Saudi Arabia, Brazil eye stronger economic ties with joint projects

Following high-level meetings, trade relations between Saudi Arabia and Brazil have been lauded for their “remarkable development.”

The efforts of Saudi Arabia to strengthen economic ties were highlighted in Sao Paulo, Brazil, where Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef engaged in discussions with Brazil’s Vice President and Minister of Development, Industry, Trade and Services Geraldo Alckmin.

According to a ministry release, the discussions focused on qualitative opportunities in the mining sector and the incentives provided by Saudi Arabia to facilitate business operations in the industrial investment environment. Both parties commended the positive advancements in economic and trade relations, which have led to significant joint projects in the industrial and mining sectors.

Saudi Arabia’s non-oil exports to Brazil have seen robust growth, increasing by 5.65 percent annually from 2018 to 2023. In 2023 alone, the Kingdom’s imports from Brazil totaled SR13 billion ($3.47 billion), while exports to Brazil exceeded SR3 billion.

Alkhorayef’s visit is part of a broader official tour that includes stops in Brazil and Chile from July 22 to 30. During this trip, he participated in a roundtable meeting hosted by the Federation of Industries in Sao Paulo, where he invited Brazilian companies to invest in Saudi Arabia’s burgeoning mining sector, highlighting its substantial growth potential.

Aligned with Saudi Arabia’s Vision 2030, which aims to transform its mining sector through enhanced licensing transparency, promotion of national industries, and development of local content and job opportunities, Alkhorayef emphasized the global importance of mineral production requiring international leadership and cooperation.

“The Kingdom recognized that global mineral production challenges required collective leadership. Our strategy for real progress was rooted in collaboration, and while we maintained our ambitious goals, we focused on forging strong partnerships worldwide,” the minister stated.

He further emphasized Saudi Arabia’s readiness for transformative growth, leveraging its rich resources, skilled workforce, and attractive investment opportunities.

“Mineral production transcended economic value; it embodied the potential of our country and people. With our rich resources, skilled workforce, and exceptional investment opportunities, the Kingdom was poised for transformative growth,” he added.

In parallel efforts to bolster its pharmaceutical capabilities, Saudi Arabia explored opportunities to localize vaccines and pharmaceuticals, leveraging Brazil’s expertise. Discussions with Brazilian investors highlighted collaboration potential in Saudi Arabia’s National Industrial Strategy, particularly in pharmaceuticals, health security, and building specialized industrial capacities to meet medical needs independently.

During his visit, Alkhorayef visited the Butantan Institute, a leading biotechnology research center, to discuss cooperation in localizing vaccine and pharmaceutical production. Meetings with Brazilian investors underscored Brazil’s willingness to collaborate across various industrial sectors, notably pharmaceuticals and vaccines, aiming to strengthen supply chains, exchange technology, and drive innovation for sustainable development.

Saudi Arabia’s commitment to attracting global interest in healthcare was reaffirmed by Alkhorayef’s announcement in June 2022 of investment opportunities worth over SR11 billion, aimed at localizing 80 to 90 percent of insulin production. This initiative underscores Saudi Arabia’s ambition to emerge as a regional hub for pharmaceutical manufacturing.

The discussions during the visit also explored avenues to enhance non-oil exports and foster joint investment opportunities, reflecting a deepening economic and trade relationship between Saudi Arabia and Brazil.