Arab countries guarantee a large part of the fertilizers used in Brazil
RIO DE JANEIRO, BRAZIL – Arab countries guarantee a large portion of the fertilizers used by Brazilian agriculture, as these products are in short supply due to the war between Ukraine and Russia.
Together, the Arabs, led by Morocco, Jordan, and Qatar, guaranteed Brazil US$4.2 billion worth of fertilizer last year alone, far more than the US$3 billion supplied by the Russians. Arab countries are expected to increasingly claim this market.
According to Ambassador Osmar Chohfi, president of the Brazilian-Arab Chamber of Commerce, there are many opportunities to increase trade between Brazil and the 22 Arab League countries.
Today, trade flows between the two sides total just over US$24 billion, with Brazil having a positive balance of US$5 billion to US$6 billion per year. The trend is for transactions to increase between 10 and 15% in the coming years.
Chohfi points out that Brazil is responsible for the food security of Arab countries, which consume large amounts of animal protein (beef and chicken), soy, corn, and sugar. On the other hand, the country imports fertilizers, petrochemical products, and aluminum from the Middle East.
“There are good opportunities to expand trade. Brazil also needs to export higher value-added products, such as airplanes and cars. We must not forget that the country was already a big supplier of cars to the Arabs,” he explains.
The opportunities go beyond that, the ambassador says. The Arabs are potential investors in key sectors such as infrastructure, petrochemicals, agriculture and tourism. “There are trillions of dollars available for good business. It is worth remembering that of the 10 largest sovereign wealth funds in the world, five are Arab,” he points out.
However, he points out that Middle Eastern investors are very cautious when selecting projects and always look for legal certainty in contracts and predictability in the economy.
With an eye toward closer partnerships, especially with small and medium-sized businesses in the Midwest, and closer proximity to government and Congress, the Chamber is opening a representative office in Brasilia today.
“We will get closer to businesses in Brazil’s North and Midwest, which already do a lot of trade with the Arab League, especially in the food sector,” Chohfi says. “We will also more easily find opportunities for structural cooperation between Arab and Brazilian companies that go beyond the mere exchange of goods,” he adds.
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