UAE Continues to Expand Trade with Latin-America
Trade between Latin-America and the Middle East reaches the consumer goods sectorNovember 03rd, 2016
The United Arab Emirates, with its growing population, is starting to represent a considerable market for consumer goods and its relations with Latin-America are expanding too. The Dubai Chamber of Commerce and Industry reported a new high for trade between Latin-America and the United Arab Emirates with an increase of 26% compared to 2010, and growth is expected to continue until 2018.
The United Arab Emirates is strengthening its relations with Latin-America, especially with Brazil, which represents 67% of the total trade with Latin-American countries. This makes Brazil the main commercial partner of UAE.
This new commercial trade is unexpected given that the reduction of the oil supply due to the low prices has had a considerable negative effect on the average income of the Arab population. Nevertheless, the Arab world is increasingly importing consumer goods and starting to diversify their diets. Amongst the most imported goods are the cane sugar from Brazil, which is worth a total of $1.9 billion.
Despite the instability of the current global economy, Dubai is still attracting global capital. This makes it a secure destination for business and entrepreneurship, as Hamad Buanim, President and CEO of the Dubai Chamber of Commerce and Industry, commented.
For many years, Latin-America’s policymakers have identified the favourable business climate in Dubai, UAE and other Gulf countries such as Bahrain and Qatar as a virtue. This maintains the region’s commercial attractiveness despite the oil price slump. This led countries such as Brazil and Peru to look into liberalizing trade with the Gulf Cooperation Council, with initiatives dating back to 2012.
Agricultural goods are in significant demand in the Middle East, which has an increasingly affluent market with certain imperviousness to global economic shifts. For this reason, Latin American economies are trying to encourage commerce.