Al-Falih highlights Saudi funding curiosity in Brazil
SAO PAULO: Inexperienced power and meals safety are two of the primary sectors wherein Saudi Arabia is thinking about investing in Brazil, the Kingdom’s funding minister mentioned on Monday.
Khalid Al-Falih, who was talking on the Brazil-Saudi Arabia Funding Discussion board on the Federation of Industries of the State of Sao Paulo, additionally cited the monetary, automotive, agricultural, transport and logistics, infrastructure, ecotourism and leisure sectors as different areas of curiosity.
“With the evolution of the World South coupled with shared values between Brazil and Saudi Arabia, aligned strategic pursuits and robust personal sectors, which we’ve a lot respect for, why couldn’t we turn into a top-five investor in one another’s economic system?” he mentioned.
“I consider that we will and may, and that it’s attainable. That is the target of every member of our delegation, each the private and non-private sectors.
“This was the steerage we acquired from our management with this historic mission that we’re finishing up.”
The Saudi delegation, comprising round 100 folks, will go to six different Latin American nations till Aug. 9: Argentina, Uruguay, Paraguay, Chile, Costa Rica and Panama.
Al-Falih mentioned Brazil and Saudi Arabia have many commonalities regardless of geographic distance.
“We’re two proud G20 members and main power producers. We’re properly positioned to be strategic companions, being the financial leaders of our respective areas,” he added.
When talking about local weather change, he mentioned each nations’ objectives of web zero carbon emissions are additionally intently aligned.
“Brazil’s long-term aim is to have zero emissions by 2050 and to cut back emissions by 50 p.c by 2030, and the Kingdom intends to succeed in zero emissions by 2060, which can be fairly difficult for Saudi Arabia contemplating that we’re a big producer of hydrocarbons and a really industrialized nation,” Al-Falih added.
“We don’t have the blessings of the Amazon to soak up our carbon emissions, however we’re on the lookout for methods to do it.”
He talked about a Saudi inexperienced hydrogen venture that has greater than $10 billion in investments, and that the Kingdom desires to copy in Brazil.
“We additionally launched inexperienced initiatives in Saudi Arabia and the Center East to extend renewable power and the round economic system, along with the venture to plant 50 billion bushes, 10 billion of them in Saudi Arabia,” he mentioned.
The Kingdom has additionally been advancing within the automotive sector, and goals to supply half 1,000,000 electrical vehicles per yr, for which investments can be wanted in batteries and different supplies, Al-Falih mentioned.
Saudi Arabia can be searching for to turn into a hub for meals safety within the area, and desires to spend money on Brazilian agricultural manufacturing and proceed to be a serious provider of fertilizers, he added.
“So as to do that, we want a robust transport and logistics sector, contemplating Brazil’s huge territory and financial scale,” he mentioned.
“That is mandatory to make sure that every part runs easily, particularly within the world provide chain, for commodities and imported merchandise. An enchancment in infrastructure will decrease Brazil’s logistics prices.”
Saudi Arabia intends to draw 100 million vacationers by 2030, and for that it has been investing in ecotourism and leisure, and sees Brazil as a reference in these sectors, Al-Falih mentioned.
He added that Lodge Fasano, a high-end Brazilian resort chain, has signed a memorandum of understanding to spend money on one or two initiatives in Saudi Arabia.
The Kingdom additionally desires to spend money on Brazilian biofuels and biochemicals, and Al-Falih mentioned it sees nice potential on this market in Latin America.
“What I’ve talked about listed below are only a few of the various sectors that we’ve discovered nice potential in, however our curiosity and help are prolonged to all alternatives for giant, medium and small firms, in addition to progressive startups,” he added.
Al-Falih additionally talked about Saudi curiosity within the pharmaceutical, biotechnology, agrotechnology and aerospace industries, and mentioned he’ll go to the headquarters of Brazilian airplane producer Embraer.
Geraldo Alckmin, Brazil’s vice chairman and minister of growth, business and commerce, additionally spoke on the occasion.
He recalled that Arabs have a robust presence in Brazilian tradition and within the state of Sao Paulo, and mentioned his identify may need an Arab origin.
He added that there are nice alternatives for partnerships and investments between the 2 nations within the petrochemicals, power, automotive, ethanol, sustainable aviation gasoline and infrastructure sectors.
Alckmin mentioned Brazil has essential lithium reserves, and has simply exported it for the primary time.
“Now we’ve the problem of taking crucial step, which is the manufacturing of batteries for electrical vehicles,” he added.
Brazil has been creating itself with stability and predictability, Alckmin mentioned. “Brazil is rising, its GDP (gross home product) has grown, unemployment has dropped, the true (the nation’s foreign money) has appreciated, the inventory market has risen, however this could spur us on to make much more reforms and pursue extra financial effectivity,” he mentioned, including that tax reform will stimulate Brazilian business.
As regards to deforestation, Alckmin mentioned: “We are able to proudly report that deforestation fell by greater than 50 p.c on this first half (of this yr). Brazil is dedicated to the Amazon rainforest and to combating local weather change.”
