Tokyo, May 5, 2025 — Abu Dhabi is expanding its economic footprint in Japan with a focus on clean energy, hydrogen, artificial intelligence, space technology, and life sciences as part of a four-day official visit to Tokyo this week. The high-level delegation, which includes top officials and business leaders from the emirate, is in the Japanese capital for the inaugural Abu Dhabi Investment Forum (May 6–9), signaling a new chapter in UAE-Japan bilateral cooperation.
“Japan has been a trusted partner of Abu Dhabi and the UAE for over six decades,” said Ahmed Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development. “Our trade with Japan has seen robust growth, with a compound annual growth rate (CAGR) of 11.9% over the past five years. During the same period, the UAE’s non-oil exports to Japan grew at a CAGR of 8.8%.”
He added that UAE investments in Japan have more than doubled in five years, and the Emirates currently attract over 80% of Japanese investment in the Middle East. In 2024, total trade volume between the two nations reached approximately $49.6 billion, including $17.5 billion in non-oil trade — a 1.2% year-on-year increase.
Abu Dhabi’s delegation includes representatives from the Department of Culture and Tourism, Abu Dhabi Securities Exchange, Abu Dhabi Global Market, Abu Dhabi Investment Office, and other key entities such as Adnoc, Hub71, KEZAD, and Abu Dhabi Airports. They are set to participate in key events including Expo 2025 Osaka, SusHi Tech Tokyo, and the 11th Abu Dhabi–Japan Economic Council meeting.
Shihab Ahmed Alfaheem, the UAE Ambassador to Japan, noted, “Japan’s strengths in digital transformation, sustainable mobility, and industrial automation align with Abu Dhabi’s strategic sectors and our shared vision of a knowledge-based, net-zero future.”
Deepening Collaboration in High-Tech Sectors
Experts believe that AI and space technology will be the primary beneficiaries of this enhanced partnership. “Japan sees immense potential in collaborating with the UAE on AI and advanced technologies,” said Shigeto Kondo, a senior researcher at Japan’s Institute of Energy Economics. The two countries are already working together on satellite launches and are poised to expand that cooperation further.
The healthcare sector also presents promising opportunities, with Japan’s advanced medical technology and equipment manufacturing capabilities complementing the UAE’s growing demand for healthcare innovation.
Meanwhile, energy cooperation remains strong. In 2023, Adnoc partnered with Japan’s Mitsubishi Heavy Industries to explore opportunities in the green hydrogen and ammonia value chains. Also last year, Masdar, Mitsubishi Chemical Group, and Japan’s Inpex announced a joint venture to develop the world’s first commercial-scale polypropylene produced using green hydrogen and carbon dioxide — in Abu Dhabi.
Toward a Comprehensive Economic Partnership
The two countries are currently negotiating a Comprehensive Economic Partnership Agreement (CEPA), with the aim to finalize it by year-end. Experts say such an agreement would be a “major catalyst” for deeper collaboration in innovation-led industries.
“CEPA with Japan could unlock targeted opportunities in AI, clean energy, and advanced manufacturing,” said Borko Handjiski, a partner at global consultancy Oliver Wyman. He added that both nations’ commitment to achieving net-zero emissions by 2050 creates fertile ground for joint efforts in hydrogen, solar, nuclear, and carbon capture technologies.
A Strategic Alternative Amid Global Tensions
Analysts also point to shifting global trade dynamics as an opportunity for the UAE. With ongoing tensions between the U.S. and China, Japanese firms may look to the UAE as a reliable alternative for production and logistics hubs, particularly in clean tech and advanced manufacturing — sectors where the Emirates already possess competitive advantages.
As Abu Dhabi continues to push forward its diversification agenda, this visit and the accompanying investment forums mark a significant step in aligning with Japan’s technological strengths and expanding its global economic partnerships.
