan New Energy and Industrial Technology Development Organization (NEDO) will cooperate in the implementation of a demonstration project of an energy saving seawater Reverse Osmosis (RO) system (“Megaton System”) which includes dissemination of the Megaton technology in the Kingdom.
Cooperation on Forward Osmosis (FO) technology
Saudi SWCC and Japanese counterparts will cooperate in the development of a FO water desalination technology and system with the support of Saudi MEWA and Japan METI.
Introduction of enabling technologies and systems for the housing sector in Saudi Arabia Saudi MOHO and a Japanese technology provider will cooperate in the study of house selling services through the application of Virtual Reality (VR) technology for customer support.
1 SME & Capability KAIZEN Dissemination Joint Contributions Building in International Saudi SASO and Japan Development Efforts Policy implementation JICA will jointly conduct and Capability building on a KAIZEN pilot project Under the Memorandum to improve organizational of Cooperation signed SMEs capacity and efficiency in September 2016, 6DXGL60($XWKDQG-DSDQ by applying KAIZEN Saudi SFD and Japan SMEA will cooperate to methodology. JICA will JICA are cooperating establish a platform to provide functional experts in the identification of exchange best practices from Japan experts (by July opportunities targeting pertaining to SMEs 2017) to supervise KAIZEN developing countries. and focusing mainly on activities at SASO and other In addition to training Elite Sports Exchange regulations, policies, counterpart organizations. purposes, SFD staff will procedures and support for visit JICA for knowledge Japan Cultural Week SME establishment and Business Matching exchange and discussion on development. Furthermore, matters of mutual interest. both sides will cooperate Saudi SME Authority will to exchange knowledge take the lead in initiating and provide training in SME and designing Saudi Culture, Sports Authority staff capability Japanese SMEs matching & Education building. program. The aim of this Cooperation in Tourism program is to open the and National Heritage Saudi SME Authority and opportunity for Japanese Japan SMEA recognize companies to enter the Saudi SCTNH and Japan the importance of existing GCC market and to Saudi JICA will cooperate in cooperation of human counterpart to explore the fields of tourism and resource development for add value services and national heritage. Under SMEs in Saudi Arabia and industries. Japan JETRO will this cooperation, SCTNH will expand it in future. This cooperate with this program. executives will visit Japan cooperation would be built on April 2017 - followed by on the effort/ opportunities Cooperation for providing sector experts for by Japan JICA. Both sides Social Development the potential identification will continue the close of further cooperation coordination to formulate Saudi MLSD and Japan JICA projects. In addition, JICA cooperation projects and to decided to cooperate in the will offer training programs take necessary procedures area of social development for Saudi Arabia with regards for their implementation by exchanging information, to museum management through diplomatic channel. knowledge and trainings in and tourism promotion. the areas of volunteerism, social investments and Cooperation in the the development of non- Improvement of Education profit capabilities. Saudi MOE and Japan MEXT will cooperate in the area of education by encouraging
1 the exchange of education ‘Japan Cultural Week’ in will cooperate in the officials, academic staff Riyadh mid-April 2017. development of Karate, Judo and researchers. JICA will and related fields by utilizing provide a senior advisor Cooperation for the the “Sports for Tomorrow for the sector by the end “Roads of Arabia” initiative” on the route of March 2017 to exchange exhibition in 2018 towards Tokyo 2020 Olympic knowledge on “Lesson Saudi SCTH decided to and Paralympic Games. In Study”, a long-established cooperate with Tokyo this context, Japan initiated professional development National Museum (TNM) to the cooperation by sending strategy in Japan which hold the exhibition Saudi 4 Karate experts to Saudi is currently under trial Archaeological Masterpieces Arabia mid-January 2017. in Saudi Arabia, and to through the Ages, which is possibility identify further known as “Roads of Arabia” cooperation opportunities. exhibition, one of the most Elite Sports Exchange important traveling Saudi Japan Cultural Week exhibitions highlighting the The objective is to cultural heritage of the ensure the exchange of Saudi Ministry of &XOWXUH Kingdom, in 2018 at TNM. athletes between DQG,QIRUPDWLRQ Japan and Saudi Arabia (MOCI) and Japan MOFA will Form a partnership to to reach a higher level cooperate in the initiatives maximize synergies in in: targeting the promotion of international sports •Information exchange Saudi Arabian art and culture •Experience of athletes (Karate, Judo and related as part of the country’s in competitions National Transformation fields) •People Training Program. In this context, Saudi Arabian General Japan will conduct a Sports Authority (GSA), Japan MOFA and Sports Agency (MEXT)
Investment & Finance Cooperation between Saudi Tadawul and Japan JPX Saudi Tadawul and Japan JPX will enter into a memorandum of understanding, which will serve to strengthen the bilateral relationship between the two exchanges. The agreement will enable the two parties to share knowledge and expertise, open the door to people development, and explore future opportunities Cooperation in the related to capital market development. Improvement of Education Together, the two exchanges will strengthen alignment and collaboration on matters of mutual interest and benefit.
Enablers
Establishment of an over-arching 1) Establishment of a new “Enabler Subgroup” and sustainable structure - Enabler under the ministerial Joint Group which is led Subgroup, Saudi-Japan Vision Office & by Saudi MEP and the Japan METI responsible for addressing overarching opportunities and Producer Concept challenges. The Governments of Saudi Arabia and Japan 2) Setup of the Saudi-Japan Vision Offices in will establish a sustainable, overarching Riyadh and Tokyo and deployment of Vision structure to ensure effective and smooth Coordinators authorized by both governments implementation RI YDULRXV RSSRUWXQLWLHV to facilitate and coordinate joint projects to maintain the momentum between both and opportunities and identify new potential countries and to contribute to a continuous opportunities improvement of the business environment. 3)Designation of an organization – the The structure will consist of three major Producer, with chairs form Saudi Arabia and elements: Japan to support in the materialization and implementation of the proposed projects.
Launch of joint initiatives to enhance Cooperation in the field of trade and the ease of doing business between investment between Saudi MCI and Saudi Arabia and Japan Japan METI
As an overarching initiative to be addressed by Saudi MCI and Japan METI decided to cooperate the Enabler Subgroup, Saudi MEP and Japan in the field of trade and investment as both METI will, with support from multiple related sides seek to raise the level of intra-regional ministries and entities, launch a joint initiative and international activities and to exchange to enhance the ease of doing business between expertise and information in the field. both countries. The initiative may be comprised of a study on current business environments, the identification of key priority sectors, a Improving visa convenience draft of infrastructure and city development plans including possible setup of dedicated The Ministries of Foreign Affairs of both industrial zones (Enabler Showcase Zone) and countries decided to facilitate multiple visa the preparation of a 50-year success plan as issuances and a change in visa fees to an well as a 5-year roadmap. appropriate level for the promotion of people- to-people exchange between both countries. Implementation of anti- counterfeit measures Investment treaty Under the Memorandum of Cooperation signed in September 2016, Saudi MCI and Japan METI The Ministries of Foreign Affairs of both decided to strengthen their cooperation in the countries have completed the final procedures field of anti-counterfeit measures. Both sides to put a Saudi-Japan investment agreement in share the action plan on (1) intensive market force. This agreement is expected to contribute inspection, (2) anti-counterfeiting edification to the creation of an investment-friendly and (3) launching a seminar on identification environment by improvising legal stability while of counterfeit products. Japan side thereby further promoting the economic relationship intends to invite Saudi side for the facilitation between the two countries. of these activities.