RIYADH: Trade between Saudi Arabia and Brazil is poised to expand following a new agreement between their banks aimed at boosting cooperation and increasing non-oil exports.

The memorandum of understanding, signed by Saudi EXIM and the Brazilian Development Bank, seeks to explore joint financing opportunities and facilitate information exchange.

This partnership is set to strengthen economic ties and broaden trade relations, with a particular focus on enhancing Saudi non-oil exports to the South American market, according to a press release.

This development comes as economic relations between Saudi Arabia and Brazil continue to strengthen, with trade between the two nations reaching approximately $5.5 billion in 2023. Brazilian exports to Saudi Arabia totaled $2.654 billion, while Saudi exports to Brazil amounted to $2.937 billion, according to the Arab Brazilian Chamber of Commerce.

The agreement was formalized in Rio de Janeiro during an official visit led by Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef.

In a statement on X, the minister expressed gratitude to his colleagues at the bank for their efforts in enhancing Saudi exports and preparing the memorandum. He noted that the agreement aims to increase the volume and diversity of products and services exchanged and improve access for Saudi non-oil exports to Brazilian and Latin American markets.

Saad Al-Khalab, CEO of Saudi EXIM, and Nelson Barbosa, director of planning at the Brazilian Development Bank, signed the agreement.

Al-Khalab emphasized that this partnership not only fortifies bilateral relations but also promotes broader economic cooperation between the Middle East and Latin America, paving the way for future collaborative ventures. He further highlighted the significance of the Brazilian market for local exporters, noting that the memorandum represents a crucial step toward developing trade relations, joint investment projects, and additional cooperation opportunities between commercial companies and financial institutions in both countries.

The agreement is expected to contribute to the growth of Saudi non-oil exports and the Kingdom’s markets, which have seen significant growth and diversification in recent years, according to the Saudi Press Agency.

The Saudi minister of industry and mineral resources began an official visit to Brazil and Chile on Monday to seek cooperation opportunities in the industrial and mining sectors, knowledge exchange, and the latest advancements in industrial technologies.

Alkhorayef, who concluded the first leg of his tour and arrived in Chile on Tuesday, is also set to explore joint investment prospects between Saudi Arabia and the two South American countries.