Gulf business | The Japan Review 2014

The Japan Review MARCH 2014

INSIDE Nikkei on the Rise

Tempting hunting ground for investors

Building Bridges

UAE and Japan trade relations stronger

Japan's Tourism

More enticing for Arab tourists

Land of opportunities The world's third largest economy is growing its Middle East ties A

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Contents Editor-in-Chief Obaid Humaid Al Tayer Group Editor and Managing Partner Ian Fairservice Editorial Director

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Gina Johnson

WELCOME MESSAGE The Consul General of Japan speaks

Senior Assignments Editor Ingrid Valles Po

OVERVIEW

Editorial Assistant Aarti Saundalkar

Japan-UAE bi-lateral trade relations

Senior Designer Rouf Majid General Manager – Motivate Connect

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John Deykin Regional Account Manager Rami Rahman Senior Account Manager

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Bireshwar Mitra Head of Production

INVESTMENT A look into various investment sectors in the UAE

Sunil Kumar Senior Production Manager

TOURISM

C. Sudhakar Assistant Production Manager

Japan becomes more enticing for Arab tourists

R. Murali Krishnan Contributors

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Wayne Fernandez, Gulfpics, Nusrat Ali

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CULTURE Art, Food and Etiquette

CORPORATE COMPANIES Connecting Japanese and UAE companies

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A Motivate Connect Publication Media One Tower, Dubai Media City PO Box 2331, Dubai, UAE T: +971 4 427 3000 F: +971 4 428 2261 motivatepublishing.com connect@motivate.ae

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PROFILES Gateway to the Middle East

Printed by Emirates Printing Press, Dubai

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welcome Message

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the Japan review March 2014

Konnichiwa! I wish all the readers a prosperous new year and warmly welcome you to The Japan Review, a supplement of Gulf Business magazine. Even before the New Year set in, the UAE was blessed with great success and prosperity. On behalf of all the Japanese people, I congratulate the UAE on winning the prestigious Expo 2020 bid.

Each year the UAE has grown in importance as a Japanese trade and tourist destination. Currently, the Emirates are Japan’s second largest petroleum provider. As a nation we are committed to continue being a valued trading partner for this country as well as to enhance our cultural ties. Japanese companies have made noteworthy contribution to the development of the UAE in terms of infrastructure and technology. The Dubai Metro is a gleaming example of how Japanese expertise is contributing in shaping the face of the UAE. It is with great pride we observe that it is not just Japanese automobiles that young Emiratis are enthusiastic about; they value Japanese culture, too. Japanese manga, karaoke and sushi have almost become an integral part of the country's youth culture today. The strong visitor footfall on Japan Day celebrations at Dubai’s Safa Park shows how keen the residents of the UAE are to learn about Japan’s elaborate yet colourful traditions. I also highly commend Emirati Qais Sedki’s manga, Gold Ring – this young man’s effort has made manga the most effective spokesperson for both cultures. Sedki’s comic doesn’t just bring Japanese influences to the Middle East but it also takes the traditions of the Middle East beyond borders.

More and more Japanese tourists are heading to this ultra-modern city, attracted by its iconic architecture, glittering lifestyle and a variety of adventure experiences the city offers. Similarly, Japan too is embracing Middle Eastern tourists with open arms. The recent relaxation in visa policies is sure to encourage Emirati tourists to visit the Land of the Rising Sun and experience first-hand its myriad offerings from gourmet Japanese food (now Halal-certified in many restaurants across the country) and cherry blossoms to skiing and even diving among coral reefs. A Japanese holiday must feature on the list of every savvy holiday-maker.

We are living in dynamic times – a period of rapid change, with spurts of growth as well as dips in the global economy. It is heartening to note that irrespective of all the changes, Japan-UAE relations have remained steady and have prospered too. Trade and investment are being actively encouraged and each year we are seeing a rise in the number of Japanese companies setting up shop in the UAE. In this respect I urge our businesses to work together to offer the best quality of products and services to this economy and the people. Let us preserve high-quality business services and work together to enhance them even further. Let us become good citizens of this society as well as of the global community.

Sincerely,

Matsunaga Daisuke Consul General of Japan in Dubai

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OVERVIEW

JAPAN-UAE Trade relations

Building Bridges With trade, energy and industry dominating business, bilateral relations between the UAE and Japan are stronger than ever

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AE Foreign Minister Shaikh Abdullah Bin Zayed Al Nahyan’s meeting with Japanese Prime Minister Shinzo Abe last April, followed by Abe’s visit to the UAE the following month, highlight that relations between the two countries are robust and ever-improving.

Ties between the UAE and Japan stretch back to even before the UAE was officially formed. Four years before the formation of the country, economic relations were established and three Japanese oil companies entered an international tender by Abu Dhabi for concessions in its oilfields. Japan was also among the first countries to recognise the UAE upon the creation of the federation on December 2,1971.

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the Japan review March 2014

The UAE then inaugurated its embassy in Tokyo in December 1973, while Japan reciprocated in April 1974. Since those early years the UAE has been a major pillar of Japan's economy and both countries are unanimously determined to enhance the long-standing cooperation and economic relations between them.

For the past four decades, roughly 40 per cent of all oil produced in the UAE has been exported to Japan. In 2012, in a further boost to Japanese–UAE relations, flights between Abu Dhabi and Dubai to Tokyo's Narita airport doubled to 14 a week, and an Abu Dhabi-Haneda route was opened. In terms of international security, the UAE and Japan have been partners in their call for nuclear disarmament and non-

proliferation. In 2011, the pair agreed to continue to cooperate on the issues during the second foreign ministers' meeting on nuclear disarmament and non-proliferation in Berlin. 2012 also saw the Ministry of Interior Undersecretary, Lt Gen Saif Abdullah Al Shafar, and the Deputy Director General of the Japanese national anti-narcotics agency establish ties between the two countries' interior ministries in the areas of security and anti–drugs. It is also noteworthy that today, more than 3,500 Japanese reside in the Emirates according to Japanese Embassy figures.

KEY TRADE PARTNER Trade exchange between the UAE and Japan rose to Dh194.5 billion ($52.9 billion) in 2012, up by 6 per cent, compared to Dh184.1 billion US$50.16 billion), according to the Japan External Trade Organisation (Jetro). Japan’s exports to the UAE amounted to $8.96 billion end of 2012 and Japan’s imports from the UAE amounted to

$43.9 billion for the same period.The Japanese Direct Investments in the UAE climbed from 19 million in 2005 to more than 364 million end of 2012 and it is expected to increase further by 5-10 per cent. It is also noteworthy that in the beginning of the last decade, there were only 139 Japanese business entities in the UAE and currently the number exceeds 380.

Last year ten agreements and memoranda of understanding (MoUs) were signed between government and semi-government agencies in Abu Dhabi and Japan, in the fields of research and studies, education, health, energy, investment at the Abu Dhabi Japan Economic Forum.

Dubai is also of great significance to Japan. "Dubai has become a very important regional headquarters for all Japanese manufacturers. From here they can reach the entire Middle East and Africa region," said Hiroki Matsumoto, Managing Director of the Japan External Trade Organisation in Dubai.

The UAE was the seventh largest vehicles export market for Japan in 2012, advancing three positions from the previous year. In 2012 the value of Japanese vehicles exported to the UAE rose by almost 42 percent to Dh16.5 billion, compared with Dh11.6 billion in 2011. While-car makers may be the most visible of Japanese companies

operating in the UAE, they are by no means alone. More than 380 corporate entities from Japan have a presence in the UAE, about 280 of them in Dubai.

Construction companies like Hitachi Plant Engineering had a hand in building landmarks of the Dubai skyline such as the Burj Khalifa and the Dubai Metro.

Electronics manufacturers such as Panasonic, Sony, Sharp and Toshiba have all set

up big regional offices in the UAE to service the wider region as well as make their mark in the retail sector. The healthcare market is also important to Japanese companies such as Fuji, which has diversified from making cameras and now specialises in high-end optical devices such as medical imaging machines.

ENERGY TIES The UAE is the second largest oil exporter to Japan with 829,000 barrels per day. The UAE is also the sixth largest natural gas exporter to Japan with 5.5 million tonnes. Providing Japan with 23 percent of its oil needs, UAE also stands as Japan’s major economic partner in the Middle East and North Africa (Mena) region. “Japan is a very great partner to the UAE since 1971 in various fields, particularly in the field of energy. We export one-third of our crude oil and LNG with their derivatives to Japan.

