Tuesday 11 June 2024

#SaudiArabia, Brazil Hope to Kindle Investment With Deeper Ties - Bloomberg

Saudi Arabia, Brazil Hope to Kindle Investment With Deeper Ties - Bloomberg


One is a desert kingdom weaning itself off fossil fuels. The other a lush agricultural powerhouse laden with minerals. Saudi Arabia and Brazil are thousands of miles apart, but fate is bringing them closer than ever.

Their relationship started with chicken exports in the 1970s. And now the bond is becoming a way for the Global South heavyweights to diversify their trade ties and insulate their economies from geopolitical risk.

While China and the US are far bigger partners for each, two-way trade between the kingdom and the Latin American giant totaled about $7 billion last year. The Gulf Research Center, a Saudi non-profit, sees that rising to $10 billion by 2030 as the relationship deepens, with Brazil consistently showing it’s willing to give something back to its Arab suitor.

BRF SA, one of the world’s largest poultry suppliers, plans to announce a new plant in Saudi Arabia that will likely see it produce chicken locally for the first time, according to people familiar with the matter. And planemaker Embraer SA has partnered with the kingdom to help develop its aerospace industry.

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