UAE to Make Fresh Investments Worth $2.45 Billion in Brazil

Brazilian President Luiz Inácio Lula Da Silva and his entourage reached an agreement with the UAE which foresees investments worth around $ 2.45 billion in Bahia, in Brazil.

Negotiations took place during Lula’s stopover in Abu Dhabi, on his way back home from China, where he was welcomed by H H Sheikh Mohammed bin Zayed Al Nahyan during the last weekend.

Bahia Governor Jeronimo Rodrigues said that he signed a term of commitment for investment in the production of green diesel from carnauba and palm oil. “It is one more positive balance for the generation of jobs and income,” he said in a video posted on Twitter.

Rodrigues, who is part of Lula’s entourage, signed a memorandum of understanding (MoU) between Brazil and the Abu Dhabi sovereign financial fund Mubadala Capital, controller of the Mataripe refinery, privatized in 2021. The fund has committed to invest $2.45 billion over ten years in the construction of a green diesel and sustainable aviation kerosene plant.

UAE Chambers Welcome

Meanwhile, in a statement to the Emirate’s official news agency WAM, Abdullah Al Mazrouei, Chairman of the Federation of the UAE Chambers of Commerce, and Industry (UAE Chambers), and Chairman of the Abu Dhabi Chamber of Commerce and Industry, affirmed the strength of the UAE-Brazilian relations in various sectors, driven by the support of the two countries’ leadership, which reflected positively on the levels of bilateral trade, economic cooperation and mutual investments.

Al Mazrouei said that this visit reaffirmed the Brazilian leadership’s keenness to continue strengthening bilateral ties across various domains, especially development and economy, in a way that serves the mutual benefit of the two countries.

He said that the Emirates is among the largest international investors in Brazil, calling on the two countries’ business environments to explore more commercial and investment opportunities, launch joint initiatives and projects, and focus on priority and competitive sectors on both sides, such as energy, sustainability, food security, mining, information technology, and pharmaceutical industries.

“The UAE is looking forward to benefit from the promising investment and trade opportunities in the Brazilian market – the largest market in Latin America – and build on its distinguished relations with the Brazilian side to enhance its economic presence in the South American continent, in line with the UAE’s economic diversification policies and economic strategic goals,” he added.

UAE Ministers’ Comments

According to Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, the trade and investment relations between UAE and Brazil played an important pivotal role in consolidating the bonds of constructive cooperation between the two countries.

The UAE-Brazil trade continued its robust upward trend in 2022, totalling more than $4 billion, up 32%, 67%, and 43% from 2021, 2020, and 2019, respectively.

Al Zeyoudi said that the non-oil foreign trade figures for 2022 showed that Brazil is the UAE’s top trading partner in Latin America and ranked second after the US among the UAE’s most important trading partners in the Americas.
“The UAE ranks 23^rd among the most significant markets for imports into Brazil and the 27^th among the most significant overseas markets for Brazilian exports,” the Minister added.

With a share of 18% of Brazil’s overall commerce with Arab nations in 2022, the Minister said that the UAE came in second on the list of Brazil’s most significant trading partners in the Arab world.

Osmar Chohfi, the President of Arab-Brazilian Chamber, said that the volume of Brazilian exports to the UAE is constantly increasing, with the value of Brazilian exports to the UAE totalling $714.07 million in the first quarter of this year.

Abdullah bin Touq Al Marri, Minister of Economy, said that the Emirati-Brazilian partnership is based on solid foundations of friendship and respect for mutual interests.

‘’The bilateral relations between the two countries have experienced real development in a variety of political and economic spheres, and they have been enhanced by several official visits at the level of the two countries’ leaders as well as top government officials, Al Marri said.

During the past period, the two countries, had maintained a fruitful cooperation across many vital sectors such as industry, transportation, shipping, storage, infrastructure, construction, management of ports, energy, mining, the financial and banking sector, real estate activities, and others.

“In terms of investments, 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,” Al Marri added.