Riyadh – Attraction of investment to Brazil set the tone of the visit of Brazil’s Development, Industry and Foreign Trade minister Fernando Pimentel to Saudi Arabia on Saturday (18). He had meetings with the Saudi ministers of Industry and Trade, Tawfic Al Rabiah, and Agriculture, Fahad Balghunaim, in Riyadh, the country capital.
Pimentel stated that the government of Brazil considers Saudi Arabia a very important ally in politics and economics. “We are certain that it is possible to greatly expand relations between these two friendly and brotherly nations,” said the Brazilian minister to Rabiah, adding that both nations have political relations of “great identity” in international forums, like the UN.
He added that both economies are complementary. On one side, Saudi Arabia has oil and financial resources that Brazil needs. On the other side, Brazil has agricultural production that may guarantee food safety to the Saudis in the long run.
“We aim to attract investment to our agribusiness area. Brazilian companies that are international ‘players’ could receive Saudi capital and guarantee food safety in the long run,” said Pimentel.
Rabiah said that the country is interested in the theme, as it is the country government’s policy to invest in agriculture abroad in an attempt to guarantee supply of the domestic market. Saudi Arabia is desert and does not produce sufficient food for its population.
Balghunaim pointed out that Brazil went to “school” in the agricultural area. “This is very encouraging for us to expand our investment in the country,” he pointed out, adding, however, that it is private companies that make the investment, and the government only provides incentives.
To Balghunaim, it is “strange” that there is not more Saudi investment in Brazil, despite the Brazilians “doing their part” in promotion of opportunities. “We cannot understand the why,” he said.
In this respect, Pimentel suggested the promotion of a meeting between Brazilian agribusiness companies and Saudi investors in the first half of this year. The idea is to bring companies that have international operation and need capital to expand their business together with investors interested in the sector.
“There are Brazilian companies that are at a moment in which they need an international partner,” said Pimentel. “And it is easier to be a partner of friends,” he concluded. Balghunaim added that there is much Saudi capital seeking places to invest and added that marketing projects are necessary.
Pimentel said he counts on the support of the Arab Brazilian Chamber of Commerce to make the meeting possible. The organisation’s president, Salim Taufic Schahin, participated in the meetings in Riyadh, as did the ambassador of Brazil to the Saudi capital, Sérgio Canaes.
Schahin recalled that there is an initiative for establishment of a Brazil-Saudi Business Council, whose aim is to discuss themes of interest to the private sectors in both countries. The members on the Brazilian side have already been nominated, but the Saudis have not yet selected theirs.
Pimentel also said that there are opportunities for foreign investors in the areas of infrastructure, especially in concessions of airports, highways, ports and railways.
He also delivered to Rabiah a letter from president Dilma Rousseff inviting king Abdullah Bin Abdulaziz to the Rio+20, a UN conference to take place in July.
The day spent in Riyadh concluded the Development, Industry and Foreign Trade mission to the Middle East, which also included events in Qatar and in the United Arab Emirates.
*Translated by Mark Ament
