Saudi Arabia keen to invest in multiple sectors in Brazil: PIF governor

Saudi Arabia’s sovereign wealth fund is keen to invest in Brazil across multiple sectors such as technology, renewables, and mining, said a top official.

Speaking at the inaugural ceremony of the Future Investment Initiative Priority Summit in Rio de Janeiro on Wednesday, Yasir Al-Rumayyan, governor of the Public Investment Fund, said that the Kingdom will also seek investment opportunities in football.

“We started investing in Brazil in 2016 through one of our subsidiaries, SALIC, in food securities. We are interested in investing in technology, renewable energy, and mining, and hopefully in football too,” said Al-Rumayyan.

He added: “About 70 percent population of Saudi Arabia is under the age of 35. So, some of the things that we are interested in are recreation, entertainment, and sports. And this is like the best place to discuss football.”

PIF’s plans to increase its assets

Al-Rumayyan also remarked that the wealth fund is planning to increase its assets by $2 trillion to $3 trillion by 2030.

“PIF is an institute that was established in 1971. But in 2015, we started with a new strategy led by our chairman, the crown prince (of Saudi Arabia). About 80 percent of our investments are domestic investments which is about $800 billion. Our assets under management are (worth) about $1 trillion, and we are targeting to get to $2 to $3 trillion by 2030,” he said.

During the talk, the PIF governor, who is also chairman of Saudi Aramco, said that the Kingdom is at the forefront of the world’s sustainable energy transition journey.

He also added that the strategy of Saudi Arabia is to have 50 percent of the Kingdom’s energy needs met from renewable sources by 2030.

“Saudi Arabia is one of the most advanced nations when it comes to sustainability and renewable energy. In NEOM, we have one of the largest green hydrogen projects, worth $8.4 billion. Saudi Arabia is making renewable energy one of the very cost-effective kinds of energy, and that is the way we can get more and more investments,” said Al-Rumayyan.

He also noted that Saudi Arabia and Aramco are extending their commitment to nature by planting trees to ensure a green future.

Al-Rumayyan also stressed the need to deploy more investments in the Global South to meet the renewable energy targets.

Talking about the rise of artificial intelligence in the energy sector, Al-Rumayyan noted that the rise of advanced technology will consume more electricity and there is an urgent need to ramp up renewable production capacity to fuel these projects, alongside reducing emissions.

“This is the beginning of the AI era. No one can really predict the use and requirements. Energy consumption with AI will really go off the roof. We are expecting an increase in power consumption by 3 to 6 percent on an annual basis due to the use of AI,” said Al-Rumayyan.

He added: “We should look for solutions (as to) how to power AI revolution through renewable energy. And that is what we are working on. And, Brazil is well-positioned to be one of the major players. What you need is the right regulations and government backing, along with an investment mix.”

Al-Rumayyan also noted that the upcoming FII Summit in Riyadh in October 2024 will be one of the biggest of its kind in the world.

“The upcoming FII summit in Riyadh in October will be the largest investment conference in the world. We will have 300 to 500 speakers, along with 5,000 to 7,000 participants,” said the PIF governor.

Brazil eyes partnership with Saudi Arabia

During his speech, Brazilian President Luiz Inacio Lula da Silva said that the country’s relationship with Saudi Arabia has always been strong, and will continue in the future.

“My visit to Riyadh, last November, and the recent visit of my vice president show that we are giving tremendous impetus to the collaboration between Saudi Arabia and Brazil. I see great potential in the relationship with Saudi Arabia. I wanted to be a role model of South-South relations which we all want to promote,” said the president.

He also outlined that Brazil is turning out to be a favorite destination for investors due to its friendly regulatory reforms and stable economic conditions.

“The most important thing for an investor is stability, and this Brazil has plenty to offer. We also guarantee social stability, economic stability, and fiscal stability,” he noted.

“We are not just the Brazil of soccer or Brazil of the violence. We are also the Brazil of the men and women who want to grow and develop,” added the president.

For his part, Eduardo Paes, mayor of Rio de Janeiro, said that events like FII will promote and strengthen ties between Brazil and Saudi Arabia.

“We seek new partnerships and opportunities with Saudi Arabia to grow. Rio de Janeiro is the ideal point of entry for Latin America,” said the mayor.

Invest in Dignity

This edition of the FII Priority Summit is being held in Rio de Janeiro under the theme “Invest in Dignity.”

Talking about the theme of the event, Richard Attias, CEO of FII Institute, said: “Dignity is not just a concept, it is a fundamental human right that should be accessible to every human being. Dignity is a foundation upon which we built an inclusive society where every person can live with respect, purpose, and opportunity.”

He concluded: “Investing in dignity means creating a system that empowers people to foster equality and promote sustainable development. It means protecting human rights and fostering an environment where every word is heard and valued.”