DHABI :UAE Ministry of Economy Signs Memorandum of Cooperation with Japan on Smes And Innovation

The UAE Ministry of Economy, MoE, has signed a Memorandum of Cooperation, MoC, with its counterparts from Japan on key aspects concerning innovation and small and medium enterprises, SMEs, to promote joint initiatives, knowledge and technology transfer, the exchange of experiences, and the streamlining of business operations of SMEs located across the UAE.

The initiative is in line with the Ministry’s agenda for enhancing and expanding this important sector so that it can better support the national economy and raise the UAE’s regional and international competitiveness. The Memorandum was signed by Sultan bin Saeed Al Mansouri, UAE Minister of Economy, and Japanese Minister of Economy, Trade and Industry, Hiroshige Seko.

The UAE delegates who witnessed the signing ceremony included Abdullah bin Ahmed Al Saleh, Under-Secretary of the Ministry of Economy for Foreign Trade and Industry, Juma Mohammed Al Kait, UAE Assistant Under-Secretary for Foreign Trade, Abdulla Sultan Alfan Alshamsi, Assistant Under-Secretary for Industrial Affairs, and a number of senior ministry officials. The Japanese delegation comprised Kanji Fujiki, Ambassador of Japan to the UAE, and a number of Japanese economic officials and diplomats.

A Memorandum of Cooperation between the RAK Investment Authority, RAKIA, and Takenaka Middle East was also signed on the sidelines of the event and involves a joint venture project in Ras al-Khaimah for setting up a manufacturing plant for anti-rust material which uses the highest standards in precision technology.

Yasser Abdullah Al-Ahmad, Head of Government and Institutional Relations for RAKIA, signed the Memorandum.

Minister Al Mansouri said that the economic relations between the UAE and the Republic of Japan serves as an important model of joint cooperation characterised by a clear vision and pioneering development plans, aimed at realising the aspirations of the two countries.

He noted that SMEs form an important sector with the potential to significantly increase cooperation as a vital element of the business and economic agendas of both countries.

The Minister said that it is in the common interest of both governments to strengthen ties in continuously developing their economic relations to ensure a fruitful partnership that serves their economic policies and opens a wider range of opportunities and possibilities based on common aspirations particularly in innovation and SMEs, which has become the focus of building strategic partnerships for the UAE.

He added that the SME sector currently accounts for more than 60 percent of the UAE’s GDP and that the country is keen to further expand this figure to around 70 percent by 2021 under the National Agenda.

He also referred to innovation as a key driver for the sector, apart from being one of the country’s pillars for sustainable development.

Al Mansouri explained that the close ties between the UAE and Japan are reflected in the continued growth of trade volume between the two countries particularly in recent years.

He said that Japan was the UAE’s 6th largest trading partner in 2015, with their total bilateral non-oil foreign trade at US$14.7 billion.

Non-oil foreign trade during the first half of 2016 stood at around US$7.1 billion.

He went on to say that trade relations with Japan, the fifth largest exporter to the UAE and 19th among importing countries based on 2015 data, have strong potential for higher growth in the coming years in light of both countries’ efforts to strengthen their level of cooperation in several areas of mutual interest. He expressed confidence in a broader range of goods and services through bilateral trade agreements.

He revealed that the UAE is highly interested in capitalising on Japan’s leading position in advanced industries and its unique experiences in developing sectors related to innovation and scientific research.

He said that the country looks forward to reinforcing ties in these areas, underscoring the importance of knowledge transfer and the exchange of expertise within the National Agenda and the National Innovation Strategy.

He added that the MoC with Japan is an important step on this path. The Minister also highlighted the importance of public-private partnerships between the two countries to find new ideas and explore other sectors for joint development, referring to other fields such as renewable energy, infrastructure, construction, transportation, space and high technology, tourism, aviation, financial services, healthcare and education industries, all of which he said are key areas for economic cooperation.

Al Mansouri emphasised the need to establish effective communication channels among the investors and entrepreneurs of both countries.

He particularly underscored the importance of forming business forums for SMEs to benefit from mutual investment opportunities and help entrepreneurs further improve their performance and productivity.

He also called for more visits and official missions to increase the level of bilateral coordination. The Minister also highlighted several factors that have made the UAE a successful economic destination and a center for business and finance, such as the country’s modern economic legislation and procedures for speeding up business transactions, the availability of infrastructure for growth, developed and multidisciplinary free zones and a strategic geographical location.

He pointed out that these features enhance the UAE’s position as a regional and global economic, trade, investment and tourism capital, adding that major projects and SMEs present promising opportunities within the horizon, particularly the partnership with Takenaka Middle East in Ras al-Khaimah.

Minister Seko expressed his country’s great interest in cooperating with the UAE in various economic areas of common interest, pointing out that SMEs and innovation-related fields are important common denominators.

Seko added that 80 percent of Japanese people work in small and medium-sized projects and that Japan is a global leader in this sector, particularly in terms of administrative and organisational implementation, which he says enhances the culture of customer loyalty.

He also emphasised the need to consolidate the efforts of the two countries’ government and private sectors to further promote future mutual investments in line with their respective economic objectives and directives and achieve the common interests of their economies and business communities.

He referred to the Takenaka project as a good example which promises broader investments in various essential areas of the economy.