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December 03,2021 | 1058 0

The following report will detail the growing relationship between Brazil as an emerging market and the MENA as a consumer of Brazil’s exports mainly from its food and agricultural industry. Currently Brazils biggest partner in the Middle East is Saudi Arabia. The basic dynamic between these two countries lies in the fact that Saudi Arabia and Brazil are two complimentary economies. Saudi Arabia cannot sustain its population through its agricultural sector and is a huge consumer market while Brazil’s supply is constantly expanding. In 2011, Brazil exported 3,476 billion USD to Saudi Arabia. The main products were frozen chicken – 824,034 million USD and raw cane sugar – 458,220 million.

The above relationship has potential to grow over the next decade nonetheless, it is based on temporary food needs of Saudi Arabia. Within the next decade Saudi Arabia will not invest heavily into Brazil’s emerging economy unless Western multinational companies are involved. This is due to the key relationship between the US and Saudi Arabia. This behavior can be seen with the Jeddah based Islamic Development bank which recently undertook agricultural investments in African Muslim countries under the management of Rabo Bank a Dutch banking group.

The Brazilian food industry will boom through other partnerships such as the growing Brazilian-Algerian one. In 2013, Brazil exports to Algeria amounted to 1.3 billion USD. While Brazilian imports from Algeria amounted to 3 billion USD. Brazil is attempting to level out this ratio by trying to include Brazilian companies in Algeria’s recent $280 billion five-year development plan that lasted from 2010-2014. The huge growth of the Brazilian cattle industry has led to agreements with Algeria in assisting it with its own cattle industry. While the trade figures between Algeria and Brazil are below Saudi-Brazilian figures, the relationship is bilateral and does not need a western interlocker for more cross investment between the two states.

Brazil along with much of Latin America has disentangled itself from the United States, thus, the current cooperation between Brazil and the MENA region is a firm example of new global realities. Brazil’s food industry has boomed and will continue to benefit from these realities in the next decade.