Brazil Hits Record Trade Surplus With Arab Nations

(MENAFN- Brazil-Arab News Agency (ANBA)) São Paulo – Brazil's trade surplus with Arab countries hit a record in 2024, reaching USD 13.5 billion, a 55.4% increase compared to 2023. According to data from Brazil's Ministry of Development, Industry, Trade, and Services compiled by the market Intelligence Department of the Arab-Brazilian Chamber of Commerce (ABCC ) exports to Arab countries grossed USD 23.68 billion last year, up 22.41% from 2023. Imports dropped by 4.4% to USD 10.18 billion. Trade volume also reached a record high of USD 33.87 billion, expanding by 12.9% compared to 2023.

Out of the Arab countries, the United Arab Emirates was the top destination of Brazilian exports, with purchases totaling USD 4.5 billion, a 43.57% increase compared to 2023. It was followed by Egypt, which increased its imports of Brazilian products by 72.29%, reaching USD 3.9 billion, and Saudi Arabia, which reduced its imports by 2.83% to USD 3.1 billion. Algeria, Iraq, Morocco, Oman, Bahrain, Libya, and Jordan round out the list of the top ten Arab destinations of Brazilian exports.

On the other way around, Saudi Arabia was the leading Arab supplier to Brazil, exporting USD 3.05 billion, a 13.3% decrease compared to 2023. Algeria ranked second, with exports of USD 1.39 billion, a 23.4% drop, followed by Morocco in third place, with exports to Brazil totaling USD 1.38 billion, down 1.72%. Egypt, the United Arab Emirates, Oman, Qatar, Kuwait, Bahrain, and Jordan completed the list of the top ten Arab suppliers to Brazil.

Among the leading exports from Brazil to the Arab countries in 2024 were sugar at USD 6.6 billion (+34.07%), chicken meat at USD 3.5 billion (+9.3%), iron ore at USD 3.07 billion (+9.2%), corn at USD 2.4 billion (+38.7%), and frozen beef at USD 1.2 billion (+43.8%). Leading products imported by Brazil were petroleum and mineral oils at USD 5.08 billion (-12.7%), fertilizers at USD 3.3 billion (-7.7%), and plastics at USD 490.7 million (+79.9%).

ABCC Secretary-General & International Relations Vice President Mohamad Mourad believes that the performance of Brazilian exports is due to a combination of factors.“First, there's a high demand for commodities due to population and economic growth, especially in the Gulf. Second, because [Arab countries] rely on food security, and third, because agribusiness in Brazil is extremely efficient, producing with high quality and at competitive prices,” he says.

The executive believes that if current economic variables remain unchanged, there is a trend for Brazilian exports to Arab countries to continue growing, which could lead to a new record in the trade balance with these partners. Mourad notes there is room to expand the sales of manufactured goods to Arab countries, but to achieve this, these products need to be promoted.“We have great potential in machinery, pharmaceuticals, and cosmetics, as well as in civil construction,” he says. Last year, 76% of total exports to Arab countries consisted of agribusiness products.

Regarding imports, the institution's Secretary-General says they are still largely concentrated on oil and fertilizer purchases.“The drop in [oil] prices directly impacted imports. In the fertilizer sector, despite an industrial policy aimed at encouraging domestic production, there's still room for Arab exports to Brazil to reach and surpass the record level of 2022. The ABCC is highly committed to working on these products with Arab manufacturers. This year, initiatives are being studied to ensure these imports exceed the performance of 2022,” he says.

Overall, Brazil exported USD 337.03 billion worth of goods in 2024, a 0.8% decline compared to 2023, and imported USD 262.48 billion, an increase of 9%. The country's trade surplus with the world stood at USD 74.55 billion, a 24.6% reduction, while the trade flow reached USD 599.52 billion, expanding 3.3% over 2023.

Read more:
Arab countries boost imports from Brazil

Translated by Guilherme Miranda

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