The UAE accounted for 77 percent of GCC investments in Latin American markets between 2016 and 2021, amounting to $4 billion, according to new research.
A new whitepaper released by Dubai Chamber of Commerce in collaboration with Economist Impact, showed that the UAE was well ahead of the second largest investor, Saudi Arabia, which accounted for 22 percent, followed by Qatar with just 1 percent.
Half of the investments from the GCC to Latin America were directed to logistics, distribution and transportation companies, in the region with DP World accounting for large share of the investments.
The report was issued ahead of the Global Business Forum Latin America 2022, which took place this week in Dubai.
The whitepaper, based on a survey of 200 senior executives in Latin America, examined the evolving trade and investment relationship between LatAm and GCC countries and identified key areas of opportunity.
The report also showed that foreign direct investment from LatAm into the GCC between 2017 and 2021 was estimated at under $500 million, of which 85 percent of FDI was sourced from Brazil and 13 percent from Argentina.
Some of the biggest investments were made by Brazil’s BRF, one of the world’s biggest food processing companies and a leading supplier of poultry to the GCC markets.
The report noted that bilateral trade between Latin America and GCC markets countries saw an increase in the period before the Covid-19 pandemic, with imports rising sharply between 2017 and 2019.
Specifically, imports from Latin America to GCC countries increased from $9.6 million in 2016 to $17.2 million in 2019. These imports consist mainly of primary commodities, including gold, meat, iron ore, grains, sugar and coffee.
It also revealed that Brazil accounts for the largest share of GCC imports from Latin America, or 42 percent, as the country is the largest producer and exporter of halal meat to the world. Fertilisers are among the largest exports of the GCC countries to Latin America (17 percent of the total exports), along with plastic polymers (20 percent), aluminium (12 percent), ammonia and petroleum.
Hamad Buamim, president and CEO of Dubai Chambers, said the report reflects strengthening and expanding GCC-LATAM economic ties, and noted that Dubai is playing a crucial role in accelerating trade and investment growth between the two regions.
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