São Paulo – The Arab world is looking to diversify its economy and reduce oil dependency; it boasts various tourist attractions, like beaches and shopping malls; its construction industry offers opportunities; and the business environment is welcoming. Such was the face of the Arab world – the one that makes the economy’s wheel spin – that the Arab Brazilian Chamber of Commerce president, Marcelo Nabih Sallum, outlined last Saturday (21st) at São Paulo’s Syrian Sports Club, in a lecture titled “A new view of the Arab world.”
In order to provide a counterpoint to the prevailing news pieces on the media, which are usually conflict-oriented, Sallum provided an overview of the region’s economy to an audience of approximately 50 attendees. He recounted a bit of Arab history, since the time the region was the cradle to various discoveries of humanity, to the rise of the Western world, and the return of prosperity to the Middle East as oil and gas exploration began. Next, he focused on current highlights, such as the allocation of oil revenues to investment in education.
“They need everything, they buy everything, it is a fantastic market waiting to be tapped into,” said Sallum, who listed last year’s trade figures between Brazil and region: US$ 15 billion in exports and US$ 9 billion in imports. “Despite oil, Brazil still runs a surplus in trade with Arab countries,” he said. The Arab Brazilian Chamber president recalled a survey of Arab countries which the Chamber submitted to the then-president Luiz Inácio Lula da Silva at the beginning of his term in office, and it kick-started the rise of Brazil’s trade with Arabs.
Sallum cited figures to illustrate the economic potential of Arab countries, such as Saudi Arabia, which has oil reserves amounting to 264 billion barrels and is building four new cities designed to create jobs. He also said the Saudis attract 15 million pilgrims a year with their holy cities, and that there is a 242,000 square metre shopping mall in the country, with over 500 stores. Qatar, Sallum said, has the world’s third largest gas reserves, and is luring in renowned foreign educational institutions in a bid to develop its Education City.
The Arab Brazilian Chamber president also discussed major architectural projects in the Emirates, like Downtown Dubai, with buildings such as the Dubai Mall and the Burj Khalifa skyscraper, as well as the artificial palm-shaped islands under construction. He also spoke of highlight projects like Masdar City, a sustainable city which is being built in Abu Dhabi, and Ferrari World, the world’s largest indoor park.
Upon detailing the economic features and relevant projects in each country, Sallum noted that Oman, also in the Gulf, is home to an ore pellet plant owned by Vale, which generates revenues to Brazilians. The ore is shipped in from Brazil and processed at the plant before being sold. To Vale, one of the advantages of manufacturing in Arab land, said the Arab Brazilian Chamber president, is the cheap energy costs.
Sallum also discussed North Africa, with its fertilizer production and important companies, like Algeria’s Sonatrach, the world’s 11th largest oil company, and the opportunities that the region holds to Brazil, including the fact that Brazil’s construction company Odebrecht is building a port in Djibouti. According to the lecturer, Egypt, for instance, which is located in the region, boasts a sizeable phosphate production, but the main economic activity is tourism. “The industry employs 12 million workers,” said Sallum. Regarding the Levant country, where Lebanon, Syria, Palestine and Jordan are located, he said it is the region from which the largest migratory flows originated to Brazil, and it was also the birthplace of Christianity, Islam, and Judaism.
Sallum closed his address by listing the various companies which already have operations, such as offices or stores, in the Arab countries, including Banco do Brasil, Petrobras, BRF, JBS and Tramontina, and the Arab companies which have arms in Brazil, like the airlines Etihad and Emirates, the port operator DP World, among others. When questioned by the audience about the interference of conflicts in the flow of trade between Brazil and the Arab world, Sallum said he hopes for peace in the region, but stated that these periods also harbour opportunities.
*Translated by Gabriel Pomerancblum