Fresh boost to Saudi-Japanese ties

October 10, 2016

Riyadh, Oct 10: Sunday’s meetings between the visiting Japanese ministers and Saudi officials in Riyadh have given a fresh boost to their bilateral relations.

middle east

Custodian of the Two Holy Mosques King Salman received at Al-Yamamah Palace Japanese Minister of Economy, Trade and Industry, Hiroshige Seko and Minister of State for Foreign Affairs Kentaro Sonora and their accompanying delegation.

During the meeting, the relations between the Kingdom of Saudi Arabia and Japan as well as the prospects for bilateral cooperation between the two countries in various fields were reviewed. The audience was attended by a number of Saudi ministers and the ambassador of Japan to the Kingdom, Norihiro Okuda.

Deputy Crown Prince Mohammed bin Salman, second deputy premier and minister of defense, also reviewed with the visiting ministers the areas of partnership to realize Saudi Arabia’s Vision 2030.

The two parties discussed the role of Japanese companies and government in activating the achievement of the Vision, including the development of joint programs between the two countries since the start of the Joint Saudi-Japanese Group for Vision 2030. The meeting was attended by Minister of Economy and Planning Adel Fakeih.

At the meetings between the ministers, Japan and Saudi Arabia agreed to advance bilateral cooperation in fields such as network-connected devices and renewable energy.

In the first meeting held in the Saudi capital to support the Kingdom’s structural reform drive and help Japanese companies to make inroads, Trade Minister Hiroshige Seko said the occasion marks the beginning of bilateral cooperation in a concrete form.

"If combined with the Abenomics economy policy mix being pursued by the government of Prime Minister Shinzo Abe, Saudi Arabia’s reform efforts would create a “synergy” that yields great benefits,” Seko said at the outset of the meeting.

The ministerial-level meeting was attended by Adel Fakeih, minister of economy and planning, among other officials.

At the meeting, the two sides also agreed on Japanese support in such areas as talent development in animation and video games, energy conservation and nuclear power, martial arts seminars and athletic training, Japanese officials said.

Executives of about 30 Japanese companies accompanying Seko also met with Saudi officials and pitched their business plans.

The meeting was the result of an agreement reached between Abe and Deputy Crown Prince Mohammed bin Salman in Tokyo last month.

During the meeting between businessmen of the two countries held at the headquarters of the Council of Saudi Chambers on Sunday, Japan and Saudi Arabia agreed to advance bilateral trade cooperation between the two private sectors.

Speaking on behalf of the Saudi team at the headquarters of the Council of Saudi Chambers, Tariq Al-Qahtani told the Japanese officials that there is the second largest trade partner to the Kingdom enjoying a bilateral trade of $57 billion in 2013. He said the recent visit of the deputy crown prince to Japan and an earlier visit of King Salman when he was crown prince, had boosted trade between the two countries.

Al-Qahtani recalled that during these visits, a number agreements were signed and they are now being successfully implemented to derive mutual benefits. The results of these agreements will affect technology transfer and boost small and medium enterprises in the Kingdom.

The executive president of JETRO said that Japan’s largest volume of oil comes from the Kingdom and Japan in turn exports a variety of products including automobiles and machinery to Saudi Arabia.

Describing trade between two countries as significant, he said Japan is interested in taking part actively in the implementation of the 2030 program.

Leading Japanese bank Mizuho Financial Group, Inc. and state-owned Saudi Arabian Oil Co. (Saudi Aramco) recently signed a major agreement for business cooperation with the aim to support Japanese companies investing in the Kingdom. The move will go a long way in expanding ties between the two countries, especially in the energy sector.

With the memorandum of understanding, Mizuho, the sole Japanese bank to have an office in Saudi Arabia, is expected to work more closely with the Kingdom and provide enhanced support to Aramco, which works to transform its business portfolio, the Tokyo-based financial group said in a press statement, while referring to the visit of Deputy Crown Prince Mohammed bin Salman to Tokyo.

