Saudi Arabia and Brazil upgraded their economic partnership to unprecedented heights as they signed 25 Memoranda of Understanding (MoUs) at the Brazilian-Saudi Investment Forum on July 31. The signing ceremony was a definitive move towards amplifying bilateral trade and diversifying sectoral collaboration, encompassing areas such as Petrochemicals, Food Processing, Tourism, Healthcare, Real Estate, Construction, and Aerospace & Defense.
The forum, hosted in São Paulo, witnessed robust participation from the Ministry of Investment of Saudi Arabia (MISA). The high-profile event marked the beginning of an extensive Latin American tour, led by the Saudi Minister of Investment, Khalid Al-Falih. This expedition is set to span six nations, including Brazil, Chile, Costa Rica, Argentina, Panama, and Paraguay.
The timing of the forum is highly symbolic, as 2023 marks half a century since the establishment of the Saudi embassy in Brazil and the commencement of official bilateral governmental visits. Since 1973, the mutual bond has consistently strengthened, culminating in an impressive $3.62 billion bilateral trade figure in 2021. The complementary export profiles of both nations suggest a prosperous future brimming with potential for exponential growth.
Among the notable MoUs, one was signed between the civil construction giant OEC and MISA, paving the way for OEC to establish a regional headquarters in Saudi Arabia. This partnership aims to tap into promising construction opportunities, with the provision of working in unison with Saudi construction companies. A similar agreement was reached with Light Capital, which plans to inaugurate a regional headquarters for exploring payment system opportunities in the Middle East.
Earlier this month, a significant agreement was struck between Manara Minerals, a joint venture of Ma’aden and the Public Investment Fund (PIF), and Vale’s Energy Transition Metals business. This deal aligns with other key partnerships, such as the 25% stake held by the Saudi Agricultural and Livestock Investment Company (SALIC) in Minerva Foods, a leading Brazilian meat producer. Additionally, PIF’s Brazilian program targets an investment of up to $10bn in Brazil as part of a wider international investment strategy.
Throughout the Latin American tour, MISA will spotlight the unrivaled investment opportunities in Saudi Arabia. The Kingdom has shown robust non-oil sector growth in recent years and is working to unleash over $3 trillion in investment opportunities through its National Investment Strategy. This move indicates a palpable shift in the Kingdom’s economic trajectory, eagerly welcoming international participation for its continued growth and prosperity.
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