Saudi Arabia and Brazil Strengthen Trade Ties with New Agreement
In a move set to expand trade relations between Saudi Arabia and Brazil, their respective banks have signed a memorandum of understanding to boost cooperation and increase non-oil exports.
The agreement between Saudi EXIM and the Brazilian Development Bank aims to explore joint financing opportunities and facilitate information exchange, paving the way for enhanced economic ties.
With a focus on boosting Saudi non-oil exports to the South American market, this partnership is expected to strengthen trade relations between the two nations.
Growing Economic Relations
Trade between Saudi Arabia and Brazil reached approximately $5.5 billion in 2023, showcasing the increasing economic ties between the two countries.
Brazilian exports to Saudi Arabia totaled $2.654 billion, while Saudi exports to Brazil amounted to $2.937 billion, according to the Arab Brazilian Chamber of Commerce.
Official Visit and Agreement Signing
The agreement was formalized in Rio de Janeiro during an official visit led by Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar Alkhorayef.
The minister expressed gratitude for the efforts in enhancing Saudi exports and preparing the memorandum, highlighting the goal of increasing the volume and diversity of products and services exchanged between the two countries.
The agreement was signed by Saad Al-Khalab, CEO of Saudi EXIM, and Nelson Barbosa, director of planning at the Brazilian Development Bank, solidifying the partnership.
Promoting Economic Cooperation
Al-Khalab emphasized that the partnership promotes broader economic cooperation between the Middle East and Latin America, opening avenues for collaborative ventures and joint investment projects.
The agreement is expected to boost Saudi non-oil exports and contribute to the growth of the Kingdom’s markets, aligning with recent efforts to diversify the economy.
Exploring Future Opportunities
The Saudi Minister of Industry and Mineral Resources is currently on an official visit to Brazil and Chile, seeking cooperation opportunities in various sectors and exploring joint investment prospects with the South American countries.
Alkhorayef’s visit aims to enhance knowledge exchange and advance industrial technologies, paving the way for future collaborative ventures and economic growth.