Japanese firms invest $6.3b in Saudi Arabia

RIYADH, Sept 07 (Arab News): Japanese companies have invested around SR23.6 billion ($6.28 billion) in Saudi Arabia, with 18 firms establishing regional headquarters in the Kingdom, said a senior Japanese official.

In an interview with Al-Eqtisadiah, Daisuke Yamamoto, consul general of Japan in Jeddah, said, 82 companies operate in Riyadh and 36 in Jeddah, spanning sectors including petrochemicals, energy, electricity, water, automobiles, electronics, and titanium production.

This comes as bilateral trade has grown 37.2 per cent since 2020, reaching more than $36 billion, with Saudi exports accounting for the bulk at $29.9 billion, mostly petroleum and petrochemical products. Japanese exports to Saudi Arabia totaled roughly $6 billion, including cars, appliances, equipment, and machinery, according to the Japanese consul.

The expansion aligns with the government-backed Riyadh regional headquarters program, launched in 2021, which offers incentives such as a 30-year corporate tax exemption, withholding tax relief, and regulatory support for multinationals establishing regional headquarters.