And Japan is a trusted partner to rely on in hard times,” confirmed Suhail Al Mazrouei, UAE Minister of Energy.

During his May 2013 visit to the UAE, Japanese Prime Minister Shinzo Abe signed an agreement on nuclear cooperation with the UAE. The deal made Japan the country’s ninth nuclear partner and signified what delegation members called a shift in Middle East policy.

Hamad Al Kaabi, the UAE’s permanent

representative to the International Atomic Energy Agency, said it was likely that Japanese technology would be used in the four nuclear reactors being built in Barakah, in the Western Region.

RELAXED VISA POLICIES Last year, Japan relaxed its visa policies for UAE nationals and residents, opening up the country for more trade and tourism. Emiratis can now apply for a multiple visa to Japan that is valid for three years while UAE nationals who reside in the UAE can apply for a “temporary visit,” which allows them to visit Japan for up to 90 days for each stay in Japan. The application is open for purposes such as tourism, short-term business affairs, and visits to friends and relatives.

Strengthening current ties and forging new ones are common agendas both the countries share. It is evident that companies in both countries are mutually taking advantage of opportunities, meeting the aspirations of both sides. It is not without reason that Japanese Minister of Economy, Trade and Industry, Toshimitsu Motegi, has expressed confidence that the anticipated future success in the Middle East lies in the establishment of a sound strategic partnership with the United Arab Emirates, due to its spectrum of investment opportunities, ambitious projects and strategic vision, which will bring about an unprecedented leap in economic development and advancement.

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INVESTment INVESTING IN JAPAN

Nikkei on the Rise Japan is enjoying a turn in fortune thanks to Abenomics and the upcoming Olympic Games in 2020

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fter decades of ennui, the Land of the Rising Sun is shining again and emerging as a tempting hunting ground for investors. In 2013, it was one of the best performing stock markets. This market surge can be attributed to several factors such as Japan's successful bid to host the Olympic Games in 2020 and the impact of Abenomics. After Shinzo Abe took

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the Japan review March 2014

over as prime minister last year, the new leader is determined to end a two-decade period of perennial disappointment for investors and has pushed for fresh waves of money to be injected into the economy. In addition, the Japanese government has implemented economic reforms to rejuvenate the world's thirdlargest economy – and these have been warmly received by investors.

JAPAN'S MAJOR TURNAROUND For the past two decades, Japan’s economy has been in the doldrums.

A sharp decline in property prices and a severe banking crisis in the Nineties were mainly to blame. Japanese pension funds also have drastically cut their investments in shares, causing the country’s stock market to crumble.

There are fewer buyers in the market today than 20 years ago. But Shinzo Abe is determined to change this. He has pushed through aggressive economic reforms in a bid to kick-start growth and end the stagnation. Abe has employed what is known as ‘quantitative easing’ by flooding the market with $116 billion.

The expansion of money was designed to weaken Japan's currency – the yen – in order to cut the price of the goods it exports. This policy has already been a

success as the yen is currently at a threeyear low against both the dollar and euro.

THE REVIVAL OF THE STOCK MARKET Though the Nikkei lost ground in the summer of 2013, it has soared since Tokyo’s winning announcement of Olympics 2020 – the Nikkei is up by 11 percent. Bullish investors still believe there is plenty of growth left in the Japanese stock market. One reason is that the Japanese government is introducing stocks and shares Isas starting this year.

The scheme will work in the same way as Britain's Isa system, with tax exemptions on capital gains and dividend income from investments of up to a million yen a year. A wave of new money will enter the stock market as millions of Japanese investors are expected to sign up – pushing up Japanese shares.

THE OLYMPIC BOOST Winning the Olympic bid is proving to be a boon for the construction and hospitality industries with both sectors already enjoying an "Olympic bounce".

Shares of Taisei and Kajima Corporation, two building contractors who are likely to build some of the stadiums, have soared in recent weeks. Transport companies, such as East Japan Railway and Japan Airport Terminal, are also destined for major benefits as thousands of people will flock to Tokyo to watch the games.

The long-term benefits will be seen in infrastructure spending in new or enhanced stadiums, facilities, housing and transportation systems, but property seems to be the ultimate big winner. Real estate prices, which have been depressed for nearly 20 years after the real estate and stock market bubble burst in 1989, will rise over the years leading up to the games.

Big real estate companies that are likely to benefit include Mitsubishi Estate and Nippon Kanzai.

"Property developers and real estate investment trusts should see rising earnings and yields," added Dayal.

Chern-Yeh Kwok, head of Japanese equities at Aberdeen Asset Management, is backing Japan's biggest global brands to reap the rewards of higher consumer confidence and spending.

"As we approach the Games and the world's eyes focus on Japan, the country's global brands, such as sports company Asics, will benefit," said Kwok. gulfbusiness.com

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INVESTment

infrastructure and construction

Shaping the World We Live In? Japanese prowess for building and design has changed the face of the world

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n no other country will you find roads, bridges, rails and towers as safe as they are in Japan. Plagued by earthquakes, the island nation excels in safe, reliable and even resilient public infrastructure. Since 2003 Japan has spent upwards of $200 billion on public construction projects every year, a staggering 40percent of the national budget. Each year Japanese construction firms win international awards, and multi-million dollar contracts, for projects around the world – this is a country that knows how to build. The Japanese prowess for building and design today extends beyond the shores of that island nation and is a part of almost every urban city today, including Dubai.

Japanese giant Hitachi Infrastructure Systems Company provided air conditioning, plumbing, electrical, fire protection system, and the building management system for the iconic Burj Khalifa, the world’s tallest tower, located in Downtown Dubai. The Hitachi Group was also engaged in construction of various systems for the Palm Jumeirah’s

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monorail system, which serves as the principal means of transportation between the man-made island and the mainland.The project was unique in that it not only brought the first monorail to the Middle East but also represented the first public railway undertaking in the UAE. Hitachi was primarily involved in the installation of railway facilities, monorail maintenance and repair facilities, and transformers.

In Abu Dhabi, Hitachi is making a noteworthy contribution in the capital city’s effort to protect the endangered Arabian oryx. The corporation is providing the solarpowered desalination technology being

used in the conservation programme led by the Crown Prince of Abu Dhabi.

Hitachi’s proprietary technology will be used to purify water using the sun’s energy. After excessive salt is removed from the water by the desalination unit, it is sent to a waterway through pipes laid under the sand, feeding waterholes that give the Arabian oryx and other desert animals access to life-sustaining drinking water.

The Dubai Metro has changed the face of public transport in Dubai and is one of the city’s most successful

infrastructure stories. The first urban rail network in the Arabian Peninsula, Dubai Metro was on the world’s radar from the minute it was announced. The responsibility of the project was awarded to the Dubai Rail Link consortium made up of Japanese companies Mitsubishi Heavy Industries, Mitsubishi Corporation, Obayashi Corporation, Kajima Corporation and Turkish firm Yapi Merkezi.

Another Japanese firm that has made significant contribution to the landscape of the Middle East is the Nikken Sekkei architectural firm. Since 1993, Nikken Sekkei has designed several important award–winning buildings in the Middle East, such as the Islamic Development Bank in Jeddah, National Cultural Center in Cairo, and the Dubai Chamber of Commerce & Industry (DCCI), which recently became the first and only building in the Arab world to attain LEED certification for existing buildings. The DCCI project is an appropriate example of sustainable design. The building was originally designed by Nikken more than 18 years ago and three years prior to the inception of LEED standards.

The fact that the building effectively accommodated DCCI’s sustainability programme, which essentially entailed ‘greening an existing building’, highlights not only DCCI’s innovation, but also Nikken’s far reaching vision.

PALM MONORAIL Facts & Figures Monorail trains are driverless and can run up to speeds of 70km/hour. Currently, four trains are in operation. This number is expected to increase to nine once the monorail connects to the Dubai Metro.

Each train has three carriages and passenger capacity stands at 2,400 per hour, which will increase to 6,000 passengers per hour after Dubai Metro connection.

Monorail has been developed by consortium of Japanese companies: Hitachi, Marubeni Corporation and Obayashi.

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INVESTment Architecture

At the Forefront of Design Known for its cutting–edge design and aesthetic sensibilities, Japanese architects are taking the UAE by storm

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ince the 19th century Japan has incorporated much of Western, modern and post-modern architecture into construction and design, and is today a leader in cutting-edge architectural design and technology. By utilising the latest technology that is not only accessible but cost-effective, Japanese architects are creating practical but innovative designs aimed at maintaining optimum performance levels in energy consumption and water conservation.

