Japan and GCC: A mutually beneficial partnership

Japanese Pavilion at Dubai's Global Village at night. (Shutterstock)
Updated 28 October 2019
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Japan and GCC: A mutually beneficial partnership

  • Saudi Arabia's sovereign wealth fund PIF is one of the largest investors in SoftBank's Vision Fund
  • A YouGov poll reveals Arab underestimation of Japan's dependence on Gulf energy supplies

LONDON: Japan and Gulf countries are building on their economic ties with new projects of mutual benefit, from headline-grabbing deals to a commitment to long-term partnerships.

An indication of the buzz that surrounds the two countries’ relationship is the speculation that Saudi Arabia is considering Tokyo as the international site for Aramco’s IPO, which is expected to be the largest in history.

A more concrete and equally attention-grabbing example of the growing relationship between the countries has been Saudi Arabia’s investment in SoftBank’s Vision Fund, owned by Japanese businessman Masayoshi Son.

Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, is one of the largest investors in the Vision Fund, and Son is expected to invest heavily in the Kingdom in the coming years.

Such ventures form part of the two nation’s plans for close economic partnership, which have been formalized under Saudi-Japan Vision 2030 – part of the crown prince’s Vision 2030 that aims to diversify Saudi Arabia’s economy.

Saudi Arabia and Japan have historically been close because of the latter country’s dependence on oil. Japan, which is lacking in natural resources, imports 85 percent of its oil from the Gulf, of which 40 percent comes from Saudi Arabia.

Interestingly, the Saudi public underestimate Japan’s dependence on their country’s oil. A poll by YouGov and Arab News found that only 32 percent of Saudis are aware that in 2018 the GCC produced 85 percent of Japan’s oil, with 49 percent of respondents placing the figure much lower at 40 percent.

All indications are that the partnership between Japan and the GCC will continue to grow. Looking at recent trends, there is reason to be optimistic about prospects for expanding economic cooperation in the future.

For instance, Japan was Dubai’s seventh largest trading partner in 2018, with bilateral non-oil trade increasing by 44 percent to reach $11 billion last year, compared to 2011.

The number of Japanese companies registered with Dubai Chamber has risen steadily to 131. These figures reflect a growing confidence in Dubai as a preferred business hub attracting Japanese firms and investors looking for growth opportunities.

Commenting on UAE-Japan business relations, Hamad Buamim, president and CEO of Dubai Chamber of Commerce and Industry, said: “Dubai-Japan ties have gone from strength to strength in recent years, supported by high-level visits from both sides, the easing of visa restrictions, the expansion of direct flights between the two countries and the signing of strategic cooperation agreements.”

As for Saudi Arabia, its growing relationship with Japan is largely a result of its efforts to transform its economy away from oil, as embodied in its Vision 2030 plans.

When the Saudi-Japan Vision 2030 project was formally announced in March 2017, a publication on the proposals from the Saudi Ministry of Foreign Affairs highlighted Japan as the “ideal partner” for Saudi Arabia as it “seeks opportunities to diversify and strengthen its economy by capitalizing on advanced and cutting-edge technologies,” due to its “knowledge capital, and technological competitiveness.”

For Japan’s part, “the Saudi-Japanese cooperation would help the Japanese economy identify and develop opportunities to further upscale Japanese investments in Saudi Arabia.”

A good example of this type of economic exchange is Saudi Arabia’s investment in SoftBank’s Vision Fund, which in turn will see SoftBank investing in Saudi’s new high-tech city NEOM.

Some commentators see Saudi Arabia looking to Japan as a model as it moves beyond oil toward technology and “knowledge-intensive” industries. Writing in the Japan Times last month, Kent E. Calder, director of the Reischauer Center for East Asian Studies at Johns Hopkins University in Washington, spoke of “how seriously the Saudis are thinking of a world beyond oil, and how significantly Japan looms as their mentor in that regard due its efficient use of resources, even though the two countries contrast sharply in their hydrocarbon reserves.”

In seeking to diversify its economy toward “knowledge-intensive” industries, Saudi Arabia is following Japan’s own move in this direction in the 1970s, Calder said.

Many of the initiatives that form part of Saudi-Japan Vision 2030 are designed to facilitate this transition. In an interview with Arab News earlier this year, Tsukasa Uemura, Japan’s ambassador to Saudi Arabia, drew attention to institutions that are helping to transfer Japanese technology and expertise to the Kingdom. These include the Saudi-Japanese Automobile High Institute in Jeddah, which teaches young Saudis to become engineers, and an industrial robotics training facility.

