São Paulo – Trade between Brazil and the Arab countries totalled US$ 8.3 billion in the first half, representing growth of 31% over the same period last year. The figure is a result of US% 5 billion in exports from Brazil, growth of 16.12% using the same basis of comparison, and imports of US$ 3.3 billion, growth of 62%. The data were disclosed today (15th) by the president of the Arab Brazilian Chamber of Commerce, Salim Taufic Schahin, in a press conference at the organization’s headquarters, in the city of São Paulo.
“Surely, the bottoming out of the [international financial] crisis was one of the key contributing factors for this figure to be attained,” said Schahin regarding Brazilian exports. Other factors, according to him, included efforts promoted by the government, exporters, and the Arab Brazilian Chamber itself, which undertakes a series of actions to promote Brazil in the Arab world and vice versa.
Brazilian sales were mostly driven by the Gulf countries, which imported the equivalent of US$ 2.75 billion, representing growth of 24% compared with the first half of 2009. The leading markets during the period were Saudi Arabia, Egypt, United Arab Emirates, Algeria and Morocco.
The Market Development manager of the Arab Brazilian Chamber, Rodrigo Solano, stated that the export basket remains highly focused around items such as meats, sugar and iron ore. However, he pointed out industries in which Brazil is very competitive, and in which Arab demand is higher than the world average, such as fashion, foodstuffs, and construction products and services.
Revenues from agribusiness exports totalled US$ 3.4 billion, representing growth of 17.2% over the first six months of last year. Arab countries are the target of nearly 10% of Brazilian agricultural exports, and for 5.6% of total exports. As a bloc, the region is the fourth leading target for the country’s shipments.
Investment
Schahin claimed that agribusiness is the industry that the Arabs are most interested in investing in Brazil. “They import many foodstuffs, therefore they are interested in investing,” he said. He added that promotion actions carried out by the government and private enterprises over the last few years “have placed Brazil on the radars of the Arab countries.”
According to estimates presented by Solano, the Arabs should invest US$ 29 billion abroad this year, and may receive US$ 57 billion in foreign investment.
In order to attract investment, however, Schahin said that Brazil “must know how to advertise its opportunities,” be it in agribusiness, infrastructure, or works for the FIFA World Cup 2014 and the 2016 Olympics. “There are countless opportunities in the world. If we do not go to the markets to make them come to us, we will not have any results,” he said.
In this respect, he asserted that the Chamber is going to promote a series of activities in the second half, including participation in fairs in the Arab world, a trade mission in partnership with the Brazilian Ministry of Development, Industry and Foreign Trade, and investment prospecting missions. He believes that exports to the Arab world should grow from 10% to 15% this year.
Petroleum
Brazil posted a surplus of nearly US$ 1.7 billion in trade with Arab countries in the first half, in spite of a significant increase in imports. According to Solano, this was the second highest half-year surplus since 2003.
The trade balance result usually varies a lot because the main product that Brazil imports from the region is petroleum. Since last year, the commodity’s price has increased, hence the greater revenues from imports.
Schahin claimed that the amount of petroleum imported depends on Brazilian production, “but the volume tends to drop, whereas the price tends to increase.” In addition to the price, the global demand for petroleum should grow. Therefore, according to him, “the purchasing power of Arab countries tends to rise.”
*Translated by Gabriel Pomerancblum
