Saudi Arabia is trying to ensure its presence in Latin America and the Caribbean through new commercial ties, the information portal Infobae reported on June 8.
Saudi Arabia does not hide its interest in Latin America and the Caribbean. Cooperation between the Arab country and the region had already intensified in November 2023, when a group of regional leaders traveled to Riyadh for the first CARICOM (Caribbean Community)-Saudi Arabia summit. The summit concluded with Saudi Arabia’s commitment to invest $2.5 billion for the development of the Caribbean.
In 2016, Crown Prince Mohammed bin Salman announced Vision 2030, which envisions diversifying the country’s economy beyond oil, which accounts for about 40% of revenue. Thus, the kingdom seeks to invest its funds abroad.
Although Riyadh means less to the region than Russia and China, it already has several alliances in the region and will strive for more, the publication writes.
In August 2023, Saudi Arabia’s Investment Minister Khalid Al-Falih visited seven Latin American countries to explore opportunities to strengthen and deepen investment partnerships to secure raw materials and market access.
Saudi Arabia’s national oil company, for example, made its first investment in the retail sector this year, purchasing Chilean fuel distributor Esmax and opening its first gas station in Chile. There are plans to open 300 more in the next two years. In June 2023, the Saudi Development Fund announced a $150 million loan to Guyana for the construction of bridges and housing. What’s more, in his case, he has already received more than 235 million dollars since 2016.
Relations between Saudi Arabia and Brazil are actively developing. Relations between the countries began in 1970, and their trade exchange is already estimated at about 8 billion dollars, according to official estimates. In 2023 alone, Brazilian exports to the Arab country amounted to $3.2 billion – the highest figure in a decade – and are expected. If increased by 2030, it could grow to $20 billion.
“Latin America is a natural partner (for Saudi Arabia) since it exports plant and animal proteins,”said Middle East Research Group founding partner and senior researcher Najad Khoury.
Source: Rossa Primavera
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