Isaura Daniel*
isaura.daniel@anba.com.br
São Paulo – The Arab nations are going to import US$ 632 billion in products and services this year, according to a report disclosed by the International Monetary Fund (IMF). The value represents growth of 22.4% over what they imported last year, US$ 516.6 billion, and includes foreign purchases of all Arab countries except Palestine, the Comoros, and Somalia. In total, the Arabs are going to purchase US$ 115.9 billion more this year. "Where there is oil, the increase in imports will be greater," stated secretary general of the Arab Brazilian Chamber of Commerce, Michel Alaby.
The main importer in the region this year will be, as last year, the United Arab Emirates. The country is going to purchase US$ 149.1 billion against US$ 123.6 billion in 2006. The Emirates have in oil the basis for their industry. They also produce aluminium in large scale. Producers of oil, according to the IMF, are going to answer to 78% of the regions foreign purchases. "The largest share of this increase is due to purchases for infrastructure works and for the improvement of quality of life," stated Alaby. The nations that produce oil want better and better standards of living.
Saudi Arabia, the largest world exporter of oil, is in the second place in the list of importers in the region. The Saudis are going to buy abroad a total of US$ 142.9 billion in products and services, with an increase of 19% over the 2006 value, which was US$ 120.2 billion. Saudi Arabia, recalled Alaby, is building industrial districts and purchasing machinery to equip them. The largest increase in imports, in percentage terms, will be Djibouti, an African country: 75%. The values, however, are not very significant: Djibouti will consume US$ 700 million in imported products, against US$ 400 million in 2006.
The second greatest increase, in turn, will come from Libya, which is increasing its production of oil, and will spend US$ 24.9 million in products and services purchased abroad, against US$ 15.6 billion last year, with growth of 60%. The third largest increase, in percentages, will be Algeria, a large producer of gas. Algeria is going to import US$ 36.8 billion, with growth of 40% over the US$ 26.3 billion of last year.
The same IMF report shows how much each of these countries is going to produce and export in terms of crude oil. The Emirates, according to the organization, will produce 2.9 million barrels a day, the Saudis, 9.3 million, Algeria, 1.6 million, and Libya, 1.9 million barrels a day. The Saudis and Algerians will maintain the same levels of production of oil as in 2006, says the IMF, but the Emirates will increase their production by 3.5% and Libya by 36%.
According to Alaby, the figures strengthen the need for Brazil to seek trade agreements with the Arab countries. The Mercosur is negotiating a foreign trade treaty with the Gulf Cooperation Council (GCC), the economic bloc that includes the Emirates, Saudi Arabia, Oman, Qatar, Kuwait and Bahrain, and also with Egypt and Morocco. Europe, the United States and China are currently the main suppliers to the Arab countries, recalled the Arab Brazilian Chamber secretary general. Brazil may, according to him, dispute this market with, for example, the offer of products and services for infrastructure. "Somebody will be benefited by this increase in imports," pointed out Alaby.
*Translated by Mark Ament
