Kuwait, Japan Discuss Business Cooperation

Kuwait and Japan exchanged views on measures to promote economic relations from the view point of the business community, while suggesting opportunities in energy and infrastructure projects.

The 20th meeting of the Kuwaiti-Japanese Businessmen's Committee in Tokyo, which brought together some 100 government officials and businesspersons from various sectors of both economies, featured Economic Overview of the both countries, Investment into Kuwait and Renewable energy.

The annual economic meeting, co-chaired by board member of Kuwait Chamber of Commerce Tareq Al-Mutawa and his Japanese counterpart Hiroshi Saito, came amid concerns about a slowing global economy and falling oil prices. In his opening remarks, Al-Mutawa said, "We are all aware of the challenges for the global economy, despite the sizable differences in the scale of challenges facing different countries.

The Kuwait-Japan trade shrank by 42 percent last year, resulting entirely from the decline in the Kuwaiti exports to Japan, which fell 48 percent, while the value of the corresponding imports by Kuwait was kept almost at the same level." However, Al-Mutawa, affirmed that the recently energized public projects market in Kuwait will not be essentially affected by the unfavorable fiscal situation, despite of the declining oil prices.

"During 2015 alone, an unprecedented USD 32.2 billion worth of contracts were already awarded. Capital spending in accordance with the 5-Year Development Plan exceeds USD 110 billion targeting major projects in various sectors, including oil industry, infrastructure, power and water, health, education, housing and transportation," head of the Kuwaiti side told audience. According to Al-Mutawa, the private sector plays a lead role in implementing these mega projects mostly through Public Private Partnership (PPP), which requires strategic foreign partners with advanced technology and technical know-how.

"We believe that Japanese partners can still participate effectively in implementing these projects, as they have previously done in the course of their long-standing relationship with Kuwait," he added. On behalf of Japanese Minister of Economy, Trade and Industry Motoo Hayashi, the ministry's Deputy Director-General for International Trade Policy Nobuaki Ito read a message, in which Hayashi called Kuwait as a very critical partner for Japan.

Pointing out that the two countries signed a memorandum of cooperation last year in the fields of electricity and water, the minister expressed expectations for further participation of Japanese enterprises in Kuwaits infrastructure projects by utilizing Japan's manufacturing technology and expertise. At the one-day gathering, Dr. Salem Al-Hajraf, Executive Director of the Energy and Building Research Center at the Kuwait Institute for Scientific Research (KISR), gave an update on the Shagaya renewable energy project.

The first phase of Shagaya Renewable Energy Complex is due in December 2017 and will eventually produce enough electricity for 100,000 homes, according to Dr. Al-Hajraf.

The Phase 1 includes three renewable-based projects -- a 50 MW solar thermal station with 10 hours of energy storage, a 10 MW solar photovoltaic station and a 10 MW wind power station. The economic meeting also shed light on investment into Kuwait. Officials from the Kuwait Authority for Partnerships Projects (KAPP), which is responsible for all PPP schemes in Kuwait, briefed the participants on the new PPP Law introduced in 2014 and the latest development of Independent Water and Power Producer projects, including those in Az-Zour North and Al-Khairan.

Meanwhile, the Kuwait Direct Investment Promotion Authority (KDIPA) explained about investment climate and opportunities for Japanese investors.

The Japanese side outlined the economic outlook for Japan, financial support from the government-affiliated Japan Bank for International Cooperation and its role in the Azzour North project. There was also presentation of renewable energy technology by Japanese firms.

On his part, Saito told KUNA that the talks were fruitful with a satisfactory outcome. He also expressed hope that the committee meeting would contribute to further strengthen business relations between the two countries. The Kuwaiti delegation also included Kuwaiti Ambassador to Japan Abdulrahman Al-Otaibi, and other senior officials from Kuwait's ministries.

The Kuwaiti-Japanese Businessmen's Committee, first launched in 1995, was organized by the Japanese Cooperation Center for the Middle East (JCCME) with the objectives of encouraging and promoting feasible and viable projects and joint ventures available in both countries.

The annual meeting is seen as the most important framework to strengthen partnership between the government officials and businesspeople of the two countries.

Established in 1973 under the sponsorship of the Japanese government, the JCCME has long played a bridging role between Japan and the countries in the Middle East and the North Africa region on the private-sector level by providing cooperation in the fields of trade, investment, economy and technology.