São Paulo – The countries of the Gulf had investment of US$ 1 trillion aboard up to late 2010. This information was disclosed during the Sharjah Business Forum, in the United Arab Emirates, in which the secretary general at the Arab Brazilian Chamber of Commerce, Michel Alaby, participated. The meeting took place on Sunday (27) and Monday (28) and brought together businessmen and investors from several countries, mainly the Arab world.
According to Alaby, foreign investment of the region is being diversified to African and Asian countries. There is also significant investment among the countries of the Gulf, which is being fostered by local governments. According to the secretary general, investment between countries of the region totals US$ 50 billion and is in the areas of infrastructure, entertainment, commercial centres and the oil and oil product industries.
The objective of the forum was to boost investment in the Gulf and it was promoted by the Sharjah Chamber of Commerce and Industry. The organisation’s president, Ahmed Mohammed Midfae, opened the event and spoke to those participation about the good business environment for investment in his country, mentioning the political safety, permission for foreigners not to need local partners in free zones as well as the single import tax for the Gulf, of a maximum of 5%.
The Gulf is also working on harmonising other questions that interest businessmen and investors, like investment legislation, exchange control, concession of business visas and customs control in import. The matter was the theme of talks during the business forum. The target, according to Alaby, is to have it uniform by 2013. At the meeting it was shown that the Gulf is a market of many opportunities for companies that make furniture and that work in packaging.
Another two topics discussed at the Sharjah Business Forum were small companies and women. The need to foster the mentality of entrepreneurialism in the gulf was discussed, to generate small industries. Currently small companies are focussed on trade and services. There are now 15,000 small and medium companies in the Emirates. Regarding women, the part they already play as businesswomen was pointed out, and the need for generating greater opportunities for them was also discussed.
The Gross Domestic Product of the United Arab Emirates, according to figures disclosed at the conference, reached US$ 300 billion in 2010 and the perspective for 2011 is for 6.5% growth. The conference, according to Alaby, brought together 250 people from countries like Egypt, Saudi Arabia, Palestine, Lebanon, Bahrain and Kuwait, as well as the Emirates and Brazil.
The secretary general at the Arab Brazilian Chamber also had other meetings in the sidelines, during his stay in the Emirates, with the president at the Sharjah Chamber of Commerce and Industry and with the organisation’s director general, Hussain Mohamed Al Mahmoudi. He agreed to sign an agreement for cooperation between both organisations. "We are going to analyse a joint agenda," said Alaby. A similar agreement is also being studied with the Federation of Chambers of Commerce and Industry of the Gulf.
*Translated by Mark Ament
