UAE’s investments in Brazil reach $5 billion

Brazilian President Luiz Inacio Lula da Silva is on an official visit to the Emirates

President Sheikh Mohamed with Luiz Inacio Lula da Silva, President of Brazil, during an official visit reception. Photo: Presidential Court

The UAE’s investments in Brazil have risen to $5 billion as the Emirates continues to deepen its trade and economic ties with Latin America’s largest economy, Abdulla bin Touq, Minister of Economy, said on Sunday.

The figures were revealed during a visit by Brazilian President Luiz Inacio Lula da Silva to the UAE.

It was Mr da Silva’s second official visit to the Emirates, after a previous trip in December 2003.

"The bilateral relations between the two countries have experienced real development in a variety of political and economic spheres,” Mr bin Touq told state-news agency Wam.

"The UAE is among the largest international investors in Brazil, with an estimated $5 billion in Emirati investments in Brazil, with the presence of major Emirati companies such as Mubadala, the largest Emirati investor in Brazil, DP World, Emirates Airlines, First Abu Dhabi Bank, Yahsat and others."

The two countries currently collaborate on vital sectors such as industry, transport, shipping, storage, infrastructure, construction, management of ports, energy, mining, the financial and banking sector and property, he said.

Mr da Silva's visit provided a “new impetus” to the “expansion of bilateral relations toward broader and more diverse horizons, in a way that serves the development agendas of both friendly countries", Mr bin Touq added.

The UAE is one of Brazil's largest trading partners in the Middle East.

The total non-oil foreign trade between the countries exceeded $4 billion last year, marking an annual increase of about 32 per cent, Mr bin Touq said.

Agribusiness accounts for a significant portion of Brazilian exports to the UAE.

Brazil is the UAE's top trading partner in Latin America and ranks second only to the US among the UAE's most important trading partners in the Americas, Dr Thani Al Zeyoudi, Minister of State for Foreign Trade, told Wam.

The UAE ranks 23rd among the most significant markets for imports into Brazil and 27th among the most significant overseas markets for Brazilian exports, he said.

Meanwhile, the Emirates accounted for 18 per cent of Brazil's overall commerce with Arab nations last year.

“Such high-level official visits help advance these relations to the level of strategic partnership and comprehensive co-operation between the two countries in many important fields of common interest,” Dr Al Zeyoudi said.

“During the official visit of Brazilian President ... we look forward to advancing joint efforts to promote trade and investment relations between the two countries."

The Arab world’s second-largest economy is working towards signing 26 comprehensive economic partnership agreements (Cepa) this year amid diversification efforts.

The country has already signed Cepas with India, Israel, Indonesia and Turkey, and is close to finalising others with Cambodia and Kenya.

Last year, the UAE's non-oil foreign trade surged 17 per cent annually to reach a record Dh2.23 trillion ($607.2 billion).