Saudi Arabia Doubles Machinery Imports From Brazil

(MENAFN- Brazil-Arab News Agency (ANBA)) São Paulo – Saudi Arabia more than doubled its imports of machinery and equipment from Brazil last year. The Arab Gulf country increased its imports of these Brazilian products by 119.8% in 2024 compared to the previous year, to USD 169 million, according to data provided to ANBA by the Brazilian Machinery and Equipment industry Association (ABIMAQ ).

According to ABIMAQ, the largest import volume was naval and offshore equipment, totaling USD 115 million and accounting for 68.2% of the total. Brazil also exported logistics and construction equipment to Saudi Arabia, grossing USD 22 million, capital goods components worth USD 13.5 million, and machinery for the manufacturing industry at USD 2.1 million.

Patrícia Gomes, Executive Director of Foreign Market at ABIMAQ, says no recent trade promotion events for the industry have been held in Saudi Arabia or the region. However, many companies have participated in international business fairs with support from ABIMAQ in partnership with the Brazilian Trade and Investment Promotion Agency (ApexBrasil) or solely from ApexBrasil. These events, held in countries like the United States, Germany, and Italy, serve as showcases for the industry.

“There is a good chance these deals are a result of these efforts. For example, ApexBrasil used to organize Brazil's participation in the OTC Houston fair annually. In 2025, participation will be organized by ABIMAQ in partnership with ApexBrasil through Brazil Machinery Solutions. This fair is considered the most important for the oil & gas sector, bringing together global players during the event, including buyers from Saudi Arabia,” says Gomes.

Brazil Machinery Solutions is a program spearheaded by ApexBrasil and ABIMAQ to promote Brazilian exports of machinery and equipment. When asked about potential actions in Saudi Arabia this year, Gomes explains the priority countries for foreign trade promotion activities are currently being defined.“The expectation is to complete this exercise by mid-March, at which point the countries that'll receive greater focus in our internationalization strategy will be determined,” she says.

Second-best export performance

Last year, despite the Brazilian machinery and equipment sector achieving its second-best export performance at USD 13.18 billion in revenue, there was a 5.5% decline compared to the previous year. In 2023, exports were slightly higher, totaling USD 13.96 billion. Certain types of machinery, such as those for consumer goods, manufacturing, infrastructure, and components, saw an increase in sales, while construction and agricultural machinery experienced a decline.

When presenting the annual report, ABIMAQ highlighted the growth of exports to several countries, including Saudi Arabia, Singapore, South Korea, Mexico, Guyana, and France. The Arab countries as a whole, including Saudi Arabia, increased their purchases of Brazilian machinery. According to ABIMAQ, exports to the Arab League countries totaled USD 722 million, a 63.8% increase compared to 2023.

Gomes says this was the best export performance to Arab countries since the data series began in 1997.“Out of the the League's countries, four of them- the United Arab Emirates, Saudi Arabia, Qatar, and Iraq-accounted for 83.9% of total exports to the region. Once again, oil-related machinery stood out, representing 65.7% of total exports to the League,” she says.

Translated by Guilherme Miranda

Supplied/Abimaq

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