Riyadh – This Friday (3rd), Omani government officials proposed the establishment of a "Brazilian Market" at the Port of Sohar to the Brazilian delegation currently on a trade mission to the Middle East. The Omanis met with the group organized by the Brazilian Ministry of Development, Industry and Foreign Trade in Riyadh, Saudi Arabia, the next-to-last leg of the trip.
The CEO of the Sohar Free Zone, Jamal Aziz, told the Brazilian minister of Development, Miguel Jorge, that Brazilian companies may establish themselves at the site to store their products and distribute them from there to the Middle East, Asia and Africa. He claimed that there are great opportunities, especially in foodstuffs, and mentioned items such as beef, chicken and fresh fruit.
like others in the Arab world, the country wants to start importing directly from the farmers, increasingly avoiding middlemen. "Too many people are eating slices of the same cake right now," he said.
The director general of the Planning Department at the Omani Ministry of Industry and Trade, Manal Mohammad Al-Abdwani, added that other products of interest to the country are rice, sugar, lentil, wheat, milk powder and tea. "For [the country’s] strategic food reserves," she said.
Since the world food crisis, in early 2008, which led to rising prices and a strong demand, Arab countries have shown great concern with food security. Although oil-rich, the Arabian Peninsula nations, for instance, have desert climate and an agricultural production that is deserted climate to feed their populations.
Aziz, who had already met with Jorge when the minister went to Oman in September, stated that his country’s government intends to promote a mission to Brazil next year to address the matter with growers and food companies.
In order to convince Brazilian enterprises to accept the project, he informed that the Port of Sohar, and especially the free zone, offers a series of incentives, such as tax exemption, full ownership, infrastructure, good logistics, with highways, railways and an airport, and easy access by sea. The port is located on the Gulf of Oman, at the gateway to the Arabian Sea, wihch is the tip of the Indian Ocean. By docking there, the ships do not need to cross the Strait of Ormuz and enter the Gulf, and this would drastically reduce insurance costs, according to Aziz.
"[The companies] will have the advantage of selling cheaper," said the executive. He added that the port offers easy access into markets such as Dubai and Abu Dhabi, in the United Arab Emirates, Iran, Pakistan and India. The director general for management and finance at the Omani Center for Investment Promotion and Export Development (Ociped), Ali Rashed Al Balushi, also mentioned targets such as Yemen and Sudan.
The Omani’s main trump card to convince Brazilian companies to establish themselves in the sultanate is the presence of Vale in the country. The Brazilian mining company participates in the building of a maritime terminal at an iron ore pelletization plant in Sohar, whereas the structure of the wharf is managed by the port administration itself. "We are investing for Vale to bring 10 million tonnes of iron ore into Sohar," said Aziz, referring to the project’s capacity.
Manal also informed that the deals in Sohar are part of the country’s strategy for diversifying its economy, reducing its dependence in oil, and developing the local labour market and private sector.
Committee
Jorge proposed the establishment of a workgroup to carry on with the idea, including different government organizations and counting on the aid of private organizations such as the Arab Brazilian Chamber of Commerce.
The president of the Arab Brazilian Chamber, Salim Taufic Schahin, stated that his organization may help seek sectors and companies that are interested in the project. He placed the organization at the disposal of the Omanis.
This Saturday, the Brazilian delegation businessmen are going to engage in business roundtables with Saudi companies in Riyadh. The meeting includes a food industry-only exhibit orgnaized by the Brazilian Export and Investment Promotion Agency (Apex), as well as workshops on investment in Brazilian infrastructure and agribusiness.
*Translated by Gabriel Pomerancblum
