Saudi Arabia looks to Japan to hedge exposure to China
Expanding economic ties with Japan is a focus of Saudi Arabia’s economic diversification plan as it looks to venture into new industries, including auto manufacturing and gaming.
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DUBAI — Saudi Arabia postponed Crown Prince Mohammed bin Salman’s official visit to Japan this week amid concerns about the health of aging King Salman Bin Abdulaziz, who is currently undergoing medical treatment. The crown prince was to meet Prime Minister Fumio Kishida and Emperor Naruhito, but a Saudi delegation traveled to Japan without the country's de facto leader.
Kishida visited Jeddah in July 2023 as Asia’s second-biggest economy looks to secure and expand trade ties with its top oil supplier.
The robust Saudi-Japan relationship has largely been rooted in the energy sector. Japan is the third-largest market in the world for Saudi Arabian exports, after China and India. The import of Saudi crude oil is vital for the Japanese economy, accounting in December 2023 for 44% of the country's total oil requirements.