“Through these projects, I believe that a lot of our experience and knowledge in the field has been transferred to Saudi researchers and students,” Uemura told Arab News in June.

 


Gaza faces a manmade drought as water systems collapse, UNICEF says

Updated 51 min 38 sec ago
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Gaza faces a manmade drought as water systems collapse, UNICEF says

  • “Children will begin to die of thirst ... Just 40 percent of drinking water production facilities remain functional,” UNICEF spokesperson James Elder told reporters in Geneva
  • “We just hope that a comprehensive solution could be reached to end the war in Gaza, too. We are being forgotten” said a father in Gaza

GENEVA: Gaza is facing a manmade drought as its water systems collapse, the United Nations’ children agency said on Friday.

“Children will begin to die of thirst ... Just 40 percent of drinking water production facilities remain functional,” UNICEF spokesperson James Elder told reporters in Geneva.

Israel is now channelling much of the aid into Gaza through a new US – and Israeli-backed group, the Gaza Humanitarian Foundation, which uses private US security and logistics firms and operates a handful of distribution sites in areas guarded by Israeli forces.

Israel has said it will continue to allow aid into Gaza, home to more than 2 million people, while ensuring it doesn’t get to Hamas. Hamas denies seizing aid, saying Israel uses hunger as a weapon.

Philippe Lazzarini, head of the UN agency for Palestinian refugees, called the current system for distributing aid “a disgrace & a stain on our collective consciousness,” in a post on X on Wednesday.

Israel’s military assault on Gaza has killed nearly 55,600 Palestinians, according to Gaza’s health ministry, displaced almost all the territory’s residents, and caused a severe hunger crisis.

The World Food Programme called on Wednesday for a big increase in food distribution in Gaza, saying that the 9,000 metric tons it had dispatched over the last four weeks inside Gaza represented a “tiny fraction” of what was needed.

“The fear of starvation and desperate need for food is causing large crowds to gather along well-known transport routes, hoping to intercept and access humanitarian supplies while in transit,” the WFP said in a statement.

“Any violence resulting in starving people being killed or injured while seeking life-saving assistance is completely unacceptable,” it added.

Palestinians in Gaza have been closely following Israel’s air war with Iran, long a major supporter of Hamas.

“We are maybe happy to see Israel suffer from Iranian rockets, but at the end of the day, one more day in this war costs the lives of tens of innocent people,” said 47-year-old Shaban Abed, a father of five from northern Gaza.

“We just hope that a comprehensive solution could be reached to end the war in Gaza, too. We are being forgotten.”


Iran rejects any negotiation with US while Israeli attacks continue

Updated 20 June 2025
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Iran rejects any negotiation with US while Israeli attacks continue

  • ‘The Americans have repeatedly sent messages calling seriously for negotiations’
  • ‘But we have made clear that as long as the aggression does not stop, there will be no place for diplomacy and dialogue’

TEHRAN: Iranian Foreign Minister Abbas Araghchi rejected any negotiations with the United States while Israel continues its attacks on Iran, in an interview with state TV broadcast on Friday.

“The Americans have repeatedly sent messages calling seriously for negotiations. But we have made clear that as long as the aggression does not stop, there will be no place for diplomacy and dialogue,” said the chief diplomat, who was due in Geneva for talks with his European counterparts.


Israel-Iran air war enters second week as Europe pushes diplomacy

Updated 13 min 25 sec ago
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Israel-Iran air war enters second week as Europe pushes diplomacy

  • European leaders push for Iran’s return to negotiations
  • Trump to decide within two weeks on possible military involvement

TEL AVIV/DUBAI/WASHINGTON: Israel and Iran’s air war entered a second week on Friday and European officials sought to draw Tehran back to the negotiating table after President Donald Trump said any decision on potential US involvement would be made within two weeks.

Israel began attacking Iran last Friday, saying it aimed to prevent its longtime enemy from developing nuclear weapons. Iran retaliated with missile and drone strikes on Israel. It says its nuclear program is peaceful.

Israeli air attacks have killed 639 people in Iran, said the Human Rights Activists News Agency. Those killed include the military’s top echelon and nuclear scientists. Israel has said at least two dozen Israeli civilians have died in Iranian missile attacks. Reuters could not independently verify the death toll from either side.

Iran rejects any negotiation with US while Israeli attacks continue

Iranian Foreign Minister Abbas Araghchi rejected any negotiations with the United States while Israel continues its attacks on Iran, in an interview with state TV broadcast on Friday.

