This paper presents short case studies examining five such projects in
the Gulf. The legacy and outcomes of Japan’s FDI ventures is a mixed
one. On the one hand, Japan did create goodwill and strong ties with
Gulf oil producers which remain important in the present day. Japanese
equity in Gulf crude oil production also succeeded in providing a small
but steady supply of Japan’s imported crude. On the other hand, Japanese
firms fell victim to government expropriation and other legaleconomic
hazards. In one case, a struggling Japanese joint venture
failed when it became part of a wartime battlefield. For the FDI recipients,
the legacy of Japanese FDI remains a mixture of strong technical
transfers, particularly in petrochemicals, but limited assistance in
economic diversity or job creation.

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