Dubai: Dubai on Tuesday launched the Pacific Alliance linking the fast-emerging economies of Latin America with the UAE, creating a new regional bloc aimed at enhancing economic ties and performance between these countries for future growth.

Dubai FDI at the Dubai Department of Economic Development (DED) officially launched this initiative here with representatives from the four most growing economies in Latin America, including Chile, Colombia, Mexico and Peru.

Dubai’s trade with Latin America averaged about Dh17 billion annually in recent years and of that the Pacific Alliance nations accounted for almost Dh5 billion, said Sami Al Qamzi, Director General of DED.

“Trade with the Alliance countries has grown relatively faster, averaging almost 34 per cent annually since 2008, against less than eight per cent for Dubai’s trade with the world. It went from about Dh1.8 billion in 2008 to over Dh5 billion in 2012. This is a positive development towards strengthening the relations between the Alliance and Dubai,” he added.

Dubai and the UAE in general have recently placed a major thrust on increasing bilateral exchanges with Latin American countries. In comparison with Central and South America, Dubai’s trade with the Pacific Alliance countries is significant, accounting for about 26 per cent on average of its total trade with that region over the period 2008-2012.

The Pacific Alliance accounts for over 50 per cent (Dh4 trillion approximately) of Latin America’s external trade, 35 per cent of its gross domestic product (Dh7.3 trillion) and is considered the eighth largest economy in the world.

The UAE investment [FDI] in the Pacific Alliance is estimated to be Dh26 billion approximately. Currently, the Pacific Alliance ranks first in exports of copper and silver, with over 40 per cent of the worldwide production; second in gold and zinc with over 12 per cent of the world’s output; and third in exports of avocado, mango, papaya, grapes, banana, asparagus, tomato, coffee and fresh flowers.

Fahad Al Gergawi, CEO of Dubai FDI, said that the geographical and infrastructure strength in Dubai will make the target of alliance initiative more achievable.

Dubai provides the most efficient links to a population of 2.2 billion across the Middle East, North Africa and South Asia by way of trade and people movements, Al Gergawi said.