Japan and Israel are expected to sign a memorandum of understanding to make it easier for Japanese firms to take part in Israeli infrastructure projects.
The deal will likely be signed by Israel’s Economy and Industry Ministry and a public-private fund, Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development. Covenants, Israel will provide bidding information on domestic infrastructure projects while the Japanese side will introduce companies.
Israel is carrying out high-speed rail and subway construction projects as its economy and population continue to grow. The projects are worth a total of about 18 billion dollars.Chinese and French companies have won rights to join the projects. Japanese businesses will also be able to participate once the memorandum is inked.
Japanese firms have long been cautious of doing business with Israel as such moves could invite economic sanctions by Arab nations, which are at odds with Israel.
Presently, Arab countries have been less concerned about companies dealing with Israel. This is because rivalries among Middle Eastern nations have become more complicated due partly to Islamic sectarian tensions.