Economic Forum Brazil & Arab Countries

NEWS FROM THE ARAB-FOREIGN JOINT CHAMBERS

Economic Forum Brazil & Arab Countries

Brazil offers Arabs a business environment that has already attracted BRL 1 trillion (USD 185.45 billion) investments from 2019

São Paulo, July 4, 2022 -- The Strategic Affairs secretary of the Brazilian Presidency of the Republic, Flávio Rocha, stated today the Arab countries have at their disposal in Brazil a prosperous business environment combined with legal certainty that, since 2019, has already attracted investments totaling around BRL 1 trillion (USD 185.45 billion) in sectors such as infrastructure, energy, and sewage disposal. “Brazil and the Arab world have many business opportunities to develop together,” said Rocha during his participation in the fourth edition of the Economic Forum Brazil & Arab Countries, held in São Paulo by the Arab Brazilian Chamber of Commerce (ABCC). According to the Foreign Trade secretary of the Brazilian Ministry of Economy, Lucas Ferraz, the current business environment, which the Strategic Affairs secretary referred to, is the consequence of a series of measures adopted by the federal government to reduce the so-called ‘Brazil Cost’ and expand the participation of the country in the global market. Among these measures, Ferraz highlighted the reduction of taxes and bureaucratic barriers and expanding trade agreements with other countries and economic blocs. According to the Brazilian president of the Republic, Jair Bolsonaro, the Arab world is now the third most significant market for Brazil abroad, behind only China and the United States. Trade flow between Brazil and the 22 countries of the Arab League reached, in 2021, over USD 24 billion. In total, Brazil exported USD 14.42 billion to the bloc, a 26% increase in revenue. These figures could continue to expand. From January to April 2022, exports from Brazil to the Arab world leaped from USD 4 billion in 2021 to USD 5.2 billion. The Arabs clinched fifth place among the leading suppliers of Brazil’s imports. In 2021, the purchased volume of Arab products reached USD 9.82 billion, an 82% expansion over 2020. Brazil is now the world’s-largest exporter of halal protein. In addition to poultry and beef, exports of sugar, soybeans, and wheat also grew. On the other hand, 26% of fertilizers supplying Brazilian agribusiness come from the Arab world, a significant figure considering the military conflict between Ukraine and Russia, traditional suppliers of these inputs. “It is our goal to conclude agreements with Arab countries to facilitate investments and avoid double taxation,” said Bolsonaro. “Within Mercosur, the results achieved by the free trade agreement with Egypt inspire other initiatives, such as the progressing negotiations with the United Arab Emirates. I am convinced we are just beginning to explore the potential for economic cooperation between Brazil and the Arab world.” “More agreements of this type are necessary and, in this forum, paths can be assessed to overcome obstacles and sensitivities obstructing discussions for the closing of new free trade agreements between Brazil and the Arab countries,” completed Osmar Chohfi, president

of the ABCC, who considers the Brazil-Arab bilateral trade relationship gained momentum at another time in the global framework which, as now, required different countries to adapt to new and challenging conditions in trade and economics.

“I am referring to the 1970s and 1980s, during which Brazil, through its policy of evaluation and balance, intensified its trade with the Arab world, a trend that grew in the 1990s and these two decades of the 21st century,” explained Chohfi. “Oil, gas, fertilizers, vehicles, planes, construction materials, and engineering services from Brazilian companies enriched the exchange. Over the years, we have developed significant and highly complementary trade with the Arab countries.” Sameer Abdulla Nass, vice president of the Union of Arab Chambers (UAC) and president of the Bahrain Chamber of Commerce and Industry (BCCI), endorsed the words of Osmar Chohfi, highlighting another critical point in Brazil-Arab countries relations is the solution of logistical bottlenecks, with the creation of direct sea routes between Brazilian and Arab ports, which could reduce shipping time and costs, thus increasing bilateral trade in terms of volume, revenue, and strategic complementarity. “Even with the COVID-19 pandemic and the global economic crisis, the progress of trade between the Arab world and Brazil is proof we still have several opportunities to be seized,” assessed Sameer Abdulla Nass. “We have to strengthen economic cooperation and quality investments on both sides to take advantage of the many existing benefits both in Brazil and in the Arab countries.” At the opening of the Economic Forum Brazil & Arab Countries, the president of the ABCC, Osmar Chohfi, and the president of the Brazilian Trade and Investment Promotion Agency (ApexBrasil), Augusto Pestana, signed a term of commitment to an agreement to promote halal business in the period from 2022 to 2025. The agreement aims to promote halal products internationally through initiatives organized in countries such as Saudi Arabia, Egypt, Indonesia, South Africa, Malaysia, France, and the UAE. It also intends to position Brazil as a reference in halal goods as the main competitor in this category, referencing relevant activities and results to be shared worldwide.

It also includes formatting a new sector project dedicated to the halal market to encourage exports, further expand markets, and coordinate actions to attract foreign investment to strengthen the production chain and companies. The Economic Forum Brazil & Arab Countries is sponsored by ApexBrasil, BRF, and Sadia. In addition, the event has the collaboration of Khalifa Industrial Zone Abu Dhabi (KIZAD), FAMBRAS Halal certification, Pantanal Trading, and Embratur. Modern Living, CDIAL Halal, Antika, and Egyzone, among other companies, also support the event.

Press information | Arab Brazilian Chamber of Commerce Daniel Medeiros | danielmedeiros@a4eholofote.com.br | 11 992259634