This week, Brazilian media are reporting that the Saudi government is negotiating the purchase of 33 military aircraft from Brazilian aviation manufacturer EMBRAER. The news comes the same week as the Brazilian company signed an agreement with American Airlines to supply the carrier with 90 Embraer E175 jets, with an option for an additional 43 planes. The purchase is worth up to $7 billion.
The Saudi government is interested in purchasing the C-390 Millennium military transport aircraft, which EMBRAER describes as a “multi-mission aircraft that brings unrivalled mobility, high productivity, and operation flexibility at low operational costs”.
Embraer was founded in 1969 as a public/private partnership. However, in 1994, the firm went entirely private and raised open capital. Since then, it has expanded substantially. The company prides itself on being the third largest maker of private jets, having sold over 8,000 aircraft. In 2013, EMBRAER grabbed news with their vow to become a pioneer in the production of so-called “flying cars”. A particular fabric is being developed for such manufacture, with a debut date of 2026.
The potential deal with Saudi Arabia would be critical to the company’s ambition of becoming a leading builder of military planes for Middle Eastern governments.
This is also consistent with Brazilian corporations’ overarching goal of developing tight ties and future deals with Saudi companies. This week, a group of Brazilian business leaders known as “LIDE” promoted the Brazil- Saudi Arabia Conference in Riyadh. The event sought to bring together business executives from both countries.
Head of Lide, João Dória Neto, tells BGTN. “The Brazil Saudi Arabia Conference is proof that building bridges between productive segments of countries generate extremely positive results and innovative projects”.
Dória Neto also stated how each country benefits from corporate leaders expanding their networks beyond its borders. “In Riyadh, we were very satisfied with the discussions that make evident how Brazil and Saudi Arabia can and will advance in essential topics for the planet, such as sustainability, technology, agribusiness and food security”, he added.
At the event, the Saudi government announced plans to establish an investment office in São Paulo to encourage and grow bilateral trade.
