MercoPress. South Atlantic News Agency

First visit of a Brazilian president to Saudi Arabia

Da Silva and King Abdla in the Riad palace

Brazil and Saudi Arabia signed Sunday an agreement to expand cooperation in oil, mining, infrastructure, science and increase bilateral trade said the Brazilian Foreign Affairs Ministry said. The agreement was signed in presence of King Abdullah and visiting Brazilian President Lula da Silva.

The Brazilian president arrived Saturday in Riyadh with a large delegation of businessmen hoping to explore joint investment and trade opportunities between the two countries. The landmark visit is the first of a Brazilian president to Saudi Arabia.

After his arrival he met Abdurrahman Al-Attiyah, secretary general of the six-member Gulf Cooperation Council, which is seeking a free trade deal with the Mercosur trade group.

Lula da Silva hailed his country’s growing relations with Riyadh and the Middle East and pushed for stronger economic ties, “which would make both nations less vulnerable to the kind of turmoil now besetting leading global economies”

“I am here because we need to find new partners” he said at the Riyadh Chamber of Commerce. “We have to diversify our trade.”

One area the Saudis are looking at is investment in agriculture in Brazil as Riyadh seeks to build up food security by purchasing or leasing farmland in other countries.

Two business tie-ups were signed Sunday, the first on petrochemicals cooperation involved Brazilian State oil giant Petrobras and the Saudi firm Modern Chemicals. The second was a joint venture to produce human insulin for the Gulf region, which suffers a high rate of diabetes, between Brazilian biotech firm Biomm and the Saudi Gabas group.

Lula da Silva said trade between Brazil and Saudi Arabia shot up 450% in the past six years. Saudi Arabia is the biggest market in the Middle East for Brazilian goods and the two countries have annual trade worth 5.5 billion dollars. Brazil is the largest supplier of frozen chicken to Saudi Arabia and also sells a lot of beef to the country.

The Brazilian president also singled out Riyadh’s six-year 400 billion US dollars capital investment program as an opportunity for Brazilian business.

“Saudi Arabia has a great infrastructure program and certainly Brazil would like to participate,” he said.

He added that his country could become a “strategic partner” for Saudi Arabia in its search for farm investment opportunities abroad to develop greater food security.

“We have high expectations to receive Saudi investment in agribusiness” underlined the Brazilian leader.

Lula da Silva is on the first stop of a trip that will also take him to China and Turkey.