São Paulo – Exports from Brazil to the Arab countries totalled US$ 984.7 million in May, representing growth of 25.7% over the same month of last year, according to data supplied by the Brazilian Ministry of Development, Industry and Foreign Trade, compiled by the Arab Brazilian Chamber of Commerce. It was the highest figure recorded so far this year, and marked the resumption of an upward trend after a 28.4% decline in shipments in April, compared with the same month of 2009.
There was an increase in sales to some of the Arab world’s leading markets, such as Saudi Arabia (63.2%) and Egypt (nearly 100%). Sales to Libya, the seventh largest export destination in the month, increased by 120%.
The export performance to those three countries was strongly influenced by iron ore, which ranked among the most sold products in May, and among the ones for which the sales volume increased most in dealings with the Arab world.
According to the secretary general of the Arab Brazilian Chamber, Michel Alaby, the development of the region’s steel and construction industries explains the rise in ore shipments.
Particularly in Saudi Arabia, according to Alaby, these two industries are experiencing a boom because of the “economic cities“ under construction, i.e. hubs geared towards the development of trade.
Revenues from sales of ore to the Middle East and North Africa totalled US$ 262 million in May, representing growth of 280% compared with the same month of last year.
Shipments of beef, the main item in the export basket, totalled US$ 274 million, representing growth of 11.8%; and sales of sugar totalled US$ 264 million, 43% more than in May 2009. There was also a significant increase in foreign sales of chemicals, machinery and equipment, vegetable oils, precious stones and metals.
From January to May
From January until May, revenues from shipments to the Arab world totalled US$ 3.93 billion, representing growth of 17.75% over the same period of last year. The leading markets were Saudi Arabia, the United Arab Emirates, Egypt, Morocco and Algeria.
In the first five months of the year, iron ore was the item whose sales grew the most among the main products in the export basket. Other items that posted above-average growth were meats, sugar, precious stones and metals, machinery and equipment, chemicals, and tobacco.
In turn, Brazilian imports of products from the Arab world totalled US$ 2.63 billion, representing growth of 64% over the first five months of 2009. The main products sold were petroleum and its derivatives, fertilizers, plastics, inorganic chemicals, machinery and equipment, fishery, and electric material. Fossile fuels, however, accounted for 86% of the import basket.
*Translated by Gabriel Pomerancblum
