São Paulo – The Dubai International Financial Centre (DIFC) wants to attract Brazilian companies in order for them to establish themselves in the emirate. Last week, the CEO of the organization, Abdullah Mohammed Al Awar, and Marwan Ahmad Lufti, the deputy CEO and head of Business Development of the Dubai International Financial Centre Authority, which is the DIFC’s regulating agency, visited Brazil. They attended meetings with 15 Brazilian companies to discuss the possibility of them establishing themselves in the DIFC, which is one of the free zones in Dubai, in the United Arab Emirates.
“Dubai has become a convenient business stopover between Latin America and Asia,” said Al Awar in an email interview to ANBA. “Naturally the interests are focused on inward and outward investment in sectors like oil and gas, renewable energy, agro commodities, mining and aviation but more importantly as a window for emerging markets and liquidity to access Brazil.” The idea is that once established in Dubai, Brazilian companies may have access to developing countries in the region.
The roughly 1,000 enterprises already operating in the DIFC include Vale, from Brazil, with US$ 75 million in shares listed on the United Arab Emirates market. “We are at the initial stage of developing relationships between Brazil and the emerging regions and we expect to see the next phase of growth coming this way in line with the huge domestic business in Brazil,” said the CEO.
According to Al Awar, the meetings with Brazilian companies were “highly productive.” The executives attended meetings with companies active in the sectors of food production and processing, oil and gas, agribusiness, capital markets and insurance. “The discussion mainly revolved around exploring opportunitins of tying the emerging markets to some of the world’s largest companies that are based out of Brazil,” said the DIFC CEO.
“Trade between Brazil and the Middle East is growing and Brazilian exports to the region reached US$ 870 million in March, a 35.5% increase over the same month last year,“ said the executive of trade relations between Brazilians and Arabs. “As a result of strengthening bilateral trade, we are seeing interest from Brazilian companies seeking to connect with the Middle East and Africa,” he claimed. Al Awar also mentioned the flights operated by Emirates airline to Brazil as one of the main factors that have helped bring Brazilian and Arab businessmen closer together.
Benefits to companies establishing themselves in the DIFC include 100% of foreign ownership, zero percent tax rate on income and profits and no restriction on capital convertibility or profit repatriation. “Financial services institutions in DIFC are licensed and regulated by the DFSA, which offers a comprehensive, world-class regulatory framework. The DIFC also has an independent legislative system and provides a supportive infrastructure and zero-tax regime makes it the perfect base to take advantage of the region’s rapidly growing demand for financial and business services,” explained Al Awar.
“Having a base in DIFC in Dubai also provides an opportunity for Latin American companies to tap into regional liquidity and regional capital markets to raise funds via primary and secondary listings,” stated the executive. According to Al Awar, he should return to Brazil in the coming 12 months to proceed with talks in the country.
*Translated by Gabriel Pomerancblum