BackUnited Arab Emirates' (UAE) investments in Brazil have reached an impressive $5 billion, signaling the strengthening of economic and trade relationships between the two nations, according to Abdulla bin Touq, the UAE Minister of Economy. The announcement was made during Brazilian President Luiz Inacio Lula da Silva's visit to the UAE, his second official trip since December 2003.
The Minister of Economy highlighted that the two countries have witnessed significant development in numerous political and economic domains. He further revealed that the UAE is one of Brazil's largest international investors, with major Emirati companies like Mubadala, DP World, Emirates Airlines, First Abu Dhabi Bank, and Yahsat making their presence felt in Brazil.
Both nations are currently engaged in several critical sectors, including industry, transport, shipping, storage, infrastructure, construction, management of ports, energy, mining, the financial and banking sector, and property. Mr. da Silva's visit is expected to give a new impetus to the expansion of bilateral ties, as both countries seek to diversify and serve the development agendas of their respective nations.
In the Middle East, the UAE is among Brazil's largest trading partners. Last year, the total non-oil foreign trade between the countries surpassed $4 billion, registering an annual increase of about 32%. Agribusiness is a substantial contributor to Brazilian exports to the UAE, and Brazil ranks as the UAE's top trading partner in Latin America. Furthermore, the UAE is the second-most important trading partner in the Americas for Brazil, following the United States.
Dr. Thani Al Zeyoudi, the UAE Minister of State for Foreign Trade, emphasized that the UAE ranks 23rd among the most significant markets for Brazilian imports and 27th for Brazilian exports. He also mentioned that the UAE accounted for 18% of Brazil's total commerce with Arab nations last year.
High-level official visits like these pave the way for a strategic partnership and comprehensive cooperation between the two countries across various fields of mutual interest. Dr. Al Zeyoudi stated, "During the official visit of the Brazilian President ... we look forward to advancing joint efforts to promote trade and investment relations between the two countries."
In an effort to diversify its economy, the Arab world's second-largest economy plans to sign 26 comprehensive economic partnership agreements (Cepa) this year. The UAE has already signed Cepas with countries like India, Israel, Indonesia, and Turkey, and is nearing completion of agreements with Cambodia and Kenya.
In 2022, the UAE's non-oil foreign trade experienced a 17% annual increase, reaching a record Dh2.23 trillion ($607.2 billion). The significant growth in investments and trade between the UAE and Brazil, and the continued diversification of their economies, demonstrates the potential for stronger and more prosperous relationships between these two emerging powers in the global arena.