Brazil and Saudi Arabia strengthen bilateral affairs

On his first day visiting Middle East countries, President Luiz Inácio Lula da Silva met Tuesday (28) with the Crown Prince and Prime Minister of Saudi Arabia, Mohammed bin Salman. Together, they discussed strengthening bilateral affairs, investments in both directions, and opportunities for Brazilian companies in the Arab country.

One of the vital points of their conversation was the US$10 billion investment that Saudi Arabia's Sovereign Wealth Fund plans to apply in Brazil. From this amount, US$ 9 billion are provisioned for the next seven years. Within the range of possibilities are projects in fields such as clean energy, green hydrogen, defense, science and technology, agriculture, and investments in infrastructure linked to the Brazilian government's New Growth Acceleration Program (Novo PAC).

During the meeting in the Saudi capital, Riad, President Lula mentioned Brazil’s reconnection with Arab countries, stressing its country’s potential in terms of energetic transition and actions to counter the climate crisis. He anticipated to the prince that, during COP28, in Dubai, Brazil would present advancements related to deforestation control and actions connected to the preservation and protection of tropical forests. 

Saudi Arabia has sustainability goals, including the production of 90 GW of clean energy by 2030 both inside and outside the country. Brazil is one of the countries with greater potential to receive investments to this end, both in terms of renewable energies and green hydrogen.

Mohammed bin Salman mentioned Brazil's and Saudi Arabia's position as economic leaders in their regions and signaled that this indicates that a stronger and more strategic alliance between the two countries will be interesting for all sides. 

President Lula and the Crown Prince and Prime Minister of Saudi Arabia, Mohammed bin Salman: mutual interest in investments. Foto: Ricardo Stuckert / PR

LEAP - Both leaders project that the commercial transactions between the two countries, which already add up to 50 years, may take a leap from the current US$ 8 billion to US$ 20 billion by 2030.

They talked about Brazil's international prominent role, and the crown prince mentioned the strategic importance of the Brazil’s G20 Presidency, starting in December. Mohammed bin Salman also highlighted Saudi Arabia's adherence to BRICS and stated that the country is interested in having an active participation in the block's bank, the NDB.

Upon President Lula's invitation, the Saudi leader also demonstrated his interest in visiting Brazil, especially the Amazon region. He referred to the fact that Brazil is a peaceful country, with cultural manifestations that are much appreciated in his own country, besides soccer.

Both leaders and their respective entourages also expressed their interest in establishing a bilateral Council, at the ministerial level, that would meet periodically to deepen economic and political affairs between the two countries, an issue that was also raised by Minister Rui Costa (President's Chief of Staff), when addressing the Brazilian press in the Arab country this morning.