UAE, Japan keen to boost ties
THE NATIONS WILL ENCOURAGE BUSINESS EXCHANGES AMONG SMES
■ His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces, yesterday held talks with Japanese Prime Minister Shinzo Abe at the Presidential Palace in Abu Dhabi. They discussed the importance of bolstering bilateral cooperation in energy and advanced technology.
His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces, held talks with Japanese Prime Minister Shinzo Abe at the Presidential Palace in Abu Dhabi yesterday. Shaikh Mohammad expressed confidence that Abe’s visit will have a massive impact on bilateral relations between the two countries, developing them to levels that meet the aspirations of the UAE and Japan.
The meeting saw the exchange of an agreement to protect and encourage investments, which was signed earlier by Obaid Humaid Al Tayer, Minister of State for Financial Affairs, and Kanji Fujiki, Ambassador of Japan to the UAE.
A joint statement issued by both countries yesterday said, “Both sides welcomed the signing of the agreement between Japan and the United Arab Emirates for the promotion and protection of Investment.”
Earlier in the day, Abe who was on a visit to the UAE, said the agreement will solidify relationships with the UAE on the investment front.
Bilateral ties
“Japan government will solidify the bilateral economic relations with the UAE by signing the investment treaty,” said Abe speaking at the Japan, UAE Business Forum in Abu Dhabi.
According to the Ministry of Finance’s website, the UAE has signed 58 agreements for the protection and promotion of investments with 25 per cent of the countries in the world, including most of the UAE’s trading partners,
These agreements aim to protect the UAE’s investments from non-commercial risks, facilitate the transfer of profits and revenues and organise conflict resolution.
“The investment treaty is very important for both sides. This will enable both sides to invest more with a framework that will ensure investments are protected. By signing this agreement, we will open doors for private sector to explore new areas of cooperation not only in oil but in various other sectors like health and education,” Juma Mohammad Al Kait, assistant undersecretary for foreign trade affairs in the Ministry of Economy told Gulf News.
Speaking at Japan-UAE Business Forum, Abe said ties between the two countries are strengthening in various sectors including energy and other sectors.
Non-oil trade between the UAE and Japan grew by 8.4 per cent in 2017 and the two countries are focusing on strengthening ties in various sectors, UAE Economy Minister Sultan Bin Saeed Al Mansouri said in Abu Dhabi yesterday.
The non-oil trade between Japan and the UAE touched $15 billion (Dh55 billion) in 2017, up 8.4 per cent over 2016 and the average growth of non-oil trade between the two countries during the past five years reached about 2.5 per cent.
“The rates are excellent, but in my opinion does not proceed in parallel with the strength of the two countries, does not keep pace with the strength of trade and investment ties between them. That means there are a lot of opportunities and possibilities to develop our economic cooperation that we did not benefit from earlier,” said Al Mansouri, speaking during the Japan-UAE Business Forum.
Japanese investment in the UAE has reached about Dh14.3 billion, he added.
“We want to build partnerships in more ambitious sectors such as space technology, SMEs, artificial intelligence, blockchain, fintech and other applications of fourth industrial revolution.”
Japan is the sixth most important trade partner for the UAE according to 2017 data. It is also the fourth biggest exporter to the UAE and among the top 15 most important importers from the UAE.
Trade between the two countries stood at about $28 billion (Dh102.8 billion) last year, with Japan exporting $7.2 billion worth of goods to the UAE and importing about $20.73 billion, most of which was oil, according to the Japan External Trade Organisation (Jetro) in Dubai.
The UAE is the second largest exporter of crude oil to Japan after Saudi Arabia. In 2017, Japan imported $15.6 billion worth of oil from the UAE, figures show.
In the energy sector, Abu Dhabi National Oil Company (Adnoc) in February awarded a 10 per cent stake in an offshore concession to Japan’s Inpex Corporation, with a participation fee of Dh2.2 billion to enter the Lower Zakum concession.
The interest in the concession will be held and managed by Jodco Lower Zakum Limited, a wholly-owned subsidiary of Inpex. Inpex is also part of Abu Dhabi’s onshore concession with a 5 per cent stake that was awarded to the firm last year.