[Vol. 1] From the Frontlines of Saudi & Middle East Business

My Encounter with Saudi Arabia

— 2015: In a Kingdom Once Closed —

Introduction

Nice to meet you. Starting today, I will be sharing insights every two weeks from a frontline perspective regarding the business I have been involved in within Saudi Arabia and the Middle East. For this first installment, as a way of introducing myself, I would like to talk about my encounter with Saudi Arabia and my experience living there from 2015 to 2017, which serves as the foundation of my current business.

Joining Mitsubishi Corporation and the Petrochemical Division

I joined Mitsubishi Corporation in 2011. I was assigned to the Petrochemical Division, where I was responsible for the trading of naphtha and basic chemical products that support Japan’s materials and chemical industries.

By nature, the foundation of the petrochemical industry lies in the relationship with feedstock-supplying countries. The Middle East—Saudi Arabia in particular—is one of the world’s largest exporters of petrochemical products and was an unavoidable region for us as trading company professionals. A few years after joining the company, in 2015, I was given the opportunity to be stationed in Saudi Arabia.

Saudi Arabia in 2015: A Completely Different Landscape from Today

Lately, I often hear people say, “I recently visited Saudi Arabia”. With glitzy promotional videos for NEOM, international e-sports tournaments in Riyadh, the construction boom of the entertainment city “Qiddiya,” and the presence of women drivers, today’s Saudi Arabia is an open country attracting the attention of business people worldwide.

However, the Saudi Arabia I encountered when I began my assignment in 2015 was a completely different country.

Gender Segregation in Establishments:

Restaurants and cafes had two separate entrances: the “Single Section” for unaccompanied men, and the “Family Section” for families or women only. Partitions were set up, and as a rule, men and women could not dine in the same space.

Restrictions on Women:

Women were only granted the right to drive in June 2018. During my time there, women could not drive themselves; they relied on male relatives or drivers for commuting and shopping. Employment opportunities were also extremely limited, and it was rare to see women working in the city.

Prayer Times:

Muslims pray five times a day toward Mecca. In Saudi Arabia at that time, shopping malls, convenience stores, and restaurants would all lower their shutters simultaneously during prayer times. For 10 or 15 minutes, the entire city would come to a standstill, regardless of whether you were in the middle of shopping or waiting in a checkout line.

Photography Bans:

Taking photos in public places was strictly restricted. It was not uncommon to be stopped by the police if you happened to hold up a camera in a tourist area.

Security Risks:

This was the peak of the Islamic State (IS). Suicide bombings occurred repeatedly within Saudi Arabia, and our company vehicles were bulletproof and blast-proof. Selecting hotels for business trips, choosing dining locations, and planning transit routes—every action required a safety assessment.

Diving into the Local Scene Beyond the Expatriate Community

There is a certain “template” for expatriate life: belonging to the Japanese Association, dining with fellow Japanese expats, and gathering with Japanese families on weekends. While this is not bad for relieving the stress of living abroad, I made a conscious effort to step outside that bubble.

I went to meet local Saudi businessmen. I spent hours talking with them over shisha at Arabic restaurants, was invited to their family gatherings on weekends, and shared “Iftar” (the meal after sunset) during the nights of Ramadan. We asked and answered candid questions about culture and religion.

At the time, this might not have been recognized as “the work of a trading company man,” but I believed it was the true function of a trading company. Information, relationships, and trust are not born in conference rooms. The human relationships built during that time are the cornerstone of my current business network in Saudi Arabia and the Middle East. Those who were in their 20s then have now become executives in government agencies, successors to major family businesses, or founders of emerging startups—holding decision-making power in their respective fields.

Is the “Function” of the Trading Company Professional Fading?

Recently, when I have the chance to speak with active trading company professionals, something concerns me. Expatriates often remain within the local Japanese community, spending their days commuting between internal meetings and Japanese Association events, with local networks limited to just their business counterparts. I feel that this thins the essential functions of a trading company: “information,” “bridging,” and “deal creation”.

Of course, this is less an individual issue and more about the nature of a large organization. Between safety management, compliance, and personnel rotations, it has become structurally difficult to dive deeply into the local scene.

Why I Chose Independence

Companies in Middle Eastern countries strongly desire to trade with Japanese firms. The trust, quality, and spirit of Japanese craftsmanship are genuinely valued among Middle Eastern business people.

On the other hand, Japanese companies move slowly. Decision-making takes time; it is not rare for it to take months for internal approval and over a year to conclude a contract. Compared to the business speed of the Middle East, the lead time of Japanese organizations is far too long.

Conversely, this presents a massive opportunity. A Japanese person who moves fast has scarcity value in the Middle East. Armed with that “speed” and my “local network,” I chose to become independent from the framework of a large trading company. That is my current business, Amrex Partners.

Looking Ahead

In future installments, I will provide primary information from the field regarding Saudi Arabia and the Middle East’s current affairs, the region’s appeal, places to visit, and business practices. Whether you are an executive considering expansion into the Middle East, a professional at a trading company or manufacturer looking to deepen your local experience, or someone simply interested in the “changing Saudi Arabia,” I hope this series provides valuable insights for you.

I look forward to this journey with you.

Next Episode Preview

“The Current State of Saudi Arabia and Middle East Affairs: Tectonic Shifts Brought by Vision 2030”

(Scheduled for publication in two weeks)

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