Abu Dhabi Investment Group has announced plans to invest more than $100 billion in Brazil, focusing on sectors such as infrastructure, clean energy, oil and gas, and agriculture, amid growing ties between the UAE and the South American nation.
The commitment was announced during a meeting between Brazilian President Luiz Inacio Lula da Silva and ADIG chief executive Zayed bin Aweidha in Brasilia, the company said in a statement on Friday.
The co-operation between the Brazilian government and ADIG will look at mergers in sectors such as technology and aviation, as well as automotive manufacturing – which will include the acquisition of an existing facility – and finance, including the establishment of a dedicated bank.
Key investment areas include restoration of degraded pasture, urban infrastructure, industrial development and sustainable mobility. The deals will extend to agriculture, with plans to boost food security across 400,000 square kilometres using advanced technologies to optimise supply chains and reduce waste, ADIG said.
Mr Aweidha described the partnership as a “cornerstone for energy security and sustainable economic growth” which will look at clean energy initiatives such as solar and wind projects to move towards a low-carbon economy.
Developing key initiatives outlined at this month's G20 Summit in Rio de Janeiro was discussed at the meeting. Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, was in Brazil to represent the UAE at the G20 Summit, where ADIG unveiled infrastructure initiatives aimed at boosting development in emerging economies.
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“Our efforts span the financing of smart transportation systems, clean water networks and green infrastructure, alongside driving digital transformation and modern technological advancements,” Mr Aweidha said.
ADIG also plans to finance the construction of alternative housing for informal settlements, including model villages to relocate slum residents, with the goal of enhancing productivity and raising living standards.
The UAE, the Arab world’s second-largest economy, aims to boost trade and economic relations with countries around the globe to attract more investment and diversify its economy.
Brazil is one of the UAE's top trading partners in Latin America and ranks second only to the US among its most important trading partners in the Americas. The Emirates’ non-oil trade with Brazil reached $4.3 billion in 2022, an annual growth of 32 per cent, according to figures from the UAE's Ministry of Economy.
Last year, the UAE was the 28th-largest destination for Brazilian products. By the first half of this year, it moved up to the 13th position on the back of a 74 per cent increase in Brazilian exports to the Emirati market. At least 40 Brazilian companies operate in the UAE.
The two countries currently collaborate in industry, transport, shipping, storage, infrastructure, construction, port management, energy, mining, banking and finance, and property.
