Dubai, March 22, 2022 (WAM)-United Arab Emirates will account for 77% of GCC investment in the Latin American market from 2016 to 2021, with the latter reaching $ 4 billion over the same period. Dubai Chamber of Commerce in cooperation with Economist Impact.
A report entitled “Developing Relationships: Deepening Trade and Investment Between Latin America and the GCC” was released prior to the Global Business Forum Latin America 2022, which will be held at the Dubai Exhibition Center on March 23-24, 2020. I did.
This white paper examines the trade-investment relationship between Latin America and the Gulf Cooperation Council (GCC) countries, allowing GCC to become a destination for Latin American products, an industry supplier, and an investor in growth businesses. Identify key areas of opportunity with sex. Knowledge partner on industry best practices.
This report is based on a survey of 200 senior executives in Latin America from May to July 2021. Respondents came from a variety of sectors, including about 15% each from agriculture and food, financial services and fintech, retail and e-commerce. Industry and Energy, Healthcare, Transportation and Logistics, and 10% Professional Services and Marketing. This study focuses on the business situation during a pandemic, addressing challenges, post-pandemic business prospects, and drivers of engagement with different regions such as the Middle East (including GCC), Africa and Southeast Asia. ..
Between 2016 and 2021, Saudi Arabia accounted for 22% of GCC investment in Latin America and Qatar accounted for 1%. Half of GCC’s investment in Latin America goes to logistics, distribution and transportation companies in the region, with DP World accounting for the majority of the investment.
Meanwhile, foreign direct investment from Latin America to GCC from 2017 to 2021 is estimated to be less than $ 500 million, of which 85% came from Brazil and 13% from Argentina. Some of the largest investments are made by Brazil’s BRF, one of the world’s largest food processors and a leading supplier of poultry to the GCC market.
The report notes that bilateral trade between Latin America and the GCC market countries increased during the period prior to the COVID-19 pandemic, with import surges between 2017 and 2019. Specifically, imports from Latin America to GCC countries increased from $ 9.6 million. $ 17.2 million from 2016 to 2019. These imports are mainly composed of primary products such as gold, meat, ore, grains, sugar and coffee.
Brazil is the world’s largest producer and exporter of halal meat, so it has the largest share of GCC imports from Latin America at 42%. At the same time, fertilizer, along with plastic polymers (20%), aluminum (12%), ammonia and petroleum, is one of the major exports of GCC countries to Latin America (17% of total exports).
GCC countries import iron ore from Latin America, which accounts for 9% of the region’s total imports. This material is used in the manufacture of aluminum products and then exported to Latin America. Fertilizers and ammonia exported from GCC countries are used to support the major agricultural sectors of Latin America.
Hamad Buamim, CEO of the Dubai Chamber of Commerce, said the report reflects the strengthening and expansion of economic relations between the GCC and Latin America, where Dubai is responsible for trade and investment between the two regions. He said it plays an important role in accelerating growth. The Emirate will serve as the primary export and re-export platform for Latin American traders supplying markets from the Middle East, Africa and Asia.
“The Dubai Chamber of Commerce has compiled this report to provide clearer information on bilateral business opportunities in which companies in Latin America, the GCC and the United Arab Emirates can benefit. We look forward to exploring these opportunities in more detail. When interacting with governments and business leaders in both regions at the GBFLATAM2022, the most important edition of the forum to date at Expo 2020 Dubai. Mr. Buamim said.
The 4th edition of GBFLATAM, with the theme “Towards a Resilience Future”, is sponsored by the Dubai Chamber of Commerce in collaboration with the Dubai International Exposition. The event is sponsored by High Commissioner Sheikh Mohammed bin Rashid al-Maktoum, Vice President and Prime Minister of the United Arab Emirates and ruler of Dubai, with more than 13 ministers and governments. Stakeholders, prominent business leaders and industry experts come together. United Arab Emirates and Latin America seek new ways of economic cooperation in the post-Covid era and beyond.
Translation: Gihane Fawzi