“The Americans have repeatedly sent messages calling seriously for negotiations. But we have made clear that as long as the aggression does not stop, there will be no place for diplomacy and dialogue,” said the chief diplomat, who was due in Geneva for talks with his European counterparts.

Situation at Iran’s Bushehr nuclear plant is ‘normal’, Russian official says

The head of Russia’s nuclear energy corporation, Alexei Likhachev, said on Friday that Russian specialists were still working at the Bushehr nuclear power plant in Iran and that the situation there was normal and under control.

Likhachev said he hoped Russia’s warnings to Israel not to attack the site had been received by the Israeli leadership.

Russia, which has close ties with Iran, has warned strongly against US military intervention on the side of Israel.

Israeli defense minister warns Hezbollah against joining conflict with Iran

Israeli defense minister Israel Katz warned Lebanon’s Hezbollah to exercise caution on Friday, saying Israel’s patience with “terrorists” who threaten it had worn thin.

Katz also instructed the military to intensify attacks on “symbols of the regime” in Tehran, aiming to destabilize it.

“We must strike at all the symbols of the regime and the mechanisms of oppression of the population, such as the Basij (militia), and the regime's power base, such as the Revolutionary Guard.”

The head of Iran-backed Hezbollah, Naim Qassem, said on Thursday that the Lebanese group would act as it saw fit in the face of what he called “brutal Israeli-American aggression” against Iran.

European, Iranian FMs to hold nuclear talks on Friday in Geneva

Foreign ministers from Britain, France and Germany together with the EU’s top diplomat will hold nuclear talks with their Iranian counterpart in Geneva on Friday, officials and diplomats said.

The meeting comes as European countries call for de-escalation in the face of Israel’s bombing campaign against Iran’s nuclear program — and as US President Donald Trump weighs up whether or not to join the strikes against Tehran.

“We will meet with the European delegation in Geneva on Friday,” Iran’s Foreign Minister Abbas Araghchi said in a statement carried by state news agency IRNA.

European diplomats separately confirmed the planned talks, set to involve French Foreign Minister Jean-Noel Barrot, British Foreign Secretary David Lammy and German Foreign Minister Johann Wadephul, as well as EU foreign policy chief Kaja Kallas.

Britain’s Foreign Secretary David Lammy said Thursday after meeting high-level US officials that there is still time to reach a diplomatic solution with Tehran.

Lammy met with US Secretary of State Marco Rubio and special envoy Steve Witkoff at the White House, before talks on Friday in Geneva with Iranian Foreign Minister Abbas Araghchi alongside his French, German and EU counterparts.

“The situation in the Middle East remains perilous,” Lammy said in a statement released by the UK embassy in Washington.

“We discussed how Iran must make a deal to avoid a deepening conflict. A window now exists within the next two weeks to achieve a diplomatic solution,” Lammy said.

Israel has targeted nuclear sites and missile capabilities, but also has sought to shatter the government of Supreme Leader Ayatollah Ali Khamenei, according to Western and regional officials.

“Are we targeting the downfall of the regime? That may be a result, but it’s up to the Iranian people to rise for their freedom,” Israeli Prime Minister Benjamin Netanyahu said on Thursday.

Iran has said it is targeting military and defense-related sites in Israel, but it has also hit a hospital and other civilian sites.

Israel accused Iran on Thursday of deliberately targeting civilians through the use of cluster munitions, which disperse small bombs over a wide area. Iran’s mission to the United Nations did not immediately respond to a request for comment.

With neither country backing down, the foreign ministers of Britain, France and Germany along with the European Union foreign policy chief were due to meet in Geneva with Iran’s foreign minister to try to de-escalate the conflict on Friday.

“Now is the time to put a stop to the grave scenes in the Middle East and prevent a regional escalation that would benefit no one,” said British Foreign Minister David Lammy ahead of their joint meeting with Abbas Araqchi, Iran’s foreign minister.

Israel says Iran fired cluster bomb-bearing missile

Iran fired at least one missile at Israel that scattered small bombs with the aim of increasing civilian casualties, the Israeli military said on Thursday, the first reported use of cluster munitions in the seven-day-old war.

Israeli military officials provided no further details.

Israeli news reports quoted the Israeli military as saying the missile’s warhead split open at an altitude of about 4 miles and released around 20 submunitions in a radius of around 5 miles over central Israel.

One of the small munitions struck a home in the central Israeli town of Azor, causing some damage, Times of Israel military correspondent Emanuel Fabian reported. There were no reports of casualties from the bomb.

