Expanding a Business from Brazil to Saudi Arabia: Benefits and Steps

This article presents an overview of the process of starting a Brazilian business in Saudi Arabia and its advantages.

In 2023, bilateral trade between Saudi Arabia and Brazil reached approximately $6.7 billion. As the Saudi-American corridor keeps on expanding, Brazilian firms are rapidly eyeing Saudi Arabia for global expansion.

Enhanced bilateral cooperation lies in the background of Brazilian firms' growing appetite to expand and set up a business in Saudi Arabia, driven by lucrative opportunities, particularly in the mining, energy, and IT sectors.

Last year, Saudi Arabia announced it is considering opening an office of its Investment Ministry in São Paulo to boost trade and business with Brazil, underscoring a noticeable preference for Saudi Arabia as an international expansion target.

Industrial and Mining Industries are the Cornerstone of Growing Brazilian-Saudi Cooperation

The Saudi-Brazil economic relationship is centered around bolstering cooperation in the industrial sector. The standout highlight is PIF's $15 billion investment plan in Brazil, announced in mid-2024. The deal, which marks one of the largest sovereign commitments from Saudi Arabia to any Latin American economy, primarily focuses on large-scale renewable energy, hydrogen fuel infrastructure, and key transport assets.

Industrial cooperation in the food industry is also increasing. In April 2025, Brazilian food giant BRF launched a joint venture with Saudi Arabia's Halal Products Development Company (HPDC), a PIF-backed initiative, to build a poultry and halal food plant in Jeddah. With a planned capacity of 40,000 tons annually, this facility is scheduled to open by 2026 and will create around 500 new jobs.

A month later, Brazilian poultry giant Vibra Agroindustrial S.A. has agreed to invest over $150 million in Tanmiah Food Company. The partnership will expand poultry processing capacity and improve the supply chain for poultry and beef to maintain sustainable production, aligning with Saudi Arabia’s objective to boost food security and self-sufficiency.

Within the industrial sphere, mining remains a crucial pillar of the wider Saudi-Brazil economic corridor. With an approximate $1.3 billion commitment toward geological research and mineral exploitation in Brazil, announced at the 2025 Future Minerals Forum in Riyadh, Ma’aden is now actively collaborating with Brazilian geological institutions and service providers.

During the Forum, Ma'aden announced plans to establish its first São Paulo office. This follows an earlier move in 2024, when Ma'aden, together with PIF, acquired a 10% stake in Vale's base-metals unit.

These developments open the door for Brazilian and Saudi mining companies to co-develop resources, share technology, and jointly pursue downstream processing.

Saudi Arabia and Brazil Expand Ties in Logistics and Infrastructure

The infrastructure corridor is becoming one of the most active domains of cooperation between the two countries.

In 2024, a consortium backed by PIF and Pátria investments secured a $1.2 billion toll-road concession in the Brazilian state of Paraná. The 30-year deal, which involves modernizing and operating strategic highway networks, highlights a bigger scope for bilateral cooperation in major transport projects.

In the ports and waterway infrastructure sector, Brazil presented over 40 concession projects to Saudi port operators, including Red Sea Gateway Terminal, with auctions expected by 2026. Key port terminals like Itaguaí, Santos, and Bahia were identified as high-potential entry points.

Brazil's port sector saw 5% overall growth in 2024, with container throughput rising 18%, demonstrating the need for modernization and international partnerships to support this expansion.

Brazilian Technology Companies Have Big Ambitions in Saudi Arabia

Brazil's innovation is gaining ground in the Kingdom. A Saudi delegation led by the Social Development Bank visited São Paulo in early 2025, scouting startups in gaming, fintech, creative industries, and coffee exports. In return, Brazilian gaming firms will lead a delegation to Riyadh in July 2025, seeking to forge local partnerships.

In parallel, Saudi Arabia's digital economy is booming, with Savvy Games Group, backed by the PIF, actively scouting for global partnerships with Brazil.

Brazilian tech and AI companies will find an open market in Saudi Arabia for their innovations, particularly in B2B SaaS and smart-city technologies.

Registering a Business from Brazil in Saudi Arabia: Overview of Key Steps

The first stage of the Saudi market expansion typically necessitates having all the company’s foundational documents ready and attested. These include a certificate of incorporation, the memorandum of association (MoA), and articles of association (AoA), as well as an audited financial statement.

Then, business owners must register with more than 10 ministries and governmental entities as part of the three-stage market entry journey. In the subsequent stages, it is important to obtain a nationally registered office space to get a national address.

In the soft landing phase, companies must secure the general manager’s Iqama and finalize registrations on key government portals, including Muqeem, Absher, Qiwa, and Mudad.

It is pertinent to note that having an up-and-running bank account is vital to complete the foreign business setup process in Saudi Arabia.

Finally, businesses will need to hire staff in compliance with the Saudization (Nitaqat) quota, issue visas for non-Saudi employees, and complete their legal due diligence as part of the post-setup stage.

Working with local partners to support foreign companies with essential business functions like accounting, HR, and payroll management offers several advantages. One key benefit is that it allows companies to maintain laser focus on business growth while ensuring full regulatory adherence within the Saudi business environment.

Starting a Business from Brazil in Saudi Arabia: Frequently Asked Questions (FAQs)

1. What are the top opportunities for Brazilian companies in Saudi Arabia?

Incorporating a Brazilian firm in Saudi Arabia grants access to untapped opportunities in sectors including renewables, mining, agriculture, and logistics.

2. How can Brazilian businesses establish operations in Saudi Arabia?

Foreign companies must first secure a MISA license to establish their legal entity and then obtain commercial registration (CR). A series of registrations with governmental portals will be necessary for a Brazilian company to get operational.

The foreign business setup process in Saudi Arabia concludes with issuing a GM iqama and getting a bank account up and running. Companies obtaining the help of AstroLabs, the Gulf’s leading business expansion platform, can get fully operational in as little as 3 months.

3. What tax benefits are available for Brazilian investors?

Corporate tax in Saudi Arabia stands at 20%. Brazilian businesses may be subject to VAT (currently at 15%), Zakat, and excise income, depending on the company’s entity type and activities.

Saudi Arabia offers various tax incentive schemes ranging from exemptions and/or deductions to further the growth of its private sector-led economy.

4. What kind of support helps Brazilian companies succeed in Saudi Arabia?

With a team of over 40 local experts and over a decade of experience in company formation, AstroLabs helps foreign companies ensure full alignment with Saudi compliance requirements throughout the entire business life cycle.