São Paulo – Businessmen from Saudi Arabia are interested in the purchase of land in Brazil and in the establishment of joint ventures with Brazilian companies to produce food. The statement was made by the executive secretary at the Ministry of Agriculture, Livestock and Supply, Gerardo Fontelles, who participated on Wednesday (6) in a meeting with the minister of Agriculture of Saudi Arabia, Fahad Abdulrahman Bal Ghunaim, in São Paulo.
The meeting was the Saudi delegation’s last official activity in Brazil. Including members of the government, the delegation has been in the country since Monday (4) to discuss investment in agribusiness and greater imports of Brazilian food. The meeting on Wednesday included the participation of representatives of the Ministries of Agriculture and Development, Industry and Foreign Trade and the Foreign Office.
According to Fontelles, the main point discussed by the Saudis was the guaranteed safety of investment that may be made in Brazil. "We made that very clear, that there is no institutional instability in Brazil and that our legislation provides all safety to investors," he said in an interview to ANBA.
Ghunaim also pointed the Brazilian stability as a relevant factor for the furthering of negotiations. "We know that Brazil is very transparent with regard to foreign direct investment. All rules are very clear and that is very important," he pointed out.
During the event, the government of Saudi Arabia showed concern with regard to dual taxing of investment and said that a proposal will be sent to Brazil to discuss the matter.
“On the whole, Saudi Arabia has a kind of formal agreement to negotiate with other countries. Our ministries of Finance (Brazilian and Saudi) should speak to guarantee that if Saudi Arabia charges taxes, Brazil will not do the same, and vice versa, so that the investment is not doubly taxed," clarified Ghunaim.
The meeting also covered other technical areas like the protocol for export of live animals, the production of genetically modified food and exchange appreciation of the Brazilian currency.
According to Fontelles, the talks that started in Brazil should proceed in December, when Development minister Miguel Jorge should take a delegation of Brazilian businessmen to Saudi Arabia.
*Translated by Mark Ament
