Mubadala Capital, the UAE’s state-owned investment firm, has signed a deal to invest $2.5 billion in Brazil over the next decade. The investment, made through Mubadala‘s Brazilian arm, Acelen, will be used to build a sustainable aviation fuel and kerosene plant in Bahia state.
The plant is expected to start production in 2026, with work commencing in January 2024. It will produce 1 billion liters of hydrotreated vegetable oil per year, a diesel-like fuel made without fossil resources.
Read more: Investopia 2023: Explores UAE’s commitment to sustainability and global trade
During a meeting in Abu Dhabi between Brazil’s President Luiz da Silva and UAE’s President Sheikh Mohammed bin Zayed, the two countries signed a framework agreement. This agreement reflects the growing relationship and mutual interest in promoting trade, investment, and tourism exchange between the two nations.
Abdullah Al-Marri, the UAE’s Minister of Economy, emphasized the strong foundation of friendship and respect underpinning Emirati-Brazilian partnerships. He noted that the total non-oil foreign trade between the two countries exceeded $4 billion in 2022, representing a 32% increase from the previous year’s total of over $3 billion.
While acknowledging significant investments and cooperation between the two nations, Al-Marri noted that there are still untapped opportunities in the sustainability space.
The UAE is set to host the COP28 UN climate talks later this year, and Brazil has expressed interest in hosting the 2025 edition. The two countries have agreed to collaborate and encourage ambitious climate action from the global community.
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