The advance of vaccination against covid-19 in the Arab countries of the Middle East, which obtain 80% of the food consumed in their territories from Brazil, gave an unexpected boost to Brazilian exports in the first quarter to the region, informs the Arab Brazilian Chamber of Commerce. Brazilian.
According to the organization, sales from Brazil to the Arab League, a bloc of 22 countries located in North Africa and the Middle East, closed the period with revenues of US $ 2.91 billion, an increase of 18.2% in comparison with the first three months of last year. In volume, the growth was even greater: 22.5%, according to the entity.
The increase reflects the economic recovery in the Gulf countries with the advance of vaccination. “In addition to having started vaccinations earlier [at the end of last year], the Gulf Arabs have instituted immunization passports for entry into their territories and extensive testing actions. These measures helped to contain the number of cases and make economic activity feasible. What we see at the moment is the growth in domestic demand ”, explains Tamer Mansour, the entity’s secretary general.
Along with iron ore, foods such as sugar, chicken, beef and grains led foreign sales in the quarter under analysis. Shipments of soybeans and corn, essential components of local import substitution projects, recorded the largest increases in revenues: 147.98% and 132.67%, respectively.
Mansour points out that the growth in food sales does not include the traditional demand from the tourism sector, which imports Brazilian food regularly. Stop-over tourism in Dubai, Abu Dhabi and Doha air hubs continues with restrictions on the entry of travelers from a number of countries. Religious tourism in Saudi Arabia, which every year receives thousands of Muslims from all over the world on pilgrimage to the country’s holy cities, faces a significant reduction due to the covid-19.
Because of this contingency, the secretary general at the Arab Brazilian Chamber believes that demand in the region for food should continue to increase in the coming months. Especially as the tourist sector resumes its activities with vaccination advancing in the rest of the world.
The organization also found a significant increase in Brazilian exports to Bahrain, which in the quarter’s result was elevated to the position of second destination for Brazilian products in the Arab League, behind Saudi Arabia. With just over 1.5 million inhabitants, the small and rich Gulf country has already vaccinated 23% of the population and is consolidating itself as a regional re-export hub, alongside the United Arab Emirates, Oman, Jordan and Egypt.
According to the Arab Brazilian Chamber, Brazilian exports to Bahrain grew 96.08% in the first quarter of the year, totaling US $ 406.36 million. Of this total, US $ 379 million corresponded to sales of iron ore for local pelletizing and exports there mainly to Asian markets.
“Bahrain today enjoys great political and economic stability. It is a country that is transforming itself, seeking to attract banks to create a regional financial center and that continues to maintain a great relationship with its neighbors. This market must be monitored more carefully ”, analyzes Mansour.
Source: Comex do Brasil
