UAE-Brazil trade hits Dhs111b in last decade

The volume of non-oil trade exchange between the UAE and Brazil during 2022 grew by 32.1 per cent to $4.038 billion (equivalent to Dhs14.8 billion), compared to $3.056 billion (Dhs11.2 billion) in 2021, according to data from the UAE’s the Ministry of Economy (MoE).

Trade exchange between the two countries during the past ten years (2013-2022) rose 43.6 per cent, from $2.81 billion (Dhs10.3 billion) in 2013, to $4.038 billion (Dhs14.8 billion) during 2022, to reach $30.257 billion (Dhs111 billion) over 10 years.

The MoE figures showed that the value of re-exports between the UAE and Brazil in 2022 stood at $478.6 million (Dhs1.75 billion), a growth of 84.4 per cent as compared to the $259.5 million (Dhs952.3 million) recorded in 2021. The value of imports in 2022 amounted to $3.68 billion (Dhs13.5 billion), a growth of 28.7 per cent over 2021, which saw $2.68 billion (Dhs9.83 billion) worth of imports. The value of non-oil exports amounted to $101.1 million (Dhs371.03 million), compared to $109.2 million (Dhs400.7 million) in 2021. Brazil ranked 23rd in the list of UAE’s import partners during 2022, and ranked 37th with regard to the UAE’s trading partners in the total volume of foreign trade during 2022.

Emirates Global aluminium, Aabar Investments, Mubadala Development Company, Abu Dhabi Investment Fund, Etihad Airways, Emirates Airlines, DP World and Drydocks World are among the top Emirati companies investing in Brazil.

Wholesale and retail trade, repair of motor vehicles and motorcycles, construction, real estate, financial services, insurance, information and communications are the most important investment sectors for the Emirati investment in Brazil.

The economic cooperation between the UAE and Brazil continues to grow rapidly, underscored by the significant rise in their mutual investments and trade, and supported by the robust progress in their political ties in recent years. The UAE is Brazil’s second largest trading partner in the Middle East, and the total value of their non-oil trade totalled more than $4 billion in 2022, a growth of 32 per cent as compared to 2021. The UAE is the central trading hub for Brazil to the region’s markets due to its advanced transport and supply infrastructure. Furthermore, the UAE is looking forward to leveraging investment and trade opportunities in the Brazilian market and expanding its economic presence in South America.

Mubadala in Brazil: Since its inception in 2002, Mubadala Investment Company has been keen to employ pioneering investments at the local and global levels, and to continue its path in the field of supporting and establishing leading national companies, concluding global partnerships, advancing economic diversification and achieving sustainable financial resources.

The company also employs various investments in numerous countries of the world in order to achieve the vision of the UAE and enhance its position at the global level.

Brazil is among the countries that Mubadala sought early to develop investment opportunities in. Today, Mubadala is investing in Brazil through Mubadala Capital - its global asset management arm - as Mubadala Capital manages more than $17 billion in assets and investments, including $13 billion on behalf of global investors including four leading private equity funds, three early-stage venture funds, two funds focused on special opportunities in Brazil, and a series of mutual investment vehicles, special purpose companies and continuing funds.

Moreover, Mubadala Capital has offices in Abu Dhabi, New York, San Francisco, London and Rio de Janeiro.

Mubadala’s efforts to invest in Brazil began in 2012 and the company opened an office in Rio de Janeiro in 2014, the first office established by Mubadala outside Abu Dhabi. Mubadala Capital is one of the largest alternative asset management companies in Brazil and has a team of more than 30 experts and specialists of various nationalities with solid local and international experience.

Today, the company has in Brazil capital investments of more than $5 billion (Dhs18.35 billion), of which $2 billion (Dhs7.34 billion) are investments on behalf of other investors. Since 2019, the company has been able to attract more than 25 foreign investors to invest in Brazil.

Mubadala Capital is keen to diversify its investments in Brazil, and today the company’s business portfolio includes many investments and leading companies in multiple and diversified sectors. There are pioneering investments in the field of operating oil refineries, energy transformation, provision of sustainable biofuels, and pioneering projects in the sectors of urban mobility, infrastructure, education, finance markets, e-commerce and more.