These design parameters are especially suited to the Middle East’s arid conditions and hence it is no wonder that the region is increasingly looking at architects from Japan to design their buildings.

A project that has grabbed the attention of the architectural world is Abu Dhabi’s Saadiyat Island Cultural district, which will house the world’s single largest cluster of iconic buildings designed by the world’s greatest architectural minds. One of these will be the Maritime Museum designed by Japanese architect Tadao Ando. Celebrating the UAE’s maritime heritage, Ando’s deceptively simple

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building will combine space, light and water, seamlessly blending the building’s interior and exterior to ensure that the Arabian Gulf is the museum’s most stunning exhibit. The building’s elegant architecture is defined by a unique space in the form of a sail full of wind, carved out from a simple volume. The solitary structure stands like a gate on a vast water court, which with its reflective surface visually merges site and sea, reinforcing the maritime theme of the museum.

Another Japanese firm that has been creating landmark buildings in the UAE and Middle East is Nikken Sekkei. Since 1993, Nikken Sekkei has designed several important award–winning buildings in the Middle East, such as the Islamic Development Bank in Jeddah, National Cultural Center in Cairo, and the Dubai Chamber of

Commerce & Industry (DCCI). Recently, the Japanese firm was appointed by Dubai-based Meraas Development to help design the new Jumeirah Gardens project in Dubai. Nikken Sekkei's design forms an integral part of the Jumeirah Gardens development, as a new sustainable green oasis in Dubai. The city comprises tranquil residential districts, areas dedicated to small offices for entrepreneurs as well as office towers and hotels. Natural breeze corridors will be created by the curvature design of the buildings, which once combined with greenery and landscaping ensures a pleasant living environment.

Nikken Sekkei is also presenting sustainable design successes, such as the Dubai Maritime City (DMC) Landmark Tower – the centerpiece of the new Dubai Maritime City and surrounding buildings. Again, the DMC building pays tribute to the country’s maritime heritage and takes the shape of a sail being hoisted. The base of the building is designed in the form of an amphitheatre.

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Nikken Sekkei Ltd., is a Japan-based comprehensive and multi-disciplinary Architectural & Engineering Design consulting firm. Founded in 1900, Nikken Sekkei has a rich and diversified experience with over 20,000 projects in more than 40 countries and 200 cities worldwide. Through its 10 overseas offices and 7 specialized subsidiary companies, Nikken Sekkei continues striving towards excellence and customer satisfaction in all related fields, including; City and Urban Planning, Site Planning and Civil Engineering, Architectural and Interior Design, Structural Engineering, Mechanical & Electrical Engineering, Landscape Design, as well as Facility Management, Construction Project Management, and Supervision Services during Construction.

More than Creative – the corporate vision itself highlights the firm’s commitment beyond form-based creativity to entire life-cycle design on all levels of scale – architecture, the city, and the environment. gulfbusiness.com 15

INVESTment agriculture

Helping the UAE Grow Until recently it was thought that agriculture in the UAE was a futile industry. But Japan’s film farming technology is forcing the experts to revaluate

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ccording to experts, agriculture in the UAE makes “no sense at all” as it contributes less than 1 percent to the economy while using more than 60 percent of the country’s water.

As per the UN Food and Agriculture Organisation, the UAE lost 42 percent of its renewable water resources between 1992 and 2007 and approximately $100 billion (Dh367bn) is estimated to be spent on desalination investments across the GCC from 2011 to 2016. Though a lot of that water will end up being used in agriculture, it will come at a high price.

Recognising the risks involved in a future without enough water and soil resources, companies and inventors have engineered what can be called a step towards a revolution in farming. Soil-less farming or ‘film farming’ has been made possible with hydrogel technology. The technology reduces up to 90 percent water consumption and 80 percent fertiliser use, resulting in a productivity boost of 50 percent. The film can be used in any geographical area and weather conditions. The hydrogel-based IMEC film and the hydrophilic booster, SkyGel – a super absorbent polymer acts as a reservoir holding water up to 1,000 times its weight. The IMEC film and SkyGel are developed specifically to reduce the use of water, increase plant productivity and crop yield, while producing a best in class nutritious and healthy food that is highly rich in sugars, GABA and Lycopene.

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The technology was officially launched in the UAE in 2012 by its Dubai-based owners, agricel. The film was invented

by Prof Dr Yuichi Mori of Waseda University, Japan. He is also the chairman of the Advisory Board of agricel. The 'film farming' system can be installed on any surface – wood, sand or concrete – and across any terrain – from a dry arid desert to existing fertile farms or even in space. Co-founder and CEO of agricel Yalman A Khane said, “The technology allows us to farm in a sustainable manner commercially, in turn producing nutritionally superior and safe food while reducing the use of harmful chemicals in the food supply chain. We can now grow cherry tomatoes in the middle of the desert.” While film farming is new to the UAE, the technology has already been adopted across 180 farms in Japan. Since its launch agricel has signed contracts with several local players to integrate film farming into the UAE’s farm sector.

Speciality foods and fruits like cherry tomatoes, lettuce, cucumbers and melons, and spices like paprika thrive on the film.

The company’s innovative film farming technologies have proven to be more cost effective than alternative farming methods, generating an ROI (return on investment) of between 40 percent to 70 percent and an IRR (the initial return rate) north of 58 percent All kinds of crops can be grown on the film, except vegetables grown underground like potatoes, ginger and onions.

STRAWBERRIES BY SHARP Electronics giant Sharp is cashing in on the Middle East’s penchant for sweet strawberries by growing them indoors in Dubai. The firm is using technology to allow the fruit to be grown from seedlings at a facility in the UAE by artificially controlling light, temperature and humidity – thus avoiding the problems of berries spoiling during shipping.

LED lights are being used to facilitate photosynthesis. "If we can generate results in cultivating strawberries, a plant that is difficult to grow, we can apply the technology to other farm products," said a company official. Sharp has invested roughly $100,000 to build the laboratory test facility in Dubai. Sharp is now beginning testing of the operation with the aim of growing up to 3,000 strawberries a month, ahead of a planned factory-scale launch in 2015.

INVESTMENT healthcare

Together for Health The UAE and Japan are now looking to further consolidate their relationship through mutually beneficial healthcare ties

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ast February the United Arab Emirates University (UAEU) signed two agreements for cooperation with Medical Excellence Japan Centre (MEJC) and University of Tokyo in the field of healthcare.

The agreements, which were part of a package of 12 agreements signed with Japan in scientific, educational, academic, economic and oil sectors in Abu Dhabi, aim to introduce advanced curative and preventive services in the Emirate, and explore potential opportunities of joint cooperation in areas like development of skills on endoscopy, radiation therapy and organ transplantation. The other agreement enables the UAEU and the MEJC to do joint research and hold seminars on advanced health-care systems and modern medical technology.

The MEJC is expected to open a clinic in the UAE capital shortly. Similarly, HE Toshimitsu Motegi, the Japanese Minister of Economy, Trade and Industry, on the sidelines of the World Future Energy Summit held in the UAE capital in January this year, said that his country intends to transfer knowledge and expertise to Abu Dhabi, especially for treatment of cancer by carbon ions therapy.

The Dubai Health Authority (DHA) received a delegation from the Fujita Health University Hospital of Japan in December last year. The two parties discussed ways to explore mutual cooperation between the two countries in the field of healthcare. DHA collaborates with healthcare institutions from across the globe and its key parameters are quality, innovation and, most importantly, patient-centered care. The DHA delegation aims to visit Japan to further explore best practices in the medical field and visit Fujita Hospital to discuss collaborative initiatives in further details.

Fujita is the largest hospital in Japan with three campuses and 2,165 beds. The hospital is privately owned and was ranked as No 4 in Japan in 2012 by the Japanese government. The hospital is known for its advanced medicine and non-invasive surgery and specializes in multi organ laparoscopic and robotic surgeries, organ transplantation and neurosurgery.

Similarly, Dubai Healthcare City (DHCC) also welcomed a Japanese delegation to its premises, where both parties discussed potential opportunities for collaboration in the fields of medical education and to highlight investment opportunities within the free zone. DHCC, an established, internationally recognized centre of excellence in education, research and medical tourism, is already home to a number of Asian operators, including the Sakura Medical and Dental Clinic, offering unique Japanese dental treatment and services to the Japanese community These are important partnerships given the rise of medical tourism in the

UAE, especially in Dubai. Out of the 40 million transit passengers at the Dubai International Airport, on an average 1,500 to 2,000 patients daily change flights to travel to medical tourism destinations daily. With Dubai's excellent hospitality and healthcare infrastructure, relaxed visa policies and the availability of world-class technology and facilities, the emirate is hoping to tap into this market.

