Japan woos Saudi Arabia for world’s largest IPO

Published
1

Japan has offered to share its expertise in supply chain management, healthcare and renewable energy with Saudi Arabia, as the kingdom seeks to wean its economic dependency on crude oil.

Saudi King Salman Abdulaziz Al Saud, the first monarch from the Middle East kingdom to visit Japan in 46 years, met Prime Minister Shinzo Abe at a summit last Monday.

During their 35-minute meeting, the two leaders agreed on a nine-point blueprint titled Saudi-Japan Vision 2030.

The plan, which identifies some 31 ‘front runner projects’, is aimed at helping the two countries fulfil their economic objectives.


King Salman and Prime Minister Abe agree on nine-point blueprint titled Vision 2030


Saudi Arabia, the world’s largest oil exporter, wants to diversify its economy with its revenues hit by falling crude oil prices. Japan is looking overseas for strategic growth markets to boost exports, investments and tourism at a time of shrinking domestic demand.

One of the 31 projects is the possible listing of Saudi national oil company Aramco on the Tokyo Stock Exchange. The highly coveted initial public offering, slated for next year, is expected to be worth $100bn in what could be the world’s largest.

The Nikkei business daily also reported that Toyota Motor is looking at building a car assembly plant in the Middle East country.

The King, who last visited Japan as Crown Prince in 2014, is in Tokyo for a four-day visit ending tomorrow, with what local media have described as a ‘mammoth delegation’ in tow.

They include more than 1,000 Cabinet ministers, corporate executives and royal family members.

Local department stores have pulled out the stops with shopping deals for the visiting delegation, for whom about 1,200 rooms in Tokyo luxury hotels have also been reserved and 500 limousines hired.

A key thrust of the Vision 2030 strategy is the setting up of special deregulated economic zones in Saudi Arabia, featuring tax incentives, easier Customs procedures and relaxed visa rules, to woo Japanese companies and investors.

King Salman said: “I feel that this vision will further strengthen the strategic partnership between our countries.”

Abe, reaffirming that the two countries are ‘strategic partners’, added: “Japan will further promote investment and technology cooperation in support of Saudi Arabian economic reforms.”

The two countries will also work together in sea water desalination projects, and initiatives to promote Saudi art and culture.

Groundwork for the strategy began last August when Abe met Saudi Deputy Crown Prince Mohammed Salman in Tokyo.

This was followed by a ministerial meeting in Riyadh in October.

Yesterday, the two leaders also discussed the security situation in the Middle East, with the King describing Japan as a ‘core partner’ in the fight against terrorism.

He said: “We are, too, a fundamental partner in this war. We must deepen serious dialogue between different religions and cultures, working with the international community, to fortify the spirit of tolerance and coexistence.”

The two leaders agreed to hold talks at the vice-ministerial level to discuss security cooperation.

The King met Japanese business leaders and attended an economic forum last Tuesday.

He was also hosted to a lunch banquet by Emperor Akihito.

The Straits Times/ ANN

Published in Dawn, Economic & Business, March 20th, 2017

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Fixing bond markets
Updated 01 Oct, 2026

Fixing bond markets

Pension funds, insurance companies, mutual funds, retail investors, and eventually, foreign investors must become bigger participants in the market.
Call centre rackets
01 Oct, 2026

Call centre rackets

A NUMBER of recent raids conducted by the authorities in different cities point to the growing threat fraudulent ...
Homeward bound
01 Oct, 2026

Homeward bound

FIVE months after Somali pirates captured an oil tanker carrying a 19-member multinational crew, Somali maritime...
Kashmir unresolved
Updated 30 Sep, 2026

Kashmir unresolved

The just solution lies in India addressing the issue through a trilateral dialogue involving the legitimate representatives of the Kashmiri people and Pakistan.
Water shortage
30 Sep, 2026

Water shortage

THAT the country is entering the Rabi season with an anticipated water shortage of nearly 25pc, the lowest carryover...
Young hearts
30 Sep, 2026

Young hearts

THE observance may have passed, but the message of World Heart Day should not fade with it. The occasion is a useful...