Qatar Ambassador Ahmed Abdulla Al-Khal said Monday the Gulf state wants to develop closer political, economic and cultural relations with Japan, its largest trading partner.

To diversify an economy heavily dependent on oil and natural gas, Qatar is trying to attract foreign investment by offering cheap energy and labor, tax and other incentives, the envoy told The Japan Times. Besides energy development, the state has many projects suitable for small and medium-size foreign firms, he said.

Qatar exports 80 percent of its oil and 98 percent of its natural gas to Japan, which annually buys 6 million tons of liquefied natural gas from the emirate under a 25-year contract. Japanese firms operating in Qatar include Marubeni, Mitsui, Nissho Iwai and Itochu. The ambassador said his country hopes to strengthen relations with Japan in such fields as politics, culture, education and sports in addition to already close economic ties.

Next year, the emirate will start exporting 4.5 million tons of LNG a year to South Korea. Qatar has the capacity to produce more natural gas to supply to countries that include India and China, the ambassador said. He welcomed the recent agreement between Iraq and the U.N. secretary general over arms inspections and said the Gulf region needs peace.