Economic exchange between Brazil and Saudi Arabia is expanding rapidly, driven by a vision of diversification and mutual development. The following sectors stand out as main focuses for investment and cooperation:

• Port Infrastructure: Saudi Arabia, through global players such as Red Sea Gateway Terminal (RSGT), has demonstrated strong interest in modernizing and expanding Brazilian logistics capacity, with investments directed to strategic projects such as the Tecon Santos 10 megaterminal and concessions in vital ports such as Itaguaí (RJ) and in Bahia. Brazil, in turn, plans around 40 auctions by 2026, covering terminals for various types of cargo, reflecting robust sector growth, which saw an 18% increase in container operations in 2024.
• Mining and Advanced Geological Research: Focusing on strategic minerals for the global energy transition (copper, nickel, lithium), Saudi Arabia, through companies like Ma'aden, explores significant investments in mineral research in Brazil. Technical cooperation is strengthened by participation in international forums, such as the Future Minerals Forum, aiming for alignment in sustainable processing technologies and global governance in the sector.
• Agribusiness and Food Security: Brazil, as an agricultural power, and Saudi Arabia, focused on food security, strengthen ties. An example is the investment by Brazilian company BRF in a modern processed food factory in Jeddah, using Brazilian raw materials and targeting the halal market and regional exports.
• Clean Energy and Energy Transition: Both countries are engaged in the energy transition agenda, discussing partnerships in green hydrogen and decarbonization technologies, in line with preparations for COP 30 in Brazil. Memorandums of understanding with Gulf countries, including Saudi Arabia, foresee investments in energy infrastructure and technology transfer.
• Startups and Innovation Ecosystem: Recent bilateral agreements seek to intensify exchange between startup ecosystems, supporting co-development of technologies, facilitating access to new markets and promoting the growth of innovative companies in areas such as sustainability and digital solutions.
• Research, Development and Innovation (R,D&I): Negotiations advance for R,D&I partnerships, with emphasis on neo-industrialization, sustainability and digital transformation, especially in the industrial and mining sectors.
• Biofuels and Renewable Energy: The biofuels sector, such as Brazilian ethanol, continues to attract Saudi interest, aligned with the global search for clean energy sources and the Kingdom's economic diversification strategy.
• Aviation and Pharmaceutical Industry: High value-added and innovation sectors, such as aviation and pharmaceuticals, also figure on the radar of Saudi investments, demonstrating a comprehensive diversification vision.
• Tourism and Human Capital: Saudi Arabia actively seeks qualified Brazilian professionals for its growing tourism, mining, energy and agriculture sectors, in addition to fostering scientific and educational exchanges.
• Venture Capital: The dynamic Brazilian venture capital ecosystem is perceived as highly promising by Saudi investors, who seek opportunities in early-stage startups, with a focus on technology and sustainability.

These areas reflect a strategic alignment for economic diversification, innovation and sustainable development, creating a vast range of opportunities for investors and companies from both countries.

Investing in Saudi Arabia presents a promising business environment, but with regulatory particularities that require planning and specialized knowledge. CICIBAS is prepared to guide your company through these challenges:

• Legal Structure
• Local Partnership: In various sectors, Saudi legislation may require a local partner. CICIBAS assists in identifying strategic partners and structuring business models that protect your interests.
• Registration and Licensing: The process can be complex. We offer complete advisory services to expedite your company's registration and obtaining necessary licenses, deciphering the specific requirements of each sector.
  • Sectoral Restrictions and Dynamism:
    • Strategic Sectors: Sectors such as oil, gas and mining have specific regulations. Our expertise ensures your company understands and meets all requirements to operate legally.
    • Regulatory Evolution (Vision 2030): The regulatory environment is constantly transforming due to the ambitious Vision 2030 plan. We continuously monitor these changes to offer updated information and adaptive strategies, minimizing uncertainties.
• Compliance with Local Laws:
  • Labor Laws and Saudization: Saudization policies (employment quotas for Saudi citizens) are rigorous. CICIBAS guides on best hiring and compliance practices.
  • Intellectual Property: Protection of patents, trademarks and copyrights has local nuances. We provide support for registering and defending your intellectual assets in the Kingdom.
  • Cultural and Religious Barriers:
  • Cultural Norms and Sharia: Legislation and business practices are influenced by Sharia (Islamic law). Our cultural consulting prepares your team for successful business interactions, from etiquette to marketing adaptation and contracts.

The tax relationship between Brazil and Saudi Arabia is a crucial point that demands careful planning, especially due to the absence of an agreement to avoid double taxation. CICIBAS offers clarity and strategic guidance:

