SAO PAULO: Inexperienced power and meals safety are two of the principle sectors wherein Saudi Arabia is eager 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 World South coupled with shared values between Brazil and Saudi Arabia, aligned strategic pursuits and robust non-public sectors, which we have now a lot respect for, why couldn’t we change into a top-five investor in one another’s economic system?” he stated.
“I consider that we are able to and may, and that it’s doable. That is the target of every member of our delegation, each the private and non-private sectors.
“This was the steering we obtained from our management with this historic mission that we’re finishing up.”
The Saudi delegation, comprising round 100 folks, will go to six different Latin American nations 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 nations’ objectives of internet zero carbon emissions are additionally carefully aligned.
“Brazil’s long-term purpose is to have zero emissions by 2050 and to scale 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 in search of methods to do it.”
He talked about a Saudi inexperienced hydrogen undertaking 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 undertaking 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 provide half one million electrical automobiles per 12 months, for which investments will likely be wanted in batteries and different supplies, Al-Falih stated.
Saudi Arabia can also be searching for to change into a hub for meals safety within the area, and desires to put money into Brazilian agricultural manufacturing and proceed to be a serious provider of fertilizers, he added.
“With a view to do that, we want a powerful transport and logistics sector, contemplating Brazil’s huge territory and financial scale,” he stated.
“That is obligatory to make sure that every part runs easily, particularly within the world 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 resort chain, has signed a memorandum of understanding to put money into one or two tasks 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 various 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, 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 identify may need an Arab origin.
He added that there are nice alternatives for partnerships and investments between the 2 nations within the petrochemicals, power, automotive, ethanol, sustainable aviation gas and infrastructure sectors.
Alckmin stated Brazil has necessary lithium reserves, and has simply exported it for the primary time.
“Now we have now the problem of taking an important step, which is the manufacturing of batteries for electrical automobiles,” he added.
Brazil has been creating itself with stability and predictability, Alckmin stated. “Brazil is rising, its GDP (gross home product) has grown, unemployment has dropped, the true (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.
With regards to deforestation, Alckmin stated: “We are able to proudly file that deforestation fell by greater than 50 % on this first half (of this 12 months). Brazil is dedicated to the Amazon rainforest and to combating local weather change.”