UAE Signs MOU with Brazil to Boost Bilateral Trade

Stepping up bilateral trade relations with Brazil, the UAE has signed a Memorandum of Understanding (MOU) with the South American nation to establish a joint mechanism aimed at promoting UAE investments in strategic sectors in that country.

The MOU signing ceremony, which took place in the presence of H H Crown Prince of Abu Dhabi Sheikh Khaled bin Mohamed bin Zayed Al Nahyan and President of Brazil Luiz Inácio Lula da Silva, was signed by Mohamed Hassan Alsuwaidi, the UAE Minister of Investment, and Rui Costa, Presidency Chief of Staff of Brazil.

H H Sheikh Khaled is leading the UAE delegation to the 19^th edition of the two-day G20 summit in Rio de Janeiro, which started on Monday.

It is estimated that Emirati investments in Brazil are around $5 billion. Mubadala is the biggest Emirati investor in Brazil and besides Mubadala, DP World, Emirates Airline, First Abu Dhabi Bank, Yahsat, and the Dubai Chamber of Commerce and Industry are operating in Brazil.

To streamline the trade ties, the UAE opened a General Consulate in Sao Paulo on 20 December 2013.

The relations between the two countries have witnessed an upswing in all fields, especially the economic ones. The UAE, together with Saudi Arabia, are the largest buyers of Brazilian products in the Middle East.

The main imported products from Brazil by the UAE include chicken meat, bovine meat, sugar. The main UAE exports to Brazil are oil, urea, sulphur and parts for aircrafts. The UAE are among the major international investors in Brazil, especially through their sovereign wealth funds.

The state of Sao Paulo is the commercial hub of the South American continent, receives most of foreign direct investment in Brazil and it is home of 80% of Brazilian companies. Sao Paulo is also the richest state in Brazil has the most diversified economy in the country and produces from sugar and orange to aircrafts, from coffee, gold and petroleum to automobiles.

The presence of the Consulate, the continuous visits of UAE trade delegations, as well as the establishment of important UAE organisations in Brazil, express the high interest of the UAE in the State of São Paulo. In February 2020, the São Paulo’s Investment Promotion Agency (InvestSP) opened its office in Dubai.

Developments Reviewed

The Crown Prince of Abu Dhabi and the President of Brazil reviewed the development of bilateral relations between the UAE and Brazil across various fields, particularly in economy, investment, renewable energy, and sustainability, highlighting the 50th anniversary of diplomatic relations between the two countries, reflecting the significant growth and progress achieved, supported by the strength of bilateral ties and the shared commitment to further enhancing them.

The meeting also explored programmes and initiatives aimed at expanding the scope of cooperation to advance sustainable development in both nations.

The meeting also discussed the agreement between the Abu Dhabi Customs and the Tax Authority of Brazil to strengthen customs cooperation across various areas, commending the launch of the digital trade corridor to streamline trade procedures and enhance collaboration.