São Paulo – Saudi Arabia is looking to get Brazilian investments. A delegation from the Saudi Arabian General Investment Authority (SAGIA) is currently in São Paulo. They will also travel to Rio de Janeiro later this week to attend meetings and spread awareness to corporate players in strategic sectors about the Arab country as an investment destination.
The 11-strong delegation led by SAGIA’s deputy governor for Investment Attraction and Development, Sultan Mofti, made a visit to the Arab Brazilian Chamber of Commerce headquarters in São Paulo this Monday (29). Arab Chamber International Relations vice president Osmar Chohfi welcomed the delegates and hosted a meeting. Arab Chamber Institutional Relations manager Fernanda Baltazar and International Chamber of Commerce (ICC) executive director Gabriel Petrus were also in attendance.
“Our job [at SAGIA] is to facilitate investment and the coming of international companies to Saudi Arabia. We are aware that there’s a gap between investment opportunities in Saudi Arabia and Brazilian companies that wish to invest abroad. That’s why we’re here: to spread information to companies about opportunities like the Kingdom’s reforms and the Saudi Vision 2030 plan,” said Mofti. Among other things, the plan is geared at diversifying the Saudi economy away from oil.
The Saudi government is looking for investors into nine major sectors: chemicals, information and technology, energy and water, industry and manufacturing, health and science, emerging sectors, mining and metals, transportation and logistics, and tourism, culture and entertainment.
“There are Brazilian companies looking to invest and expand internationally, and we want to let them know they can invest in Saudi Arabia. We offer benefits like 100% foreign ownership in some sectors as a result of the [Vision 2030] reform,” said Mofti.
The Saudi delegates are visiting companies in industries including foods, food processing, logistics, mining and metals, manufacturing, and banking. “Banks have a comprehensive view of Brazilian investments, and we want them to be aware and let businesses know that this opportunity is available,” he said.
Gabriel Petrus of the ICC (pictured at the top of this article, on the right) said the economic scenarios in Brazil and Saudi Arabia are similar right now. “Both countries are looking to open up to the world, taking away barriers to investors and becoming more involved in global chains,” he argued. “Over lunch we discussed the possibility of Saudi Arabia being a hub for exports from Brazil to reach the Middle East, North Africa and even Asia,” said Petrus.
Ambassador Osmar Chohfi believes the Arab Chamber could bridge the information gap between the Saudi administration and Brazilian enterprises. “It must be noted that SAGIA is one of the most important Saudi entities when it comes to strategic investment. Therefore, Brazilian companies might be interested in tapping into this ease of infrastructure that Saudi Arabia can provide in order to create product export platforms, to Saudi Arabia itself as well as other nearby countries,” he explained. Brazilian industries potentially interested in having operations in the Middle East country include agribusiness, mining, iron and steel and infrastructure, Chohfi said
According to Mofti, the trip to Brazil is only the beginning of a long-term business strategy. “Doing business takes time, so this visit is meant to let entrepreneurs know this opportunity is in place. A Brazilian business mission to Saudi Arabia is slated for November of this year, and we will surely be back [in Brazil] soon,” he said. The Saudi delegation will be in Brazil until Sunday (May 5).
Translated by Gabriel Pomerancblum
