São Paulo – Despite the political crisis that has been installed in the Arab world, ever since the protests that began in Tunisia, Brazil has been increasing its sales to the Middle East and North Africa. When comparing the first four months of this year with the same period in 2010, Brazilian sales to the Arab countries grew 44.78%, reaching US$ 4.085 billion between January and April 2011. The figures were disclosed by the Arab Brazilian Chamber of Commerce, and presented on Tuesday (10) by Michel Alaby, the organisation’s CEO, at a press conference in São Paulo.
"It is evident that this value is mostly food exports, over 70%, mainly meats, chicken and sugar,” said Alaby. "Despite the crisis, there is space for Brazilian exports,” said the Arab Brazilian Chamber CEO. He said that Saudi Arabia was the region’s main buyer from Brazil in the period. From January to April 2011, Brasil exported the equivalent to US$ 1.021 billion to the Arab country, growth of 33.93% over the same months in 2010.
Another country among the most prominent in Brazilian exports in the first four months was Algeria, which acquired the equivalent to US$ 493.16 million in products from Brazil, growth of 218.81% over the same period in 2010. "Algeria reduced import taxes and broke some oligopolies, boosting imports,” pointed out Alaby. "Imports by Syria continued, though they dropped 11%,” he finished off. Sales from Brazil to Syria dropped from US$ 127.5 million in the period from January to April 2010 to US$ 113.3 million in the same period this year.
During the interview, Alaby pointed out the reasons for the crises in the Arab world, including high food prices, high unemployment rates – as high as 32% and reaching 49.3% among youths below 25 years of age, and the lack of future perspectives for the young population. Among the consequences of this scenery came both expansion of oil prices and the reduction of taxes levied on strategic products, especially foods.
According to the CEO at the Arab Brazilian Chamber, despite the political turmoil in certain countries, there are good opportunities for Brazilian companies in places like Saudi Arabia, Algeria, Egypt, Morocco, Tunisia, Bahrain, Qatar, the United Arab Emirates, Iraq, Oman and Sudan. The latter, for example, should undergo territory separation, being divided into two countries after July this year. “South Sudan needs infrastructure and will offer many opportunities for machinery and civil construction companies.” Regarding Oman, the highlight was the food sector. “Oman is interested in talks with Brazilian companies for distribution in that region.”
To Rubens Hannun, the Marketing vice president at the Arab Brazilian Chamber, who also participated in the interview, Brazil is considered a trustworthy partner for the Arab countries and it is natural for these countries to seek Brazil to guarantee the supply of their main needs.
*Translated by Mark Ament
