São Paulo – Revenues from Brazilian exports to the Arab world totalled US$ 6.05 billion from January to August this year. There was a slight reduction of 1% compared with the same period of last year, mainly due to the performance in August. Last month, exports to the Arabs totalled US$ 860 million, as against US$ 978 million in August 2008. According to the secretary general of the Arab Brazilian Chamber of Commerce, Michel Alaby, the reduction is a consequence of the Ramadan. The religious period – during which the Muslims fast – started in August, and Islamic countries usually make their imports beforehand.
“The Ramadan started in August, therefore the bulk of purchases occurred until July, ensuring food inventories for the period,” explains Alaby. Proof of that is the fact that Brazilian exports of certain foods to the region, such as beef, decreased in August. Also in August, there was a reduction in exports of iron ore. The secretary general claims that this is an isolated phenomenon, because ores are also sold by means of orders placed in advance, and that September should see a resumption of growth in Brazilian exports to the Arab market.
In August, the main items in the Brazilian export basket to the Arab world included sugar, meats and ores. The leading buyer was the United Arab Emirates, with US$ 210 million, the second was Saudi Arabia, with US$ 181 million, the third was Egypt, with US$ 95 million, the fourth was Algeria, with US$ 63.6 million and the fifth was Syria, with US$ 46.5 million. The United Arab Emirates, Algeria and Syria increased their purchases, but Saudi Arabia and Egypt bought less. Egyptian imports decreased by 45%.
From January to August, meats, sugar and ores were also the leading items in the export basket. The main buyers were Saudi Arabia, with US$ 1.3 billion, the United Arab Emirates, with US$ 1 billion, Egypt, with US$ 959.8 million, Algeria, with US$ 469 million, and Morocco, with US$ 357 million. During the period, the Saudi market was the only one to which Brazilian exports decreased.
In comparison with July, Brazilian shipments to the Arab world in August decreased as well. Sales dropped by US$ 22 million, reaching US$ 883.6 million in exports to the League of Arab States. The Ministry of Agriculture, Livestock and Supply issued a release, however, highlighting the 29% increase in Brazilian agribusiness sales to the Middle East as a whole. The region houses some of the Arab countries. Some of the agricultural products for which sales to the Arabs increased were maize and soy. The Middle East was the leading destination of Brazilian agribusiness sales in August.
Imports
Brazilian imports of Arab products declined sharply from January to August. There was a 56.8% reduction, down from US$ 7.6 billion from January to August last year to US$ 3.3 billion in the same period this year. The leading Arab suppliers to Brazil during that period were Algeria, Saudi Arabia, Libya and Iraq, in that order. Brazil imports mostly oil and oil products from the Arab world.
*Translated by Gabriel Pomerancblum
