SAO PAULO: Inexperienced power and meals safety are two of the principle sectors wherein Saudi Arabia is excited about 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 personal sectors, which we’ve a lot respect for, why couldn’t we turn out to be a top-five investor in one another’s economic system?” he stated.
“I consider that we will and will, and that it’s attainable. That is the target of every member of our delegation, each the private and non-private sectors.
“This was the steering we acquired 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 power 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’ targets of web zero carbon emissions are additionally carefully aligned.
“Brazil’s long-term objective is to have zero emissions by 2050 and to cut back emissions by 50 % by 2030, and the Kingdom intends to achieve zero emissions by 2060, which will likely 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 searching for methods to do it.”
He talked about a Saudi inexperienced hydrogen mission that has greater than $10 billion in investments, and that the Kingdom needs to duplicate in Brazil.
“We additionally launched inexperienced initiatives in Saudi Arabia and the Center East to extend renewable power and the round economic system, along with the mission to plant 50 billion timber, 10 billion of them in Saudi Arabia,” he stated.
The Kingdom has additionally been advancing within the automotive sector, and goals to supply half one million electrical vehicles per yr, for which investments will likely be wanted in batteries and different supplies, Al-Falih stated.
Saudi Arabia can be in search of to turn out 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 want 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 things 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 Lodge 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 needs 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 numerous sectors that we’ve discovered nice potential in, however our curiosity and help are prolonged to all alternatives for giant, medium and small firms, in addition to revolutionary 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 vp and minister of growth, business 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 identify may need an Arab origin.
He added that there are nice alternatives for partnerships and investments between the 2 international locations within the petrochemicals, power, automotive, ethanol, sustainable aviation gasoline and infrastructure sectors.
Alckmin stated Brazil has vital lithium reserves, and has simply exported it for the primary time.
“Now we’ve the problem of taking a very powerful 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 forex) 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 business.
With regards to deforestation, Alckmin stated: “We will proudly document that deforestation fell by greater than 50 % on this first half (of this yr). Brazil is dedicated to the Amazon rainforest and to combating local weather change.”