From the Newsroom
São Paulo – Exports from Brazil to the Arab countries reached USD 1.2 billion in July, up 27.4% from a year ago. It was the best monthly performance in 2019 up until now.
The Department of Market Intelligence of the Arab Brazilian Chamber of Commerce reported that shipments of some products saw the best result for the month of July over the last ten years. This is the case for chilled beef, refined oil, and turbo propellers and other gas turbines.
Year-to-date through July, sales from the country to the region grossed USD 7.1 billion, up 16.9% from a year ago, while overall Brazilian exports slid by 4.7% year-on-year.
The Arab countries combined were one of the main destinations of Brazilian products year-to-date, third only to China and the United States. Poultry, sugar, iron ore, beef, and corn accounted for over 70% of the shipments from Brazil to the Middle East and North Africa (MENA) year-to-date.
The survey by the Arab Brazilian Chamber also points to a strong growth in exports of gold, living cattle, turbo propellers and other gas turbines, refined oil, and iron and steel plates and tubes.
In the cattle’s case, six out of Brazil’s ten largest markets abroad are Arabs: Iraq, Egypt, Lebanon, Jordan, Saudi Arabi and the UAE. Same is true for iron and steel plates and tubes: Saudi Arabia, UAE, Qatar, Algeria, Oman, and Iraq are among the top ten buyers of these goods.
In absolute figures, the top markets in the region year-to-date were the United Arab Emirates, at USD 1.3 billion; Saudi Arabia, at USD 1.2 billion; and Egypt, at USD 1.02 billion. Sales to the UAE climbed by 20.4% from a year ago. Shipments to Algeria, Oman, Bahrain, Iraq and Libya were also up.
On the other hand, Brazilian imports of items from the MENA region climbed 9.4% year-to-date through July from a year ago, to USD 4.2 billion. As in the case of exports, overall foreign purchases slid. Therefore, the Arab bloc increased its share both as a market and a supplier for Brazil.
Brazil’s largest suppliers were Saudi Arabia and Algeria, accounting for 58% of Brazil’s total imports from the region year-to-date, the Arab Brazilian Chamber reported.
It’s worthy noticing, however, the UAE performance, whose exports to Brazil climbed 168% year-to-date through July from a year ago, to USD 375.8 million. Morocco and Egypt also saw a significant increase in their sales to Brazil.
As per the Arab Brazilian Chamber survey, the strengthening of the trade was accompanied by an increase in Brazilian and Arab companies operating in bilateral businesses, which shows an increased “attention that trade opportunities triggered in Brazil’s and Arab’s entrepreneurs.”
Translated by Guilherme Miranda