The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on December 25 a memorandum of understanding (MOU) with the Ministry of Finance and the National Debt Management Center (NDMC) of the Kingdom of Saudi Arabia (Saudi Arabia) to strengthen a partnership between the parties, taking the opportunity of the Saudi - Japan Investment Forum held in the presence of His Excellency Mr. SAITO Ken, the Minister of Economy, Trade and Industry of Japan in Riyadh, Saudi Arabia.
NDMC is a governmental entity that involved in the making of policies related to the public debt of the Government of Saudi Arabia and raising funds necessary for projects implemented by Saudi Arabia. The purpose of the MOU is to strengthen relationships for project developments, and it mainly aims to support projects implemented by the Government of Saudi Arabia that contribute toward environmental, social, and economic sustainability and projects involving Japanese companies.
At the G20 summit in 2020 hosted by Saudi Arabia, the Government of Saudi Arabia launched the concept of the Circular Carbon Economy, and in October 2021, it announced that it aims to realize carbon neutrality by 2060, following the United Arab Emirates, which is the first country in the Persian Gulf to announce such an aspiration. In addition, it aims to increase the proportion of renewable energy in the country's energy mix to 50% by 2030 under Vision 2030, the national transformation plan announced in 2016. These goals demonstrate the commitment of Saudi Arabia to reducing the country's dependence on oil sales, diversifying the economy, and transitioning to renewable energy.
In Saudi Arabia, in line with Vision 2030, it is expected that Japanese companies will participate in projects implemented by the Government of Saudi Arabia to contribute toward environmental preservation. The MOU is expected to contribute toward the creation of business opportunities for Japanese companies in Saudi Arabia and global environmental preservation by strengthening relationships with NDMC.
As Japan's policy-based financial institution, JBIC will continue to provide financial support to create business opportunities and promote business for Japanese companies in a variety of sectors and will work closely with foreign governments and governmental agencies to address global climate change and resolve social issues.
