Saudis head to Japan to reduce dependency on oil

Japanese Defense Minister Tomomi Inada during her meeting with her counterpart from Saudi Arabia. [September 2, 2016]

Saudi Arabia took another major step in diversifying its oil dependent economy by cementing relations with Japan.

The two countries signed seven memorandums of understanding (MoU) to begin greater cooperation between Riyadh and Tokyo.

Deputy Crown Prince Muhammad Bin Salman met Japanese Prime Minister Shinzo Abe yesterday in the Japanese capital met in an effort to cement ties between the Gulf monarchy and the third largest economy in the world.

The two will now see greater cooperation in investment, energy production, cooperation between press agencies, enhancing competitiveness in global markets, build cultural ties amongst other areas.

Delegates accompanying the Crown Price held a number of meetings with their Japanese counterparts from the Ministry of Economy, Commerce and Industry, trade organisations and various Japanese companies.

The Saudi Ambassador to Japan Ahmed Bin Younes Al-Barrak described Prince Muhammad’s visit to Japan as of paramount importance.

According to the Saudi Gazette the ambassador said the “visits exchanged between the kingdom and Japan contributed to closer cooperation between the two countries, based on mutual respect to promote true partnership.”

In April 2016 Saudi Arabia launched an ambitious plan to diversify its economy through privatising state assets, raising taxes and creating a $2 trillion sovereign wealth fund.