The Japanese government too has recognized the importance of the medical tourism and a significant number of UAE residents are flying out to the island nation for treatment, especially for cancer.

Medical tourism service providers have been growing steadily in Japan. For example, the focal point for the ion beam oncology center was set up to coordinate the heavy ion radiotherapy, for which Japan has the second-most facilities in the world.

It is also noteworthy that FujiFilm, Japan’s pioneering photographic filmmaker, is now extending its imaging and information technologies in the field of healthcare. gulfbusiness.com 17

INVESTment electronics

Japan’s Electronics Industry For decades Japanese electronics have been the preferred consumer choice and are an important reason Dubai has a booming electronics trade

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apan has been considered a global leader in consumer electronics and robotics for decades now and for most UAE consumers Japanese electronics are synonymous with reliability, durability and cost-effectiveness. The technology and manufacturing prowess of the country has resulted in the creation of large conglomerates that have changed the face of the world we live in - Japanese companies are responsible for a number of important innovations, including having pioneered the transistor radio and the Walkman (Sony), the first massproduced laptops (Toshiba), the VHS recorder (JVC) and solar cells and LCD screens (Sharp). In any top-notch line-

18 the Japan review March 2014

up of the world’s most valued electronics firms, Japanese brands such as Panasonic, Canon, Nikon, Fujitsu, Hitachi, Sharp, TAD, NEC, Epsom and Toshiba find a place of pride. Some of these companies (Panasonic, Sony, Sharp and Toshiba) have all set up big regional offices in the UAE to service the wider region as well as make their mark in the retail sector.

Japan is one of the world’s leading suppliers of flash memories, computers and telecom chips. The demand for Japanese televisions is also set to spike once the government launches the world’s first high-definition broadcast in July this year. Smart phone and app sales are soaring to giddying heights – the largest

revenue earner on iOS is Japan’s GungHo Online. Sony has also reaped a windfall thanks to the launch of its gaming console PlayStation 4. Canon and Nikon dominate the SLR camera market while Panasonic, FujiFilm and Olympus target niche markets such as deep-sea diving.

Similarly, the market for household appliances continues to be dominated by Japanese companies.

Though the country’s top electronics makers are currently facing tough competition from the likes of Samsung, LG and Apple, the resilience of Japan’s economy, its engineering ability and new business models are likely to see it back in reckoning in the future.

Pioneer was founded in 1938 in Tokyo

by Nozomu Matsumoto – a man with a passion for music that he hoped to share with the world through high– quality audio speakers. In 1975 Pioneer Electronics created a kind of “skunk works” to develop highly advanced, cutting-edge loudspeaker technologies for the professional audio market, called Technical Audio Devices (TAD). With a combination of contributions from some of audio’s brightest thinkers, and a mandate to create products that would break new ground resulted in several patents, Audio Engineering Society papers, and some remarkable inventions.

In 2000, TAD decided to create a division that would bring to the consumer market some of the technologies the company had developed for the professional audio world. They hired the talented loudspeaker designer Andrew Jones, who had previously worked with legends of British loudspeaker design including Raymond Cooke, Laurie Fincham, and Peter Baxandal. Jones’ first product for TAD was the Model One, an audacious ground-up design whose massive cabinet was built from horizontally stacked birch ply. The Model One was notable not only for its heroic enclosure, but for its concentric midrange/tweeter. In 2013 TAD launched the TAD Reference One (R1) – the direct descendent of Model One.

The R1 was launched in the UAE at the Dubai Audio Centre, the UAE’s first high-end audio specialist.

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INVESTment electronics

As a world-leading innovator and provider of imaging and information technology solutions, Canon Middle East offers both individual products and complete networked technology solutions for businesses and homes. With more than 75 years of technological expertise, the global Canon brand consistently ranks among the top five multinational companies in the total number of patents granted annually. Canon’s global leadership in providing imaging solutions has been reiterated by the recently issued 2013 IFI CLAIMS Patent Services, ranking first among Japanese companies and third overall for the number of US patents awarded last year.

Pursuing sustainable economic growth while doing business responsibly is an inextricable part of Canon’s corporate DNA. The philosophy of Kyosei, a Japanese term meaning living and working together for the common good, has led to the company earning the highest ranking

20 the Japan review March 2014

among Japanese companies in the 2013 Climate Counts corporate emissions performance study. Canon was also the first to be certified by Japan’s Carbon Footprint Programme for multifunction office systems. This dedication to doing business responsibly has led to Canon being awarded with the prestigious

CSR Label from the Dubai Chamber of Commerce and Industry for the second consecutive year in 2013. In the Middle East, Canon works extensively with the community through partnerships with organisations such as the Dubai Centre for Special Needs, Dubai Autism Centre and Emirates Environmental Group.

INVESTMENT auto industry

Japanese Cars: Driving the UAE The Japanese automotive industry is one of the most prominent in the world

J

apan is currently the world’s third largest automobile manufacturer in the world with an annual production of 9.9 million vehicles in 2012. Six out of ten of the world’s largest automobile manufacturers have their bases in the island nation. Brands like Toyota, Honda, Nissan, Suzuki, Mitsubishi and Mazda are synonymous with safety and quality.

Likewise, Yamaha and Kawasaki remain the bywords of durability and endurance.

The ‘green’ car industry is also ruled

by Japanese car–makers Toyota (which includes the highly acclaimed Prius) and Honda (includes the Civic and Insight hybrids). Nissan is also aggressively pursuing a plan to push green car sales.

Japanese car–makers have faced a string of tough challenges over the past few years: starting with the 2008 financial crisis, followed by the yen strengthening to a record high against the dollar – a move that undermines the price competitiveness of vehicles built in Japan and is threatening companies to move production overseas. A massive earthquake and tsunami in Japan and severe floods in Thailand disrupted the parts supply chain and led to months of production stoppages and constrained the supply of vehicles followed by recalls of millions of vehicles due to safety glitches. In spite of these setbacks, Japan’s auto industry is starting to see potential big improvements in its business environment. The yen recently weakened to a 28-month low against the dollar as the newly established government vowed to tackle the yen’s strength. The Nikkei subindex for the auto sector has surged more than 26

percent since mid –November, outstripping a 20 percent rise on the benchmark Nikkei during the same period.

UAE’S Top Trading Partner According to a report by Dubai Customs, Japan is the UAE’s top automobile trading partner, accounting for 25 percent of foreign trade valued at Dh 8 billion for the first half of 2013. Japanese brands traditionally regarded as more reliable than their European and US counterparts–are the country’s best one sellers. Car giant Toyota announced a strong growth of 31 percent in sales across the Middle East in 2012.The Japanese auto giant delivered 660,285 vehicles, making 2012 a record year in the region for the Toyota and Lexus brands. Globally, sales of Toyota and Lexus cars totalled 8.72 million units, an increase of 23 percent compared to 2011.

Across the GCC region alone, Toyota sold 624,400 vehicles in 2012.

Similarly, 2012 was acknowledged as the best year ever for sales for Nissan Middle East for its Nissan Patrol flagship vehicle. More than 14,000 Nissan Patrols were sold in the Middle East in 2012 representing a 66 percent increase in sales and giving Nissan Patrol a record market share of 22 percent in the Gulf market.

The Nissan Patrol is Nissan's flagship SUV model and enjoys a rich heritage and passionate following in the Middle East that dates back to the 1950s. The iconic vehicle notched another historic milestone by setting a Guinness World Record – ‘heaviest object pulled by any production vehicle’. An unmodified production of Nissan Patrol hauled a 170.9-tonne cargo

plane, inclusive of the weight of the plane, cargo and fuel, for over 50 meters at the Sharjah International Airport.

Growth in Auto Parts Trade The auto parts trade in the Dubai has grown over 27 percent in the last four years, according to a Dubai Customs report. Dubai's auto spare parts foreign trade was valued at Dh 7 billion in 2012, an increase of Dh8 billion as compared to Dh29 billion in 2009. The auto spare parts market continued to rise, reaching Dh32 billion in 2010 and Dh36 billion in 2011, most of which is made up from export and re-export activities, taking up the major share of foreign trade. Japan is deemed to be Dubai`s top trade partner in spare parts and accessories, claiming 28 percent of the imports market share with a value of Dh 6.1 billion. gulfbusiness.com 21

Tourism japan TOURISM

An Oriental Holiday Why Japan is becoming more and more enticing for the Arab tourist?

