São Paulo – Brazil should participate in two great business fairs in Saudi Arabia by the end of this year, Saudi Build, in the building sector, and Saudi Agro-Food, in the food sector. Conceito Brazil, a foreign trade consultancy, with the support of the Arab Brazilian Chamber of Commerce and the Brazilian embassy to Riyadh, should take Brazilian companies from these sectors to negotiate directly with Saudi businessmen.
Conceito, which promotes participation of Brazilian companies in international events, represents Riyadh Exhibitions Company, a Saudi company that organizes business fairs, in Brazil. The partnership began this year. "We participate in fairs in Dubai and noticed that 80% of the consumption in the Middle East, especially foods, is concentrated on Saudi Arabia," said Tatiana Rodrigues, commercial director at Conceito.
Saudi Arabia has the largest economy among the Arab countries. It is the most populous nation in the Gulf and a great importer of several kinds of products. According to a study by the Arab Brazilian Chamber, the building sector is one of the main economic sectors in the country not connected to the building industry, and employs 14.7% of the workforce.
Like other nations of the Gulf, the Saudis have been investing heavily in the real estate sector, despite the financial crisis. After all, in recent years the country has accumulated great wealth from oil export revenues. Saudi has around 25% of the global oil reserves and is the main producer and exporter of the product.
Despite the lower oil prices and demand for oil, the country’s Budget for 2009 forecasts greater public spending to minimize the effects of the crisis on the Saudi economy. According to a study disclosed recently by the Saudi American Bank Group (Samba), although the Gross Domestic Product (GDP) of Saudi should drop this year, after several years of strong growth, it should return to growth of over 4% in 2010.
In this respect, the promoters of the 21st Saudi Build, according to Paula Portugal, sales executive at Conceito, informed that there is unprecedented demand for space for exhibition at the fair. According to the secretary general at the Arab Brazilian Chamber, Michel Alaby, Saudi Arabia is today the expanding market in the building sector in the Gulf.
"For those interested in investing in the Saudi market and who want to meet with the main players in the sector, this is the fair," said Paula.
The event should take place from October 4th to 7th at Riyadh International Exhibition Centre, in the capital of the country. At last year’s edition there were 473 exhibitors and 14,300 visitors from several countries. There should be a Brazilian pavilion to accommodate national companies interested. Companies and organisations in the wood, door, ceramics, metal and tile sectors have already confirmed presence. Enrolment goes up to the end of August (contact information follows).
Saudi Arabia is the Arab country that received the greatest foreign direct investment over the last 10 years, a total of US$ 88.3 billion, according to a report by the Inter-Arab Investment Guarantee Corporation (IAIGC), headquartered in Kuwait. Among the great attractions today are six great new economic cities, being the largest King Abdullah Economic City (Kaec), under construction on the Red Sea coast, close to Jeddah, the main business hub in the country.
Just to give an idea, when totally ready, in 2020, Kaec should be the third largest city in Saudi Arabia, losing only to Riyadh and Jeddah, and should be similar in size to Washington D.C., the capital of the United States. According to the construction flowchart, the first phase should be inaugurated in September this year.
Businessmen who participated in the fair will be able to learn more about the economic cities, which not only diversify the economy and generate jobs, but also have the function of decentralizing the Saudi population. The Arab Brazilian Chamber is programming a visit by the delegation to the Saudi Arabian General Investment Authority (Sagia), which is responsible for the projects.
Among public and private investment, the country plans to turn around US$ 800 billion to areas considered priority up to 2020, including building and infrastructure, to develop its economy, according to information disclosed by the director general for investment promotion and international operations at Sagia, Ahmed Osilan.
Food
With a population of 25 million people that should grow significantly in coming years, Saudi Arabia also has great demand for food. It is worth recalling that the country is already the main importer of Brazilian chicken. Apart from that, the local government has adopted a policy of destimulating new agricultural projects to economise water for human consumption.
In this scenery, Saudi Agro-Food, to take place from November 1st to 4th, should also have a Brazilian pavilion. The fair is turned to the areas of food, beverages and machinery for the Saudi food industry. Last year, it received 168 exhibitors and 7,500 visitors, also from different countries. Registration ends in September (contact information below).
According to information supplied by the organizers of the fair, Saudi Arabia imported in 2008 the equivalent to US$ 15 billion in food, an increase of 25% over 2007. Brazil alone exported the equivalent to US$ 1.43 billion in agribusiness products to the Arab country last year, growth of over 45% over 2007.
In the area, the Saudis are also seeking partnerships to invest in agribusiness in other countries, including Brazil. With the reduction in the local cultivated area, Saudi Arabia has been investing in production in other nations to guarantee supply to its market.
The participation of Brazil in both fairs should have a similar structure. Conceito should be responsible for the spaces, assembly of the stand, organisation of transportation and accommodation, and the costs should be borne by the companies interested. The embassy should be responsible for the visual material in the Brazilian pavilions and the Arab Brazilian Chamber, apart from aiding in the promotion, should schedule meetings at Sagia and at the Riyadh Chamber of Commerce.
Conceito is celebrating its 25th anniversary and, apart from fairs, organizes business roundtables, identifying potential partners for clients and taking care of logistics and of marketing of the events. Internally it has a travel agency that is responsible for the travel procedures for businessmen. The idea is to supply a full package of services for those participating in international business meetings. The organisation currently represents around 40 international fairs in different countries and sectors in Brazil.
Further information
Conceito Brazil
Paula Portugal
Tel.: +55 (11) 3527-5000
E-mail: pportugal@conceitobrazil.com.br
Site: www.conceitobrazil.com.br
*Translated by Mark Ament
