Marina Sarruf*
São Paulo – The Brazilian Association of the Manufacturers of Medical and Dental Products (Abimo) is betting on the growth of sales to the Arab countries this year. Saudi Arabia, the United Arab Emirates and Egypt are among the main targets for the Brazilian companies this year, according to information supplied by the organization. Apart from participating in two fairs in the Middle East, the Abimo will promote a mission to Saudi Arabia in May. "The Arab market is very promising," stated Hely Audrey Maestrello, the executive director of the Abimo. The region currently answers to around 4% of sector exports.
Alone, Brazilian company participation at Arab Health 2005, a fair that took place in the United Arab Emirates in February, should generate around US$ 11.2 million in business in months to come, according to Abimo forecasts. Last year, 14 companies participated in the event, which generated US$ 3.2 million. This year, 40 domestic companies participated in the fair as exhibitors. "The result exceeded our expectations. This is one of the best fairs that Abimo participates in on the foreign market," he stated. Three thousand contacts were made with buyers from 62 countries and the value of the business deals closed during the days of the fair totalled US$ 491,500, a growth of 156% when compared to last year. "The empathy the Arabs have with Brazil helps in negotiations," stated Maestrello.
According to the director, the Arab market already answers to over 30% of exports of some Brazilian companies that make medical and hospital equipment. Participation in Arab Health last year helped the companies grow on the Arab market. "As we had great participation in the fair this year, our forecast is to greatly increase exports to this market," stated Maestrello.
Abimo intends to take around 15 Brazilian companies on the trade mission to Saudi Arabia at the end of May. The delegation, including only companies in the sector and planned by the organization, is going to land in the Arab country some days before Saudi Health Care, the hospital sector fair, so as to participate in business meetings with Arab importers. Saudi Arabia, according to the director, is the Arab country that most imports medical and hospital products from Brazil and was thus chosen to integrate the mission.
Before travelling to Saudi Arabia, Brazilian companies are going to participate in a training course with a consultant specialized in the Arab market so as to learn about the needs and requirements of local companies. The Abimo is participating in Saudi Health Care with the support of the Arab Brazilian Chamber of Commerce (CCAB).
Greater sales
Exports of the medical and hospital equipment industry totalled US$ 317 million in 2004, which represented an increase of 42.8% when compared to 2003. "Our forecast was to reach US$ 250 million last year. We even exceeded our target for this year," stated Maestrello. The objective established last year for 2005 was a 10% increase over the US$ 250 million revenues forecasted for 2004.
According to Maestrello, the good performance of foreign trade is the result of the Integrated Sector Project (PSI), a program executed in partnership with the Brazilian Export Promotion Agency (Apex) to provide incentives to sector exports. The project currently includes 140 companies, but the target is to increase this figure to 200 up to the end of the year and enter new markets like the Chinese, South African, Angolan and Turkish, apart from consolidating participation of the Brazilian industry in Russia, the Middle East, India and Mexico. For the four latter markets, the objective is to increase sales by 22%. The companies participating in the PSI have as their target the export of US$ 120 million this year.
*Translated by Mark Ament
