The massive development programs being implemented in Saudi Arabia, the expanding population and the changes in the agriculture strategy, the huge requirements for industrial materials, agricultural products, and various types of equipment and machinery and technical know-how have led Saudi Arabia to look for new partners.
Brazil, on the other hand, with abundant natural resources, agricultural commodities and with a strong industrial sector, has all the necessary features to be a privileged partner of Saudi Arabia.
Brazil and Saudi Arabia established diplomatic relations in 1968. 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.
The consolidation of Brazil’s new foreign policy agenda and the transformation observed in Saudi Arabia paved the way for closer bilateral relations. Such ties 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, Custodian of the Two Holy Mosques King Abdullah, then crown prince, paid 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 billion in 2010. 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.
Brazil’s bid for the observer status in the Organization of Islamic Cooperation (OIC) is another step for cooperation at all possible levels for peaceful coexistence. The religious freedom, tolerance and harmony that prevail in Brazil and the increasing of Muslim population justify the endeavors toward such cultural cooperation beyond the borders. The recognition of Palestine as an independent state by Brazil also reaffirmed its traditional position of favoring peaceful coexistence and humanitarian considerations.
A delegation led by the Brazilian Minister of Mines and Energy Edison Lobão participated in the extraordinary ministerial meeting of the International Energy Forum, which took place in Riyadh in February 2011. José Graziano da Silva, Brazil’s candidate to the office of the Director General of Food and Agriculture Organization (FAO) visited Saudi Arabia and explored areas of cooperation at the international level for global food security and fight against poverty. He later was elected as the director general of FAO and is currently holding that position.
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. 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. The complementarities that exist between the two countries and the global issues especially the growing concern of food shortage further intensify and demand further strengthening of the bilateral relations. Both the countries have already realized this and steps have been taken by both sides by way of exchanging exploratory and objectives visits at various levels, some of which have already taken place while some are under way.
