SAO PAULO: Saudi Investment Minister Khalid Al-Falih on Saturday visited Argentina, where he met with Foreign Minister Santiago Cafiero and discussed cooperation and joint business initiatives.
The two ministers also promoted a round of negotiations between Saudi businesspeople and Argentinian companies.
The meeting was part of a plan established by Saudi Arabia and Argentina in November 2022, when Cafiero visited Riyadh and a roadmap was negotiated in order to enhance bilateral relations.
Argentina has been a fundamental partner of Saudi Arabia in a number of sectors, especially food production.
The Kingdom has been investing in energy ventures and infrastructure in the South American country.
During their meeting, Al-Falih and Cafiero signed two agreements, one concerning the promotion of direct investments, and the other on geological cooperation.
The Saudi Public Investment Fund is partially funding an aqueduct between the Argentinian cities of Cordoba and Santa Fe. Other infrastructure projects were discussed between the two ministers.
“In the agricultural sector, in food production, we have been making progress, as well in scientific and technological development, with an increase in productivity and environmental protection,” Cafiero said during the meeting, referring to joint initiatives and potential actions, Argentinian news agency Telam reported.
He added that the COVID-19 pandemic, the climate crisis and the Russia-Ukraine war have caused food insecurity, and Argentina “is a global player and can be a solution.”
Alfredo Abboud, secretary-general of the Argentinian Chamber of Commerce and Services for the UAE, said Saudi Arabia and other Gulf nations have been looking at South America with special interest in recent years because of the region’s food-production potential.
“Both Brazil and Argentina are well positioned at this moment as food producers due to their vast farmable lands and well-developed industrial agribusiness,” he told Arab News.
Before traveling to Buenos Aires, Al-Falih and his delegation were in Brazil — Saudi Arabia’s most important commercial partner when it comes to animal protein — where a number of deals were signed.
The pandemic has been a turning point for the whole world in terms of food security, and the Gulf nations — especially Saudi Arabia and the UAE — have in South America their most important allies in that matter, Abboud said.
“They’re interested in cultivating strong bonds with other countries. Helping us to develop infrastructure is part of that process, given that we’re not fully mature in that area,” he added.
Earlier this year, Argentina and the Saudi Fund for Development signed a $500 million agreement for food and energy endeavors.
The deal included the Nestor Kirchner Gas Pipeline, whose first branch will connect the Vaca Muerta reserve in the region of Patagonia to Buenos Aires province.
The pipeline was announced by President Alberto Fernandez’s administration as the country’s most important infrastructure project in 40 years, given that it is expected to greatly improve energy generation in the most productive economic centers of Argentina.
The negotiations between Argentinian companies and Saudi businesspeople included potential deals in areas such as agriculture, fertilizers, energy (including renewables) and new technologies.
Julio Husain Made, who heads the Argentine-Arab Chamber of Commerce, accompanied business leaders of different economic segments to the meeting.
“We were there with businesspeople from the electro-medical industry, which exports its products to several Arab nations and can expand its presence in Saudi Arabia,” he told Arab News.
Representatives of clothing companies, pharmaceutical companies and home-appliance makers were also present in order to look for opportunities to take Argentinian brands to the Kingdom, he said.
The ministers also discussed opportunities in new technologies and startups, a segment that has been growing in both nations.
“Between 2022 and 2023, the sector of startups has grown and we have almost dominated the Middle East, so we have many startups in Saudi Arabia but not enough to absorb all the investors’ enthusiasm,” said Al-Falih, who invited Argentinian businesspeople to visit the Kingdom and seek funding there.
Husain Made said he felt that the Saudis had “great excitement” about doing business in Latin America and especially in Argentina.
“We have totally complementary economies, so there’s huge potential to develop initiatives together,” he added.
The Argentine-Arab Chamber of Commerce will promote a mission of Argentinian businesspeople to Saudi Arabia in the near future, Husain Made said.
Al-Falih’s tour of several Latin American countries began with Brazil. On Friday he visited Chile, where he met with Foreign Minister Alberto van Klaveren and Economy Minister Nicolas Grau, and discussed potential partnerships in renewable energies and water management.
Saudi Arabia and Chile signed an agreement to improve cooperation and identify economic fields in which direct investments could benefit both countries.
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