Saudi Arabia strengthens ties with Latin America and the Caribbean

The presence of Saudi Arabia in Latin America and the Caribbean has experienced significant growth in recent years, fueled by the ambitious economic plan known as Vision 2030, driven by Crown Prince Mohammed Bin Salman. This strategy aims to modernize the Saudi economy, diversify its sources of income, and reduce dependence on oil, by betting on expanding investments and businesses in different regions of the world. In this context, Saudi exports to Latin America have grown significantly, reaching $4.581 billion in 2023, representing an increase of 38.8% compared to the previous year. Likewise, imports from the region have also increased, reaching $4.993 billion in the same period, a 23.6% increase from 2019. These numbers reflect the flourishing trade between both regions. In addition to commercial exchange, Saudi Arabia has made significant investments in Latin American and Caribbean countries. A notable example is the commitment to invest $2.5 billion in the development of Caribbean nations, announced by Guyana last November. Similarly, Saudi companies like Aramco have entered the Chilean market, acquiring fuel distributors and planning to expand their operations in the region. Saudi Arabia's focus on Latin America and the Caribbean is part of a broader strategy to diversify its investments and seek new markets. The region is seen as an attractive destination due to its political and economic stability, as well as the presence of strategic resources such as lithium, nickel, and copper, which could be key in a post-oil future. In addition to economic interests, the relationship between Saudi Arabia and Latin America also has geopolitical implications. The countries in the region, mostly not aligned with Western powers, represent diplomatic support for Riyadh in international forums. The search for international rehabilitation following cases like the 2018 murder of journalist Jamal Khashoggi has led the Saudi government to strengthen ties with Latin American and Caribbean countries. In the case of Brazil, relations with Saudi Arabia have intensified in recent years, with trade exchanges in sectors such as food, renewable energies, and technology. Saudi interest in Brazil's ability to produce halal food, as well as in more technological sectors like wind energy and defense industry, has driven cooperation between both countries. While the geographical and cultural distance between Saudi Arabia and Latin America poses challenges, the growing relationship between both regions represents an opportunity to strengthen economic and diplomatic cooperation. The push of Saudi investments in Latin America and the Caribbean, guided by Vision 2030, reflects the kingdom's willingness to diversify its economy and establish strategic alliances in a constantly changing world.