São Paulo – Trade between Brazil and the Arab countries broke every record last year. Exports totalled US$ 9.8 billion, growth of 41% compared with 2007; imports totalled US$ 10.5 billion, growth of 62,2%; and bilateral trade reached US$ 20.3 billion, growth of 51.2%. The figures were disclosed yesterday (15) by the Arab Brazilian Chamber of Commerce.
Even after the worsening of the international crisis, in the second half of the year, business between Brazil and the Arab world continued to grow strongly. “In the last two months of 2008, growth rates were even higher than the annual average,” said the president at the Arab Brazilian Chamber, Antonio Sarkis Jr., during a press conference held at the organisation’s head offices, in the city of São Paulo. In November, exports increased 51%, and in December they grew 56%.
“The crisis does exist, it is global, but it is basically a liquidity crisis, and in the Arab world today, liquidity is not a problem. It is one of a few regions in the world that has capital available and does not depend on foreign funding,” stated Sarkis. Thus, he believes that trade should continue to grow in a significant manner in 2009.
In his assessment, when it comes to doing business with the Arabs, Brazil may convert the moment of crisis into opportunities, especially now that the real (the Brazilian currency) has depreciated against the dollar, making Brazilian products cheaper abroad.
He underscored that despite the significant rise in exports, Brazil only answers to 1.3% of total imports by the Arab nations, therefore there is still much room for growth. Sarkis believes that Brazilian exporters may double their share of imports by the Arabs within five years.
“Brazilian companies that are already present in the Arab market must give special attention to those countries, because they are being sought by the rest of the world,” said Sarkis. As developing nations are faced with recession, the Middle East and North Africa are now attracting the interest of exporters around the world.
To him, Brazil may conquer more space in the region in 2009, but in order to do so, the country must increase its presence and be competitive. “We might have a good surprise, after all, our goals have been exceeded over the last 10 years. The goal for 2008 was [a growth rate of] 15%,” he declared.
Markets
The main destinations for Brazilian products in 2008 were Saudi Arabia, which imported the equivalent to US$ 2.5 billion, growth of 73.4% over 2007; Egypt, with US$ 1.4 billion, growth of 13.75%; the United Arab Emirates, with US$ 1.32 billion, growth of 10.56%; Algeria, with US$ 632.5 million, 26.2% more; and Kuwait, with US$ 632.3 million, growth of 174%.
The most sold products were chicken and bovine beef, sugar, ores, iron and steel, and vehicles. In the agricultural sector, soy oil and grains had a large share as well.
In terms of imports, the leading suppliers were Saudi Arabia, with US$ 2.9 billion, growth of 70.4% compared with 2007; Algeria, with US$ 2.5 billion, growth of 11.6%; Libya, with US$ 1.4 billion, growth of 40.8%; Iraq, with US$ 1.19 billion, growth of 336.2%; and Morocco, with US$ 1.14 billion, growth of 115%. The most important items in the export basket were oil, oil products and fertilisers.
*Translated by Gabriel Pomerancblum
