Brazil offers Arab world robust business environment: Official

Brazil offers the Arab countries a lucrative business climate and strong legal security for businesses, that has already attracted investments worth over $185.45 billion in key sectors such as infrastructure, energy, and sewage disposal, said Flávio Rocha, strategic affairs secretary of the Brazilian Presidency.

Rocha highlighted about the UAE-Brazil trade ties during a discussion which was held at the Economic Forum Brazil and Arab Countries, which brought together several notable players from both regions. Over 300 members, from diplomats and state authorities to entity heads and entrepreneurs, attended the event held by the Arab Brazilian Chamber of Commerce (ABCC) at the Renaissance Hotel.

According to Lucas Ferraz, Foreign Trade secretary of the Brazilian Ministry of Economy, the current business environment is the result of a series of measures adopted by the federal government to reduce the ‘Brazil Cost’ and expand the country’s global market participation. A few measures were highlighted by Ferraz, which included the reduction of taxes and bureaucratic barriers, as well as expanding trade agreements with other countries and economic blocs.

Similarly, Jair Bolsonaro, Brazilian President of the Republic, further stated how the Arab world is the third largest foreign market for Brazil, after China and the United States.

Trade flow between Brazil and 22 countries from the Arab league reached $24 billion in 2021, with exports to the bloc totaling to $14.42 billion, which is a 26 per cent increase in revenue. Similarly, exports from Brazil to the Arab world grew from $4 billion between January and April in 2021 to $5.2 billion in the same period of 2022.

In addition, the Arab blocs sealed the fifth place among the top exporters of goods to Brazil, with the purchase volume of Arab products reaching $9.82 billion in 2021, an 82 per cent increase from the previous year.

Furthermore, Brazil is now the world’s-largest exporter of halal protein. In addition to poultry and beef, exports of sugar, soybeans, and wheat have also increased significantly.

Osmar Chohfi, President of the ABCC, believes the bilateral trade relationship between Brazil and the Arab world gained momentum at a past juncture in the global context when various nations had to adjust to novel and challenging trade and economic conditions.

He stated: “There is a need for more agreements of this nature, along with a forum, where we can identify ways to resolve obstacles and sensitivities that prevent free trade agreements between Brazil and Arab countries.”

— business@khaleejtimes.com