Toward a shared future: Deepening Peru-Saudi Arabia cooperation

Arab News

29-04-2025

https://arab.news/cqy9y
In an increasingly interconnected world that is facing complex challenges, fostering international cooperation is not only necessary — it is our shared responsibility. As I prepare for my visit to the Kingdom of Saudi Arabia, I am struck by how much potential lies in building bridges between our nations. Despite their geographical distance, Peru and Saudi Arabia share a common vision rooted in economic cooperation. United by their historical and cultural richness, both countries are committed to global integration and a mutually beneficial relationship based on economic complementarity.
Strategically located on the Pacific coast of South America, Peru serves as a central economic gateway to the region. With a population of more than 34 million and a territory of 1.28 million sq. km, the country has become an example of macroeconomic stability and a regional leader in trade and investment. In 2024, Peru maintained solid economic performance with gross domestic product growth of 3.3 percent, inflation contained at 1.97 percent and a record total export value of $74.6 billion.
Supported by more than three decades of sound economic policies, Peru offers a stable and investor-friendly environment, reinforced by a legal framework that guarantees equal treatment for foreign investors and adherence to international investment protection mechanisms such as the International Centre for Settlement of Investment Disputes and the Multilateral Investment Guarantee Agency. This foundation ensures legal predictability and long-term stability, key elements for Saudi investors seeking strategic and secure opportunities.
In addition, the country's trade-led growth model is supported by more than 20 free trade agreements and 32 bilateral investment treaties, a network that provides preferential access to key global markets for 87 percent of the country's exports.
Despite their geographical distance, Peru and Saudi Arabia share a common vision rooted in economic cooperation
Elmer Schialer
In terms of maritime connectivity, Peru plays a crucial role as a major logistics hub in Latin America, facilitating international trade through its well-developed port infrastructure. In 2024, Peru was ranked 37th in the Liner Shipping Connectivity Index, making it the third most connected country in South America. This enhanced logistical integration complements Peru's foreign policy, which is firmly based on international law and economic cooperation and offers Saudi companies a favorable gateway to expand their commercial presence in our region.
Bilateral ties between Peru and Saudi Arabia began in 1986 with the establishment of diplomatic relations. Subsequently, Peru opened an embassy in Riyadh in 2012 and Saudi Arabia followed suit in Lima in 2013, marking a milestone in their relations. Since then, economic and political ties have grown progressively, reflected in trade exchanges that have reached a peak of $188 million in recent years.
In addition, political consultation mechanisms facilitate dialogue and ensure that bilateral cooperation remains robust and forward-looking. These engagements provide a platform to advance negotiations and sign new agreements, such as the drafts of general cooperation and air services agreements.
Saudi Arabia is an important partner for Peru in many ways. As the largest economy in the Middle East, it stands as a global leader in financial innovation, technological development and industrial growth. I deeply admire the ambition and clarity of purpose behind Vision 2030, which resonates strongly with Peru's own national development strategies. This alignment creates fertile ground for collaboration — not just at the governmental level, but among our business communities and societies as a whole.
I truly believe that the complementarity between our two economies offers a powerful basis for a stronger and more dynamic partnership. We each bring unique strengths to the table. Peru, for example, is proud to be a trusted supplier of high-nutritional agricultural products like blueberries, grapes and avocados. At the same time, we recognize Saudi Arabia's vital role in providing industrial inputs and advancing technological innovation. This mutual exchange reflects the alignment of the two economies and underlines the potential for further expansion of trade and investment in infrastructure, mining, energy and related industries.
The complementarity between our two economies offers a powerful basis for a stronger and more dynamic partnership
Elmer Schialer
Peru offers opportunities in a number of sectors. Notable projects include our petrochemical plant project, the Southern Peru Integrated Gas Transportation System and the 2025-2034 Transmission Plan in energy; El Galeno and Los Chancas in mining; and the Andean Longitudinal Highway (Section 4), the Ancon Industrial Park and the Ilo Desalination Plant in infrastructure.
These large-scale initiatives offer unique opportunities for Saudi investors to contribute to Peru's economic transformation, while ensuring sustainable and profitable returns. It is worth noting that Saudi capital is already present in Peru, particularly in the oil and gas sector, providing a promising foundation for deeper bilateral investment ties.
As I travel to Saudi Arabia, I do so with a sense of real excitement — for the conversations we will have, the opportunities we will uncover and the friendships we will strengthen. It is my firm conviction that Peru and Saudi Arabia can build a lasting and forward-looking relationship, one that is rooted in trust, respect and a shared commitment to growth.
In this spirit, Peru warmly welcomes Saudi businesses, investors and policymakers to discover the vast opportunities that this dynamic relationship can offer. Together, we can open new economic frontiers and lay the foundation for a future of shared prosperity, innovation and enduring cooperation.