The strategic partnership between Brazil and the UAE spans various sectors with significant growth potential, and both nations are eager to enhance their bilateral ties in key areas, according to a diplomat. Ambassador of Brazil to the UAE, Sidney Leon Romeiro, noted that the UAE has solidified its position as either the first or second largest destination for Brazilian exports within the Arab world, with total trade surpassing $4.3 billion in 2023. Romeiro emphasized the potential for further business expansion by diversifying the export agenda, including sectors such as food, construction, furniture design, ornamental stones, and startups. He highlighted the substantial and growing mutual investments between Brazil and the UAE.
Excerpts from the interview reveal key milestones in the economic cooperation between Brazil and the UAE since the establishment of diplomatic ties 50 years ago. The relationship has evolved through various sectors including trade, space exploration, energy, culture, defense, and science and technology. Significant agreements include the first economic agreement in 1988 and subsequent trade agreements in the 2000s, which led to the UAE becoming Brazil’s second-largest trading partner in the Gulf by 2008. The relationship was elevated to a 'strategic partnership' in 2019.
Looking ahead, Brazil aims to strengthen ties with the UAE in infrastructure, AI, aviation, culture, and sports. The UAE is seen as a key partner in AI and space exploration, with ongoing negotiations for cooperation in these fields. Cultural ties are also being strengthened through various cultural manifestations. Sports, particularly football and Jiu-Jitsu, are highlighted as areas of shared passion and ongoing collaboration.
The strategic partnership between Brazil and the UAE extends across multiple sectors with significant development potential. Areas of focus include political activities, economic partnerships, commercial exchanges, and bilateral cooperation in science, technology, and innovation. Investments in energy transition are also highlighted, with Mubadala already developing projects in biofuels in Brazil.
Brazil and the UAE have signed numerous agreements and Memorandums of Understanding in various sectors since the establishment of a joint consultations committee in 2018. The Joint Committee for Economic, Commercial, Industrial, Technological, and Financial Cooperation has convened three times and is expected to meet again in November 2023.
Notable success stories include the inauguration of a food processing plant by Brasil Foods in the Khalifa Industrial Zone and investments by Mubadala in renewable energy projects in Brazil. Brazilian companies have found opportunities in sectors such as steel, aircraft, electric machinery, buses, and food products in the UAE market, while UAE investments in Brazil exceed $10 billion.
The Brazilian government supports business activities and partnerships through various agencies and initiatives, aiming to expand bilateral trade and investment. Major drivers behind the strengthening of economic ties include trust between business communities and a legal framework that provides more legal certainty for business initiatives.
A MoU outlining a transition plan between COP28 and COP30 was agreed upon, highlighting the successful partnership between Brazil and the UAE in climate change initiatives. Brazil, as the G20 President, is also working to invite the UAE to participate in the bloc’s summit in 2024, focusing on social inclusion, sustainable development, and energy transitions.
