Japan-Arab policy dialogue may improve water business+

TOKYO, Dec. 7 Kyodo - Japan and a group of Arab economies agreed Monday to strengthen their ties to improve water conditions in the region through various channels, including a proposed intergovernmental policy dialogue that could help Japanese firms to
find new business opportunities.

Entering the water development industry is a crucial issue for the Japanese
government, which is seeking to place Japanese companies in a position to
compete with rival European ''water majors'' that develop, construct and manage
water utility systems in developing economies.
''Arab nations face a chronic problem of water shortages. We will hold
intergovernmental dialogues to accelerate and smooth efforts'' to solve the
problem, Japanese Economy, Trade and Industry Minister Masayuki Naoshima told
reporters without elaborating after the ministerial session of the first
Japan-Arab Economic Forum held in Tokyo.
Japan has strived to improve water conditions in Arab countries through
''integrated water resource management'' in fields such as desalination and
waste water treatment.
Japan and the 22-member League of Arab States, including Saudi Arabia, Egypt
and the United Arab Emirates, expressed their desire to ''further strengthen
ties through various events and programs on a governmental and business basis,
including 'Water Policy Dialogue,''' according to the chair's summary adopted
at the end of the ministerial talks.
Amr Moussa, the Egyptian secretary general of the Arab League, hailed the
initiative, saying at a joint press conference, ''Japan is a leading country in
the technological field. That's why we hope the two (sides) have a kind of
exchange of technologies.''
The two-day forum is aimed at building connections between key private-sector
players in Japan and Arab countries by removing obstacles due to differences in
business practices.
The Arab League delegation includes over 200 business leaders from the Middle
East and Africa, who will meet individually or in groups with their Japanese
counterparts from bodies such as the Japan Business Federation, or Nippon
Keidanren, through Tuesday.
The forum reflects Tokyo's increasing concern that despite its competitiveness
in developing environmentally friendly technologies, Japan is falling behind
China and European countries in tapping into fast-growing Arab states, which
have a total population of 350 million and abundant natural resources.
However, Arab countries are facing a range of problems including fast-growing
populations, insufficient water resources and sharply rising demand for
electricity.
During the meeting, Naoshima pledged further cooperation by Japan in addressing
such challenges while expressing hope that Arab countries will use Japan-made
solar-electricity panels and water-desalination systems.
Japan and the Arab League also agreed to cooperate in the fields of education,
human resources development and support for small and medium-sized companies,
the chair's summary said.
As for energy and environmental conservation, Japan and the Arab states said
they will support private-sector cooperation to promote the use of solar power
generation, which emits less carbon dioxide than burning fossil fuels and is
seen as much safer than atomic power.
They also agreed that a ''successful outcome should be achieved'' at a key U.N.
climate change conference starting Monday in Copenhagen.
''We are looking to develop this Japan-Arab economic forum to include all
aspects of international cooperation at a time when we are facing the new
challenges imposed by globalization and the global financial crisis as well as
climate change,'' Moussa said earlier in the day.
Japan is the Arab countries' third-biggest trading partner after the European
Union and the United States. The trade volume between the two sides expanded to
$184 billion in 2008 from $48 billion in 2003, while Japanese investment in
Arab states stood at about $3.1 billion in 2007, compared with around $1
billion in 2004.
The Arab economies, some of which were once seen as aggressive investors in
Western economies through their sovereign wealth funds, ''have shifted their
focus to how to attract investment from advanced and major developing economies
like Japan and China after being damaged by the global economic crisis,'' a
senior Japanese official said.
''I think this forum is considered a new breakthrough. There is more room for
cooperation'' between Japan and Arab states, said Mohamed Jouini, development
and international cooperation minister of Tunisia, which is offering to host
next year's forum.
==Kyodo