The statement said that “Mizuho will use Aramco’s knowhow and network to introduce Japanese companies, in particular SMEs and middle-marketers which have unique technological advantages, to Aramco and other Saudi companies as their business partners.”

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News Network
April 29,2020

Dubai, Apr 29: Dubai on April 23 was a suicide, Dubai Police confirmed to Gulf News on Wednesday.

According to Dubai Police, he committed suicide by jumping from a building in Business Bay.

“We received a report about a man plunging to his death from the 14th floor of a friend's building on Thursday. The businessman committed suicide over financial problems,” Brigadier Abdullah Khadim Bin Sorour, director of Bur Dubai Police Station, told Gulf News.

Joy Arakkal receiving the Lifetime Achievement Award from Kerala Chief Minister Pinarayi Vijayan

The police ruled out any criminal suspicion behind the suicide and said they are coordinating with the businessman’s family for the repatriation of his body.

A UAE Gold Card visa recipient, Arakkal was the managing director of Dubai-headquartered Innova Group of Companies which had diverse businesses, with major focus in the oil sector. He is survived by his wife Celine and children, Arun and Ashly, who live in Jumeirah.

Consul General of India in Dubai Vipul confirmed to Gulf News that Arakkal’s family is set to fly home with his body after Indian authorities gives them special permission to travel in a chartered air ambulance.

“They have received the NOCs (No Objection Certificates) from India. We have taken it up with the UAE MoFAIC (Ministry of Foreign Affairs and International Cooperation) for necessary permits from the UAE side,” Vipul said.

Once the approval is received, a chartered air ambulance will fly in from Bangalore to carry the family and the mortal remains of Arakkal.

Quiet embalming service

A few social workers and community leaders, who were coordinating with Arakkal’s family for the repatriation procedures, attended the embalming service was on Tuesday.

“Only the family members and a few of his employees were present apart from us,” said advocate Hashik T.K.

He said M.K. Raghavan, a member of Indian parliament from Kerala, and R. Harikumar of Elite Group in the UAE, offered great support for securing approvals from Indian authorities.

“We have been requesting the central and state governments to consider the emotional aspect of traditional funeral process in the case of expats who die abroad.”

He said almost two dozen bodies have been flown to India in the past few weeks on cargo flights. But, no family member was allowed to accompany the bodies so far.

Besides Arakkal’s family, the Indian government also issued immigration clearance for the family of a cancer patient from Nottingham, who is seeking treatment, to fly down to Calicut International Airport in Kerala.

Quarantine and funeral
On reaching Kerala, the family members would follow the quarantine procedures as per the government rules, Hashik said.

Arakkal’s’s funeral will be held in his hometown in Mananthavady in Wayanad district where he had built a 45,000sqfit mansion, one of the biggest houses in Kerala, last year.

“It is sad that he could stay in that house for a month or so only,” said a community member.

He said Arakkal had built houses for the poor and also funded the weddings of several young couples back home.

His companies include oil refineries, petrochemical trading, ISO tank cleaning services, shipping services and a telecom company working for infrastructure projects in the UAE.

He had received many awards including a lifetime achievement award from the Chief Minister of Kerala Pinarayi Vijayan during his visit to Dubai.

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News Network
May 11,2020

May 11: Saudi Arabia will triple its value-added tax rate and suspend a cost of living allowance for state workers, it said on Monday, seeking to shield finances hit by low oil prices and a slump in demand for its lifeline export worsened by the new coronavirus.

Historic oil output cuts agreed by Riyadh and other major producers have given only limited support to prices after they sank on oversupply caused by a war for petroleum market share between the kingdom and its fellow oil titan Russia.

Saudi Arabia, the world's largest oil exporter, is also being hit hard by measures to fight the new coronavirus, which are likely to curb the pace and scale of economic reforms launched by Crown Prince Mohammed bin Salman.

"The cost of living allowance will be suspended as of June 1, and the value added tax will be increased to 15% from 5% as of July 1," Finance Minister Mohammed al-Jadaan said in a statement reported by the state news agency. "These measures are painful but necessary to maintain financial and economic stability over the medium to long term...and to overcome the unprecedented coronavirus crisis with the least damage possible."