T

hey say the way to man’s heart is through his stomach. And perhaps this ancient adage is what Japan is basing its tourism policies on. While holidays are about soaking in foreign cultures and gastronomy, there are a few basics people do not want to depart from. For long Japan has been a food desert for observant Muslims with halal food options being extremely limited or even none. This void has been deterring millions of believers from heading to the Land of the Rising Sun to witness perhaps the cherry blossoms in bloom.

However, a shift in policy is now seeing Japan take steps to embrace the Muslim traveller. Kansai International Airport is determinedly working towards becoming the country’s first Muslimfriendly restaurant and the first step they took in this direction was to serve halal udon! In July the kitchen at The U–don, a Sanuki udon noodle shop, was halal– certified. Kansai also plans to add prayer rooms and halal meal options while 16 other airport restaurants will go pork and alcohol-free. Additionally, the Japanese government has designed a special guide that details all the information about restaurants offering halal food as well as mosques and other services that cater to Muslim tourists.

22 the Japan review March 2014

STEP IN THE RIGHT DIRECTION At the same time the Kyoto Convention Bureau has taken the unprecedented step of becoming the first Japanese tourism authority to proactively target the UAE market. Recently the board hosted a number of leading travel agents from the UAE on a familiarisation trip to Japan’s ancient capital to highlight Kyoto’s unique family and cultural attractions, luxury accommodation, and of course gourmet halal cuisine.

The bureau's objective was simple – to gain the confidence of clients regarding the levels of service, hospitality, and ability of the city to provide for any special dietary requirements that visitors from the UAE may have. Participants included representatives from Dnata, Kanoo Travel, SATA and SNTTA. Part of the mission included treating the agents to the Kyoto Kaiseki traditional Japanese cuisine at the Minokichi restaurant where they were served three different full course halal menus, as well as vegetarian options. Halal and vegetarian options were equally available at various cafee and restaurants around the city and even at exclusive 'Ryokan' (or Japanese Inn-style) accommodation like the Yoshida Sanso.

“Japan is becoming more and more Muslimfriendly country. We have a number of halal restaurants in major cities and many places have mosques of their own. We welcome tourists from UAE and Middle East to visit Japan and enjoy its beauty and hospitality,” said Daisuke Matsunaga, Consul General of Japan to Dubai. The relaxed visa policies are also providing a much needed boost to tourist numbers.

RECIPROCATING THE GESTURE Just as Japan is going all out to woo the Gulf traveller, Dubai too is reciprocating the gesture resolutely. More than 350,000 Japanese tourists were hosted by Dubai during 2007-2011, and in an attempt to boost the figures Dubai’s Department of Tourism and Commerce Marketing (DTCM) conducted road shows in the Japanese cities of Tokyo, Osaka and Nagoya recently. More than 300 tourism and travel trade professionals in addition to Japanese media representatives attended the workshop–format road shows which were co-sponsored by Emirates Airline and Jumeirah Group. Other Industry co– participants were Arabian Adventures, Armani Hotel Dubai, Bin Majid Tours, Cox & Kings Tours, Orient Tours, Ritz-Carlton DIFC, Sharaf Tours, Travco Travel, Wings Tours Gulf and Kerzer International Management (Atlantis, The Palm, One & Only The Palm, Dubai and One & Only Royal Mirage).

With more and more Japanese tourists expected to travel to the shores of Dubai and vice versa, the bilateral relationship between the two economic powerhouses has never been better. Japanese Prime Minister Shinzo Abe’s visit to the UAE so soon after taking office, launch of additional flights between the UAE and Japan by Etihad and Emirates airlines and the introduction of Halal food in Japan show how important the UAE is to Japan.

gulfbusiness.com 23

culture

UAE and japanese cultural blends

The New Silk Route − Manga If you thought the only things Japanese in the UAE were the cars, sushi, karaoke and Daiso, look again

I

t may not be obvious but Japanese culture has been steadily seeping into the Emirates, veins. The Japanese Culture Day celebration at Safa Park at this year is a good example. The event covered everything from the ceremonial tea ceremony, Minyo – traditional Japanese dance form, Ikebana – the Japanese art of flower arrangement and Origami paper craft to vintage kimonos as well as kimono and obi wearing demos, and of course, Japanese cuisine.

Organised by Versus – on – and offline platform for presenting and collecting art – along with the Japanese Consulate in Dubai, the event is a testament to the spurt of interest in the traditions and culture of the Land of the Rising Sun. Best exemplifying this is Emirati Saif Al Suwaidi, who is learning how to perform the Japanese tea ceremony. “In 2008, I went to Japan to learn how to perform the Japanese tea ceremony,”

24 the Japan review March 2014

he says, adding that Abu Dhabi Crown Prince HH Sheikh Mohammed Bin Zayed Al Nahyan opened a Japanese tea hut at Emirates Palace and flew in a ‘sensei’ from Tokyo to train Saif and others. Though Saif has been learning for years, he says perfecting the tea ceremony requires lifelong devotion. “It takes many years to master every level.

I’ve been training for four years!”

THE POWER OF MANGA Another Emirati successfully drawing upon Japanese cultural and artistic influences is Qais Sedki, head of Pageflip, a Dubai-based manga publishing house. The company’s Gold Ring manga, authored by Sedki and drawn by two Japanese manga artists, is the UAE’s first original Arabic–language manga. In 2010, it won the UAE’s Sheikh Zayed Book Award for Children’s Literature. "It's good to have our own manga, and it's important that people

read it in Arabic, because that's this country's main language," says Sedki.

To a large extent, Manga has been responsible for piquing UAE’s interest in Japanese culture. Echoing this sentiment is Emirati Khaled Bin Hamad, author of sci-fi graphic novel Nasser’s Secrets that blends Japanese styles with Emirati culture. Bin Hamad’s novel debuted at the Middle East Film and Comic Con (MEFCC) where introductory pages of the comic were displayed on large

towards understanding more profound aspects of the traditional culture.

It is noteworthy that this cultural exchange isn’t one way only. The Middle East is also leaving a mark on the imaginations of manga artists with many using the ‘mystique’ of the region in their works. Arab influences in character development are being more and more used. For example, the manga El Hazard seems to have heavy Arab influences in a fantasy setting, and many of the character names are inspired from the Arab world.

ON THE CANVAS

canvases. His concept of presenting a novel as an art exhibition is said to have originated in Japan, and was the first of its kind in the Middle East. From a young age Bin Hamad developed a passion for Japanese anime and manga.

It was during a two-year stay in Japan while studying for his Master's degree that his love for these Japanese staples was reignited. Bin Hamad was captivated by the Japanese artists Hayao Miyazaki and Takehiko Inoue and aims to complete the full comic, with an Arabic translation, in time for the next MEFCC in April.

FOOD FOR THOUGHT Manga isn’t just inspiring UAE’s writers but has crossed-over into the UAE’s food scene too. Owner of restaurant Manga Sushi, a Dubai-based manga-themed restaurant, Sultan Al Banna, claims to “love Japan more than anyone in the world”. Manga Sushi is much adored among the local populace not just for the food but the ambience too. Drawings and figurines of popular manga characters decorate the walls. There is also a collection of manga books and the sushi menu also contains plenty of surprises: dishes named Godzilla, otaku, yakuza and dragon ball. Al Banna’s first encounter with Japan came through manga. He fell in love with the comics as a 12 year–old, and has been hooked ever since. Doraemon, Captain Tsubasa, Ikky-san, Little Heidi, The Rose of Versailles, Slump and Arale – from the latest hits to the classics, he knows them all. Sultan’s interest in manga has inspired him to start his journey

However, Japan’s contribution to the UAE’s art scene isn’t limited to manga alone. Last year the solo show by legendary Japanese artist Yayoi Kusama was one of the high points of the prestigious Art Dubai fair – the Middle East’s most prominent art exhibition. Elsewhere, Yasuaki Onishi’s genius was employed for the opening of The Mine gallery. Onishi Onishi worked for more than six days to install Vertical Emptiness, a plastic sheet hung by wire in an undulating cloud-like pattern and decorated with wispy strands of dried glue to encase the viewer in a fragile, tent–like enclosure. Influential anime–inspired artist Takashi Murakami made his Middle East debut at the Qatar Museums Authority’s cavernous Al Riwaq space.

Art has become the new Silk Route between the UAE and Japan and vice– versa. On that uses colours and story telling to introduce ancient cultures to each other.

