The turmoil that has affected emerging markets in recent months has opened up opportunities for long-term investors, according to Saudi Arabian businessman Prince Khaled bin Alwaleed….
In the past few months, the prince has made several investments in Brazil. He has increased his stake in a one billion-reais ($430 million) infrastructure complex in the state of Espirito Santo that will serve the booming oil industry. The complex, called Petrocity Portos S.A., is based near one of Brazil’s large new oil-producing areas known as pre-salt….
Prince Alwaleed’s group, KBW, also has taken a larger stake in mining firm Royal Minerals, which explores for iron ore, gravel and granite, and has expanded to 50% its share in Brazilian construction and engineering company Arcadia Engenharia do Brasil, created at the end of 2013 by the Romanian firm Arcadia Engineering SRL.
Prince Alwaleed’s group also recently bought control of Raimondi Cranes SpA, an Italian firm that makes cranes. Raimondi and KBW are looking to set up a manufacturing unit in Brazil with an investment of 40 million Brazilian reais….
“We all know that exotic currencies devaluate quite abruptly, and for long-term investors such as KBW, this is actually an opportunity for entrance, as the prices of local assets are depreciated against a stronger dollar. Look at Argentina,” the prince said.