Marina Sarruf*
São Paulo – The establishment of partnerships with Arab companies may be the best route to enter the civil construction sector in the United Arab Emirates. This is one of the conclusions reached by the secretary general at the Arab Brazilian Chamber of Commerce, Michel Alaby, who travelled with the Brazilian trade delegation to the emirates of Abu Dhabi and Dubai between April 22nd and 28th.
"The foreign company cannot be a majority shareholder. The local partner must have at least 51% of the capital, and it is therefore necessary to find the correct partner," stated Alaby. To him the establishment of partnerships may also generate projects outside the Emirates, as happened with Brazilian construction company Norberto Odebrecht, who built a maritime liquid bulk terminal in Djibouti, in the North of Africa.
This is also the opinion of the director of company Sociedade Incorporadora e Construtora (Sinco), Paulo Sanchez, who believes that in the area of services, for example, it is necessary to base yourself in the country. "I felt that the Arabs have great interest in doing business with Brazil," he said, having participated in the mission. However, Sanchez believes that Brazilian companies have greater chances in the area of construction material, like flooring, granite, marble and doors.
According to the director of company Lucio Engenharia e Construções, Luiz Alberto M. Lucio Mendonça, the construction market in the Emirates is very promising. "It is a place full of opportunities if you discover a niche to be explored," he said. To Mendonça, it is the job of Brazilian companies, together with the Arab Chamber, to discover what is lacking on the Arab market. "After we find a niche, we may establish partnerships to operate in the Emirates," he added.
According to Alaby, the companies that participated in the mission should stay in contact with the Arab companies visited in the Emirates, among them Emmar Properties, Dubai Properties and construction companies Nakheel and Sourouh Real State. "It is necessary to define a strategic plan for entry into this market," said Alaby. He also suggests that Brazilian businessmen participate in fairs in the Arab countries.
To the head of the delegation, Salvador Benevides, a director at company Projeto Engenharia, the area of site management has much to be developed, and this may be a way for Brazilian companies to enter the market. Projeto Engenharia also makes prefabricated houses and Benevides noticed strong presence of this kind of product in the Emirates. "I am interested in returning to the Emirates to see about this matter. But to operate in this field in the country it is necessary to establish a local factory," he said.
Visits
The group of 18 Brazilian businessmen travelled to the Emirates with the objective of learning about the works and projects in the country. "Everything impresses due to the grandeur and dare of the works," stated Benevides. According to him, the construction of Burj Dubai, the building that intends to be the tallest in the world, and of artificial islands like The Palms are daring projects. "Dubai wants to become a global tourism hub," he said.
Apart from these works, the group visited hotels, shopping centres, residential and business neighbourhoods, like Jumeirah Beach Residence, Business Bay, Dubai Marina and Dubai Waterfront.
*Translated by Mark Ament