What is manga?

Often referred to in English as ‘comic books’, Japanese manga is a very diverse art form. The story lines are not limited to humour and cover every conceivable aspect of life. Mangas are available in different genres as well as age groups.

Get your manga today from Kinokuniya at The Dubai Mall, Level 2. 04 434 0111 gulfbusiness.com 25

culture

UAE and japanese cultural blends

Social Graces in Japan If you are considering a trip to the Land of the Rising Sun, it is worthwhile to take the effort to understand the Japanese culture

T

he Japanese are known for their politeness and for the intricacies of etiquette and protocol. Here’s a guide to some basic social customs.

• While bowing is extremely important in Japan, most hosts do realise that foreigners are unaccustomed to this and may offer a handshake instead. If you wish to return a bow, do so with your back straight and your hands at the sides. The longer and deeper the bow, the more respect it displays.

• Being invited to someone's home is a great honor. If your host extends an invitation, accept wholeheartedly.

• When entering a Japanese home or sitting area, remove your shoes. However, going barefoot is unacceptable. Socks are essential.

• Avoid putting your hands into your pockets; doing so shows boredom or lack of interest.

• Do not blow your nose in public. Excuse yourself to the toilet or go outside to clear your nose.

• Pointing is considered especially rude in Japan; avoid it all times.

• The numbers '4' and '9' are considered unlucky in the Japanese culture. The words for the two numbers sound similar to the words for death and suffering and are regarded with superstition. Avoid giving gifts or anything else in sets of four or nine as well.

• Do not point out someone’s mistakes or shortcomings in front of others.

• In Japan business cards are treated with utmost respect.

If conducting business, carry your cards in a professional case.

Do not hand out frayed or creased cards.

• When receiving a business card, thank the other person and offer a quick bow. Take the card with both hands and hold it by the top two corners; examine it closely with respect. Avoid covering the person's name on the card with your fingers.

• If cards are exchanged while already seated, place the card atop your case until you leave the table. Hierarchy is of importance: put the highest ranking person's card above, subordinates follow. The worst thing that you can possibly do in Japanese business etiquette is to cram someone's business card into a back pocket or wallet in front of them!

26 the Japan review March 2014

DINING P’s AND Q’s • Knowing how to use chopsticks is essential for Japanese dining etiquette, particularly in formal occasions. Practise using these before you arrive in the country to avoid any dining faux pas.

• When first seated, many restaurants provide guests with a wet towel. Use it to wash your hands then fold it and put it aside.

• Use your chopsticks correctly: don’t point them at someone while talking • Don’t wave your chopsticks around over food on the table.

• Don’t suck sauces off of your chopsticks.

• Don’t rub your chopsticks together or play with them unnecessarily.

• Don’t lift food by stabbing it with your chopsticks.

• Cleaning your plate – down to the last grain of rice is considered proper Japanese dining etiquette.

• Drink soup straight from the bowl. Slurping is appreciated too!

culture food special

The King of All Cuisines Japanese cuisine is all the rage, not only in the Middle East but around the world

J

apanese cuisine is on a high like never before. For the seventh consecutive year, Tokyo has held on to its crown as the Michelin guide’s gourmet capital, with the most starred restaurants.

At a higher level, the Unesco has recommended that washoku, the traditional dietary cuisine of the Japanese, be designated as an Intangible Cultural Heritage. These just go to show how enthusiastic the Japanese are about their food. In fact, Japanese cuisine has built up a substantial global fan following as well.

THE DEMAND According to a 2012 worldwide food survey by Hotels.com, Japanese food was voted global travellers, third favourite culinary delight. The survey, which questioned more than 27,000 travellers, shows there is now tough competition for more traditional favourites such as

Italian and French cuisine from food from the Far East. Although international travellers do still favour Italian (32 percent) and French (24 percent) cuisine, with them taking first and second spot in the rankings, the dishes from the Land of the Rising Sun are gaining in popularity with more cosmopolitan palates. Eighteen percent of all people surveyed favoured sushi, tempura, ramen and Japanese soba, particularly when it comes to fine dining.

The past decade has seen a number of Japanese joints making their debut in

Dubai, from budget-friendly conveyorbelt sushi joints like Yo! Sushi to the elite chain Nobu at The Atlantis – The Palm , Armani/Hashi at the slick Armani, Okku at The H Hotel and the izakaya – style Zuma at DIFC. Dubai alone claims the presence of 65 Japanese restaurants with another nine scheduled to open their doors this year. It is obvious Japanese producers have noticed the Middle East's Japanese food boom and have started targeting their products at the region especially. Sushi Art’s fusion maki ‘like tabbouleh’ roll is a good example. There is also news that Japanese farmers are now producing a halal version of their most exquisite meat – tender, perfectly marbled wagyu beef.

gulfbusiness.com 27

culture food special

THE PREPARATION For all of its apparent simplicity, Japanese cooking is one of the most elaborate cuisines today. While some Japanese dishes may look like nothing more than rice and raw fish artfully arranged, anyone who has sampled it can attest there's more to Japanese food than meets the eye. As with anything truly simple, every element demands the utmost care. The cuisine is also known for the emphasis it places on seasonality of food, meaning the food incorporates the best produce at the peak of its flavor. This difference is something that only lovers of fine cuisine can discern. Some of the region’s popular favorites include the traditional Kyoto kaiseki ryori, based on ‘less is more’, the vegetarian shojin ryori, the delicious obanzi ryori peasant dishes and even the thick, high-calorie hot–pot stews favoured

by Sumo wrestlers. Traditionally, seafood

is the preferred protein in Japan, as eating meat was virtually prohibited until the late 1800s. Recently beef has become a regular feature on many menus in the form of domburimono (rice topped with a grilled cutlet) and used in savory sukiyaki stews or cook-it-yourself shabushabu hot pots similar to fondue. Ramen, thin wheat noodle soup, and udon, thicker flour noodles, are served hot in winter and deliciously cold in summer. Tsukemen is another way of preparing soup, in which you dip the noodles in a separate bowl of broth and are provided with limes and seaweed to make a sandwich. Food

connoisseurs also revel in Japan's varied styles of cooking, from tempura, sushi and teppanyaki to the feast of all feasts, kaiseki.

A GUIDE TO JAPANESE STAPLES To think that sushi best represents Japanese food is like saying that pizza is Italy’s finest dish. While the elements of sushi-freshness, seasonality, uniformity of texture, and a single, deep, intense flavor specific to each type of fish-are emblematic of Japanese gastronomy as a whole, there are many foods that encapsulate all these and should be on your list of must-eat Japanese foods.

Tempura is food deep-fried in

Sashimi is sliced raw fish eaten with

vegetable oil after being coated with a mixture of egg, water and wheat flour.

Among the ingredients used are prawns, fish in season and vegetables.

soy sauce.

Sukiyaki is prepared right at the table by cooking thinly sliced beef together with vegetables, tofu and vermicelli.

Sushi is a small piece of raw seafood placed on a ball of vinegared rice. The most common ingredients are tuna, squid and prawns. Cucumber, pickled radish and sweet egg omelette are also served.

28 the Japan review March 2014

Kaiseki ryori is regarded as Japan's most exquisite culinary refinement.

Consisting mainly of vegetables and fish with a seasoning base of seaweed and mushrooms, the dishes are characterised by their refined flavour.

Yakitori is made up of small pieces

HOW TO USE CHOPSTICKS

of chicken meat, liver and vegetables skewered on a bamboo stick and grilled over hot coals.

Pick up the first chopstick with your middle finger and thumb. This one is your anchor – it should not move. Stiffen your hand for a firm grip. Have the broad end of the chopstick lay in the crook of your hand, where your thumb and pointer finger connect. Rest the narrow end between the base of your thumb and the side of your index finger. It's similar to how you hold a pen, but a bit lower.

Grip the second chopstick with your index finger and thumb. This is the stick that moves. Place your thumb over the side of the second chopstick, so it rests above the first. Adjust your grip to a more comfortable position. Make sure the narrow tips of the chopsticks are even with each other to help prevent them from crossing or being unable to 'pinch' the food.

Practise opening and closing the chopsticks. Make sure the broad ends of the chopsticks do not make an 'X' as this will make it difficult to pick up food. Only the top chopstick should move.

Start picking up food! Working from a 45° angle may be easiest right now. Once you have it steady, lift them up.

Tonkatsu is a deep-fried meat cutlet rolled in breadcrumbs.

