Abu Dhabi – This Sunday (5th), the Brazilian Development Bank (BNDES) signed a memorandum of intentions with the Abu Dhabi Investment Authority (Adia), the world’s largest sovereign fund. "The document provides for the exchange of experience and information so as to explore reciprocal investment opportunities [between Brazil and the emirate]," said the Brazilian minister of Development, Industry and Foreign Trade, Miguel Jorge, who went to Al Ain, in the interior of the United Arab Emirates, for the signing of the agreement.
The head of the BNDES’ International Division, Paulo Roberto de Oliveira Araujo, who accompanied the minister, stated that the aim of the memorandum is to establish an institutional relationship between the two organizations and find possibilities for cooperation in projects of common interest. Such projects may take place in Brazil or abroad.
In January, the bank signed a similar agreement with Qatar Holding, the executive arm of the Qatari sovereign fund, on the occasion of emir Hamad Bin Khalifa Al Thani’s visit to Brazil.
The signing of the memorandum was Jorge’s last appointment in the trade mission to the Middle East that the Brazilian Ministry of Development, Industry and Foreign Trade promoted. Last week, representatives of approximately 70 Brazilian companies had business meetings with businessmen from Syria, Kuwait, Qatar, Saudi Arabia and the Emirates.
Earlier, in the beginning of this Sunday afternoon, Jorge met with the minister of Trade of the Emirates, Lubna Al Qasimi. Together, they opened the business roundtable, which lasted all afternoon.
The minister stated that she intends to go to Brazil next year. "The main interest is in doing trade promotion, sort of like you have done here," she said, referring to the mission’s activities.
Lubna, who, in addition to the meeting with Jorge, gave an address at the opening of the roundtables, stated that Brazil has become a major supplier of foodstuffs to the Emirates, and that companies from the two countries maintain partnerships in fields such as building material, the auto industry, furniture and decoration. She added that more business deals may be developed in tourism, renewable energies and other sectors.
The minister claimed that certain Brazilian products are well known on the local market, such as foodstuffs by Sadia. She also said that blue granite from Brazil has been used in the construction of the Sheikh Zayed Bin Sultan Al Nahyan Mosque, the third largest in the world and a landmark in Abu Dhabi, the capital of the Emirates.
Lubna also claimed that Emirates Airline, which operates a daily flight from Dubai to São Paulo, plans on increasing its frequencies. "This will have both a direct and indirect impact on trade," she said.
Assessment
The delegation’s businessmen gave a positive assessment of the mission. "The mission as a whole has been excellent," said Paulo Roberto Costa, of MGR, a granite company based in Rio de Janeiro. "It is a country with lots of potential," he said of Saudi Arabia. "There is a lot of construction work, and even more is to come with the 2022 World Cup," said the businessman regarding Qatar.
According to Ronan Moreira da Silva, of the same company, the quality and tones of the MGR’s stones are in accordance with the region’s tastes. "Pastel colours, light tones and shades of beige are the thing in the region," he said. "And we have a wide range of products to offer in these colours," he stated.
Sílvio Paixão, of Aquamare, a company that has developed a seawater purification system for human consumption, praised the mission’s organization. "The mission is the first step on our way to becoming a supplier [to the region]," he said. "I will have to travel here many times," he said, highlighting the need to establish a personal relationship in order to do business in the Arab world.
He is seeking two types of deals. The first is to export the water which, although purified, retains 63 minerals. He also offers a juice made using the desalinated water, hibiscus flowers and ginger.
The second type of deal is the licensing of the equipment in order to produce water in the region. He is not interested, however, in selling the technology, only in allowing its use in exchange for royalties. "They are really in need of water," said Paixão, adding that despite the vast supply of the bottled product, his system has the advantage of removing the taste of salt and of the sea, but leaving in "the good contents of water."
Denizy Alves, of company Govidros, based in the state of Goiás, claimed that the organization helped her a lot in making contacts. She does not export yet, and is in the Brazilian federal government’s 1ª Exportação (First Export) programme. "Let us hope that I will begin [to export]," she said.
She added that there is a demand for her products, namely glass for constructions, but had difficulties during the roundtables, mostly due to appointments with contacts that did not show up. Nonetheless, the businesswoman sees business potential in some of the talks that she had.
*Translated by Gabriel Pomerancblum