Abu Dhabi is all set to broaden its relationship with Japan in some key areas including clean energy, hydrogen, artificial intelligence (AI), life science, and advanced manufacturing. This big decision was announced by high-profile delegation from Abu Dhabi, arrived in Tokyo for the inaugural of Abu Dhabi Investment Forum, marking the significant step in the strengthening of bilateral trade and investment ties between the two UAE and Japan.
The top executives and officials from the Emirate will engage with the Japanese counterparts, effectively from May 6 to May 9. Mainly focusing on expanding cooperation across multiple sectors that are important to future economic growth. This four-day visit will highlight the strategic vital of Abu Dhabi’s relationship with Japan, which is currently growing steadily over the past six decades.
The Partnership of Strengthening Economic and Trade
UAE has been a strong economic partnership with Japan, which has become a leading trading partner in the Gulf region. In 2024, the total trade between the two countries. These include oil products crossed over $49.6 billion, where other oil trade is upto $17.5 billion, marking the profit 1.2% rise from the past year.
Ahmed Al Zaabi, Chairman of the Abu Dhabi Department of economic development, quoted that the steady growth of bilateral trade has increased at a compound annual growth rate (CAGR) of 11.9% over the past five years.
“The UAE has been a key destination for Japanese investments, attracting over 80% of Japan’s investments in the Middle East,” Al Zaabi said. The relationship is poised to grow even further, with both nations keen to deepen cooperation in emerging sectors such as AI, clean energy, hydrogen, and space technology.
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Innovative Sectors in Focus
Abu Dhabi’s delegation in Tokyo is focusing on a wide range of sectors poised for expansion. The delegation includes officials from the Department of Culture and Tourism, Abu Dhabi Securities Exchange, Abu Dhabi Global Market, and the Abu Dhabi Investment Office. They will attend key events, including Expo 2025 Osaka and the Abu Dhabi-Tokyo Business Forum, which aims to attract more Japanese investments into Abu Dhabi.
A key focus of the visit is the development of AI and advanced technology, sectors in which Japan is highly advanced and the UAE is keen to invest in. Shihab Ahmed Alfaheem, the UAE Ambassador to Japan, highlighted the shared vision of both nations: “Japan’s expertise in digital transformation, technology, and industrial automation complements Abu Dhabi’s strategic sectors and our mutual goals for a sustainable, net-zero future.”
Space Technology and Healthcare
In addition to AI and clean energy, the two countries are exploring enhanced cooperation in space technology and healthcare. Japan has already played a vital role in supporting the UAE’s space missions, including the launch of UAE satellites. Shigeto Kondo, Senior Researcher at the Institute of Energy Economics in Japan, noted that space technology could be a cornerstone of further collaboration between the two nations.
Furthermore, Japan’s cutting-edge advancements in healthcare technology, particularly in the production of medical equipment, present significant opportunities for joint initiatives. The UAE’s growing healthcare sector is poised to benefit from Japan’s expertise, making healthcare one of the most promising areas for future collaboration.
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A Shared Commitment to Sustainability
Both nations have made significant strides in their commitment to achieving net-zero emissions by 2050. Clean energy remains a core area of collaboration. Notable partnerships include a 2023 agreement between Adnoc and Mitsubishi Heavy Industries to explore green hydrogen and ammonia value chains. In the same year, Masdar, a UAE clean energy company, teamed up with Mitsubishi Chemical Group and Japan’s Inpex to explore the production of polypropylene made from carbon dioxide and green hydrogen in Abu Dhabi.
Future of Trade: CEPA and Beyond
A key aspect of the visit is the ongoing negotiation of a Comprehensive Economic Partnership Agreement (CEPA) between the UAE and Japan. Borko Handjiski, partner at Oliver Wyman, explained that a CEPA would serve as a catalyst for deeper economic ties, particularly in sectors like AI, clean energy, and innovation. The agreement is expected to be finalized by the end of 2025 and is seen as a pivotal step in unlocking new opportunities for both countries.
Handjiski further noted that the growing trade tensions between the US and China could drive Japanese businesses to seek new production hubs, with the UAE emerging as a natural alternative given its strong competitive edge in logistics, advanced manufacturing, and clean technology.
In The End
As the UAE looks to diversify its economy and strengthen global partnerships, its relationship with Japan is set to be a cornerstone of this effort. With ongoing efforts to deepen cooperation in AI, clean energy, healthcare, and beyond, the UAE and Japan are positioning themselves as key global players in the technological and sustainable economy.
The upcoming CEPA is combined with increased trade and investment in innovative sectors, ensures that the economic ties between Abu Dhabi and Japan will continue to thrive in the coming years, benefiting both nations as they work toward a shared future of technological innovation and sustainability.
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