SAO PAULO: Inexperienced vitality and meals safety are two of the principle sectors by which Saudi Arabia is excited by investing in Brazil, the Kingdom’s funding minister stated on Monday.
Khalid Al-Falih, who was talking on the Brazil-Saudi Arabia Funding Discussion board on the Federation of Industries of the State of Sao Paulo, additionally cited the monetary, automotive, agricultural, transport and logistics, infrastructure, ecotourism and leisure sectors as different areas of curiosity.
“With the evolution of the International South coupled with shared values between Brazil and Saudi Arabia, aligned strategic pursuits and robust non-public sectors, which we now have a lot respect for, why couldn’t we grow to be a top-five investor in one another’s financial system?” he stated.
“I consider that we are able to and will, and that it’s potential. That is the target of every member of our delegation, each the private and non-private sectors.
“This was the steerage we obtained from our management with this historic mission that we’re finishing up.”
The Saudi delegation, comprising round 100 individuals, will go to six different Latin American international locations till Aug. 9: Argentina, Uruguay, Paraguay, Chile, Costa Rica and Panama.
Al-Falih stated Brazil and Saudi Arabia have many commonalities regardless of geographic distance.
“We’re two proud G20 members and main vitality producers. We’re nicely positioned to be strategic companions, being the financial leaders of our respective areas,” he added.
When talking about local weather change, he stated each international locations’ objectives of internet zero carbon emissions are additionally carefully aligned.
“Brazil’s long-term aim is to have zero emissions by 2050 and to scale back emissions by 50 p.c by 2030, and the Kingdom intends to succeed in zero emissions by 2060, which shall be fairly difficult for Saudi Arabia contemplating that we’re a big producer of hydrocarbons and a really industrialized nation,” Al-Falih added.
“We don’t have the blessings of the Amazon to soak up our carbon emissions, however we’re on the lookout for methods to do it.”
He talked about a Saudi inexperienced hydrogen challenge that has greater than $10 billion in investments, and that the Kingdom desires to copy in Brazil.
“We additionally launched inexperienced initiatives in Saudi Arabia and the Center East to extend renewable vitality and the round financial system, along with the challenge to plant 50 billion bushes, 10 billion of them in Saudi Arabia,” he stated.
The Kingdom has additionally been advancing within the automotive sector, and goals to provide half one million electrical vehicles per yr, for which investments shall be wanted in batteries and different supplies, Al-Falih stated.
Saudi Arabia can be searching for to grow to be a hub for meals safety within the area, and desires to put money into Brazilian agricultural manufacturing and proceed to be a significant provider of fertilizers, he added.
“With the intention to do that, we’d like a powerful transport and logistics sector, contemplating Brazil’s huge territory and financial scale,” he stated.
“That is crucial to make sure that all the pieces runs easily, particularly within the international provide chain, for commodities and imported merchandise. An enchancment in infrastructure will decrease Brazil’s logistics prices.”
Saudi Arabia intends to draw 100 million vacationers by 2030, and for that it has been investing in ecotourism and leisure, and sees Brazil as a reference in these sectors, Al-Falih stated.
He added that Resort Fasano, a high-end Brazilian lodge chain, has signed a memorandum of understanding to put money into one or two initiatives in Saudi Arabia.
The Kingdom additionally desires to put money into Brazilian biofuels and biochemicals, and Al-Falih stated it sees nice potential on this market in Latin America.
“What I’ve talked about listed below are just some of the various sectors that we’ve discovered nice potential in, however our curiosity and assist are prolonged to all alternatives for big, medium and small corporations, in addition to progressive startups,” he added.
Al-Falih additionally talked about Saudi curiosity within the pharmaceutical, biotechnology, agrotechnology and aerospace industries, and stated he’ll go to the headquarters of Brazilian aircraft producer Embraer.
Geraldo Alckmin, Brazil’s vice chairman and minister of improvement, trade and commerce, additionally spoke on the occasion.
He recalled that Arabs have a powerful presence in Brazilian tradition and within the state of Sao Paulo, and stated his title might need an Arab origin.
He added that there are nice alternatives for partnerships and investments between the 2 international locations within the petrochemicals, vitality, automotive, ethanol, sustainable aviation gas and infrastructure sectors.
Alckmin stated Brazil has vital lithium reserves, and has simply exported it for the primary time.
“Now we now have the problem of taking crucial step, which is the manufacturing of batteries for electrical vehicles,” he added.
Brazil has been growing itself with stability and predictability, Alckmin stated. “Brazil is rising, its GDP (gross home product) has grown, unemployment has dropped, the actual (the nation’s foreign money) has appreciated, the inventory market has risen, however this could spur us on to make much more reforms and pursue extra financial effectivity,” he stated, including that tax reform will stimulate Brazilian trade.
As regards to deforestation, Alckmin stated: “We are able to proudly document that deforestation fell by greater than 50 p.c on this first half (of this yr). Brazil is dedicated to the Amazon rainforest and to combating local weather change.”