Government signs Defense and Investment agreements to strengthen Brazilian-Saudi business ties

Brazilian Vice President and Minister of Development, Industry, Commerce, and Services Geraldo Alckmin had an intensive agenda of meetings leading an official mission to Saudi Arabia this Monday (June 3). After a private meeting with Saudi Vice President and Minister of Investments Khalid Alfalih, Alckmin participated in a roundtable with government representatives and investors from both countries.

There are clear opportunities to further strengthen our ties in areas such as energy transition, food security, finance and aviation"
Geraldo Alckmin, Brazilian Vice President of the Republic

Alckmin signed a Cooperation Agreement on Defense with Saudi Minister Khalid bin Salman. The document seeks to strengthen Brazilian-Saudi relations in areas such as industry, logistics and technology. Quoting President Luiz Inácio Lula da Silva, Alckmin said that, “Saudi Arabia is Brazil’s top trade partner in the Middle East.”

Total Brazilian-Saudi trade is currently around USD 7 billion and bilateral investment flows have been on the rise. Alckmin’s visit to Saudi Arabia follows up on President Lula’s trip to that country in the end of 2023 and shows the importance Brazil gives to its ties with Saudi Arabia.

“There are clear opportunities to strengthen our ties further in areas such as energy transition, food security, finances, and aviation," wrote Alckmin on his X profile (former Twitter).

AGREEMENTS - Three memorandums of understanding were signed during the visit. The Brazilian Trade and Investment Promotion Agency (ApexBrasil) and the largest supermarket chain in the Middle East, Lulu, agreed to promote Brazilian food and beverage products in the Saudi market. Another agreement, formalized between the Saudi Ministry of Investment and eB Capital, has the goal of strengthening bilateral investment flows. The Saudi ministry and Pátria Investimentos signed another MoU, also with the goal of facilitating investments between the two countries.

Both sides emphasized the complementary nature of the strategic partnership. Alckmin highlighted that agribusiness, mining, industry and defense have the most potential for increased cooperation and growth. Brazilian Minister of Planning Simone Tebet, also a member of the Brazilian delegation, underscored the importance of Saudi investments for Brazilian infrastructure and logistics, facilitating the transportation of Brazilian agribusiness products.

ENERGY TRANSITION - Saudi Minister Alfalih spoke about his country’s commitment to transitioning towards a low-carbon economy, stating that Brazil can be an important ally for an emissions compensation strategy. Alckmin reinforced President Lula’s invitation for Saudi Arabia to participate in the COP30, which will be held in the Brazilian city of Belém in 2025, as well as in the G20 summit this November, in Rio de Janeiro.

“We seek the means to produce more sustainably.  Around 67% of our territory is pristine, so there is much space to grow, but not through deforestation. We have over 40 million hectares of pasture with enormous productive potential. This generates opportunities for food security as well as commercial relations” — Carlos Fávaro, Brazilian Minister of Agriculture and Livestock

Additionally, on the issues of sustainable development and economic growth, the Brazilian Minister of Agriculture, Carlos Fávaro, underscored the Brazilian commitment to produce agricultural products without deforestation. He explained the investment opportunities that arise from converting degraded pastures into productive areas, thus ensuring that the world can consume excellent quality agricultural and livestock products from Brazil without any deforestation.

“We seek the means to produce more sustainably. Around 67% of our territory is pristine, so there is much space to grow, but not through deforestation. We have over 40 million hectares of pasture with enormous productive potential. This generates opportunities for food security as well as commercial relations,” highlighted Fávaro.

In addition to Alckmin, Tebet, and Fávaro, the mission to Saudi Arabia also included ApexBrasil President Jorge Viana; the Secretary-General of the Brazilian Ministry of Foreign Affairs, Maria Laura da Rocha; the National Bank of Economic and Social Development (BNDES) Projects Director, Nelson Barbosa; the President of the Brazilian National Confederation of Industry (CNI), Ricardo Alban; as well as business leaders and financial market executives.