Although the Arab countries are its third largest trading partner, Brazil has the potential to explore new markets in the region, says Karen Jones, head of operations at the Brazilian Trade and Investment Promotion Agency (ApexBrasil), in Dubai.
The information was disclosed during a meeting with the press this Monday (21st), in the United Arab Emirates.
Karen cites some examples of high added value products, such as auto parts, medical equipment, civil construction, aerospace, defense, as well as personal hygiene and cosmetics.
There is good demand in Africa, especially for keratin-based products. It is interesting to consider the United Arab Emirates not only as a destination country, but also as a re-export hub.
Currently, the main products that Brazil exports to the Arabian Peninsula are meat, iron ore, sugar, alcohol derivatives, cereals and soybeans.
Shipments to the Arab countries are second only to China and the United States.
In 2021, bilateral trade between the two countries reached US$ 3.3 billion, with Brazil exporting US$ 2.3 billion and importing – mainly oil and fertilizers – US$ 977 million. The account generates a surplus of US$ 1.3 billion for Brazil.
One of the most significant increases was in the fresh and processed eggs sector, with an increase of 81.5% in 2021 compared to 2020.
The United Arab Emirates lead the list of main destinations for this product, with 6,900 tons out of a total of 11,300 tons.
In the meat sector, Brazilian agribusiness specializes in obtaining halal certification, which is an authorization for exporters wishing to ship meat to Arab countries.
The testimony obtained from various operations, respecting the teachings of Islam and avoiding the suffering of animals. Brazil is even among the largest producers of halal protein on the planet.
As essential for the desert country, Brazilian agribusiness has room to grow. The UAE is a region where food security is a major concern. The Emirates are a country that imports more than 80% of what they consume, in terms of food and beverages, and this is the best place for Brazil, as a strategic partner,” explains Karen.
Emirates Infrastructure May Attract Brazilian Companies
Brazilian companies interested in exporting can find logistical solutions and distribute goods from the Middle East to different countries.
For this reason, the Brazilian Trade and Investment Promotion Agency (Apex-Brasil) defends the deepening of relations between the countries.
The United Arab Emirates, where Dubai and Abu Dhabi are located, has become in recent decades one of the largest commercial centers in the world due to the large maritime infrastructure in the Persian Gulf region and air cargo terminals.
With a focus on the redistribution of goods around the world, the country has a free zone dedicated to various economic sectors.
The Brazilian ambassador to the Emirates, Fernando Igreja, highlights the privileged position of the Arab country.
The UAE occupies a geographically strategic location at the entrance to the Gulf. They are perhaps the country with the greatest political and economic stability in the entire Middle East and North Africa region, characteristics that justify the Brazilian presence.”
Last year, for example, Dubai imported 8 million tonnes of food and re-exported the equivalent of 6.277 million through its ports. More than 78,000 health certificates were issued for export.
In 2021, this commercialization and redistribution center obtained the best result in attracting international companies, with the number of new companies reaching 2,485.
In the previous year, there were 2,025 new amendments. In total, the country has more than 20 thousand affiliated companies, since it was inaugurated, 20 years ago.
The director of operations at the Apex-Brasil office in Dubai, Karen Jones, explains that it is difficult to measure the participation of Brazilian companies in this context.
“Even in partnerships with local public bodies, we find it difficult to know the exact numbers, often the numbers they pull depend on which companies have a Brazilian representative.
Despite this, it is estimated that there are between 40 and 50 companies in Brazil. Some examples are JBS, BRF, Embraer, Vale, Tramontina and Boticário.
Abu Dhabi’s airport sector also showed good results in cargo traffic in 2021, as there was a 31.8% increase in transport volume, from 540,144 tons in 2020 to 711,715 tons in 2021.
Performance was driven by increased shipments of general cargo and specialty products such as espresso products and temperature-controlled pharmaceuticals.