Dubai – Saudi Arabia is the main economy in the Arab world and is currently one of the nations in the region that offers the greatest business opportunities. The country plans to invest heavily in coming years and has funds for such, as it is the world’s main producer and exporter of oil. According to Khalid Al-Otaibi, the Foreign Relations assistant of the secretary general of the Council of Saudi Chambers of Commerce and Industry, investment in several areas by 2020 should total US$ 625 billion.
This year alone, the total investment estimated is US$ 184 billion, according to Otaibi, who spoke on Monday (13) at a seminar for a Brazilian trade delegation that is in Riyadh. The event in Saudi Arabia is part of a delegation organised by the Brazilian Export and Investment Promotion Agency (Apex) and should also go to Dubai and Abu Dhabi, in the United Arab Emirates.
The 2012 budget, according to Otaibi, includes funds for construction of highways, railways, telecommunications infrastructure and 500,000 housing units. In the long-run, there are also projects for generation of energy, production of gas, petrochemical industry, information technology, desalination of sea water, agriculture, education and training, according to the CEO at the Arab Brazilian Chamber of Commerce, Michel Alaby, who participated in the seminar.
Alaby added that the Brazilian embassy in Riyadh agreed to send to the Saudi government a letter showing the interest of Brazilian construction companies in pre-qualification for potential tenders. Representatives of construction companies are in the delegation.
Brazilian ambassador Sérgio Canaes pointed out the growth in bilateral trade between Brazil and Saudi Arabia, which last year reached US$ 6.57 billion, when adding exports and imports. The delegation includes over 40 companies in different sectors.
Alaby placed the Arab Brazilian Chamber at the disposal of Saudi businessmen to help them find partners and promote their business in Brazil. The manager of the Business Centre at the Apex in Dubai, Sidney Costa, added that the agency plans to set up an office in Saudi Arabia. Recently, the organisation, connected to the Ministry of Development, Industry and Foreign Trade, opened an office in Doha, Qatar.
After the seminars, Brazilian companies participated in business roundtables with Saudi companies. The delegation includes representatives of the food, housing and construction, machinery and equipment and defence sectors, as well as construction companies and institutions that plan to find investment for projects in Brazil.
Part of the delegation also met with representatives of the Saudi Electricity Company. According to Alaby, the country needs to invest around US$ 100 billion in the area over the next ten years to generate 50,000 megawatts. The Saudis are studying alternative sources, like wind and solar, as well as nuclear and thermoelectric generation. Regarding water supply, they plan to build 400 small and medium dams. “For natural water, as the cost of desalination units is extremely high,” said the Arab Brazilian Chamber director.
On Tuesday (14), Brazilian businessmen have the day reserved for meetings with potential business partners and technical visits. In the evening, they travel to Dubai for the next step of the mission, to include the participation of Development, Industry and Foreign Trade minister Fernando Pimentel.
*Translated by Mark Ament
