Patria Investments Ltd., a prominent player in the alternative asset management space within Latin America, is actively pursuing the expansion of its portfolio companies into Saudi Arabia. This strategic move is aimed at capitalizing on the business-friendly initiatives of the kingdom, particularly those encapsulated in the ambitious Vision 2030 strategy.
Key enterprises under Patria’s umbrella, such as the fitness chain Smartfit and the acai brand Frooty, are assessing the market landscape in Saudi Arabia for potential growth opportunities. Alexandre Saigh, the Chief Executive Officer of Patria, has highlighted these developments.
Beyond expanding its portfolio’s reach, Patria is also in discussions to acquire fertilizer from Saudi Arabia, adding to the bitumen already imported for a significant highway venture in Brazil. This project receives backing from the kingdom’s sovereign wealth fund. Saigh’s comments via a telephone conversation from Sao Paulo underscore the country’s appeal due to its youthful demographic and burgeoning middle class.
The burgeoning relationship dovetails with Saudi Arabia’s strategy to attract international partners to support Crown Prince Mohammed bin Salman’s Vision 2030. This framework aims to diversify the economic landscape away from a reliance on oil revenues. Brazil’s potential role in this reshaping is noteworthy, offering avenues to enhance food security, advance the metals sector, and foster partnerships in renewable energy initiatives.
Trade ties between Brazil and Saudi Arabia have been robust, with the two nations ranking among each other’s top 20 trading partners. Trade volume reached nearly $7 billion in 2023. Projections by the Gulf Research Center suggest this figure could ascend to $10 billion by 2030, powered by Saudi Arabia’s growth in sectors like tourism and hospitality, which would boost Brazilian imports.
An investment conference in Rio de Janeiro, sponsored by the kingdom’s Public Investment Fund (PIF), showcases this deepening partnership. Brazilian President Luiz Inacio Lula da Silva, Saudi officials such as PIF Governor Yasir Al-Rumayyan, business magnate Marcelo Claure, and executives from leading Brazilian corporations are among the notable attendees.