Trade exchange between Mena and Latin America, Caribbean stands at $100b in 2011
Relationship between the two regions to improve further
Abu Dhabi: Trade exchange between the Middle East and North Africa (Mena) region and Latin American and Caribbean countries amounted to $100 billion ($367 billion) in 2011 amidst expectations of a further increase due to a number of promising investments in the two regions.
“There are 550 million people living in 33 countries in Latin America with an area of more than 17,840,000 square kilometres, making it the fourth in Area after Asia, Africa and North America,” Ambassador Hassan Abdul Rahman, Executive Manager of Arab Latin American Forum, which will be hosted by Abu Dhabi from December 16-18, at the Emirates Palace, told the Gulf News.
Abdul Rahman stressed that the Arab world has 350 million people living in 23 countries, reiterating that the forum will be under the patronage of Shaikh Nahyan Mabarak Al Nahyan, Minister of Higher Education and Scientific Research.
“The two blocs form a very strong economic, cultural, educational and political spectrum. [The] Mena can benefit from the sophisticated technologies in Latin America and can also invest in agro-industries to secure food for some Mena states,” he said.
Abdul Rahman added that the choice to hold the forum in Abu Dhabi has come out of a belief that “Abu Dhabi has become an international economic, cultural and educational hub”.
He added that there are more than 18 million people of Arab origin living and working in Latin America and the Caribbean Region.
Investments
The UAE has so far invested $5-6 billion in Latin America so far and Qatar has invested in agro-food companies to secure food for its people, said Abdul Rahman.
“Agribusiness between the two regions is poised for even greater trade volumes. Food source security will remain a priority, and Latin America, with its abundant land and willingness to engage with new partners, will remain a focus,” he explained.
Abdul Rahman said economic ties have been facilitated by developments such as direct flights between Dubai and Sao Paulo, and with other major cities in the continent.
Ali Rashid Al Nuaimi, Vice-Chancellor of the United Arab Emirates University (UAEU) told Gulf News that the forum will form a landmark and crossing point in developing dialogue. He said this will help build greater future economic, commercial and cultural cooperation.
“Latin America and the Arab world are two large and vital regions with booming economic growth and vibrant, developing societies. They also have strong complementarities and mutual interests that remain largely untapped, and the scope for increased bilateral and regional relations is vast,” said Al Nuaimi.
He added that the forum will be structured around three main themes: Economic and commercial opportunities as the basis of an intensified partnership; strengthening Arab‐Latin American educational, academic, scientific and cultural ties; and building a mutual Arab‐Latin American vision on global issues.
“Energy, food and agriculture, mining, information technology, and infrastructure development are among the most obvious sectors that would immediately benefit from increased commercial and investment ties between Latin American and Arab countries,” said Al Nuaimi.
Joint venture
In 2012, Mubadala, the investment arm of the Abu Dhabi government, announced a primary investment of Dh7.35 billion ($2 billion) in Brazil in exchange for 5.63 per cent in a form of preferred equity interest.
The Abu Dhabi Investment Authority has undertaken construction of two towers in Rio de Janeiro, and the Emirates’ Aabar Investments invested $328 million in the initial public offering of Banco Santander of Brazil.
The UAE has committed $250 million to a joint venture with Cuba to transform the port of Mariel into a world-class transshipment centre and it is looking to strengthen economic ties with Argentina.
Dubai International Capital is also focusing its $13 billion fund on emerging markets, with Brazil positioned as a potential benefactor.
The Kuwait Investment Authority cut its portfolio investment in Europe and the US to less than 70 per cent (from 90 per cent) in 2008 and announced in 2011 that it is increasing investment in emerging markets to 9 per cent (from 3 per cent), focusing on countries with 8 per cent to 10 per cent growth.
