São Paulo – Exports from Brazil to the Arab world generated US$ 2.3 billion in revenues in the first quarter, representing growth of nearly 25% compared with the same period of last year, according to data supplied by the Brazilian Ministry of Development, Industry and Foreign Trade and compiled by the Arab Brazilian Chamber of Commerce.
The growth was greater to nations in the case of Levant countries (Jordan, Lebanon, Iraq and Syria). Revenues from shipments totalled US$ 290 million, 41.5% more than in the first three months of 2009.
However, the Gulf region (Saudi Arabia, Bahrain, Qatar, the United Arab Emirates, Yemen, Kuwait and Oman), was the leading destination, with US$ 1.2 billion in imports, representing growth of 33.4% using the same basis of comparison. Brazilian sales to North Africa totalled US$ 803.8 million, growth of 9.1%.
“As the oil price remained steady, [Arab countries that export the commodity] accumulated further reserves and since February, they have resumed inventory formation,” said the secretary general of the Arab Brazilian Chamber, Michel Alaby.
It is worth noting that the price of oil, the leading export item in several Arab countries, plummeted between late 2008 and early 2009 because of the financial crisis, and then started to rise again.
Alaby added that as the crisis lost strength, international trade began to recover and money for business financing started circulating again. “We may go so far as to say that things tend to improve even more,” he stated.
Brazilian imports of Arab products totalled US$ 1.52 billion, representing growth of 107% over the first quarter of last year. The expansion was strongly influenced by the recovery of the oil price, even though it is not back at the record-high level attained in July 2008.
The flow of trade between Brazil and the Arab world, i.e. the sum of exports and imports, recorded a surplus of over US$ 3.8 billion in the first quarter, representing growth of 48.1% over the same period of last year.
Alaby claimed that another factor that had a positive influence on trade were the promotion actions carried out by the Brazilian government and the Arab Brazilian Chamber, such as business missions and participation in trade fairs.
*Translated by Gabriel Pomerancblum
