Dubai – The UAE minister of Economy, Sultan Bin Said Al Mansoori, said there is a lot of work to be done to drive direct investment flows between his country and Brazil.
“Despite numerous visits by Brazilian leaders, we have yet to witness an impact on investment flows, from Brazil into the UAE or vice versa, from the UAE into Brazil,” Mansoori said in answering a question from ANBA during a press conference following the opening of the Annual Investment Meeting (AIM), this Monday (9) in Dubai. “Much more needs be done,” the minister added.
He also said both countries must better explore one another’s potential. “Brazil is a huge economy, not only within Latin America, but worldwide, and we must gain a better understanding of the fields and sectors that you would like us to invest in, and on the other hand we would like to see more Brazilian companies coming to the UAE to invest and to [reach out to] our region,” he asserted.
Mansoori noted that he was in Brazil in 2013 and liked what he saw. “I was glad to see what was happening with UAE-Brazil ties in terms of trade and investment,” he said. “There are lots of Brazilian goods available here in the UAE. Food security is important to us, and Brazil – as one of the leading [food] exporters – certainly supplies the UAE and the region,” he said.
The minister also pointed out that the UAE has investments in Brazil, like the terminal operated by Dubai’s DP World in the Port of Santos. “They seem to be doing well there,” he remarked.
In the UAE
As for the UAE, Mansoori said the country is looking to draw investors primarily into the process industries, pharmaceuticals, renewable energies, and the information technologies industry as a whole.
To this end, the local government is about to pass an investment law to protect investors’ rights, even though the minister guaranteed that the country already boasts a safe environment. “When it comes to innovation, for instance, we must be flexible. Entrepreneurs want to own more than 49% of businesses, so more openness is required. This is the route the UAE are taking,” he said. Apart from free zones, non-natives are required to have a local partner and cannot retain more than 49% of any enterprise.
The country intends to increase the process industries’ share of the Gross Domestic Product (GDP) from 9.5% to 15% and to get innovation to account for 5% of GDP.
Mansoori also said GDP is expected to grow in the 3.6%-to-3.9% range, but it is too soon to be certain, since factors like oil prices and the political scenario across the region can impact performance. An oil price hike, for instance, could trigger growth.
Translated by Gabriel Pomerancblum
