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Significance

Saudi Arabia, the United Arab Emirates (UAE) and Qatar are major suppliers of oil and gas, and Japan needs to secure its future energy supplies, but Tokyo would like strategic partnerships that cover much more than energy. It can help the three countries diversify their economies.

Impacts

The focus in non-energy sectors will open up new markets in the Gulf for Japanese industry.

Conclusion of a free trade agreement between Japan and the Gulf Cooperation Council is expected at some point.

Japan will try to attract investment from the region into its strategic industries, including semiconductors and batteries.

Trade and investment rivalry between Tokyo and Beijing in the Middle East, especially in the Gulf region, will intensify.

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