Saudi sov­er­eign fund to in­vest $10bn in Brazil

Muscat Daily - - BUSINESS -

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 Press Agency)

Saudi Ara­bia’s Crown Prince Mo­hammed bin Sal­man (left) holds a meet­ing with Brazil’s Pres­i­dent Jair Bol­sonaro (right)

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