Isaura Daniel*
São Paulo – Exports from Brazil to the Arab countries grew 30% in February when compared to the same month last year. The Brazilians had revenues of US$ 395 million with sales to the 22 nations in the League of Arab States last month, an increase of US$ 90.6 million. In February 2005, country revenues with exports totalled US$ 304 million. "As usual, the Arab market he exceeded expectations," stated the president of the Arab Brazilian Chamber of Commerce, Antonio Sarkis Jr. The forecast made by the organization for growth in 2006 is 20%.
A large part of the increase took place due to the growth of sales to Saudi Arabia. The country has increased its purchases from US$ 60 million in February 2005 to US$ 152.7 million in the same month this year. Of the total shipped to the nation in the Middle East, US$ 52.5 million correspond to aircraft. Company Saudi Arabian Airlines closed a contract for the purchase of 15 aeroplanes from Brazilian aircraft maker Embraer last year and some of the aircraft are being delivered this year.
The Saudis also increased their purchases of sugar from US$ 2.7 million to US$ 33.6 million and their iron ore purchases from US$ 7 million to US$ 14 million. "They also purchased more shoes, orange juice, land levellers and machinery for paper," stated the secretary general of the Arab Brazilian Chamber, Michel Alaby. According to him, the Saudis are investing in quality of life due to revenues obtained with petroleum.
Iron ore and sugar are also included in the list of products most sold by Brazil to the Arab nations in general. Iron ore rose from revenues of US$ 34.5 million in February 2005 to US$ 59.7 million in the same period this year and sugar from US$ 63 million to US$ 79.3 million. "The main products in the basket are still sugar, meats, ore, manufactured products, vehicles and agricultural machinery," stated Sarkis. The president of the Arab Brazilian Chamber also calls attention to the sales of live cattle, which resulted in revenues of US$ 3.5 million in the month.
Buyers
Apart from Saudi Arabia, Somalia also increased its imports from Brazil. The African country rose from purchases of US$ 6.5 million in February 2005 to US$ 17 million last month. The country even rose to the position of fourth largest importer of products from Brazil among the Arabs, in terms of revenues. "We exported commodities to Somalia," stated Alaby. In fact, almost the entire increase in and value of sales to the country were from sugar shipments.
The ranking of main importers of Brazilian products among the Arabs in February has Saudi Arabia at the top, followed by Egypt, with US$ 68 million, the United Arab Emirates, with US$ 39 million, Somalia, and Morocco, with US$ 13.7 million. Among the countries that most increased their purchases in percentages, however, are countries that do not buy significant volumes, like Djibouti, whose purchases grew 1,187%, but reached just US$ 309,000.
The Comoros increased their sales by 235%, to US$ 188,000. Sudan, in turn, purchased 627% more, but the volume was US$ 2.9 million. "Sudan has maintained constant growth in its imports from Brazil," stated Sarkis.
The percentage of growth of Brazilian sales to the Arabs is well above the Brazilian average, as in February exports to countries in general rose 12.8%. According to the secretary general of the Arab Brazilian Chamber, sales to the region are going to continue growing this year.
The organization is going to participate in a series of activities that should collaborate to the increase in trade relations between Brazil and the Arab world, among them Cairo International Fair, which is going to take place between March 19 and 28 in Egypt, and Algiers International Fair, between June 01 and 09 this year.
Growing bilateral trade
In the accumulated result for this year, sales from Brazil to the Arab countries grew 26%. Exports to the region between January and February reached US$ 784 million, or US$ 161 million more than in the same period in 2005. In the accumulated result for the last 12 months, exports totalled US$ 5.4 billion, an increase of 32.1% over the pervious year.
Imports Brazil made from the Arab countries in February grew 32.18% and reached US$ 287 million. The main reason for the increase, according to Sarkis and Alaby, was oil. Saudi Arabia was the largest Brazilian supplier of oil in the month, with US$ 126 million. The increase in sales from Saudi Arabia to the Brazilian market was 26%.
*Translated by Mark Ament
