Saudi sovereign fund to invest $10bn in Brazil
Dubai, UAE – Saudi Arabia’s Public Investment Fund will invest US$10bn in Brazil and plans to use the country as a gateway to the rest of Latin America, the Brazilian government said.
The investment comes after talks between Brazil’s President Jair Bolsonaro and Saudi Crown Prince Mohammed bin Salman, Brazilian Foreign Affairs Minister Ernesto Araujo, said on Tuesday.
Bolsonaro met Bin Salman at the Ritz-Carlton Hotel, where the sovereign fund is hosting an investment summit this week. The US$320bn fund is mandated with making the kingdom’s economy less dependent on oil.
Bolsonaro’s chief of staff Onyx Lorenzoni said on Tuesday that the two governments will form a council over the next two weeks, which will define the sectors and the timing of the investments.
Lorenzoni said the Saudis expressed interest in the construction of a 600-mile railroad from the agricultural heartland Mato
Grosso to Para in the far north of the country. The railway is expected to cost about US$3bn.
Later, during a panel at the forum, Bolsonaro said he would like to see the funds being directed to oil and gas, infrastructure, sanitation and tourism.
He cited the coastal area of Angra dos Reis, in the state of Rio de Janeiro, as a possible target for the funds, saying it has potential to attract more tourists than Mexico’s Cancun.
Bolsonaro also said Brazil received an informal invitation to be part of the Organization of the Petroleum Exporting Countries after meetings in Saudi Arabia, and that he would like to see that happen.
Earlier this week, Waleed al Mokarrab al Muhairi, the deputy CEO of Mubalada Investment Co, Abu Dhabi’s sovereign wealth fund, said that his fund is ‘extremely excited’ about upcoming privatisations in Brazil.
Saudi Arabia’s Crown Prince Mohammed bin Salman (left) holds a meeting with Brazil’s President Jair Bolsonaro (right)