São Paulo – The Arab countries in North Africa have expanded their imports from Brazil by 6% in the accumulated result for the first nine months of the year when compared to the same period last year. According to a study by the Market Development Department at the Arab Brazilian Chamber of Commerce, Arab nations in the region have bought US$ 2.38 billion from Brazil this year.
According to the manager at the department, Rodrigo Solano, this performance reflects the moment of Brazilian sugar exports, boosted mainly by the lower sales of one of the largest global suppliers, India. In the first half of this year, the product topped the list of Brazilian products exported to the Arab countries in North Africa. According to Solano, the sector hopes for growth of 50% in sugar exports to the Arabs this year.
The Arab nations on the African continent are Algeria, the Comoros, Egypt, Djibouti, Libya, Morocco, Mauritania, Somalia, Sudan and Tunisia. Of these nations, the main importer was Egypt, which purchased US$ 1.06 billion from January to September, growth of 11.77%. Algeria was the second main destination for Brazilian products in the region, with US$ 500 million, and growth of 19.74%. Morocco was the third main buyer, with US$ 345 million and expansion of 15.34%. In September there was a reduction of 22% in imports from the region, when compared to the same month in 2008, falling to US$ 221 million.
This year, there was also growth in the accumulated result of exports to the Arab countries in the Levant: Jordan, Lebanon, Syria and Iraq. Sales by Brazil to the region rose 2.1% over the same period in 2008, to US$ 763 million. To the Arab nations in the Gulf – Saudi Arabia, Bahrain, Qatar, the United Arab Emirates, Yemen, Kuwait and Oman – there was a reduction of 8.8% in Brazilian exports this year. With this, general exports to the Arab nations dropped 2.95%, totalling US$ 6.86 billion from January to September. There was also a 15% reduction in September over the same month last year, to US$ 817.7 million.
According to Solano, the fact that Brazilian exports to the Arabs are greatly concentrated in three sectors – meats, iron ore and sugar – makes them very susceptible to fluctuation. There are not yet figures available regarding the products exported to the Arabs up to September this year, but at the end of the first half there had been a reduction in sales of iron ore and chicken. The manager recalls that despite Brazil having a little diversified export basket to the Arab nations, the region imports many kinds of products, which means there is great potential to be explored. He mentions that machinery, for example, represents 14% of the total imported by the region.
Also greatly responsible for the drop in exports to the Arab nations was the lower volume purchased by Brazil’s main clients in the Arab world, Saudi Arabia. The country reduced imports of Brazilian products by 20% from January to September. They totalled US$ 1.48 billion. The second main Brazilian client in the Arab world, the Emirates, expanded purchases by 38%, to US$ 1.3 billion. The third main buyer was Egypt and the fourth, Algeria. There was also a reduction in Brazilian exports to Bahrain, Qatar, the Comoros, Jordan, Kuwait, Libya, Oman and Tunisia.
Brazilian imports from the Arab nations dropped 53.6% from January to September this year when compared to the same months in 2008. The value fell from US$ 8.36 billion in the same period last year to US$ 3.87 billion. In September, there was a reduction of 24.39% over the same month in 2008. Imports totalled US$ 616 million. Brazil imports oil and oil products from the Arab world.
*Translated by Mark Ament
