São Paulo – A group of businessmen from Dubai is in São Paulo to get to know the Brazilian market and study the possibility of establishing their companies in the country. The mission, headed by Saed Al Awadi, the CEO of the Dubai Export Development Corporation (EDC), attended a meeting on the matter this Monday morning (13th) at the head offices of the Arab Brazilian Chamber of Commerce, where he was welcomed by the organization’s CEO, Michel Alaby.
“The goal of this visit is to bring companies from the Emirates into South America,” said Al Awadi. “We have come to see the opportunities, study the market and also [to look into the possibility] of establishing offices or companies in the region,” he finished off. The Emirati mission comprises approximately 20 product and service companies, including banks, building companies, law firms, food industries and others. This is the second time that the EDC heads a visit of an Emirati group to Brazil. The first trip took place in 2010.
Matters such as the main sectors of the Brazilian industry, the country’s GDP, its tourist potential and the bureaucratic requirements for foreign companies to establish themselves in Brazil were the main topics of the meeting. The lawyer and president of the Brazilian Business-to-Government Institute, Luiz Gustavo Fraxino, participated in the event, presenting the necessary procedures in order for foreign companies to operate in the country, as well as the tax burden charged on businesses. Michel Alaby offered the Arab Brazilian Chamber’s support to businessmen who need aid in the process.
Abdul Rasheed, the sales manager at Taghleef Industries, a company that manufactures plastic film for the processing industry, explains that his country has been exporting to Brazil for four years now. “We work with companies such as Pepsico, Coca-Cola, Unilever and Kraft Foods,” he says. According to the executive, his company has sold 5,000 metric tonnes of plastic film to Brazil since it started doing business with the country. He believes that having a plant could increase his business in the region even further. “The potential is strong because we make a specialized product that our local competitors do not. By producing here, we could export to countries such as Argentina, Chile and even the United States,” he points out.
Taher Kidwani, the managing director at the Islamic investment bank Yusr, believes thaet the implementation of an Islamic bank in Brazil may benefit the exports of local companies. According to the executive, the fact that Islamic banks do not charge interest will benefit exporting companies when it comes to obtaining long-term loans. “The Sharia (Islamic law) allows a contract to be signed for each case, in order to meet the requirements of each specific transaction,” he explained.
“Whenever a Brazilian bank attempts to raise funds from an Islamic bank, there is a series of requirements that must be met on the part of the Brazilian institution,” says Sidney Costa, a manager at the Business Centre of the Brazilian Export Promotion Agency (Apex) in Dubai, who is accompanying the mission. Eyeing this market niche, the agency decided to promote a seminar before the end of the year to clarify, to Brazilian businessmen, the workings of the Islamic financial system.
According to Costa, several actions are being taken to promote the attraction of Middle Eastern Investment into Brazil. Aside from a trade mission to the region that the Ministry of Development, Industry and Foreign Trade will promote in October, the manager also reveals that there are actions turned to attracting funds in markets such as the United Arab Emirates, Saudi Arabia, Qatar and Kuwait. This afternoon and tomorrow morning, the businessmen from Dubai will engage in business roundtables with Brazilian companies.
*Translated by Gabriel Pomerancblum