• Taxation in Saudi Arabia:
  • Corporate Income Tax (CIT): Foreign companies are generally taxed at a standard rate of 20% on profits generated in the country.
  • Zakat: Companies owned by Saudis or citizens of Gulf Cooperation Council (GCC) countries are subject to Zakat, a religious contribution of 2.5% on capital and profits.
  • Withholding Tax: Payments made to foreign companies for services, royalties, interest, among others, may be subject to withholding tax, with rates ranging from 5% to 20%, depending on the nature of the transaction.
• Taxation in Brazil:
  • Taxation of Foreign Profits: Brazil has specific rules for taxing profits earned by controlled and affiliated companies abroad, including those generated in Saudi Arabia, according to Federal Revenue Service regulations.
  • Brazilian Withholding Income Tax (IRRF): Payments made by Brazilian companies to beneficiaries in Saudi Arabia (such as for technical services or royalties) may also be subject to IRRF withholding in Brazil, with rates generally between 15% and 25%.
• Implications of the Absence of a Double Taxation Agreement:
  • Risk of Double Taxation: The main consequence is the possibility of the same income being taxed in both countries, increasing the total tax burden.
  • Foreign Tax Credit: Although Brazil allows, under certain conditions, the credit of tax paid abroad, there are specific limits and requirements that must be carefully analyzed.
• Indirect Taxes:
  • VAT in Saudi Arabia: The Kingdom implemented Value Added Tax (VAT) at a rate of 15% on most goods and services.
  • ICMS and IPI in Brazil: Brazilian exports are generally exempt from ICMS and IPI, but imports of goods and services from Saudi Arabia may be subject to these taxes in Brazil.
• CICIBAS Strategic Recommendations:
  • Detailed International Tax Planning: It is crucial to conduct thorough tax planning before starting operations, aiming to optimize the tax burden and avoid double taxation.
  • Integrated Specialized Advisory: We strongly recommend support from specialized tax consultants in both Brazil and Saudi Arabia. CICIBAS facilitates access to this network of specialists to ensure compliance and identify the best tax structures.

Saudi Arabia is experiencing an unprecedented economic transformation, driven by the ambitious Vision 2030 plan. This scenario opens an extraordinary range of opportunities for Brazilian investors in strategic sectors:

• Renewable Energy and Sustainability: The Kingdom is investing massively in diversifying its energy matrix, focusing on mega solar and wind energy projects, in addition to positioning itself as a future leader in green hydrogen. There are vast opportunities throughout the value chain, from component manufacturing to power plant development and operation.
• Infrastructure and Urban Megaprojects: Futuristic projects like NEOM, The Red Sea Project, Qiddiya and Roshn are redefining the concept of urban and tourism development. The demand for expertise in construction, engineering, transportation, hospitality, technology and project management is immense.
• Agribusiness, Aquaculture and Food Security: With the goal of increasing food security and reducing import dependence, Saudi Arabia seeks partnerships and innovative technologies for local production, food processing, sustainable agriculture and aquaculture.
• Technology, Innovation and Digital Transformation: The Saudi government is actively fostering the startup ecosystem and the adoption of disruptive technologies. Opportunities abound in fintech, artificial intelligence, digital health (healthtech), edtech, cybersecurity and smart city solutions.
• Tourism, Hospitality and Entertainment: The country's opening to international tourism and the development of a vibrant entertainment industry create a market with exponential growth potential. Investments in resorts, hospitality, theme parks, cultural events and tourism services are highly promising.
• Health and Wellness: The health sector is undergoing significant modernization, with investments in cutting-edge hospitals, specialized clinics, local pharmaceutical industry, biotechnology and telemedicine solutions.
• Mining and Natural Resources (Non-Petroleum): The Kingdom has vast unexplored mineral reserves. The government seeks to attract investments for prospecting, exploration and processing of minerals such as phosphate, bauxite, gold, copper and uranium, creating opportunities for companies with sector expertise.
• Advanced Manufacturing and Industrialization: As part of economic diversification, there is strong incentive for developing a local industrial base in sectors such as automotive, defense, industrial equipment and consumer goods.

CICIBAS Tip: Brazilian companies can capitalize on these opportunities through participation in trade missions organized by CICIBAS, sectoral fairs, and using our network of contacts to explore cooperation agreements and joint ventures.

The Brazilian-Saudi Investment and Trade Center (CICIBAS) is your dedicated strategic partner to build solid and profitable bridges between Brazil and Saudi Arabia. We offer a complete portfolio of personalized services to support your company at every stage of the internationalization and investment journey:

• Strategic Internationalization Consulting and Market Intelligence:
  • In-depth analysis of the Saudi and Brazilian markets, identifying customized opportunities for your business.
  • Economic and financial feasibility studies, risk assessment (regulatory, cultural, operational) and development of market entry and expansion plans.
  • Competitive intelligence and key stakeholder mapping.
• Legal, Regulatory and Compliance Advisory:
  • Complete guidance on ideal corporate structure, company registration processes, obtaining licenses and permits in both countries.
  • Specialized support in complex contractual issues, intellectual property protection, and compliance with local and international standards.
  • Assisted navigation through the particularities of Sharia (Islamic law) applied to business.
• International Tax Planning and Tax Optimization:
  • Development of efficient tax structures to mitigate double taxation risks and optimize the global tax burden of your operations.
  • Advisory on the application of local taxes in Saudi Arabia (VAT, Zakat, WHT) and tax obligations in Brazil for foreign income.
• Identification and Qualification of Local Strategic Partners:
  • Mapping, prospecting and rigorous qualification of potential business partners, distributors, commercial agents, suppliers or Saudi investors.
  • Active support in negotiation rounds, due diligence processes and in formalizing strategic alliances and joint ventures.
• Organization of Trade Missions and Business Agendas:
  • Planning and execution of customized trade missions (individual or group) to Saudi Arabia and reception of Saudi delegations in Brazil.
  • Development of high-level B2B and B2G business agendas, connecting your company with the right contacts.
• Support in Fairs, Events and Roadshows:
  • Complete assistance for participation in relevant sectoral fairs, organization of product/service launch events and investment roadshows.
  • Brand promotion and facilitation of qualified networking.
• Cultural Consulting and Intercultural Training:
  • Training programs on Arab and Saudi business culture, professional etiquette, and effective communication strategies to build trust relationships.
• Logistical and Operational Support:
  • Guidance on import/export processes, international logistics, customs clearance and necessary certifications.

Our commitment at CICIBAS is to transform the business potential between Brazil and Saudi Arabia into concrete and lasting results for your company.