São Paulo – Brazilian exports to the Arab countries increased by 74.25% in September compared with the same month of last year, having gone from US$ 817.72 million to US$ 1.42 billion. According to data from the Brazilian Ministry of Development, Industry and Foreign Trade, compiled by the Market Development Department of the Arab Brazilian Chamber of Commerce, the main export products were once again sugar, meats, iron ore, grain, machinery and aircraft.
Saudi Arabia was the leading buyer, with US$ 339 million in purchases and growth of 101.17%. Egypt ranked second, having purchased the equivalent of US$ 239 million, an increase of 120.54%. The United Arab Emirates were the third leading importer of Brazilian products in the Arab world, at US$ 202.76 million. The country’s imports, however, decreased by 14.73%. Algeria was the fourth leading importer, at US$ 132.18 million, and the market that grew the most during the period – by 318%. Morocco ranked fifth, with US$ 85 million in purchases, growth of 113.92%.
From January to September, exports grew by 27.9%, from US$ 6.86 billion to US$ 8.78 billion.
To the secretary general of the Arab Brazilian Chamber of Commerce, Michel Abdo Alaby, the good results are quite significant and attest to the strengthening of relations between the two markets. "First of all, it shows the economic boom going on in these countries. Secondly, they are storing some food," he says.
"The Ramadan ended in September, but the Hajj (pilgrimage to Mecca – which receives millions of Muslims for a religious ritual) begins in October, and it probably explains the growth of Saudi imports," says Alaby. As for Algeria, which purchased 318% more than in September last year, the secretary claims that the country is experiencing a moment of great growth and investment.
Algeria is going to invest US$ 286 billion in modernization. The country’s minister of Industry, Small and Medium Businesses and Investment Promotion, Mohamed Benmeradi, presented the 2010-2014 Five-Year Plan on September 16th to a group of Brazilian businessmen who were part of the commercial mission headed by the Brazilian minister of Development, Industry and Foreign Trade, Miguel Jorge, to the Algerian capital.
Another factor that explains the good result, according to Alaby, is the competitive advantage that Brazil has in certain industries. "Ore, for instance, ranks among the most exported products and whoever purchases ore is going to manufacture steel, invest in the industry, in infrastructure, in civil construction," he says.
Brazilian imports of Arab products, in turn, grew by 5.67% in September compared with the same month of 2009. The country spent US$ 651.22 million on purchases in the region, as against US$ 616.28 million in September 2009. Nearly all of the purchases concern oil and derivatives. From January to September, Brazilian imports from the Arab market increased by 32.72%, having gone from US$ 3.87 billion to US$ 5.14 billion.
*Translated by Gabriel Pomerancblum
