Strengthens Uruguay’s economic diversification
Uruguay and Saudi Arabia took another step towards building stronger investment relations with the signing of the Investment Promotion and Protection Agreement. The agreement is one of a series of similar accords and a part of a comprehensive strategy initiated at the beginning of President Yamandú Orsi’s government, aimed at diversifying the markets for Uruguayan production and attracting foreign investment to the country.
The agreement was signed by the Foreign Minister, Mario Lubetkin, on Thursday in the Saudi capital of Riyadh with the Kingdom of Saudi Arabia’s Minister of Investment, Khalid bin Abdulaziz Al-Falih. The agreement aims to provide greater legal security and protection for Saudi investors who wish to do business in Uruguay, as well as to incentivize Uruguayan businesses to invest in and do business in Saudi Arabia’s growing market.
Guarantee and protection for investors
“The signing of this agreement guarantees for Saudi entrepreneurs who wish to make investments in Uruguay, and under stable, predictable, and fair conditions”, emphasized Minister Lubetkin. The agreement will create a firm legal framework to enable foreign investors to do business in Uruguay under transparent and stable legal conditions, he said. “We also want Uruguayan investors to be able to make their way into this dynamic economy,” he added.
In his speech, Lubetkin stated that the signing of the agreement, which was another milestone in the international investment promotion policy of the Uruguayan state, began with a view to not only expanding trade between the countries but also strengthening and consolidating Uruguay’s image as a safe and reliable investment destination.
Uruguay and Saudi Arabia: In line with the foreign policy of the Orsi Government
This agreement is in line with President Yamandú Orsi’s foreign policy since the beginning of his government. He pointed out that the priority of his government since the beginning of its term has been to seek to diversify and deepen integration with new areas and trade blocs, beyond traditional regions and markets such as the European Union and Latin America.
In this regard, the government aims to attract investment from around the world, especially from countries and regions with strong financial capacity, such as the Gulf countries. “The signing of the Agreement on Reciprocal Promotion and Protection of Investments between the Kingdom of Saudi Arabia and the Eastern Republic of Uruguay, signed today, is just one more step in a process that began months ago and which we do not intend to stop”, he said.
Progress in Trade and Investment
In his speech, the foreign minister also highlighted progress in the Uruguay-Saudi Arabia relationship, achieved through the signing of the record-breaking agreement between Mercosur and the European Free Trade Association (EFTA) countries. These are Switzerland, Norway, Iceland, and Liechtenstein. The four countries form a free trade area with a GDP of more than 4.3 trillion dollars and a market of almost 300 million people.
“That is why this agreement is the result of our determination to continue to be competitive and act in time to safeguard the interests of Uruguayans, especially in strategic markets like the European one”, he concluded. “The signing of this Agreement is in line with the government’s ongoing effort to position Uruguay as a modern, reliable, and growing country that is not afraid to take part in global supply chains.”
Facilitates the access of Uruguayan products to new markets
In another part of his speech, Lubetkin also noted the achievements that Uruguay has made in recent months to access new markets for the export of agricultural and food products. In this context, he reported that “working hand in hand with the MGAP and MEF teams, we have already achieved new sanitary authorizations for the export of Uruguayan products to the markets of the Philippines, Algeria, Qatar, Hong Kong, Singapore, Malaysia, Kuwait and China, among others.”
Lubetkin emphasized that the signing of the agreement between Uruguay and Saudi Arabia will create an opening to further advance the export of Uruguayan products to the Middle East. In a context of growing demand in the Middle East for high-quality food and agricultural products, the importance of the market is critical for Uruguay to be able to access and expand its sales in the region.
Uruguay and Saudi Arabia: Developments in other world regions
Lubetkin also referred to the developments in the relationship with other countries in other world regions, in particular with Asian countries. In this respect, he celebrated that “Uruguay has recently become a member of the Treaty of Amity and Cooperation of Southeast Asia (ASEAN) in a ceremony held in Kuala Lumpur, which ratifies, by including us in this Treaty, the strength and closeness of our relationship with some of the main regional economies such as Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.”
Finally, the Minister of Foreign Affairs referred to the strong links that the country has been building recently with countries in the Middle East and Africa. “These results reflect our coherent and dynamic policy, a policy that will continue to propel us forward with this same drive so that Uruguay can take its place as a protagonist in the markets of the future,” he concluded.