Report on UAE-Japan relations issued by ADDED

ABU DHABI, 16th May, 2016 (WAM) -- The Abu Dhabi Department of Economic Development, ADDED, has issued a report on the economic ties between the UAE and Japan on the side-lines of the 4th session of Abu Dhabi-Japan Economic Council, which is being held at the Ritz Carlton Hotel, Abu Dhabi, jointly chaired by Yosuke Takagi, Japanese State Minister of Economy, Trade and Industry, and Ali Majed Al Mansoori, ADDED Chairman. The report shows that overall foreign trade between the UAE and Japan reached AED29.2 billion in the first nine months of 2015, and UAE imports from Japan accounted for about AED27 billion, non-oil exports accounted for AED1.7 billion and re-export accounted for AED492 million. The report indicates that the overall foreign trade between the two countries has increased from about AED36.6 billion in 2012 to about AED40 billion in 2014, with a growth rate of 12%. Non-oil exports from the UAE to Japan have grown from AED904 million in 2012 to AED1.7 billion in the first 9 months of 2015, a growth rate of 90%. The report adds that UAE imports from Japan have dropped from approximately AED35 billion in 2012 to AED27 billion during the first 9 months of 2015, or 24% of its 2012 level. The size of foreign trade between the two countries, it says, is in favour of Japan as the UAE has contributed just to 8% of the total foreign trade in the first 9 months of 2015 while Japan contributed to 92% of the foreign trade between the two countries. According to the report, the size of trade between the Emirate of Abu Dhabi and Japan in the first seven months of 2015 reached AED5.1 billion, while the overall foreign trade between the two sides from 2010 to 2014 has seen a growth rate of 10%. Abu Dhabi imports from Japan accounted for the biggest part of foreign trade between the two sides, with a value of AED5 billion in the first 7 months of 2015 while Abu Dhabi’s exports to Japan in the same period were about AED45.5 million. The report covered the agreements and Memoranda of Understanding signed between the UAE and Japan, especially the agreement between Abu Dhabi Gas Liquefaction Company (ADGAS) and Tokyo Electrical Power Company (TEPCO) in 1973 to provide TEPCO with LNG and LPG, and the renewal in 1990 of that same agreement for 25 years as from 1994. It also highlighted the economic agreement between the two countries whereby the UAE provides Japan with its crude oil needs against a US$3 billion loan to Abu Dhabi National Oil Company (ADNOC) from a group of Japanese banks under the sponsorship of the Japan Bank for International Cooperation. The report says that in October 2012, the UAE, represented by the Ministry of Finance, signed an initial agreement to avoid double income taxation with Japan at the Headquarters of the Ministry of Finance in Tokyo. In February 2013, Abu Dhabi Education Council and Japan International Cooperation Council signed an MoU to tighten ties between them in the field of academic programmes. The MoU was signed on the side-lines of the meeting of Abu Dhabi-Japan Economic Council, organised by ADDED to promote cooperation between the two countries in some vital sectors like education, health, industry, investment and oil and gas. In February 2013, several departments and entities of Abu Dhabi government signed 10 agreements of joint cooperation with the government of Japan in the areas of economy, investment, infrastructure and community services during the meetings of Abu Dhabi-Japan Economic Council. The agreements aimed to promote the role of three joint work groups that work under the Council’s umbrella in the fields of energy, industry, infrastructure, education and human resources development. A joint cooperation agreement was also signed between ADDED and the Tokyo Research Centre for Advanced Science and Technology. The agreement is aimed at promoting better cooperation in the field of advanced science and technology, encouraging scientific research and applications and use it for the common goals of both countries. MoU’s were also signed in the field of energy between ADNOC and Japan Bank for International Cooperation and between ADNOC and Japan International Cooperation Centre in the field of oil and gas, minerals and investment. The Higher Corporation for Specialised Economic Zones also signed an MoU with Japan Cooperation Centre for the Middle East. In the area of HR development, a number of MoU’s were signed between the UAE University and Tokyo University and between Abu Dhabi Education Council (ADEC) and Japan International Cooperation Centre, and between the Tokyo Research Centere for Advanced Science and Technology (RCAST) and the Research and Training Centre and Japan Energy Institute. In May 2013, ADEC signed a number of MoU’s with Abu Dhabi Oil Co. Ltd. (Japan), Cosmo Oil Company Ltd., Ritsumeikan Group and Japan International Cooperation Centre to promote educational partnerships between the UAE and Japan, and offer UAE students the best global educational choices. In February 2014, Masdar signed a framework agreement with a Japanese bank to expedite the spread of energy technologies and another framework agreement with Japan Bank for International Cooperation to explore the best opportunities to finance and construct renewable energy projects for service facilities across the world and to invest in clean energy technologies and investment funds. In February 2014, the air services agreement between the UAE and Japan was amended and a Cooperation Memorandum was signed on developing the work of the two countries’ Joint Cooperation Committee. Another Memorandum was signed between Japan’s Foreign Ministry and the UAE Ministry of International Cooperation and Development to enhance cooperation on international development initiatives and humanitarian assistance in areas of common interests. The UAE Ministry of Energy has also signed a Cooperation Memorandum with the Japanese Ministry of Economy, Trade and Industry on cooperation in the peaceful uses of nuclear energy in the UAE. The Khalifa Fund for Enterprise Development also signed an extension and amendment agreement with the Japanese Organisation For Small and Medium Enterprises and Regional Innovation. – Emirates News Agency, WAM – http://www.wam.ae/en/news/economics/1395295480426.html