Saudi-Japan Vision 2030

Saudi-Japan Vision 2030 is a vision for strategic cooperation between the Kingdom of Saudi Arabia and Japan to serve mutual interests in the fields of economy, trade, industry, security, and culture. It aligns opportunities with the objectives of Saudi Vision 2030, Japan's economic reform program, Japan's Strategy for the Fourth Industrial Revolution, and access to foreign markets. The leaderships of both countries signed the vision in Tokyo in 2017.

Saudi-Japan Vision 2030 is the culmination of decades of growing relations between the two countries. The first official contact occurred in 1938 when King Abdulaziz Bin Abdulrahman Al Saud’s envoy, Hafiz Wahba, visited Japan to attend the opening of the Tokyo Mosque. This was followed by the visit of Japan’s minister plenipotentiary to Egypt, Masayuki Yokoyama, to Saudi Arabia in 1939. It was the first visit by a Japanese official to Riyadh, where he met King Abdulaziz, who described Japan at the time by saying, "We respect Japan as a great country in Southeast Asia." Relations between the two countries expanded after World War II, with Japan sending its first economic delegation to Saudi Arabia in 1953. Official diplomatic relations were established in 1955. In 1957, Saudi Arabia granted Arabian Oil Company (Japanese) the concession rights for oil exploration in the Neutral Zone shared between Saudi Arabia and Kuwait.

Saudi-Japanese relations witnessed steady growth across various fields in the following decades, with both countries exchanging visits between officials at various levels. In 1997, Saudi Arabia witnessed the formulation of a comprehensive partnership between the two countries toward the twenty-first century.

Saudi-Japan Vision 2030 was born during the visit of Crown Prince and Prime Minister His Royal Highness Prince Mohammed Bin Salman Bin Abdulaziz to Japan, where he met with former Japanese Prime Minister Shinzo Abe in September 2016. The vision was signed during the visit of Custodian of the Two Holy Mosques King Salman Bin Abdulaziz Al Saud to Japan on March 13, 2017.

Saudi-Japan Vision 2030 aims to transform the relationship between the two countries from merely trading petroleum exports and importing automobiles into a strategic partnership through the launch of projects and initiatives across various sectors. The vision outlines initiatives to facilitate business operations between the two countries, cooperation in capital markets, the development of visa issuance procedures, and collaboration in the fields of culture, sport, and education.

Saudi-Japan Vision 2030 includes nine sectors: media and entertainment, food security and agriculture, high-quality infrastructure, healthcare, competitive industries, finance and investment, small and medium-sized enterprise development, energy, and culture, sport, and education. Sixty-five government entities from Saudi Arabia and Japan participate in this vision. The number of strategic partnership projects under Saudi-Japan Vision 2030 increased from thirty-one to eighty-one projects over three years, from 2017 to 2020.

The Joint Group for the Implementation of Saudi-Japan Vision 2030 held its first meeting in Riyadh to support cooperation between the two countries across various fields. The group included twenty-three Saudi entities, along with Japanese officials and representatives from Japanese companies and the business sector. It formed five sub-working groups, covering: trade and investment opportunities, energy and industry, investment and finance, small and medium-sized enterprises and capacity building, and culture and sport.

The Japanese proposed creating a booklet that includes a map of the economic, investment, and trade opportunities arising from Saudi Vision 2030, covering several sectors, including energy, industry, renewable energy, infrastructure, entertainment, the Internet of Things, and others. These opportunities reached thirty-six, presented by thirty-eight Japanese companies and institutions. Since the birth of Saudi-Japan Vision 2030 in 2016 until 2022, six ministerial-level meetings have been held, along with the launch of an initiative to enhance the growth of economic relations between the two countries.

Saudi-Japan Vision 2030 has strengthened cultural relations between the two countries. This is evident in the organization of Japanese events in Saudi Arabia, the teaching of the Japanese language, the opening of a Saudi 'Manga' company office in Tokyo, the signing of agreements and memorandums of understanding with Japanese companies, and Saudi participation in the Osaka Expo in 2025.

