Saudi Inroads in Brazil: The IMEC vs BRICS

Saudi Arabia may have to choose between creating deeper inroads in South America with BRICS and securing a Strategic Defence Partnership with the US.

Brazil at the Future Mineral Forum in Saudi Arabia in 2025

Saudi Arabia has steadily increased its engagement with Latin America and the Caribbean (LAC) in recent years, reaching record highs in trade exchanges and committing to multibillion dollar investments across various sectors. Like its Gulf neighbours, the Kingdom is prioritising investments in electronics and artificial intelligence as part of its economic diversification efforts to advance its Vision 2030 goal of achieving a sustainable, clean energy future; Latin America’s abundant mineral reserves of lithium, copper, and cobalt present a significant opportunity for Saudi to strengthen its position and counter Emirati dominance in the region, while also offering potential for deeper cooperation with BRICS. However, a foreseeable Trump-induced shock to South American trade dynamics stands to threaten Saudi ambitions.

GCC-Latin America Relations

GCC-Latin American relations initially stemmed from the latter’s energy demands, but have since evolved into a robust partnership focused on economic cooperation and security, with trade between the GCC and LAC reaching nearly $11.7 billion in 2021. In exchange for oil and gas exports and infrastructure development, Latin America -particularly through the GCC's largest regional trade partner and largest halal meat exporter, Brazil- exports crucial minerals and agricultural products that play a key role in supporting the Middle East’s food security and clean energy goals. In 2024, Brazilian egg exports to the United Arab Emirates (UAE) and Qatar increased, with exports to the UAE rising by 108.7%, while overall Brazil-Kuwait trade grew by 50.4% between January and November compared to the previous year. Economic cooperation with Brazil and LAC more broadly is expected to only increase in 2025. Just last week a Memorandum of Understanding (MoU) between Brazil and the UAE was signed to support mineral exploration and development in both countries and Abu Dhabi-based Erth Zayed Philanthropies donated $40 million to support environmental conservation and sustainable development in the Amazon. During the joint ministerial meeting between the GCC and the Community of Latin American and Caribbean States (CELAC) last September, GCC Secretary General Jasem Mohamed Albudaiwi announced plans to expand this tri-regional relationship to encompass cultural, educational, sports, and youth exchanges, marking the potential for deeper future ties. As part of this effort, the Saudi Foreign Ministry recently leveraged the Kingdom’s religious soft power to expand cultural and religious engagement in the continent by participating in the 37th International Conference of Latin American and Caribbean Muslims, which was held in Brazil last month.