In a bid to boost UAE-Japan ties, His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, received today the governor of Tokyo, Yuriko Koike, during a visit to the UAE. Sheikh Khaled and Koike explored ways to further strengthen bilateral relations between the two countries and expand collaboration between Abu Dhabi and Tokyo across various sectors of mutual interest.
Also in attendance were His Excellency Saif Saeed Ghobash, secretary general of the Abu Dhabi Executive Council; His Excellency Shihab Ahmed Al Faheem, ambassador of UAE to Japan, and the accompanying delegation.
UAE-Japan seek stronger economic ties
The meeting comes as the UAE explores expanding its cooperation with Japan. In September this year, the UAE and Japan launched talks to reach a Comprehensive Economic Partnership Agreement. The announcement of the talks fell within the framework of the Comprehensive Strategic Partnership Initiative, launched during the visit of Sheikh Khaled to Japan in September 2022.
It also aligns with the UAE’s strategy to expand its network of trade partners through the CEPA program, which seeks to achieve sustainable economic growth by removing barriers to trade and improving market access for services, including the elimination or reduction of customs duties.
Non-oil trade surges
Notably, the UAE is Japan’s top trading partner in the Arab world in terms of exports and imports, with the UAE receiving 40 percent of Japan’s exports to Arab countries. Meanwhile, Japan is among the UAE’s top 10 trading partners globally.
Non-oil trade between the two countries continued to thrive in the first half of 2024, reaching $8.1 billion, while the total trade for 2023 stood at $17.3 billion, marking a 17.4 percent increase compared to 2022.
During the first half of 2023, non-oil trade between the two countries reached $7.4 billion, reflecting a 4.2 percent increase compared to H1 of 2022. In particular, UAE’s non-oil exports to the Asian state hit $718 million. On the other hand, UAE’s imports from Japan surpassed $6.3 million. Additionally, re-exports from the UAE to Japan amounted to $421 million.
Bilateral investment grows
In terms of investment, 2022 figures show that Japan is one of the UAE’s major investment partners. Specifically, Japanese investments in the UAE surpassed $3.3 billion. This constitutes 3 percent of the total foreign direct investment (FDI) inflow and 13 percent of investments from non-Arab Asian countries.
Meanwhile, the UAE’s investments in Japan were valued at $1.2 billion by the end of last year. This accounted for 42 percent of the total Middle East and North Africa (MENA) region investment in the said country.
Read | Dubai air taxis: Construction of first vertiport begins near DXB
Energy ties
In September 2024, Japan imported a total of 72.87 million barrels of crude oil, primarily from the Gulf Cooperation Council (GCC) countries: the UAE, Saudi Arabia, Kuwait, Qatar, and Oman. Data from Japan’s Agency for Natural Resources and Energy revealed that oil continues to be a vital energy source for the country, fulfilling about one-third of its overall energy requirements.
In September, the UAE and Saudi Arabia were the leading suppliers of oil to Japan, collectively accounting for 81.4 percent of the imports. The UAE stood out with 31.33 million barrels, while Saudi Arabia contributed 27.98 million barrels.
For more news on logistics, click here.
