São Paulo – The government of Abu Dhabi, in the United Arab Emirates, plans on establishing a trading company to operate with commodities, according to an article published this Tuesday (16th) by British newspaper Financial Times. The main goal is to guarantee the local food supply.
According to the FT, the company will be named Abu Dhabi Sources (ADS) and in addition to trading agricultural products, it should also operate with metallic commodities. The emirate concentrates the largest oil reserves and production in the country, but according to the newspaper, it is not yet known whether the company will deal in oil.
There is much concern with food security among Arab countries, most of which are heavy importers of agricultural products. Brazilian agribusiness sales to the Emirates, for instance, have exceeded US$ 1 billion from January until October this year, according to the Brazilian Ministry of Agriculture.
The theme is recurrent in talks between businessmen and authorities from Arab countries and Brazil, which in turn is a strong exporter of agribusiness items. The issue is of special interest to the Gulf countries, which, despite being oil-rich, have predominantly desert soil and a low rate of local food production.
The matter was a highlight, for instance, during the recent visit to Brazil by the Saudi minister of Agriculture, Fahad Abdulrahman Bal Ghunaim. The Saudis, who are strong importers of Brazilian agricultural products, have interest in investing in Brazilian production.
Another example is that of Qatar, which, by means of Hassad Food, the food arm of its sovereign fund, is negotiating purchases in Brazil. The Libyan sovereign fund is also seeking opportunities in the country.
*Translated by Gabriel Pomerancblum