Shabu-shabu is tender, thin slices of beef held with chopsticks and swished around in a pot of boiling water, then dipped in sauce before being eaten.

Soba and udon are two kinds of Japanese noodles served either in a broth or dipped in sauce and are available in hundreds of delicious variations.

gulfbusiness.com 29

international corporate companies

Japan: A Window to the World A large number of international companies have set up base in the island nation, using it as a bridge to connect to the world

T

he Telegraph UK calls Japan ‘one of the best investments of the next decade’ and it is easy to see why. As host of the 2020 Olympics and under the new leadership of Prime

30 the Japan review March 2014

Minister Shinzo Abe, the country is proving to be a tempting hunting ground for investors. At larger perspective, Asia is becoming increasingly influential in the world economy. Japan, as a country in

Asia, plays an important role as a “bridge nation” connecting Asia and the world, which contributes to Asia’s growth.

Japan ranks first for scientific research expenditure (percentage of GDP) and

the number of researchers (per 10,000 people). Many Japanese firms rank high for the number of international patent applications (PCT applications) including Panasonic (first in the world).

Japan ranks first in the world for the number of environment-related patent application publications. Japan has large numbers of global companies and SMEs that support global firms.

Through JETRO, the country has welcomed foreign conglomerates with open arms and provided them with a host of facilities and incentives, making their investment in the island nation a success. American communications giant Cisco Systems set up their new R&D

centre in Tokyo in 2005. This centre has been responsible for the developments the fields of routing, IPv6, multicasting, wireless technology, and Internet Protocol Next Generation Network (IPNGN) for the next generation of Internet communications. The Senior Vice President of Japan Operations Cisco Systems Inc, Yasuki Kurosawa, describes the plan: "Partly due to the Japanese government's 'e-Japan Strategy' this country is equipped with some of the most inexpensive, fastest broadband networks in the world. The expansion of broadband in Japan has revealed new business needs.” The Cisco Carrier Routing System (CRS-1), announced in 2004, was developed by making direct use of information from Japanese service providers, who were among the first companies to deploy this technology platform. Subsequently, in October 2006, after a series of improvements in this system, Cisco Systems announced a 4-slot CRS-1 system, the world's smallest. This, too, was developed based on demands from Japanese service providers, who wanted 40 Gbps per slot in a smaller form factor.

Europe’s largest apparel corporation, best known for its high-street brand Zara, Inditex entered the Japanese market in 1997. Jesús Echevarría, Chief Communications Officer, Inditex, says “Japan and Japanese customers have one of the highest knowledge and sensibility for fashion. No one related to the fashion movement can develop their business without being in contact to the Japanese market.

“For Inditex, Japan is a prime commercial location. It is one of the most competitive markets for retail sector, something that always contributes to company’s know-how and continuous innovation, but it is also one of the most valuable scenarios in the world for the observation of new trends, a key activity for our sector. Currently we operate 41 stores and Japanese market is one of our priorities in the Asia-Pacific region.”

Cisco and Zara are just two in a long list of international businesses who are enjoying unprecedented success in the island nation. Other big names include Bosch, Johnson Controls, Magna International, L’Oreal and SGL Group.

gulfbusiness.com 31

PROFILE

japanese companies in the middle east

Gateway to the Middle East While JETRO and JAFZA are continuously striving to strengthen trade relations between the UAE and Japan, Bridgestone Middle East & Asia is a fine example of what mutual cooperation can achieve

T

he Middle East’s increasing focus on developing economic infrastructure offers huge potential for Japanese majors in infrastructure development sector. The growing prosperity and rapid increase in the demand for consumer goods, on the other hand, opens huge opportunities for Japanese companies in the electronics, FMCG and other sectors. Jafza – the region’s leading trade and logistics hub,

32 the Japan review March 2014

is currently home to 114 leading Japanese companies including such major names as Toshiba, Mitsubishi, Hitachi, Sony, Panasonic, Nissan. Japan-Jafza bilateral trade is estimated to have hit AED 9.6 billion in 2012, posting a growth of over 28 percent in the last four years.

Similarly, JETRO Dubai plays the role of a catalyst in the development of bilateral trade between the two countries.

Serving as the first point of contact for

both local companies looking to foray into the Japanese market as well as Japanese companies setting up base in the UAE, JETRO has been playing a vital role in the expansion of trade between both countries. Bridgestone Middle East & Africa, is yet another success story to have come out of the Japan-UAE trade exchange. Together, these three organisations have shaped the face of trade relations between the two countries.

BESTSELLER

Available at all leading bookshops and other selected outlets in the Gulf and at booksarabia.com.

Also available as an ebook.

PROFILE JETRO

JETRO: Enhancing Potential JETRO is committed to improving bilateral trade relations between the UAE and Japan

T

he UAE maintained its position as Japan’s second major trade partner in the region, after Saudi Arabia, with a share of 27.5 percent of Japanese total trade with the GCC last year. The total value of trade between the UAE and Japan stood at around Dh188.7 billion ($51.41 billion) in 2013 compared to Dh194.91 billion ($53.11 billion) in 2012. Trade exchange between the two countries remains robust and is gaining momentum year on year. JETRO, or the Japan External Trade Organisation, plays a crucial role in building and reinforcing these ties.

A government-related entity, JETRO has been promoting mutual trade and investment between Japan and the rest of the world since 1958. Since its establishment, the organisation has broadened its focus from only exports to promoting foreign direct investment (FDIs) into Japan as well as helping small and medium enterprises maximise their global potential.

JAPAN'S FDI IN THE UAE (VALUE IN US $ MILLION)

YEAR

OUTWARD TO UAE

INWARD FROM UAE

2007

60

1

2008

194

1

2009

139

1

2010

-498

3

2011

207

31

2012

364

29

34 the Japan review March 2014

With the UAE supplying around 25 percent of Japan’s fuel oil requirements and the UAE also emerging as a major player in the global oil sector, Dubai was the obvious choice for the organisation to set up its regional office. Since 1981, JETRO Dubai has been connecting the business communities in Japan and the GCC. JETRO Dubai is now the central office for the MENA (Middle East and North Africa), Masayoshi Watanabe Managing Director, JETRO Dubai with offices in Cairo, Teheran, Istanbul, Tel Aviv and Riyadh. JETRO has now and political developments in the region around 70 overseas offices in over and gives appropriate guidance to 50 countries, in addition to around companies in setting up businesses in 40 offices within Japan, including its the Middle East Area. Currently, the head offices in Tokyo and Osaka. number of Japanese companies operating in the UAE exceeds 400 with most of the FIRST POINT OF CONTACT Dubai based-companies located in the JETRO Dubai plays the role of a emirate’s free zones. The UAE capital catalyst in the development of bilateral Abu Dhabi also hosts a sizeable number trade between the two countries. Since of Japanese companies.

Dubai is the trading hub for the entire JETRO’s Investment Business Support Middle East, the organisation extends its Centers (IBSC) in Japan offer foreign services to traders outside of the GCC businesses everything they need to know as well. Generally JETRO Dubai serves to begin investing in Japan. The IBSCs as the first point of contact for Japanese are stocked with a wealth of relevant businesses who are looking to expand business information and offer access or relocate to the UAE or other GCC to industry experts, legal scriveners, countries. The organisation’s research accountants, ICT specialists and certified wing constantly monitors the economic social insurance consultants through

Number of Japanese business entities in UAE

its offices located in Tokyo, Yokohama, Nagoya, Osaka, Kobe and Fukuoka.

The business community’s response to JETRO and its IBSCs, on both sides, has been hugely positive and JETRO receives numerous trade enquiries from across the region. JETRO’s invitation and regional tie-up programmes and its participation in the various exhibitions and trade fairs in the UAE are exceptionally well-received and appreciated by the business community.

to visitors a variety Japanese specialties such as confectionery, condiments, fruit/vegetables, sesame-products,

noodles, frozen processed foods, green tea and more. Since Gulfood welcomes buyers from all over the world, JETRO successfully utilised the popularity of the exhibition to expand the market for Japanese producers as well as further develop the food business between the MENA region and Japan.

JETRO also enjoyed a significant presence at the Arab Health 2014 exhibition. Arab Health is the largest health trade show in the Middle East and JETRO lead a consortium of 13 companies at the exhibition showcasing a unique variety of high-tech and innovative medical products. Exchange of technology and expertise in the healthcare industry features high on the economic policies of both countries and JETRO is actively bridging the gap between the two nations. Participants at Arab Health included which debuted its ultrasound bone densitometer presented its advanced rehabilitation and physiotherapy equipment and focused on treatment of intractable cancer through Boron Neutron Capture Therapy amongst others.

