Linking the Middle East and Japan Through a Circular Economy (1)

The Yokogawa Future Co-creation Initiative transcends nations and industries to envision future scenarios from a far-reaching perspective through co-creative dialogue. Naoki Tamaki, a fellow at Chatham House (the Royal Institute of International Affairs), has been invited to join the Initiative as a Future Co-creation partner to elevate the scope and broaden the perspective of discussions.

Based in Saudi Arabia, Naoki Tamaki—active worldwide—focuses his research on the circular economy through the lenses of project finance and geopolitics.

In this interview, Naoki shares his current views—critical to considering the future of our planet—as we delve into his Middle East focus and how Japan can contribute to a circular economy-based society, herein referred to as a “circular economy.”

*Insights shared in this dialogue are personal and do not represent those of any organization.
*Affiliations and positions are current at the time of this writing (Nov, 2025).
*The interview was conducted at MIRAI LAB PALETTE (MLP).

 

Yokogawa’s long-standing relationship with the Middle East

Japan relies heavily on crude oil from Middle Eastern nations. Nevertheless, anticipating a future global economy free of dependency on oil, Saudi Arabia stunned the world in February 2025 by announcing a major AI investment of $14.9 billion. While significant geographic and cultural gaps remain between Japan and the Middle East, gaining insight into—and forging ties with—this economically developing region is key to the future.

Yokogawa fully entered the Middle East market in 1981 and has since built a solid track record and expanded its business in the region. The Middle East and Africa currently account for over 17% of total sales, ensuring this is a key region for the Yokogawa Group (data: March 2025).

Yokogawa Middle East & Africa B.S.C.(c) ｜Bahrain Office

Naoki’s long-standing connection with Yokogawa dates back to his twenties when he was assigned to the Bahrain office of the Bank of Tokyo (now MUFG Bank). He handled the account for Yokogawa’s regional subsidiary—Yokogawa Middle East & Africa B.S.C.(c) (YMA).

Pursuing diverse values: Relocating from Japan to Cairo

Naoki’s path to the Middle East was truly unique.

He attended a private educational institution in Tokyo, all the way from junior high school through university, where he felt a certain unease with the rigid, fixed values. After graduating from university, he began working for the Bank of Tokyo, Ltd., and volunteered for a posting at a regional branch.

“I wanted to escape the stagnation and incongruity I was feeling. As soon as I found that the bank had a foreign language learning program that included Arabic, I immediately decided to study abroad. I was headed for Cairo, a place I had visited as a student. I thought, ‘This is it!’”

Experiencing culture shock in Cairo’s Islamic society, Naoki struggled to find his footing. Encounters such as negotiating in taxis and shopping scenarios, where rules and prices shifted depending on the people, goods, and time involved, left him feeling that “there are as many values as people.” Freed from the stereotypes he had found stifling in Japan, Naoki gradually became captivated by the curious sensations of life in the Middle East.

Is GDP alone a truly comprehensive parameter?

Naoki was able to deepen his ties with the Middle East, building on his time as a student in Cairo. Following years of working in the region’s finance sector, he eventually came to realize the importance of a society rooted in the principles of the circular economy.

“In the banking sector, I was involved in project finance, funding major initiatives in the Middle East. I provided loans for large-scale projects also of interest to Yokogawa: petrochemical plants, oil refineries, and power plants.

Yokogawa Middle East and Africa Regional Office L.L.C.｜Saudi Arabia Office

“Projects realized in the Middle East, an oil- and natural gas-producing region, are based largely on hydrocarbons. So you could say I had a hand in global warming.”

Naoki pondered the situation further.

“Project finance exists to further the development of a nation’s economy and industry, but I couldn’t help wondering precisely what sort of development I was promoting. I might have been aiding economic growth—the GDP—but was that really leading to people’s happiness?

“You see, the projects I was financing produced a massive volume of CO2, spurring global warming. From the planet’s point of view, my actions made no sense at all.”

Naoki narrowed his focus toward the concept of a circular economy and shifted into research, investment, and consulting.

Tackling global issues with Saudi Arabia as the nexus

“Humanity’s greatest challenges right now stem from the population explosion and economic growth. The projected global population increase of 1.7 billion people by 2050 is expected to come primarily from Africa, the Middle East, and South/Southeast Asia, with a major concentration in the broad Indian Ocean Rim Region. How will we supply the necessary food, energy, and goods? If we continue down the current path, the Indian Ocean will be full of plastic waste, and the African continent will be buried in garbage. We will destroy the planet.”

How can Japan help find solutions? Naoki suggests that as most nations in the region are Islamic, Saudi Arabia, the leading voice among them, holds the key.

“Saudi Arabia is home to Islam’s two holiest sites—Mecca and Medina—and has a sizable population of about 35 million. Petrodollars enable it to assume a leadership role. The Kingdom is also home to the headquarters of the Islamic Development Bank, which acts as a sort of World Bank for the Islamic world. Saudi Arabia is currently implementing various initiatives to achieve its goals by opening up the country and bringing about significant change.”

However, Saudi Arabia’s waste recycling rate is a mere 5%, with 95% being dumped in the desert. The nation is aiming to raise its recycling rate to 90% by 2035, an endeavor toward which Japan can contribute, says Naoki.

“Japan’s advanced technology and philosophy for a circular economy could be leveraged to help Saudi Arabia solve the problem. If successful, Japan could expand the method to the Indian Ocean Rim Region, adapting the phrase ‘Intel Inside’ to the Saudi model as ‘Japan Inside.’ After all, Saudi Arabia is the gateway to the Global South, which encompasses much of the Islamic world.”

Taking Japan’s philosophy to the world

Japan’s deeply rooted culture of respect for nature and objects, along with its lack of resources, sustains the “mottainai spirit” of avoiding waste and conserving the blessings of nature. The nation’s geography—limited flat land and few options for refuse disposal—have encouraged advanced recycling technologies to realize a circular economy.

“Many at the United Nations and elsewhere believe that environmental problems can be solved by technology and funds. Yet the Japanese, who live in a typhoon- and earthquake-prone land, see nature both as a blessing and an unconquerable threat. It is the sense of being one with the universe.

“That, in a nutshell, is the philosophy of the Japanese and a key to solving environmental problems. Conveying this is Japan’s role in moving toward a circular economy.”

 

*Continued in Interview Part 2