Iran appoints new Revolutionary Guards intelligence chief

Iran appointed a new chief of intelligence at its Revolutionary Guards on Thursday, the official Irna news agency said, after his predecessor was killed in an Israeli strike last week.
Major General Mohammad Pakpour, the commander of Iran’s Islamic Revolutionary Guards Corps , appointed Brig. Gen. Majid Khadami as the new head of its intelligence division, Irna said.
He replaces Mohammed Kazemi, who was killed on Sunday alongside two other Revolutionary Guards officers — Hassan Mohaghegh and Mohsen Bagheri — in an Israeli strike.

Trump ponders Iran attack

Trump has mused about striking Iran, possibly with a “bunker buster” bomb that could destroy nuclear sites built deep underground. The White House said on Thursday Trump would decide in the next two weeks whether to get involved in the war. That may not be a firm deadline. Trump has commonly used “two weeks” as a time frame for making decisions and has allowed other economic and diplomatic deadlines to slide.

The role of the US, meanwhile, remained uncertain. On Thursday in Washington, Lammy met with US Secretary of State Marco Rubio and Trump’s special envoy to the region, Steve Witkoff, and said they discussed a possible deal.

Witkoff has spoken with Araqchi several times since last week, sources say. Trump, meanwhile, has alternated between threatening Tehran and urging it to resume nuclear talks that were suspended over the conflict.

Russian President Vladimir Putin and Chinese President Xi Jinping both condemned Israel and agreed that de-escalation is needed, the Kremlin said on Thursday.

With the Islamic Republic facing one of its greatest external threats since the 1979 revolution, any direct challenge to its 46-year-long rule would likely require some form of popular uprising.

But activists involved in previous bouts of protest say they are unwilling to unleash mass unrest, even against a system they hate, with their nation under attack.

“How are people supposed to pour into the streets? In such horrifying circumstances, people are solely focused on saving themselves, their families, their compatriots, and even their pets,” said Atena Daemi, a prominent activist who spent six years in prison before leaving Iran.

IAEA chief identifies Isfahan as Iran’s planned uranium enrichment site

UN nuclear watchdog chief Rafael Grossi on Thursday identified Isfahan, home to one of Iran’s biggest nuclear facilities, as the location of a uranium enrichment plant that Iran said it would soon open in retaliation for a diplomatic push against it.

The day before Israel launched its military strikes against Iranian targets including nuclear facilities last Friday, Iran announced it had built a new uranium enrichment facility, which it would soon equip and bring online. Tehran did not provide details such as the plant’s location.

Iran’s announcement was part of its retaliation against a resolution passed by the International Atomic Energy Agency’s 35-nation Board of Governors declaring Tehran in breach of its non-proliferation obligations over issues including its failure to credibly explain uranium traces found at undeclared sites.


Europeans see a window for diplomacy as they meet Iran’s top diplomat

Updated 49 min 16 sec ago
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Europeans see a window for diplomacy as they meet Iran’s top diplomat

  • Tehran’s top envoy Abbas Araghchi said his country is not seeking negotiations with anyone as long as Israel continues its strikes on Iran

GENEVA: Iran’s foreign minister plans to meet in Geneva on Friday with leading European counterparts, who hope to open a window for a diplomatic solution to the weekold war that has seen Israeli airstrikes target Iranian nuclear and military sites and Tehran firing back.

Iranian Foreign Minister Abbas Araghchi, however, said his country is not seeking negotiations with anyone as long as Israel continues its strikes on Iran.

British Foreign Secretary David Lammy, who will meet Araghchi together with his French and German counterparts and the European Union’s foreign policy chief, said that “a window now exists within the next two weeks to achieve a diplomatic solution.”

The talks will be the first face-to-face meeting between Western and Iranian officials since the start of the conflict.

Lammy is traveling to Geneva after meeting in Washington with US Secretary of State Marco Rubio and President Donald Trump’s Mideast envoy, Steve Witkoff.

Trump has been weighing whether to attack Iran by striking its well-defended Fordo uranium enrichment facility, which is buried under a mountain and widely considered to be out of reach of all but America’s “bunker-buster” bombs. He said Wednesday that he’ll decide within two weeks whether the US military will get directly involved in the war given the “substantial chance” for renewed negotiations over Tehran’s nuclear program.

“Now is the time to put a stop to the grave scenes in the Middle East and prevent a regional escalation that would benefit no one,” Lammy said.

