São Paulo – The elevated income of the Arab countries causes the region to be a potential market for Brazilian exporters. The hint was given by the Market Development manager at the Arab Brazilian Chamber of Commerce, yesterday (22nd), during panel "Diversifying Export Destinations" at the Encomex foreign trade meeting, in the city of São Paulo.
Solano presented a general panorama of the Arab countries and pointed out that the economy of the region is not based only on oil, but that it is also strong in other areas, like construction, tourism and consumer goods. He called attention of those present – mostly businessmen – to the high buying power of the Arab countries. "Qatar, for example, has higher per capita income than North America. In 2009, the country has already grown 9%," he pointed out.
The Encomex, promoted by the Ministry of Development, Industry and Foreign Trade, brought together representatives of several organisations connected to foreign trade, with the objective of debating opportunities and challenges to the sector. Also in the panel in which Solano participated were speakers Marcos Barbosa, a professor at Policamp, and Jayme Martins, a board member at the Chinese Brazilian Chamber of Commerce.
Regarding exports from the Arab countries to Brazil, Rodrigo informed that 80% are oil. He pointed out, however, that there are other opportunities for importers that Brazil may make use of, like fabric, ethnic furniture, carpets, olive oil, crystallized fruit and fertilizers, among other items produced in the Arab nations.
The main Arab suppliers to Brazil are Saudi Arabia, Algeria, Libya and Iraq. The main destinations for sales from Brazil to the Arab market, in turn, are Saudi Arabia, the United Arab Emirates, Egypt and Algeria.
Meats, sugar and ores are the products most exported by Brazil to the Arab countries. Rodrigo pointed out Sadia as an example of a successful company in this market. "The Arabs recognize Sadia as an Arab company. It is possible to repeat this example in other cases."
In the previous talks, Policamp professor Marcos Barbosa had also pointed out the Arab market as an important region to be prospected by Brazilian exporters. "New markets, like the Middle East and Africa, offer lower global competition and better margins," he said.
*Translated by Mark Ament