The austerity measures come after the kingdom posted a $9 billion budget deficit in the first quarter.

The minister said non-oil revenues were affected by the suspension and decline in economic activity, while spending had risen due to unplanned strains on the healthcare sector and the initiatives taken to support the economy.

"All these challenges have cut state revenues, pressured public finances to a level that is hard to deal with going forward without affecting the overall economy in the medium to long term, which requires more spending cuts and measures to support non-oil revenues stability," he added.

The government has cancelled and put on hold some operating and capital expenditures for some government agencies, and cut allocations for some reform initiatives and projects worth a total 100 billion riyals ($26.6 billion), the statement said.

Central bank foreign reserves fell in March at their fastest rate in at least 20 years and to their lowest since 2011, while oil revenues in the first three months of the year fell 24% from a year earlier to $34 billion, pulling total revenues down 22%.

"The reforms are positive from a fiscal side as greater adjustment is essential. However, the tripling of VAT is unlikely to help that much in 2020 revenue wise with the expected fall in consumption," said Monica Malik, chief economist at Abu Dhabi Commercial Bank.

She said she kept unchanged her deficit forecast of 16.3% of GDP for this year, which already factors in a greater than previously announced spending cut.

About 1.5 million Saudis are employed in the government sector, according to official figures released in December.

In 2018, Saudi Arabia's King Salman ordered a monthly payment of 1,000 riyals ($267) to every state employee to compensate them for the rising living costs after the government hiked domestic gas prices and introduced value-added tax.

DIFFICULT TIMES

A committee has been formed to study all financial benefits paid to public sector employees and contractors, and will submit recommendations within 30 days, the statement said.

In late 2015, when oil prices fell from record highs, the kingdom slashed lavish bonuses, overtime payments and other benefits once considered routine perks in the public sector.

In a country without elections and with political legitimacy resting partly on distribution of oil revenue, the ability of citizens to adapt to such reforms is crucial for stability.

"Tripling the VAT will test the limits of the balance between revenues and consumption as the economy dives into a deep recession. The move will impact consumption and could also lower the expected revenues," said John Sfakianakis, a Gulf expert at the University of Cambridge.

"These are pro-austerity and pro-revenue moves rather than pro-growth ones," he said.

Hasnain Malik, head of equity strategy at Tellimer, said the VAT rise could bring about $24-$26.5 billion in additional non-oil fiscal revenue. The rise would hit consumer spending further but was a needed step towards fiscal sustainability, he said.

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News Network
May 21,2020

May 21: Mosques across the UAE will remain closed during Eid Al Fitr, a top official has said. The Takbeer, which is chanted before the special prayers performed on Eid, will be broadcast from mosques 10 minutes before the prayer time.

During the virtual press briefing held on Wednesday, Dr Farida Al Hosani, official spokesperson of the UAE health sector, reminded citizens and expats about the importance of adhering to the safety measures as laid out by the authorities.

Contact tracing process

"Before we began to use Al Hosn app to trace the contacts of Covid-19 cases, the tracking process used to take more than 48 hours. It also depended on the memory and honesty of people. The app is an AI-enabled methodological way to trace individuals who came in contact with Covid-19 cases so that they are isolated. It has proven to be an efficient way to stop the spread of the coronavirus," Dr Farida said.

Install the app

She called on all the public to install the app on their smart phones. "The success of the tracing system via Al Hosn app relies on its use. We hope 50 to 70 per cent of people in the UAE instal and use the app in an effective way."

No sermon

Sheikh Abdul Rahman Al Shamsi, Spokesperson for the General Authority of Islamic Affairs and Endowments, said there will be no sermon for the Eid prayers.

He called on everyone to welcome Eid with joy and positivity and to stay connected with their loved ones via social media.

Mass testing

Dr Amna Al Dahhak Al Shamsi, the official spokesperson of the UAE Government, said mass testing continues across the country.

She stressed on the importance of adhering to precautionary measures and cooperating with the authorities.

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