JBIC Signs MOU on Comprehensive Strategic Partnership with Kingdom of Bahrain Toward Further Building Two-Way and Multilayered Economic Ties with Middle Eastern Countries
International Business Development
NR/2009-13
June 3, 2009
June 3, 2009
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed a memorandum of understanding (MOU) on comprehensive strategic partnership with the Government of the Kingdom of Bahrain on June 2 (Bahrain time). The signing took place between JBIC President and CEO Hiroshi Watanabe, who was on his visit to the country, and Undersecretary Aref Saleh Kamis of the Ministry of Finance of Bahrain.
- Both parties agreed to pursue under the MOU mutual cooperation for strengthening economic relations between Japan and Bahrain. Specifically, consultation meetings will be held on a regular basis to exchange information, which includes Bahrain's new projects for which both countries can cooperate, JBIC's financing policy for supporting them and Bahrain's economic policy. This is the first MOU of its kind JBIC entered into with the Government of Bahrain or its agencies.
- In the pursuit of industrial structure diversification that will facilitate the building of a nation with less reliance on oil resources, Bahrain has been stepping up efforts to promote investment from overseas countries, including Japan. And as a necessary condition for attracting foreign investment, the country is focusing on infrastructure development and other projects that will improve its business environment. Closer dialogue through the exchange of information and opinions between the two parties under this MOU will enable JBIC to promote multi-faceted support for such infrastructure development projects, thereby leading to stronger economic ties between the two countries.
- To date, in addition to providing financial support by drawing on a broad range of items in its financing menu,*2 JBIC has signed MOUs on strategic partnership with a number of governments and government agencies in Middle Eastern countries, *3 with the aim of building two-way and multilayered economic relations with these countries. Middle Eastern countries are strategically important for Japan not only as a supply source for natural resources such as oil and natural gas. However, they also offer many business opportunities to Japanese businesses in the area of infrastructure development and industrial diversification that are being pursued currently in the region, for example, in the power and water infrastructure, petrochemicals and transportation sectors. Through this and other MOUs, JBIC will contribute to the creation of opportunities for Japanese businesses by strengthening its ties with Middle Eastern countries.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 Recent examples are: a buyer's credit to Bahrain Petroleum Company B.S.C. (Bapco) for the export of environment improvement equipment (diesel desulfurization equipment)(a loan agreement signed in February 2005; see News Release dated February 7,2005) and a loan to the Al Hidd Independent Water and Power Producer Project (a loan agreement signed in April 2006; see News Release dated April 5,2006).
- *3 Recent examples are: an MOU for comprehensive strategic partnership respectively with the Government of Oman and Qatar Petroleum in November 2006, an MOU respectively with Abu Dhabi National Oil Company (ADNOC) and the Government of the Emirate of Dubai in May 2007, and an MOU with Qatar Petroleum (for cooperation regarding equity investment in funds for the environmental and other sectors in Asia) in October 2008.
