UAEBusiness

UAE and Japan sign agreements to enhance bilateral trade and boost partnerships

Oil major Adnoc has teamed up with the Japan Bank for International Cooperation for green financing worth $3 billion

The UAE and Japan have signed various preliminary agreements to boost bilateral business ties and strategic partnerships during a visit by the UAE delegation led by Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, to Tokyo.

Abu Dhabi-based energy giant Adnoc joined forces with the Japan Bank for International Cooperation for green financing worth $3 billion. This agreement will support Adnoc’s efforts towards reducing emissions and adopting low-carbon solutions in its operations.

Another memorandum of co-operation was signed regarding strategic reserves between Adnoc and the Japanese agency for Natural Resources and Energy. It aims to improve collaboration in the field of energy and ensure its security and sustainability.

It will support the growth of the Japanese economy by providing a strategic reserve that helps mitigate energy price shocks amid market and supply chain fluctuations,an official statement said.

The countries also discussed potential opportunities in various strategic sectors, including energy, technology, digital transformation, advanced industries and finance.

During the visit, Dr Al Jaber met Japanese Prime Minister Fumio Kishida and the leaders reaffirmed the deep ties between the two countries and their commitment to taking the relationship to new heights, the statement said.

He also highlighted the importance of securing energy supplies and leveraging artificial intelligence tools and solutions to improve the performance and efficiency of the energy sector.

UAE-Japan bilateral trade has boomed in the past few years.

The total trade exchange between the two countries amounted to about $47.4 billion (including petroleum products) in 2023. The non-oil trade exchange stood at nearly $15.6 billion last year, achieving a growth of 6.1 per cent compared to 2022, according to official figures.

The UAE is the top trading partner of Japan in the GCC countries, as the country receives 47 per cent of Japan’s total exports to the region.

The UAE contributed about 60 per cent of foreign direct investment flows to Japan from the Middle East last year. It attracted nearly 82 per cent of the total Japanese investments in the Middle East during the 12-month period, an annual increase of almost 71 per cent, covering diverse sectors such as technology, renewable energy and transportation.

Dr Thani Al Zeyoudi, UAE’s Minister of State for Foreign Trade, said that Japan is one of the most important trading partners of the UAE around the world. The island country is the ninth largest trading partner of the UAE globally, while the Emirates is the largest trading partner of Japan among the GCC countries.

Dr Al Zeyoudi pointed out that the UAE delegation visit aimed to strengthen bilateral relations, accelerate growth in sectors of common interest, enhance trade exchange and explore new investment opportunities.

The UAE is also the largest supplier of oil to Japan. Its oil exports amounted to about 35.8 million barrels in April, more than 45 per cent of Japan’s imports during the same month. Last year’s oil exports represented 44.7 per cent of Japan’s total oil imports.

The UAE also exported the world’s first certified shipment of low-carbon ammonia to Japan, which was produced using carbon capture and storage technology through co-operation between Vertiglobe and Japan’s Mitsui. This shipment was part of Adnoc’s efforts to expedite the development of global value chains for low-carbon hydrogen and ammonia.

In July last year, Mr Kishida visited Abu Dhabi and the UAE and Japan signed 23 agreements and memorandums of understanding during the UAE-Japan Business Forum.

Source: thenationalnews

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