RIYADH, 12 March 2006 — A high-level financial delegation comprising representatives from the Brazilian public and private sector arrived here Friday to attract Saudi investors to its capital market. The seven-member team headed by Eduardo Manhães, superintendent of foreign relations of the Brazilian Securities and Exchange Commission, the organization that regulates the capital market in Brazil, had discussions with Hamad Al-Sayari, governor of the Saudi Arabian Monetary Agency (SAMA) yesterday. Other members of the delegation include Otávio Ladeira de Medeiros, general coordinator of strategic planning of the public debt, representing the National Treasury and the Finance Ministry; Alfredo Moraes and Paulo Sampaio, of the National Association of Financial Market Institutions (Andima); Mauro Mello, director at the Union of Stock and Security Brokers; Milton Milione, president of the Association of Investment and Capital Market Analysis Professionals and Counselor Rodrigo Azeredo Santos, representative of trade promotion department of the Ministry of External Affairs.
During the meeting with SAMA governor, both parties exchanged views and information of mutual interest pertaining to financial and monetary markets in Brazil, fiscal and economic progress, capital market and foreign direct investments. The members of the delegation also visited Saudi Basic Industries Corp. (SABIC) and Samba Financial Group.
“The idea is to show that Brazil is an alternative and a viable destination for Saudi capital,” said Isnard Penha Brasil Jr., Brazilian ambassador. The group is going to present to the Saudis how the Brazilian capital market works and its size. “We hope that partnerships may arise from this. I believe it will work out,” the ambassador added. “Brazil is one of the emerging markets attracting investment in both capital market and direct investments in the diverse production and services sectors ranging from agro-based industries, mining sector, infrastructure to tourism.” He pointed out that incentives for investors include 100 percent ownership, tax exemption, unrestricted repatriation of capital and profits, efficient labor force and competitive labor costs. Brazil has attracted more than $200 billion worth of investment from European and American markets and this delegation will explore new openings in the Kingdom, he added.
In cooperation with the Riyadh Chamber of Commerce and Industry (RCCI), the Brazilian delegation will hold a seminar, “The Brazilian Capital Market: Modernity and Investment Opportunities,” at 9.30 a.m. today at the RCCI auditorium. The seminar is open to all Saudi businessmen, the envoy said.
Organized by the Trade Promotion Department of the Brazil’s Ministry of External Relations, the visiting team will hold meetings with Prince Alwaleed ibn Talal, chairman Kingdom Holdings Company and Amr Abdullah Al-Dabbagh, governor of Saudi Arabian General Investment Authority (SAGIA). Following the seminar, the Brazilians will meet Jemaz Al-Suhaimi, president of the Capital Market Authority (CMA); Abdul Rahman Ali Al-Jeraisy, president of the Council of Saudi Chambers of Commerce and Industry, Fahd Al-Sultan, secretary general of the Council of Chambers and Hussein Athel, secretary general of the RCCI.
Brazilian exports to Saudi Arabia increased from $824 million in 2004 to $1.2 billion in 2005. Major Brazilian exports to Saudi Arabia are poultry, beef, iron ore, soybean, sugar, equipment and machineries. In 2005, Brazil concluded a deal for the sale of 15 commercial jets manufactured by Embraer, the Brazilian aircraft manufacturing company, to Saudi Arabian Airlines. In 2005, Brazil imported oil and petrochemical products from Saudi Arabia worth $1.3 billion.
The gross domestic product (GDP) of Brazil in 2005 was estimated at $802 billion. Brazil’s total exports increased from $96.5 billion in 2004 to $117.5 billion in 2005.