- Middle East
- UAE can act as gateway for Brazil to key Arab, European and Asian markets: ABCC President
UAE Can Act As Gateway For Brazil To Key Arab, European And Asian Markets: ABCC President
Sumaira FH 2 months ago Sun 09th May 2021 | 07:00 PM
DUBAI, (UrduPoint / Pakistan Point News / WAM - 09th May, 2021) Osmar Chohfi, President of the Arab-Brazilian Chamber of Commerce (ABCC) has commended the UAE's accomplishments in developing logistic infrastructure and smart cities.
In an interview with Emirates news Agency (WAM), Chohfi noted that the sophisticated and attractive business and investment environments, especially through implementing trade license application systems, such as the "Invest in Dubai" platform, prohibiting double taxation on investments, and building high-level free zone infrastructure have further strengthened the positive context of the country’s relations with Brazil.
"Thanks to its world-class logistics infrastructure, free zones, strategic geographic location and diverse international trade agreements, the UAE can also act as a gateway for Brazil to have access to other major Arab markets and key European, Asian and even North American countries. Furthermore, Brazil, through its trade ties with the UAE, is given a chance to capitalise on the growing global demand for halal products," Chohfi stated.
He continued, "We know that Dubai and the UAE are recognised as a hub for investments in the region due to several factors. Choosing to bring their business to the country, global investors are drawn to various aspects such as quality of life, strong commitment to technology and sustainable development, modern urban centers, and efforts to build a more prosperous future. It also helps that the UAE Government is continuously looking for innovative ways to build a more favorable business environment to generate new value and consistently attract a higher number of investors and best international talents."
"Brazil, especially its large cities, has much to learn from Dubai, the UAE, and the rest of the Arab region regarding smart city development and the improvement of other priority sectors. As such, part of our mission at the Arab-Brazilian Chamber of Commerce is to facilitate cooperation between the Arab world and Brazil, whether in the sharing of experiences; in the joint development of solutions, including agriculture and food production technologies; in the exchange of products and services; and in the promotion of culture and leisure, among others," he added.
Chohfi noted that ABCC seeks to establish new pathways to strengthen its technical cooperation and trade agreements, promote smart cities and increase investment activities.
Commenting on the UAE's laws recently issued to encourage and attract investment and support investors, Chohfi said they will further strengthen the country’s trade ties with Brazil, noting that the provision permitting the 100 per cent foreign ownership in the production of wheat, corn, barley, legumes, sugar cane and flowers will lead to more diverse economic relations between Brazil and the UAE.
"It will also enhance its position as an important global supply chain link thanks to its numerous modern free trade zones," he added.
Brazil’s agroindustry and food and beverages (F&B) sector are key priority areas in the nation’s trade relations with the UAE. Much potential remains untapped specifically in agriculture alongside the areas of digital applications and solutions such as fintech, agrotechnology and health-technology. The local presence of more Brazilian companies in the fashion, beauty and personal care sectors will offer major opportunities as well, especially with the expected increase in international tourism.
In October 2019, Brazilian President Jair Bolsonaro, visited three Arab countries: The United Arab Emirates, Qatar, and Saudi Arabia. He met with the highest authorities in these three countries and participated in events that brought together investors, entrepreneurs, and authorities. He discussed the possibility of signing new trade agreements, presented business and investment opportunities in Brazil, and made clear the goal of the Brazilian Government to maintain good and productive relations with the Arab countries.
Also, Brazil and the UAE signed an agreement in 2018 to eliminate double taxation on income and prevent tax evasion. It allowed the UAE’s sovereign funds, which are among the largest in the world, to be invested in Brazil, as well as enabled Brazilian companies wanting to enter the Arab region to bring their investments to the UAE.
This agreement is vital to the Brazil-UAE relations, but they can go even further. Both countries can explore other areas such as the implementation of regional tariff reduction covering intermediate and finished goods, as well as the establishment of direct maritime routes.
Last year, the UAE was the top destination of Brazilian exports among Arab countries and the fourth in Brazilian imports. For Brazil’s total global trade, the UAE ranked 24th in total exports and 37th in total imports also in 2020. In 2020, Brazil exported USD 2.06 billion worth of goods to the UAE. Its imports amounted to USD 733.99 million during the same period. And the total trade flow reached USD 2.79 billion.
The trade value between Brazil and UAE reached USD 430.98 million in the first three months of 2021. Brazil exported USD 352.20 million and imported USD 78.78 million to and from the UAE during the first quarter of this year.
The UAE was the fourth main destination of Brazilian exports among Arab states and the sixth source of Brazilian imports between January and March 2021. Globally, the UAE ranked 34th in total exports and 55th in total imports during the same period.