Israel says it launched its airstrike campaign last week to stop Iran from getting closer to being able to build a nuclear weapon. Iran and the United States had been negotiating over the possibility of a new diplomatic deal over Tehran’s program, though Trump has said Israel’s campaign came after a 60-day window he set for the talks.

Iran says no talks while Israeli attacks continue

Iran’s supreme leader rejectedUS calls for surrender Wednesday and warned that any military involvement by the Americans would cause “irreparable damage to them.”

In an interview aired Friday by Iranian state television, Araghchi said that “in the current situation, as the Zionist regime’s attacks continue, we are not seeking negotiations with anyone.”

“I believe that as a result of this resistance (by Iran), we will gradually see countries distancing themselves from the aggression carried out by the regime, and calls for ending this war have already begun, and they will only grow stronger,” he said. Araghchi, who also is expected to address the UN Human Rights Council in Geneva on Friday afternoon, added that Iran considers “the Americans to be companions and collaborators of the Zionist regime.”

Iran has long insisted its nuclear program is peaceful, though it was the only non-nuclear-armed state to enrich uranium up to 60 percent, a short, technical step away from weapons-grade levels of 90 percent.

The three European countries played an important role in the negotiations over the original 2015 nuclear deal between Iran and world powers. But they have repeatedly threatened to reinstate sanctions that were lifted under the deal if Iran does not improve its cooperation with the UN nuclear watchdog, the International Atomic Energy Agency.

Europeans stand ready to negotiate

Germany’s foreign minister acknowledged that years of efforts to relieve concerns about the possibility of Iran developing a nuclear weapon haven’t succeeded, but said it’s worth talking now.

“If there is serious and transparent readiness by Iran to refrain from this, then there is a real chance of preventing a further escalation of this conflict, and for that every conversation makes sense,” Johann Wadephul said in a podcast released by broadcaster MDR on Friday.

Wadephul said US officials “not only know that we are conducting these talks but are very much in agreement with us doing so — so I think Iran should now know that it should conduct these talks with a new seriousness and reliability.”

Before traveling to Geneva on Friday, Wadephul said the Europeans would be prepared to hold further talks if Iran shows serious readiness to refrain from any enrichment that could result in nuclear weapons, among other things, but stressed that “it’s Iran’s move now.”

French Foreign Minister Jean-Noël Barrot spoke by phone with Rubio on Thursday evening.

A French diplomatic official, who was not allowed to speak publicly on the issue, said Barrot detailed the purposes of the Geneva meeting and Rubio “stressed that the US was ready for direct contact with the Iranians at any time.”


Israel says Iran fired cluster bomb-bearing missile

Updated 20 June 2025
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Israel says Iran fired cluster bomb-bearing missile

  • Israeli military officials provided no further details

Iran fired at least one missile at Israel that scattered small bombs with the aim of increasing civilian casualties, the Israeli military said on Thursday, the first reported use of cluster munitions in the seven-day-old war.

Israeli military officials provided no further details.

Israeli news reports quoted the Israeli military as saying the missile’s warhead split open at an altitude of about 4 miles and released around 20 submunitions in a radius of around 5 miles  over central Israel.

One of the small munitions struck a home in the central Israeli town of Azor, causing some damage, Times of Israel military correspondent Emanuel Fabian reported. There were no reports of casualties from the bomb.

Cluster bombs are controversial because they indiscriminately scatter submunitions, some of which can fail to explode and kill or injure long after a conflict ends.

The Israeli military released a graphic as a public warning of the dangers of unexploded ordnance.

“The terror regime seeks to harm civilians and even used weapons with wide dispersal in order to maximize the scope of the damage,” Israel’s military spokesperson, Brig. Gen. Effie Defrin, told a briefing.

Iran’s mission to the United Nations and Israel’s embassy in Washington did not immediately respond to requests for comment.

“They are egregious weapons with their wide-area destruction, especially if used in a civilian populated area and could add to the unexploded ordnance left over from conflicts,” said Daryl Kimball, executive director of the Arms Control Association advocacy group.

Noting that Iranian missiles can be imprecise, he said that Tehran should know that cluster munitions “are going to hit civilian targets rather than military targets.”

Iran and Israel declined to join a 2008 international ban on the production, stockpiling, transfer and use of cluster bombs that has been signed by 111 countries and 12 other entities. After extensive debate, the US in 2023 supplied Ukraine with cluster munitions for use against Russian occupation forces. Kyiv says Russian troops also have fired them. The three countries declined to join the Convention Against Cluster Munitions.