RIYADH: Economic ties between Japan and the Gulf Cooperation Council advanced with the successful completion of the first round of Free Trade Agreement negotiations in Riyadh on Dec. 12.

Led by Saudi Arabia’s General Authority for Foreign Trade, the discussions aimed to lay the groundwork for future trade agreements, covering key areas such as trade in goods and services, customs procedures, digital trade, rules of origin, intellectual property, and general provisions.

This milestone marks a significant step towards deeper economic collaboration between the two regions. Fareed Al-Asaly, deputy governor of International Organizations and Agreements at GAFT, underscored the importance of the talks, emphasizing that the agreement could lead to increased trade volumes and closer economic integration. He also noted that Japan is a key market for GCC exports.

The Saudi delegation included representatives from multiple ministries and government bodies, such as the ministries of energy, investment, environment, water and agriculture, industry and mineral resources, economy and planning, and interior.

Additionally, officials from the Saudi Authority for Intellectual Property, the Zakat, Tax, and Customs Authority, the National Cybersecurity Authority, the Saudi Export Development Authority, and the Saudi Central Bank participated in the discussions.

The conclusion of this first round of negotiations marks the beginning of a broader process aimed at strengthening trade relations and fostering economic cooperation between the GCC and Japan.

This year has already seen significant strides in the economic partnership between Saudi Arabia and Japan. In May, both nations agreed to collaborate on building global supply chains for clean energy resources, including hydrogen and ammonia. The goal is to establish a robust international network for clean energy.

In July, during Japanese Prime Minister Fumio Kishida’s visit to Saudi Arabia, the two countries exchanged 26 pre-signed economic agreements covering sectors such as healthcare, clean energy, mining, and digital innovation. Energy Minister Prince Abdulaziz bin Salman highlighted the long-standing energy partnership, noting that Saudi Arabia supplied around 40 percent of Japan’s oil in 2021.

In October, the Saudi Public Investment Fund signed five memorandums of understanding with Japanese financial institutions, with agreements worth up to $51 billion.

These deals aim to boost bilateral capital flows through both debt and equity, further solidifying the financial relationship between the two nations.

This continued collaboration signals a growing and mutually beneficial partnership between Japan and the GCC, with the potential to reshape regional economic dynamics and create new opportunities for growth and innovation.

RIYADH: Uzbekistan has officially inaugurated Central Asia’s largest wind farm, the 500-megawatt Zarafshan facility, as part of its efforts to expand clean energy capacity. 

Developed by Abu Dhabi Future Energy Co., known as Masdar, the wind farm was launched by Uzbekistan’s President, Shavkat Mirziyoyev, in a ceremony attended by Sultan Al-Jaber, the UAE minister of industry and advanced technology. 

The Zarafshan wind farm aligns with Uzbekistan’s target to generate 40 percent of its electricity from renewable sources by 2030. It is also a key step in the country’s ambitious plan to achieve 20 gigawatts of clean energy capacity by the decade’s end. 

“The UAE and Uzbekistan’s enduring relationship is critical to a shared commitment to drive low-carbon socioeconomic progress and clean energy capacity growth,” said Al-Jaber, who is also the chairman of Masdar.  

He added: “Uzbekistan has become a leading investment destination and a clean energy hub for the region as we work to deliver our shared goal of tripling global renewable energy capacity by 2030, as outlined in the historic UAE Consensus.” 

Masdar has pledged $2 billion to Uzbekistan’s clean energy initiatives, which include projects with a combined capacity of over 2 GW. The company also has a pipeline of 4 GW of renewable projects in early development stages, according to a statement. 

UAE Minister of Energy and Infrastructure Suhail Mohamed Faraj Al-Mazrouei hailed the wind farm as a testament to Uzbekistan’s climate leadership and energy transition efforts. 

“The UAE and Uzbekistan share a common vision of sustainable development and renewable energy and Zarafshan is (a) testament to the strength of our partnership in advancing clean, emissions-free energy in Uzbekistan,” Al-Mazrouei also said.  

Masdar CEO Mohamed Jameel Al-Ramahi highlighted the project’s significance, describing it as a reflection of Uzbekistan’s bold renewable energy ambitions. 

“Uzbekistan has built upon its legacy as a vital artery on the ancient Silk Road – the historic trade route uniting east and west – becoming a key hub for renewables in the region, moving at pace and at scale to develop landmark clean energy projects and attract investment,” added Al-Ramahi.  

During the recent UN Climate Change Summit, COP29, Uzbekistan’s Ministry of Energy and Masdar signed an agreement to develop another 1-GW wind farm in the Mingbulak region. 

The Mingbulak wind farm is expected to create 1,000 jobs during construction and 60 operational roles. Once completed, it will provide clean energy to 300,000 homes in the region, the statement added.