São Paulo – Investments and the establishment of companies between countries are signs of a trustful relationship. So said former Costa Rican minister of Foreign Affairs, Manuel Gonzalez, during a virtual roundtable on business between the United Arab Emirates and Latin America on Wednesday (9). “It was not easy to open the doors at first, but I see that the relationship between the UAE and Latin America is improving; the UAE’s minister of Foreign Affairs, Abdullah bin Zayed Al Nahyan, is doing a great job,” said Gonzalez. Pictured above, clockwise, Rafael Solimeo (top left), Manuel Gonzalez, Carlos Salas, and Lorenzo Jooris.
The former minister stated that, for geopolitical reasons, Latin America and the Caribbean are seen as a single region, and despite the common Spanish language, except for Brazil, this is a very diverse region, and the countries are very different between them.
For Gonzalez, Costa Rica has several attractions for foreign investment, such as free trade agreements with several countries, no double taxation, treaties for the protection of assets, among other legal facilitations. “We want investments from the Middle East in our country, [we want them to] establish permanent headquarters to create jobs and show that they are here for the long term, creating a link with the country. Investment, for me, is one of the most important types of business relationships; it demonstrates trust,” he said.
The head of the Arab Brazilian Chamber of Commerce (ABCC) office in Dubai, Rafael Solimeo, who also participated in the roundtable, agreed with Gonzalez. “If you want to sell something to someone, it is important to show that you are committed, and you show commitment by setting up a company in that country,” said Solimeo.
According to him, Brazil and all of Latin America are known for exporting many commodities, and perhaps it is time to diversify this agenda. “I would say that we need to think more about value-added final products, such as food, coffee, electronics and others. There are many opportunities not only in Dubai and Abu Dhabi but in each one of the seven emirates, which are very different from each other,” he said.
He recalled that many people still believe that Dubai is a country, even though it is just one of the seven emirates. “You have to be committed and get to know the country,” he said. He gave the example of BRF’s animal protein processing plant based in Abu Dhabi. The Brazilian giant also bought a factory in Saudi Arabia and is carrying out a project to open another production unit in the country.
Challenges for Chile
The Commerce Commissioner of the Chilean Embassy to the UAE, Carlos Salas, also participated in the conversation. For him, all countries are concerned about upturning their economies with the COVID-19 pandemic. Chile has some challenges to overcome to increase its market share in the UAE, such as distance, the fact that it is facing the Pacific Ocean, while Brazil and Argentina have a coastline on the Atlantic, in addition to the time zone and working days differences (the weekend in countries with an Islamic majority is generally Friday and Saturday). “The idea is for Chilean and Latin American businesspeople to come to the UAE to be able to prosper in business here in the region,” stated Salas.
According to him, there is still no substantial presence of Chilean companies in the UAE, but three are established in free trade zones and fresh fruit tradings. “We produce and export apples, grapes, kiwis, and plums to the UAE, and we have Saudi investments. Our strategy is to show more of our country and prospect new investments from countries in the region during Expo 2020 Dubai,” he said. He stated that Chile intends to increase its participation in the region’s food sector and mentioned the clean energy market as a business opportunity between countries.
Connection with the seven emirates
For Solimeo, Brazil’s main goal concerning the UAE this year is “to touch and connect the seven emirates with Brazil.” He also said that the country is working on its representation at Expo 2020 Dubai. “In addition, we will maintain and develop the already established products, maintain consistency in shipments, also invest more in high value-added products, and perhaps even in the franchising, services, halal sector, there is a lot to explore,” he spoke.
The executive emphasized that Brazilians and Latin Americans need to build trust with the Arabs and go further, surpassing expectations. “We have to be here [in the UAE] to do business, or we are going to leave an open space for competition, and we don’t want that,” he said.
The roundtable was led by businessman Lorenzo Jooris, CEO of UAE’s Creative Zone, which hosted the meeting. Jooris offered Creative Zone services to entrepreneurs interested in starting businesses in Dubai.
Watch the full event.
Translated by Elúsio Brasileiro
