Saudi Gazette report

Tokyo — Saudi Arabia has delivered 45% of over 500 planned reforms, including the introduction of 100% foreign ownership rights, enhancing legal infrastructure and offering greater protection for shareholders, the Saudi Arabian General Investment Authority (SAGIA) announced on the occasion of the signing of multiple memorandums of understanding (MOUs) and agreements with leading Japanese investors.

Saudi Arabia is climbing international competitiveness and ease-of-doing-business rankings and investors are increasingly toward to the Kingdom, with FDI inflows increasing by 127% in 2018 and the number of new companies entering Saudi Arabia rose 70% on a year-on-year basis in Q1 2019.

Following the Saudi-Japan Vision 2030 Business Forum in Tokyo, new business licenses were also awarded to Japanese businesses, permitting them to establish operations in Saudi Arabia.

The deals involve a number of major Japanese firms including MUFG Bank, Yokogawa Electric Corporation and Mizuho Bank, among others.

Ibrahim Al-Omar, Governor of SAGIA, said, “Saudi Arabia is open for business and we are delighted to announce these agreements. Japan is one of our most important economic partners — and we are excited by the potential to expand our partnership as our economy undergoes a wide range of investor-friendly reforms. We look forward to welcoming these companies and many more in the years to come.”

Agreements of note that were signed include:

1. Agreements between SAGIA and leading Japanese financial institutions Mizuho Bank and MUFG Bank to explore investment opportunities

2. Memorandum of Understanding outlining an exchange agreement between National University Corporation Oita University and Alfaisal University

3. Agreement between Yokogawa Electric Corporation and Saudi Basic Industries Corporation (“SABIC”) to establish a local center of excellence

4. Memorandum of Understanding between Sumitomo Mitsui Banking Corporation and Saudi Industrial Development Fund (SIDF) on cooperating on financing opportunities and human capital development

Organized in partnership between SAGIA and the Japan External Trade Organization (JETRO), the event brought together more than 300 delegates, including high-ranking government officials, investors and business leaders for a series of open discussions, sectorial workshops and bilateral meetings.

Japan is one of Saudi Arabia’s most important economic partners – it is the Kingdom’s second largest source of foreign capital and third-largest trading partner, with total trade exceeding US $39 billion.