São Paulo – Green energy and food security are two main sectors Saudi Arabia is interested in investing in Brazil. The financial, automotive, agricultural, transport & logistics, infrastructure, ecotourism, and entertainment sectors were others mentioned by the Saudi Arabian minister of Investment, Khalid Al-Falih, at the Brazil-Saudi Arabia Investment Forum, which took place this Monday (31) morning at the headquarters of the Federation of Industries of the State of São Paulo (FIESP), in the city of São Paulo.
“With the evolution of the Global South coupled with shared ideals between Brazil and Saudi Arabia, aligned strategic interests, and solid private sectors, which we respect, why couldn’t we become a top five investor in each other’s economy? I believe we could, should, and it is feasible. This is the goal of each delegation member, both public and private sector; this was the guidance we received from our leadership with this historic mission we are carrying out,” declared Al-Falih in his speech at the event. The Saudi delegation has around 100 people.
Al-Falih stated Brazil and Saudi Arabia have many qualities in common, despite the geographic distance. “We are two proud of the G20 and major energy producers. We are well-positioned to be strategic partners, the economic leaders of our respective regions,” he said.
Regarding climate change, he recalled the goals of zeroing carbon emissions are also close. “Brazil’s long-term commitment is to have zero emissions by 2050 and reduce emissions by 50% by 2030, and the Kingdom aims to reach zero emissions by 2060, which will be quite challenging for Saudi Arabia, given we are a significant producer of hydrocarbons [oil and gas] and a very industrialized country. We don’t have the blessings of the Amazon to absorb our carbon emissions, but we’re looking for it,” he said.
The minister mentioned a Saudi green hydrogen project had over USD 10 billion in investments, and his country wants to replicate it in Brazil. “We also launched green initiatives in Saudi Arabia and the Middle East to boost renewable energy and circular economy and plant 50 billion trees, 10 billion of which in Saudi Arabia,” he said.
The Kingdom has also been advancing in the automotive sector and aims to produce half a million electric vehicles annually. The minister said they will need investment in batteries and other supplies.
The Saudis have also been investing in the country to become a regional food security hub, want to invest in Brazilian agricultural production, and continue to be a prominent supplier of fertilizers.
“For this, we need a robust transport and logistics sector, considering Brazil’s vast territory and economic scale. This need is to ensure everything runs smoothly, especially in the global supply chain, for commodities and imported goods. An infrastructure improvement would reduce logistics costs in Brazil,” he declared.
Saudi Arabia intends to attract 100 million tourists by 2030, and for that, it has been investing in ecotourism and entertainment and sees Brazil as a reference in these sectors. Al-Falih mentioned the Fasano Hotel signed a Memorandum of Understanding (MoU) to invest in one or two projects in Saudi Arabia.
Saudi Arabia also wants to invest in Brazilian biofuels and biochemicals and sees this market could have great potential. The Arab country wants to host Expo 2030 and is optimistic about the election.
“What I’ve mentioned here are just a few of the many sectors we’ve found great potential. But our interest and extend to all opportunities for large, medium, small companies, and innovative startups,” he said. Al-Falih also mentioned interest in the pharmaceutical, biotechnology, agrotechnology, and aerospace industries and said he would visit Embraer. The Brazilian financial sector was also mentioned.
The minister of Development, Industry, Commerce, and Services and vice president of Brazil, Geraldo Alckmin, also spoke at the event. He recalled Arabs are strongly present in Brazilian culture and the state of São Paulo and said his name could have an Arab origin.
For the vice president, there are great opportunities for partnerships and investments between the countries, such as in petrochemicals, energy, automotive, ethanol, sustainable aviation fuel (SAF), and infrastructure.
He said Brazil has a significant lithium reserve and made its first ore export from the Jequitinhonha Valley in Minas Gerais through a port in Espírito Santo. “Now we have the challenge of taking the most important step, which is the production of cells and batteries for electric vehicles,” he said.
Alckmin stated Brazil has been growing with stability and predictability. “Brazil is growing, the GDP is up, unemployment has dropped, our currency has appreciated, and the stock market has climbed. It encourages us to carry out even more reforms and seek greater economic efficiency,” he said. Alckmin highlighted the tax reform would stimulate the Brazilian industry by reducing the “Brazil cost” and relieving taxes on investments in Brazil and exports.
The minister and vice president also mentioned the reduction in deforestation in the first half of this year. “We can proudly state deforestation fell by over 50% in this first half. Brazil is committed to fighting climate change and [protecting] the Amazon rainforest,” he said.
The forum was a partnership between FIESP, Sete Partners, and Invest Saudi, Saudi Arabia’s investment agency, with from the Arab Brazilian Chamber of Commerce (ABCC).
Translated by Elúsio Brasileiro
