MANAMA (Kyodo) Ever since Bahrain resident Nader Mohammad heard from a friend about a "very good" shop that opened in the tiny Mideast state in 2005, he has become a fan of the Japanese variety store where almost every product is the same price.

"There are things which I don't find in other shops. . . . I was happy to hear about a second shop opening near my house," the 34-year-old Bahraini soldier said as he perused a selection of household items in The Daiso — the Bahrain branch of Japan's leading "one-coin" store chain Daiso Industries Co.

Major Japanese trading firms first put down roots in the region and were followed by construction companies as development projects grew. Now small and midsize companies, including 100 yen shops and conveyor-belt sushi eateries, are making their entrance, according to Miho Shibata at the Japan External Trade Organization's Overseas Research Department.