TARGET SECTORS Japanese automobiles, electronics, communication equipments and construction and building materials have dominated the UAE markets for a long time. There is a growing interest in the country’s infrastructure, industrial and service sectors as well. JETRO is also keenly focused on the expansion of trade in foodstuff, healthcare, entertainments, fashion and beauty products in order to widen the Japanese business horizon in the region.

After a two – year hiatus, Japan made an impressive comeback at Gulfood 2014 – the world’s biggest annual food and hospitality show. The Japan pavilion, comprising of 13 exhibitors, introduced gulfbusiness.com 35

PROFILE JETRO

Image source: JETRO

JETRO is positive that UAE’s win of the Expo 2020 bid will lead to surge in business opportunities. Growth is forecast in sectors of tourism, transport, hospitality, construction, infrastructure, communication and information technology. JETRO is also expected to be in charge of the Japanese National Pavilion at the 2020 event just as it has been for past expos.

FUTURE PLANS JETRO will follow a two-pronged approach towards future business opportunities. The first is to sustain the dominance of Japanese companies in the supply of motor vehicles, machinery, electronics and communication equipment. Additionally, it will take special efforts to promote new industries

JETRO is positive that UAE’s win of the Expo 2020 bid will lead to surge in business opportunities and aims to attract increased investments from other Middle Eastern countries.

36 the Japan review March 2014

such as medical equipment, animation film industry, foodstuff – including fish and fresh fruits – and even fashion and accessories.

JETRO aims at making the residents of the UAE more familiar with the taste and culture of Japan.

WHERE CREATIVE LEGENDS ARE MADE Expand your horizons with the greatest storytellers in marketing, technology and innovation. Be inspired by creative legends in the making at the Dubai Lynx International Festival of Creativity.

9–12 March 2014 Madinat Jumeirah, Dubai Book your delegate pass now at www.dubailynx.com THIS YEAR’S OUTSTANDING SPEAKERS INCLUDE:

KAREN CORRIGAN Co-Founder, CEO Happiness Brussels/ BLISS Mobile&Interactive

JOHN O’KEEFFE Worldwide Creative Director WPP

RORY SUTHERLAND Vice Chairman Ogilvy Group

STEPHEN WEBSTER Jewellery Designer Co-Sponsors

In association with

Supported by

In partnership with

PROFILE JAFZA

JAFZA: The Perfect Partner Since its inception Jafza has played a central role in attracting Japanese companies to the UAE Jebel Ali Free Zone (Jafza) is one of the world’s largest and fastest growing free zones. Established in 1985, it is the flagship free zone operation of the Economic Zones World. The leading hub of the Middle East, the free zone contributes 21 percent to Dubai’s GDP on a year to year basis. Over the last six years its customer base has expanded by 60 percent. Today Jafza is home to over 120 of the Fortune Global 500 enterprises from across the world. Jafza

offers a range of benefits for companies, which very few free zones offer, like 100 per cent ownership, simple administrative procedures, 50-year tax break, worldclass infrastructure and no-restrictions employment, which are attractive proposition for global businesses.

Jafza also became an integral part of the ambitious Dubai Logistics Corridor, which opened in 2010 as a collaboration between Economic Zones World and Dubai Aviation City Corporation

(DACC). Dubai Logistics Corridor is designed to be the world’s largest multimodal logistics platform that links sea, land and air to facilitate the transportation of goods in record time. Jafza is co-located with Jebel Ali Port (the world’s largest man-made port), within minutes of Dubai International Airport – the world’s second busiest and adjacent to the new Al Maktoum Airport. The upcoming Etihad Rail will further connect the free zone to Saudi Arabia and Oman.

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PROFILE JAFZA

Adil Al Zarooni, Senior Vice President, Jafza Sales

CONSOLIDATING BUSINESS TIES The UAE has proven to be a preferred business destination for Japanese companies looking to base themselves in the MENA region. Over 40 percent of Japanese companies in the region are based in the UAE. Infact, the various operational benefits at Jafza have been a major contributing factor in attracting a number of Japanese companies to the free zone. Today, Jafza alone is home to over 117 Japanese companies, including Hitachi, Toshiba, Panasonic, Nissan, Mitsubishi Motors, Bridgestone, Fuji Film, Sony, Obayashi and Sumitomo Corporation. Many of these companies are members of the Japanese Business Council. JETRO’s (Japan External Trade Organisation) relationship with Jafza dates back to 1985, when the freezone was first established.

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Gota Akai, Japan Market Representative, Jafza

Adil Al Zarooni, Senior Vice President, Jafza Sales said: “Jafza has emerged as an important commercial gateway for Japanese companies, serving key markets in the Middle East and North Africa. It

is a vital profit centre and an important re-export centre for these companies.

The free zone has consistently sought to provide a favourable environment to industrial, trade and logistics sectors.

With continuous upgrades to its infrastructure and service offerings, customised investment models, dedicated build-to-suit capability and a host of other incentives, Jafza is a prime investment destination.”

Japan-Jafza bilateral trade is estimated to have hit Dh 9.6 billion in 2012, posting a growth of over 28 per cent in the last four years. The freezone has always considered Japan to be a vital trade partner and has been conducting periodic road shows and seminars in Japan for almost two decades, working closely with the JETRO, Japan Cooperation Centre for the Middle East among other organisations and partners.

Jafza works closely with the Japanese Business Council (JBC) on best approaches and practices to stimulate investment and regularly conducts road shows and seminars in key markets to

generate interest. Take for instance the road shows Jafza conducted in Osaka, Nagoya and Tokyo, Japan’s three major business hubs, last year. The event included one-to-one meetings with leading Japanese businesses and business seminars in all the three cities. The JBC also considers Jafza a key ally in the Middle East and this was evident in the words of Yasuyoshi Matsunaga, Managing Director of Toshiba Gulf and the Director of the Jafza division of the Japanese Business Council “The meeting was a very fruitful one and we are very impressed with the new developments in Jafza’s infrastructure and service offerings. The Japanese business community’s mandate is to strengthen business relationships between Japanese and local companies and organisations.

We consider Jafza a valuable partner in the Middle East and look forward to collaborating with them to facilitate businesses of Japanese companies in Dubai and to further stimulate trade relations between the economies.”

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PROFILE BRIDGESTONE

Bridgestone – The World’s Favourite Tyre

Shoichi Sakuma, President of Bridgestone Middle East & Africa

Bridgestone Corporation, headquartered in Tokyo, is the world's largest tyre and rubber company. Sold in over 150 countries across the globe, the Bridgestone product range includes tyres, industrial rubber and chemical products as well as sporting goods

B

ridgestone Middle East & Africa FZE (BSMEA) opened its first regional office in Dubai in 1999.

In 2006, Bridgestone’s Strategic Business Unit for the Middle East and Africa opened in Jebel Ali Free Zone (Jafza).

Built with the objectives of speeding up decision-making and optimising regional strategy, this regional headquarters now manages and coordinates 12 regional offices and operations in more than 46 countries, ensuring Bridgestone’s position as the industry leader across the region.

In January 2013, the mega Bridgestone Park was inaugurated in Jafza. This 21,678sqm facility is the company’s first dedicated training centre that serves the Middle East and Africa, and has been created for Bridgestone employees,

Bridgestone Park

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distributors, and business partners from across MEA to develop and enhance their knowledge and skills. Through the Bridgestone Park, the organisation is investing in increased professional training standards and taking learning and acquiring knowledge to a higher level.

Bridgestone Park boasts a FirstStop retail store – Bridgestone’s passenger car auto service centre, the Truck and Bus Tyre Service Centre, and a Bandag Learning Centre, specialising in tyre retread training.

Shoichi Sakuma, President of BSMEA, says “Building on a firmly established partnership with Jafza, Bridgestone Park is a clear example of how Bridgestone is working to deliver on its mission – to serve society with superior quality – here in the MEA region. The investment

we’ve made in Bridgestone Park means we can provide our regional partners with new and enhanced services, and train our staff to deliver the highest possible standards of customer care.”

Just one year on from opening, Bridgestone Park has already become a strategic and state-of-the-art hub to enhance employees’, partners’, and distributors’ skills and knowledge, and to better serve Bridgestone’s customers and communities. As Sakuma says, “Bridgestone believes in earning the trust and confidence of customers. Through our educational and training work we also strive to increase road safety levels, build environmental awareness, and bring the best in customer care.” www.bridgestone-mea.com