Two days ago, the second joint ministerial meeting of the strategic dialogue between the Gulf Cooperation Council (GCC) and Japan was held in Kuwait. This meeting provided an important opportunity to explore ways to activate joint cooperation across various fields, building on positive developments achieved in the past period, including the signing of the Memorandum of Understanding for Cooperation and Strategic Dialogue in 2012, and the launch of the 2024-2028 joint action plan during the first dialogue conference held in Riyadh in 2023. This plan laid out a roadmap to enhance cooperation in vital areas such as traditional and renewable energy, technological innovation, environmental protection, education, health, cybersecurity, trade, and investment, in addition to starting negotiations for a free trade agreement, with two rounds held until July 2025.

As a result, relations between the two sides have witnessed significant momentum over the past two years since the launch of the strategic dialogue. Indicators include statements by the GCC Secretary-General, Jassim Al-Budaiwi, during the recent meeting, noting that the trade volume for 2024 rose to $115 billion, and Japanese investments in the GCC countries exceeded $15 billion. Memoranda were also signed with major Japanese companies to develop green hydrogen and blue ammonia projects, alongside notable growth in education, health, and academic exchange programs, and active GCC participation in Expo Osaka 2025.

Despite this progress, there is a mutual desire to advance further cooperation to serve the interests of both parties. For Japan, although it ranks as the world’s fourth-largest economy with a GDP of $4.2 trillion in 2023, its economy has been noticeably slowing for years, with an average annual real growth rate from 2000 to 2022 not exceeding 0.7%. This has contributed to Japan’s economic ranking slipping from second to fourth globally, with indications it may fall further behind India’s economy. Consequently, Japan is seeking partners with strong economies like those in the Gulf to move towards restoring its developmental miracle.

Conversely, the GCC countries are keen to strengthen their global partnerships, especially economic ones, with Japan being an important global economic power and partner. There are many areas where Gulf economies can benefit from Japan, including logistics and supply chains, as well as cooperation in developing smart infrastructure, enhancing the region’s position as a global trade hub.

There are also many future opportunities to serve the interests of both sides, including enhancing cooperation in digital economy investment, artificial intelligence, and clean energy.

The Gulf-Japan relationship is also characterized by significant alignment in political stances and visions regarding developments in the Middle East and the world, creating a foundation of shared political and security interests that serve both parties’ concerns. In summary, there is a great opportunity to push Gulf-Japan relations towards broader horizons of partnership and cooperation, especially given the available political will and multiple areas for future collaboration, which serves the Gulf’s interest in diversifying and strengthening its international partnerships.