2024.12.26

JANE Middle East Business Tour: A Grand National Vision and Ecosystem Driving Growth Attracts People, Knowledge, and Money

From November 17 to 20, 2024, the Japan Association of New Economy (JANE) embarked on an exciting journey to the Kingdom of Saudi Arabia and the Emirates of Dubai and Abu Dhabi in the United Arab Emirates (UAE).

This was JANE’s first-ever business tour to these dynamic regions. The purpose of the visit was to visit both countries, which are aiming to diversify their industries away from dependence on the oil industry and are attracting attention in terms of utilization and investment in AI and crypto assets, and to directly experience their foresight in order to gain suggestions for new business development.

The aim was also to form a network for member companies to advance into both countries and explore potential new business partnerships.

The delegation included JANE’s Representative Director Mr. Mickey Mikitani (Rakuten Group Inc.), Directors Mr. Noriyuki Matsuda (SOURCENEXT Corporation) and Mr. Takashi Inoue (LIFULL Co., Ltd.), and Executive Officers Mr. Susumu Iwata(YRGLM Inc.) and Mr. Koki Uchiyama(Hotto Link Inc.), along with 11 executives from member companies. Over four days, we visited four cities in two countries, meeting with around 30 officials and executives at 17 sites, such as government agencies, special economic zones, and stock exchanges. The insights gained were invaluable for Japanese companies planning their next moves. Here’s a detail of our visits: 

Additional Visits: Diriyah (Saudi Arabia), Louvre Abu Dhabi(UAE) and Desert Safari (UAE)

 

In Saudi Arabia and Abu Dhabi in the UAE, efforts are in full swing to reduce reliance on oil revenues by attracting startups and companies from around the globe. Dubai in the UAE, lacking oil resources, has been ahead of the curve, aggressively attracting foreign companies and skilled workers, leading to rapid growth in new industries like finance, insurance, and tourism, alongside its traditional logistics sector. This success has inspired Saudi Arabia and Abu Dhabi to kickstart their own innovative projects, fostering a healthy competitive spirit that drives regional growth.
We have seen these dynamics during the visit, and it inspired us a lot.
A post-visit survey of participants rated the overall experience at an impressive 4.5 out of 5, indicating a highly fulfilling inspection. (Clickhereto see the feedback given by the participants)
Meeting highlights are below.

 

Saudi Arabia

◆The Ministry of Investment for Saudi Arabia (MISA) Roundtable: Opinions exchange with the Assistant Minister of Investment
[Overview] Aiming to reduce dependence on oil and becoming a more entrepreneur-friendly nation, Saudi Arabia is focusing on attracting more foreign investment. To make it easier for entrepreneurs and investors to establish themselves in Saudi Arabia, they are promoting initiatives such as online business visas, the development of special economic zones and incubation facilities.

 

 

 

 

 

 

◆Discussion with the CEO of NEOM Investment Fund
[Overview] NEOM, a core project of Vision 2030, is strengthening its funding capabilities and prioritizing the preparation of feasible projects. NEOM is creating an environment to attract entrepreneurs and skilled talents by fostering the adoption of innovative technologies under its unique regulatory conditions.

◆Qiddiya Site Visit and Discussion with the CTO of Qiddiya Investment Company
[Overview] Part of Vision 2030, Qiddiya is a giga-project to build a city of entertainment and sports. Under the strong leadership of H.R.H. Crown Prince Mohammed bin Salman and an anime enthusiast, the design and construction are progressing. The delegation toured the massive entertainment facility being built from scratch in the desert, raising numerous questions to the Saudi side.

 

UAE

◆Roundtable with the Minister of State for Artificial Intelligence, Digital Economy and Remote Work
[Overview] With a globally low tax rate and diverse visa options, the UAE attracts investors and high-net-worth individuals from around the world. The market capitalization of the Dubai Financial Market is rising, with a series of large initial public offerings (IPOs). Talented individuals from around the world gather, promoting coexistence and tolerance among diverse culture. The UAE’s political stability under an absolute monarchy also contributes to economic development.

 

◆Presentation by Mubadala Investment Company
[Overview] Established in 2017, Mubadala is a government-owned investment company fully funded by the Abu Dhabi government. It aims to secure sustainable revenue sources by investing in industries other than oil and gas. To date, it has invested in over 50 countries worldwide and plans to accelerate investments in Asia.

