Brazil-Arab trade balance records USD 24.3 billion in 2021

The Arab Brazilian Chamber of Commerce (ABCC) confirmed that trade and commerce activities between Arab countries and Brazil continue to grow at an accelerated pace, with a marked increase in the volume of trade flows. The growth is notably supported by the high demand for agricultural and food products and the recovery of global supply chains.

The trade balance between Brazil and the Arab countries reached USD 4.60 billion in 2021, and the volume of trade balance reached USD 24.3 billion last year, recording a remarkable growth of (44.3%) compared to 2020 as trade value reached USD 16.8 billion. Additionally, Brazilian exports to the Arab States amounted to USD 14.42 billion in 2021, with annual growth of 26.2 per cent, and Brazil’s total imports from the Arab States reached USD 9.82 billion, recording an annual growth rate of 82.8 per cent.

The UAE accounted for the largest share of Brazil’s exports, with imports of USD 2.33 billion, and an annual growth of 13.2 per cent. Saudi Arabia ranked second at USD 2.07 billion and with growth of 9.8 per cent, followed by the Arab Republic of Egypt at USD 2 billion with an increase of 14.8 per cent. Meanwhile, the Kingdom of Bahrain ranked fourth with USD 1.9 billion, a growth of 182.7 per cent, followed by the Sultanate of Oman at USD 1.54 billion and an annual growth of 109.7 per cent.

On the list of Arab exporters to Brazil, Saudi Arabia came first, with exports reaching USD 2.88 billion. The Kingdom of Morocco ranked second with exports of USD 1.92 billion, followed by Algeria (USD 1.14 billion), the UAE (USD 977.81 million,) and the State of Qatar (USD 789.27 million).

Osmar Chohfi, President of ABCC, said: “The strong indicators recorded in 2021 reflect the strength of trade relations between Brazil and Arab nations, the deep-rooted trust between business communities on both sides, and the growing demand for Brazilian products in Arab markets, particularly agricultural products and food commodities. The Brazilian-Arab partnership has long been a unique example in international relations. Over the past year, we have witnessed a significant increase in trade volume despite the circumstances and the unprecedented challenges posed by the global pandemic. We look forward with confidence to the prospects of further enhancing our bilateral relations in the coming period, given the rapid recovery of economies, international trade, and tourism. We are keen to expand our cooperation to the fields of environmental science and technology, artificial intelligence applications, and advanced technology.”

“ABCC is committed to strengthening and developing the cooperation and strategic partnership between Brazil and the Arab nations to meet the shared priorities such as economic aspirations, sustainable development, and diversification of economic resources. We have always worked to provide platforms and channels of communication between members of the business and investment community in Brazil and the Arab region, to highlight trade and investment opportunities and enable companies to keep pace with the changing circumstances of the global economy,” he added.

The ABCC agenda for 2022 includes organizing and attending a series of activities, events, and initiatives aimed at strengthening cooperation between Arab and Brazilian markets, increasing the momentum of trade exchanges and the exports and imports activity between the two sides. Part of the agenda is to ensure and enable companies to keep pace with the predicted 2022 trends such as the growing tourism sector; accelerating the pace of digital transformation; high demand for agricultural and food products to ensure food security; and increased investment in clean and renewable energy sources, cybersecurity solutions, and fifth-generation technology.

In 2021, iron ores topped the list of the largest Brazilian exports to the Arab countries, followed by sugar, poultry, corn, and beef. Fertilizers are Brazil’s main imports from the Arab States, followed by fuel, plastic, aluminium, and inorganic chemicals.

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