Brazil–Arab trade balance is highest since 2014

The trade balance between Brazil and the Arab countries in 2021 points to a scenario of an economic upturn. Trade between the South American country and the Arab bloc reached its highest level since 2014, totaling USD 24.25 billion. “This shows that, despite being a pandemic year, the rapid recovery of the Arab countries contributed to increasing this balance,” declared Tamer Mansour, CEO and secretary-general of the Arab Brazilian Chamber of Commerce(ABCC).

Brazil exported USD 14.42 billion to the bloc, a 26% increase in revenue. The bloc remains the third leading destination for Brazilian exports. In addition to products linked to the agribusiness sector, such as sugar and poultry, iron ore drove the remarkable balance and had a considerable increase in demand from countries like the United Arab Emirates and Saudi Arabia.

“We have to break this down into two aspects; the Arab industries are rebounding, and this shows how fast and valid their economic upturn was. Also, there is a trend and reaffirmation of Brazil as one of the biggest trading partners in terms of agribusiness,” said Mansour.

For the executive, the expectation is for new paths to open up for Brazilian exports. “We hope in 2022 the balance will continue to increase. We expected this increase in 2020, but the pandemic got in the way. Now, with the stability of the last seven months in the Arab countries, especially the UAE, due to the movement linked to Expo 2020 Dubai, all of this indicates they have upturned and restored their economies faster,” he concluded.

The UAE took the lead

In 2021, the UAE took the lead among Brazil’s main Arab trade partners. The Gulf country contributed to a 13.21% increase in revenue compared to 2020. “The UAE’s return to the first place shows how they were one of the countries in the world to recover the fastest from the pandemic. It was also one of the first to have a large part of its population vaccinated against COVID,” highlighted the executive.

In second place came Saudi Arabia, with a 9.78% increase in revenue in 2021 compared to the previous year. In third came Egypt, with a growth of 14.55% in the same comparison.

Imports from Arab countries

The Arabs clinched fifth place among the leading suppliers of Brazil’s imports. In 2021, revenue from purchases of Arab products reached USD 9.82 billion, an 82% increase over 2020. “In addition to natural products, such as fuels and fertilizers, aluminum is starting to have a stronger presence in the trade balance,” highlighted Mansour about the commodity, which had an increase in volume in Brazilian purchases from nations such as the UAE and Saudi Arabia.

Source: ANBA – Brazil Arab News Agency

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https://anba.com.br/en/brazil-arab-trade-balance-is-highest-since-2014/

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