 

◆Presentation by Abu Dhabi Investment Office (ADIO)
[Overview] As the central agency of the Abu Dhabi government for attracting global investors, ADIO contributes to the growth of the private sector and economic diversification. It promotes Abu Dhabi’s safety and business-friendly environment globally, serving as a hub for companies, government agencies, investors, startup hubs, R&D institutions, and special economic zones, driving the growth of the “Falcon Economy*”
*The term inspired by their national bird, the falcon, symbolizing the rapid growth of the UAE economy.

 

◆Presentation by Abu Dhabi Global Market (ADGM)
[Overview] ADGM is the Economic Free Zone positioned as an “Abu Dhabi’s International Financial Center” by the UAE. Over 2,000 companies, including more than 100 fund management firms, are based in ADGM, which operates under English common law, creating a friendly environment for financial entrepreneurs.

 

◆Presentation and Facility Tour of Hub71
[Overview] Established in 2019 within ADGM with strong support from the sovereign fund Mubadala, Hub71 is a startup acceleration facility that serves as a hub for startups, entrepreneurs, and investors. It supports network expansion among startups and investors and facilitates global expansion.

 

◆Discussion with MGX Leadership
[Overview] MGX is a new company established through a partnership between Mubadala Investment Company and AI company G42. It aims to make the UAE a global champion in AI by investing in the entire AI ecosystem.

 

◆Discussion and Facility Tour with the CEO of Dubai Multi Commodities Centre (DMCC)
[Overview] Established in 2002, DMCC is one of the world’s leading Economic Free Trade Zones, enabling diverse commodity trading. It hosts around 25,000 companies specializing in gems, precious metals, coffee, and energy-related products, with about 100,000 people from over 190 countries working and living there. Building on this success, DMCC launched the DMCC Crypto Centre, creating an ecosystem centered on cryptocurrency and blockchain, with over 600 companies already gathered.

 

◆Presentation and Discussion with the CEO and the Managing Director of the Virtual Assets Regulatory Authority (VARA)
[Overview] Established in 2022, VARA is the world’s first regulatory authority specializing in the virtual asset industry. It leads industry discussions and provides education and support while regulating virtual currency activities in all zones of Dubai, except the Dubai International Financial Centre (DIFC).

 

◆Presentation and Discussion with the CEO of Dubai Financial Market (DFM)
[Overview] DFM is one of the key stock markets in the Middle East and Africa, with half of its investors being foreign. The DFM General Index (DFMGI) is expected to rise by 60% year-on-year by the end of 2024, reflecting a vibrant market. DFM has been providing comprehensive support to executives aiming for IPOs sometimes starting several years in advance.


Through high-energy presentations by Ministers and CEOs over the four-day tour, the delegation gained a comprehensive understanding of the strategies to move beyond oil dependency in Saudi Arabia and the UAE. We were inspired by the grand vision of attracting people and companies from around the world and the various projects being developed under the great visions. As a result, over 90% of the delegation members are considering expanding into the region (including those already established). 
On the final day, the delegation visited the desert outskirts of Dubai for a dinner gathering, further deepening their bonds while reflecting on the inspection.
 
JANE plans to leverage the insights gained from this opportunity in its future activities, including policy proposals.
 

Reference (1) Participants Comments

– “It was incredibly insightful to see environments that attract people globally and witness the results. The welcoming atmosphere for visitors like us and the high energy when discussing their country’s appeal were very impressive. It was also notable that the enthusiasm wasn’t just from locals but also from people who had come from abroad.”
– “Both Saudi Arabia and the UAE are driven by the momentum of being run under an absolute monarchy or a similar system. This resembles the characteristics of a company led by a founding CEO, where the vision drives the country or company in a unified direction. This experience will be valuable for our company’s future operations.”
– “The meticulous planning, top-notch hospitality, and comprehensive pre-visit materials made this the best business tour.”
– “This is something I could only experience by being a member of JANE.”
– “Unlike other participants, I am not a founder, which made me feel a bit out of place initially. However, participating and sharing meals and accommodations with everyone provided invaluable learning opportunities regarding their thought processes and actions.”

Reference (2) The tour’s announcement (*Japanese page)

Reference (3) Summary of the pre-Study Session for the tour (Online Seminar)(*Japanese page)

Proposals/News