Lectures at Japan Cooperation Forum for the Middle East in Vienna and Safety Measures Seminar

August 2017

JETRO participated in the “42nd Japan Cooperation Forum for the Middle East" in Vienna, Austria, from August 26 to 27, organized by the Japan Cooperation Center for the Middle East (JCCME), where JETRO President Yasushi Akahoshi spoke under the theme of "China's One Belt One Road (OBOR) Initiative and its Main Projects."

On the following day, a seminar on safety measures titled "A Discussion on Trends and Business Risks in the Middle East and North Africa (MENA) with Experts" was held by JETRO and joined by more than 80 Japanese business people.

The 42nd Japan Cooperation Forum for the Middle East, which is held overseas by JCCME on a yearly basis, has been joined by numerous Japanese business people active in the MENA region, and features presentations on the latest regional information. This year, a session titled "The Competitive International Environment and Japan's Response in Accordance with China's OBOR Initiative" was set up from the perspective of how the Middle East and Japan would likely be mobilized by internal and external factors.

Mr. Akahoshi made a presentation under the theme of “China’s OBOR Initiative and its Main Projects.” He explained that the OBOR concept was first brought up in 2013 and that its name has since taken root. OBOR is an initiative closely linked to China’s existing foreign policies and flows of outward direct investment, but incorporates new tools such as infrastructure development and financing. Mr. Akahoshi continued that OBOR has been planned through various cooperative fields along with the three-pronged land-based Silk Road Economic Belt and the two-pronged seagoing 21st Century Maritime Silk Road, as well as six economic corridors. He gave an explanation on the major projects in each economic corridor. According to his interpretation, all of these concepts together suggest three overarching agendas: the promotion of China’s maritime policy (including port operation), stable procurement of resources and the creation of a China-led economic zone. While the area under development is still growing larger, it seems China has to cope with a discrepancy of expectations between it and other countries along trade lines.

Following the presentation session, Mr. Akahoshi and the other five presenters engaged in a discussion on the impact of the OBOR Initiative on Japanese companies and the Middle East, giving the audience a chance to deepen their understanding on the topic.

Mr. Hatanaka presented a broad range of topics across the MENA region, such as the recent terror attack in Spain involving Moroccan extremists. Regarding the diplomatic crisis between Qatar on one side and countries including Saudi Arabia and the United Arab Emirates on the other, he predicted that it would not likely end soon as both sides remain focused on saving face*. He also explained that the risk of terror attacks by the Islamic State of Iraq and Syria (ISIS) are increasing in other regions such as Europe and Southeast Asia while it faces defeat in Iraq, and spoke on the increased consolidation of power in Saudi Arabia and Turkey. (*Analysis as of August 28)

Mr. Nakamura elaborated on the political, economic and security climate in Iran, starting with the re-election of moderate President Rouhani in May 2017 who is pushing an open-door economic policy and the new younger cabinet he has formed. He spoke about the shock of the Iranian people in learning that Iranians were involved in the terrorist attack by ISIS within their country in June, but emphasized the fact that security has remained stable since then. And finally, he touched on the fact that Iran is back on the track to economic growth following the lifting and relaxation of economic sanctions, with the exception of a few still continued by the US, and its increased trade in FY2016.