More than 200 Japanese companies operate in the UAE, reflecting the rapidly increasing relations between the two countries.
The Japanese Prime Minister Shinzo Abe's visit to the UAE in April 2006 was seen as a historical step in cementing bilateral ties between Japan and the UAE.
According to Japanese Ambassador to the UAE Takuma Hatano, Prime Minister Abe's visit, together with the delegation of the Japan Federation of Economic Organisations, was an event of great significance for both countries.
The cordial reception, in particular, extended to the Prime Minister by the UAE government was a sign of the strong relationship.
Extensive relations
"The summit talks with President His Highness Shaikh Khalifa Bin Zayed Al Nahyan, His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and General Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, were successful in ushering in a new stage of extensive relations between the two countries," says Hatano. He adds that this event has set the momentum for an increase in Japan's contribution to the ongoing nation building of the UAE in various areas, including the economy, and sectors such as business, technology, environment, education, culture and security.
Education the key
"Among the areas of diversified collaboration, the efforts in the educational sector, especially in Abu Dhabi, are an important achievement. Under the initiative of General Shaikh Mohammad Bin Zayed Al Nahyan, the Japanese school in the capital has enrolled Emirati children in their kindergarten.
"These children will study at the Abu Dhabi Japanese School and then come to Japan for high education. I believe these students will play a role in bringing our countries closer in the future," says the ambassador.
This, however, is just one of the moves towards stronger bilateral ties. Another important initiative — the ministerial Japan-UAE Joint Economic Committee — was launched on the occasion of the Japanese Prime Minister's visit last April. This committee is expected to play a core role in promoting Japan-UAE economic relations, particularly in investment, business environment and the energy sector (including renewable energy initiatives).
"The bilateral cooperation in the energy field has seen a significant development in recent years, especially through the participation of a Japanese research institute in the Masdar Research Network, and financial cooperation between the Japan Bank for International Cooperation (JBIC) and Abu Dhabi National Oil Company.
In addition to that, Japan and the UAE are determined to reach a swift agreement related to the Japan-GCC Free Trade Agreement," says Hatano. These developments are part of the remarkably rapid growth in bilateral relations.
According to Hatano, this is also evident through the increasing number of Japanese companies operating in the UAE, which, he says, has already exceeded 200. The number of Japanese residents in the UAE has also crossed 2,300, making this the biggest Japanese community in the Middle East and Northern Africa.
"Furthermore, the fruitful outcome of the Japan-UAE Business Forum in April 2007 at Tokyo, and the high-level Japanese private sector mission that accompanied Prime Minister Shinzo Abe last April, have also played a significant role in further promoting the bilateral economic relations. In the political arena, Japan and the UAE are closely cooperating in promoting stability and achieving prosperity in the Middle East," says Hatano.
Expanding trade
Trade between the two countries has also increased in value since last year. Figures from the Japan External Trade Organisation (JETRO) show that the value of Japan-UAE trade increased by 28.9 per cent to $37.64 billion (about Dh138.44 billion) in 2006.
Mineral fuels including crude oils and petroleum gases, as well as machinery and equipment, dominated the two-way trade with mineral fuels alone covering 83 per cent of the total trade.
According to JETRO, the ratio of trade between the two countries, in comparison with Japan's world trade, increased to 3.06 per cent compared to 2.61 per cent in 2005, an increase of 17.24 per cent.
The UAE ranks fourth among Japan's major suppliers and 22nd among its major buyers. Japan's exports to the UAE rose by 24.29 per cent (from 2005) to $6.05 billion (about Dh22.25 billion) in 2006.
More than 90 per cent of Japan's exports to the UAE were classified as manufactured products. Exports of machinery and equipment valued at $4.424 billion (about Dh16.27 billion) covered 73.1 per cent of the total exports.
According to Ambassador Hatano, automobiles comprised about 40 per cent of the total exports from Japan to the UAE in 2006.
"The volume of such exports has increased steadily. On the other hand, oil and gas products represented the majority of Japan's imports from the UAE. Crude oil imports from the UAE represent 25 per cent of total oil demand in Japan," he says.
Two-way investment flow
Service exports from Japan to the UAE are also growing.
"Major Japanese construction companies with a high level of expertise in different areas of the sector have already set up their branches in the UAE. The contribution of these companies to the ongoing urban development in this country is expected to rise greatly," he says.
Hatano says that the Embassy of Japan is also making every effort to promote two-way investment flow in order to strengthen economic ties while using resources on both sides such as Japan's industrial technology, Asian business network and other factors.
Foreign direct investment from Japan in the UAE is also increasing. Hatano says that Japanese companies have invested in the field of infrastructure in areas such as independent water and power projects (IWPP) and in the building materials sector.
Destination Dubai
The UAE is also becoming an important destination for Japanese tourists. According to the Embassy, more than 80,000 Japanese tourists visited the UAE in 2006.
"Two direct daily flights between the two countries have helped achieve this increase. With the other expected direct flights, we are sure that the number of tourists from each country will increase in the future. As a result, we believe that we can build stronger relationship with the citizens of the UAE based on a mutual understanding of our respective cultures," says the ambassador.
In an effort to facilitate stronger cultural ties, the embassy in association with the Abu Dhabi Music and Arts Foundation and the Embassy of the Russian Federation supported the piano and violin concert in February this year. The concert was held under the patronage of the Shaikh Nahyan Bin Mubarak Al Nahyan, Minister of Higher Education and Scientific Research, in February this year.
The embassy also organised a Japanese drum concert by Yosoro, a Japanese drum group under the patronage of Shaikha Fatima bint Mubarak, Supreme President of the Family Development Foundation and President of the UAE General Woman's Union.
Traditional Japanese music instruments such as drum, tsugaru shamisen, and bamboo flute were played at the concert.
King Gonta, a manga artist from Japan, also participated in the Abu Dhabi Comic and Animation Festival that was held at the Cultural Foundation in Abu Dhabi last March.
Hatano believes that these events have contributed to deeper understanding of Japanese culture and its modern approach to tradition among the UAE nationals and residents.
"In order to further deepen mutual cultural understanding between Japan and UAE, we are planning to hold an exhibition in Abu Dhabi, titled 'Handcrafted form: Tradition and Techniques' to showcase Japanese traditional handcrafts in February 2008.
"I hope that the Embassy's cultural activities would continue to help enhancement and expansion of the bilateral relations between Japan and the UAE," says the ambassador.
