Dubai, UAE – Gulf exports to Japan have reached a new high, rising from around $55.8 billion in 2016 to $91.7 billion in 2018 before falling back to around $54 billion in 2020 because of the economic fallout of the pandemic.
In 2020, Gulf countries’ imports from Japan were estimated to be around $17.3 billion, down from $24.3 billion in 2018.
Crude oil, gases (liquefied gas, liquefied propane, and liquefied butane), light petroleum, aluminum, organic chemicals, copper scrap, plastics, and precious stones are among the Gulf’s exports to Japan.
Japan’s exports to the Gulf countries include automobiles, machinery, iron and steel, electrical machinery, rubber (mostly tires), textiles, visual goods, and foodstuffs.
Saudi, Japan trade
The volume of trade between Japan and Saudi Arabia was $38.4 billion in 2020. On July 17, 2023, the two countries signed 26 agreements and memorandums of cooperation with during the visit of Japanese Prime Minister Fumi Kishida to the Kingdom, spanning clean energy, tourism, entertainment, information technology, and other fields.
Japan is the Kingdom’s third largest trading partner, with trade between them reaching $37 billion in 2022, and in 2021 Saudi Arabia became the largest exporter of oil to Tokyo, supplying about 40 percent of Japan’s needs.
Trade with UAE
The volume of trade between the UAE and Japan last year amounted to about $30.5 billion. The UAE’s exports to Japan were estimated at $26 billion, while its imports from Japan rose to $6.5 billion.
Trade with Qatar
Qatar’s trade with Japan reached about $77.3 billion in 2020. Qatari exports to Japan amounted to about $51.5 billion in the year, while imports from Japan were $25.8 billion.
Trade with Kuwait
Kuwaiti official data indicates that the total volume of trade with Japan in 2020 amounted to $3 billion. With an oil export to Japan worth $11.3 billion during 2019-2020, Kuwait ranks third among oil suppliers to Japan.
Trade with Oman
Data from the Omani National Center for Statistics and Information reveal that the volume of trade between the Sultanate and Japan amounts to $3.6 billion annually.
Trade with Bahrain
The volume of Bahrain’s trade with Japan amounts to about one billion dollars annually, the head of the Bahraini-Japanese Friendship Society, Nasser Al-Arayedh said in a statement.
Saudi, UAE favourite destinations
According to data from the “Trend” Center for Research and Consulting in Saudi Arabia, the Middle East has become increasingly attractive for direct Japanese investment. As of 2020, Japanese investments in the region amounted to approximately $8.8 billion.
Among Middle Eastern countries, Saudi Arabia and the UAE stand out as the two most favourite destinations for Japanese investors, accounting for approximately $7.4 billion of the total investments.
In the same period, Saudi Arabia invested approximately $28 million in the Japanese economy, while the UAE’s investments totaled around $440 million. Qatar also holds investment assets of about $300 million in Japan, as confirmed by the Japanese ambassador to Qatar, Kazuo Sunaga, in previous press statements.
These figures highlight the growing economic ties between Japan and the Middle East, with both regions recognizing the potential benefits of increased investment and trade cooperation.