Brazil and Saudi Arabia established diplomatic relations in 1968. In the years that followed, each of the two countries went through important cycles of economic prosperity: Saudi Arabia, getting a boost after oil prices had increased significantly in 1973/1974, started implementing an ambitious project of modernization of the administration of the country, of economic diversification and of urban expansion, which is still continuing to the present day; Brazil, with abundant natural resources and agricultural commodities, implemented a program of industrialization which allowed it to reach an unprecedented level of growth, in what would be later known as the “Brazilian economic miracle.”
In the same years, while Saudi Arabia’s vast oil reserves helped the country finance its development program, it needed to import food items, natural resources and industrialized goods of all kinds; Brazil, then with limited energy resources, needed oil to implement its industrialization plan, at the same time it needed to export part of its agricultural and industrial production as a way to finance its development.
In this context of complementary economic profiles, and also taking into consideration a converging posture in some topics of the international agenda, notably the Palestinian right to self-determination, it would have been natural to expect that a closer partnership between the two countries would have taken place.
An analysis of these relations indicates, however, that the two countries were, until recently, very distant from each other. Bilateral relations lacked mechanisms that could have encouraged high level political coordination; visits of high ranking officials were almost nonexistent; the list of agreements signed by the two countries were restricted; cooperation in the areas of education, culture and sport were not significant; bilateral trade, although always on the rise, was limited to a few products; direct investment was not detected. On a regional level, relations between Saudi Arabia and Brazil did not help promote or intensify closer cooperation between the Arab world and South America as whole.
President Luiz Inácio Lula da Silva’s arrival in office in 2003 introduced a new list of priorities for the country’s foreign policy. Relations with the Middle East were then given high priority both in bilateral and multilateral terms. In this context, and aiming at creating new parameters for its relations with the Arab world, Brazilian diplomacy adopted, in the past seven years, a series of measures that have produced encouraging results.
It is important to note that between the establishment of diplomatic relations in 1968 and the adoption of the new priorities of Brazil’s foreign policy in 2003 the Kingdom went through some significant changes. The structure of the state was gradually consolidated and the country is operated, today, through modern and efficient institutions. In economic terms, the Kingdom evolved into a society marked by urban expansion, economic diversification and industrial development. Moreover, Saudi Arabia gradually asserted its leadership role in the region and the country became a determining vector in the regional processes of integration of which it has chosen to participate.
The consolidation of Brazil’s new foreign policy agenda and the transformation observed in Saudi Arabia paved the way for closer relations between the two countries. Such closer relations were not only desirable; they had actually become necessary for the achievement of the policy objectives of both countries. Simultaneously, the Saudi perception of Brazil’s importance in Latin America became evident and the country became Saudi Arabia’s strategic partner in the region.
In this new reality, the modest political interaction between Saudi Arabia and Brazil of previous decades gave way to a more asserted and strengthened interaction. Without any contending issues that could negatively affect bilateral relations, the number of high-level visits increased, a clear indication of the mutual perception both countries developed about each other. In 2000, the Custodian of the Two Holy Mosques King Abdullah, then crown prince, made a landmark visit to Brazil. In 2009, President Lula da Silva made the first visit by a Brazilian head of state to the Kingdom.
Such closer cooperation produced changes in all aspects of the bilateral relations, most notably in the number of agreements negotiated between the two countries. In the first 40 years of diplomatic relations, Saudi Arabia and Brazil had signed four agreements. During the visit of President Lula six agreements were signed and the two countries are currently negotiating four other texts. This will lead to increased cooperation in the areas of education, culture and sport, among others.
The economic relations, specifically trade relations, have proven to be the most prosperous aspect of relations between Saudi Arabia and Brazil since 1968. Bilateral trade went from $1.5 billion in 1997 to $5.5 billion in 2009. The list of products exported by Brazil continues to be dominated by food-related items, especially meat and sugar-based products. It should be observed, however, that in the past five years Saudi Arabia has made important acquisitions of mid-size aircraft produced by Brazil’s aerospace company Embraer.
From a Brazilian perspective, it should be noted that the determination of the Saudi government to diversify its economy, expand its urban structure and implement reforms of the state has created a new local economic environment. To that it should be added that the country has abundant energy supplies at very competitive prices and that it has a privileged geographic position with access to both the local and regional markets with increasing demands in many sectors, especially basic goods and infrastructure.
Thus, Saudi Arabia has become an important destination for investment and development of new businesses that offer many opportunities for Brazilian companies with technology and know-how in areas of special interest for the Saudis. In this context, the possibility of the establishment of joint ventures is actually quite broad. Also, Saudi direct investment opportunities in Brazil are vast, in view of the high liquidity of Saudi government, companies and private individuals.
At the multilateral level, relations between Brazil and Saudi Arabia have followed the positive trend of the last decade. Two facts are worth noting: Brazil became an observer of the Arab League in 2003; and Mercosur and the Gulf Cooperation Council signed the Agreement for Economic Cooperation in 2005. The two blocs are now negotiating a free trade area that will certainly bring many benefits for the countries in the two regions.
In addition to that, the cooperation mechanism created by the Summit of South America and Arab Countries, a Brazilian diplomatic initiative, has produced concrete results and has brought the two regions closer in areas such as international policy coordination, trade, culture, finance and environment. Saudi Arabia has responded very positively to this mechanism of regional cooperation.
In a recent conference held at Brazil’s diplomatic academy, Foreign Minister Celso Amorim has argued that the Middle East is not only very important to the world today, but will continue to be very important in many years to come.
In this context of an important Middle East, which is nevertheless marked by tension, rivalries and conflicts, the prosperity and stability of Saudi Arabia offers it a special role in regional affairs and makes it a respectable partner within the international community. This fact strengthens the argument that closer relations between Saudi Arabia and Brazil, at all levels, have not only become desirable; they are, in fact, necessary.
In order to achieve such an objective, the implementation of a broad plan of multidisciplinary tasks seems to be the best way to improve the quality of the bilateral relations. Such broad plan should include the increase of high level visits and commercial missions, the creation of a stimulating investment environment, the development of activities related to education, culture and sport. On a multilateral level, it would be desirable if relations between Brazil and the Arab League could be further institutionalized. Special attention should be given in view of concluding the establishment of the free-trade area between the GCC and the Mercosur. Better coordination of positions within the context of the Summit of South America and Arab Countries should be pursued.
It is important to note that the strengthening of relations between Saudi Arabia and Brazil will continue to demand long-term vision and endurance. In this initial phase, officials from both countries will need to continue to maintain a clear role of leadership up until the moment when direct relations between individuals and nongovernmental organizations acquire their own dynamics.