The Ministry of Culture in Saudi Arabia collaborated with the global Japanese company 'TeamLab,' a specialist in digital museum design, to build a digital museum that uses advanced technology. This museum is set to become an attractive tourist landmark and a destination for visitors from within Saudi Arabia and abroad. The cooperation also includes the exchange of knowledge in systems and regulations related to cultural affairs, the field of animation, heritage preservation projects of all kinds, as well as the development of artist residency programs between the two countries, digital preservation techniques for heritage, and the development of cultural sectors.

As part of Saudi-Japan Vision 2030, the Ministry of Health in Saudi Arabia and its Japanese counterpart have implemented four healthcare cooperation projects, including: emergency and disaster medicine, endoscopy and laparoscopic surgery, health research, clinical research, and the involvement of the private sector in healthcare services. The Ministry of Health in Saudi Arabia is exploring the possibility of collaborating with Japan in the field of investment in the healthcare sector, including the production of blood plasma, vaccines, and other related areas.

Saudi-Japan Vision 2030 has focused on strengthening cooperation in the water sector and developing this industry in Saudi Arabia, particularly in the areas of reusing treated wastewater for agricultural, municipal, and industrial purposes. It also includes developing high-efficiency methods for using renewable energy in desalinating seawater, technical approaches for developing and preserving water resources, rainwater harvesting techniques, dam construction, controlling valley flow, and water gathering areas, all while benefiting from Japanese technologies to address water scarcity.

Saudi-Japan Vision 2030 works on enhancing the investment partnership in priority strategic sectors, which include: trade and investment, energy and industry, small and medium-sized enterprises and finance, education, culture, and sport. Investment opportunities include the following areas: automobile manufacturing, gaming and esport, artificial intelligence, the future of innovation, the future of clean energy, polyester recycling, finance and banking services, food, agriculture, manufacturing, industry, energy, trade, smart cities, digitization, and privatization.

In 2018, the Saudi Arabian General Investment Authority (SAGIA), as part of Saudi-Japan Vision 2030, granted three investment licenses to Japanese companies. These licenses covered the fields of financial and management consulting, renewable energy consulting, and providing scientific and technical services to Saudi agents specialized in the industrial sector. The two countries also signed six memorandums of understanding.

By 2022, the number of Japanese companies operating in Saudi Arabia reached 110. The volume of direct Japanese investment in Saudi Arabia during the same period was approximately SAR49 billion (USD14 billion), concentrated in the manufacturing sector, representing 7 percent of the total foreign direct investment flowing into Saudi Arabia.

Saudi Arabia meets between 35 percent and 40 percent of Japan's oil requirements. There is a Saudi-Japanese partnership in the refining, marketing, and chemicals sector through the Showa Shell refinery. The Okinawa crude oil storage project has helped enhance Japan's strategic petroleum reserves. Additionally, there is a partnership between Saudi Aramco and Japan’s Sumitomo Chemical in the Petro Rabigh project.

Under Saudi-Japan Vision 2030, cooperation between the two countries in the production and distribution of energy, especially renewable energy, is growing. Saudi Arabia aims to benefit from the achievements of Japanese companies in carbon and hydrogen storage technologies, as well as collaboration in the peaceful uses of nuclear energy.

Saudi-Japan Vision 2030 has strengthened cooperation in the industrial sector, particularly in pharmaceuticals, construction materials, food manufacturing, automotive and petrochemicals, machinery and equipment, renewable energy industries, manufacturing, robotics, electric vehicles, and shipbuilding. Additionally, Saudi Arabia benefits from Japanese expertise in building fourth-generation industries.

Saudi-Japan Vision 2030 has established joint activities in the fields of technology transfer, knowledge exchange, and human resource development. Additionally, it focuses on the mineral wealth and mining sector, particularly in the exploitation of minerals such as iron, copper, aluminum, and precious and industrial metals. The Japanese banking sector plays an increasingly significant role in commercial financing activities in Saudi Arabia, contributing to government borrowing activities and financing Japanese projects in Saudi Arabia.

Other areas of cooperation between the two countries include clean energy, clean chemicals, healthcare, and digital technologies. Additionally, they focus on accelerating the adoption of modern technologies in digital government services, localizing research and development centers, and promoting partnerships between the two countries to develop capabilities and build an economy based on technology and innovation.