São Paulo – Brazilian sales to the Arab countries advanced 30% in revenues in the month of July over the same month last year. According to figures presented by the Ministry of Development, Industry and Foreign Trade, exports to the nations of the League of Arab States reached US$ 1.1 billion in the period against US$ 883.6 million in the same month in 2009. In the accumulated result for the year up to July, exports to the countries of the League of Arab States totalled US$ 6.1 billion, against US$ 5.1 billion in the same period in 2009, with growth of 18.5%.
According to the secretary general at the Arab Brazilian Chamber of Commerce, Michel Alaby, one of the reasons for the growth in July was Ramadan. The period of fasting for the Muslims, in which they celebrate the end of the fast with large collective meals at the end of the day, began in the Arab countries this week and the Muslim nations buy in advance for supplying the needs of the period.
In fact, among the products that influenced the greater Brazilian exports to the region are foods, mainly meats and sugar, sectors in which Brazil is a great supplier to the Arab nations. There was also growth in sales of ores. “The growth in the export of ores had already been taking place and was and was boosted by the civil construction boom in Saudi Arabia,” said Alaby. In July, there was also sale of gold in bars to the Arab world, for the value of US$ 40 million. As exports of the product were not identified in July 2009, the sale boosted the growth this year.
According to Alaby, the growth of 18% in the accumulated result for the year is within expectations. He believes that in the year, the expansion of sales should be between 15% and 20%. If the domestic market in Brazil was not so heated, the secretary general believes that the expansion could have been between 25% and 30%. He said that companies that are helping maintain the growth of exports to the Arab nations are those concerned with maintaining their presence on the foreign market.
The country that most imported from Brazil in July and also in the accumulated result for the year was Saudi Arabia. In July, the nation in the Gulf imported US$ 290 million in Brazilian products against US$ 177 million in the same month in 2009. Between January and July, Saudi purchases reached US$ 1.5 billion against US$ 1.1 billion in the same months last year. The second main buyer in both periods was Egypt, with imports of US$ 218 million, followed by the United Arab Emirates, with US$ 204 million.
*Translated by Mark Ament