Global Business Forum for Latin America kicks off today
The UAE accounts for 77% of Gulf investments in Latin America
Bilateral trade between Latin America and the "co-operation" countries is growing.
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Hamad Buamim: "Optimism about the economic situation in Latin America for the coming period is increasing."
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A recent study by the Dubai Chamber of Commerce, conducted in cooperation with the Economist Impact Foundation, entitled “Strengthening Relationships: Strengthening Trade and Investment Cooperation between Latin America and the Gulf Cooperation Council Countries,” revealed that the total investments of the Gulf Cooperation Council countries in Latin America Between 2016 and 2021, it amounted to four billion dollars, the UAE accounted for 77% of the total, Saudi Arabia 22%, and Qatar 1%, according to estimates of the foreign direct investment markets platform (FDI Markets).
The study, which was issued on the sidelines of the preparations for the organization of the fourth session of the "Global Business Forum for Latin American Countries", which starts this morning, and is organized by the "Dubai Chamber of Commerce", in cooperation with "Expo 2020 Dubai", for a period of two days, showed that half of these investments are in America. Latin America was for logistics, distribution and transportation companies, with the “DB World” group acquiring a large share of them.
The study revealed that foreign direct investment from Latin America to the GCC was much lower, estimated at less than $500 million between 2017 and 2021.
Brazil's share was 85%, and Argentina 13%.
According to the study, the largest investments in the Gulf Cooperation Council countries are due to the Brazilian BRF company, which manufactures food and supplies poultry to the markets of the Gulf countries.
The study pointed out that bilateral trade between Latin America and the Gulf Cooperation Council (GCC) countries was growing in the period preceding the “Covid-19” pandemic, as imports to the Gulf Cooperation Council countries increased from $9.6 million in 2016 to $17.2 million in 2019, before declining to $15.4 million in 2020. These imports consist of primary commodities, mainly gold, meat, iron ore, grains, sugar, and coffee.
Brazil accounts for the largest share of GCC imports from Latin America, at 42%, as it is the largest producer and exporter of halal meat to the world.
In turn, fertilizers are among the largest exports of the Gulf Cooperation Council countries to Latin America, with 17% of the total exports, as well as plastic polymers (20%), aluminum (12%), ammonia and petroleum.
However, the total value of exports remained relatively low at around $2.5-3.5 million between 2016 and 2020.
The study indicated that there are indicators confirming the stability of the growth of the main economic sectors in the countries of Latin America and the Caribbean, which establishes diverse and new economic opportunities for investors in the Gulf Cooperation Council countries.
The Director General of Dubai Chambers, Hamad Mubarak Buamim, said: “The results of the study show that optimism about the economic situation in Latin America for the coming period is increasing, especially with regard to the main sectors.
This is very important, not only for the economies of Latin America and the Caribbean, but also for the economies of the Gulf Cooperation Council (GCC), which can be a key partner for facilitating the mutual growth necessary for a strong and stable recovery in the post-pandemic era.”
He added: “The results of the study will be among the main issues that will be discussed in the fourth edition of the World Business Forum for Latin America 2022, as well as other topics related to financial reforms, infrastructure development, economic diversification, regional integration, food security, and building stronger supply chains. With the aim of creating more resilient economies, and more successful and inclusive societies.”
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