Businesses in Latin America (LatAm) and the Gulf Cooperation Council (GCC) are rapidly looking to diversify their economies, seeking out partnerships with firms abroad. In doing so, businesses in both regions have realised the potential of working with one another. In fact, according to the International Trade Center, GCC countries exported goods worth $10.84billion to LatAm in 2022.
The data supporting this trend in growing trade does not stop there. While GCC firms export mineral fuels, mineral oils, distillation products, fertilisers, aluminium, plastics and electrical machinery and equipment, LatAm exports include natural or cultured pearls, precious metals, meat, ores, and more. In total, there were around 21.25 LatAm imports in 2022. Notably, Brazil continues to play a critical role as the GCC’s main trade partner within Latin America, accounting for 61.61 per cent of GCC exports and 50.01 per cent of imports.
Simultaneous support
In 2023, Brazil’s BRF announced an additional $200million investment to expand its poultry processing operations in Saudi Arabia, reinforcing its position as the leading supplier of halal meat to the GCC. This expansion comes as Saudi Arabia aims to increase local food production by 50 per cent by 2030, a goal that Latin American firms are well-positioned to support.
Meanwhile, Argentine agribusiness giant Adecoagro signed a $150million agreement with the UAE’s Al Dahra Group in 2022 to supply grain and dairy products. This highlights the growing agricultural ties between the regions.
Middle Eastern companies are equally active in expanding their footprint in Latin America. DP World, the global logistics powerhouse headquartered in the UAE, recently collaborated with Brazilian railway operator Rumo to build a terminal at Brazil’s Santos port – one of the largest ports in Latin America, at an estimated cost of $500million.
Additionally, Qatar Airways has expanded its routes to key Latin American destinations. This includes Sao Paulo, Buenos Aires, and Lima, boosting connectivity and facilitating both business and tourism flows.
Expanding financial spheres
The financial and digital sectors are also seeing substantial cross-regional activity. First Abu Dhabi Bank has intensified its efforts to penetrate the Latin American financial markets. It was able to do so as it secured regulatory approvals to offer full-fledged banking services in Brazil and Mexico by 2024. This reflects the GCC’s growing interest in Latin America’s fintech ecosystem, which has experienced explosive growth. There are over 722 active fintech startups in Brazil alone, and its market valuation exceeds $45billion.
With the GCC countries expected to attract over $150billion in foreign direct investment (FDI) by 2025 and Latin America experiencing a resurgence in growth post-pandemic, the time is ripe for strategic cooperation. The Economist Impact report highlights that 64 per cent of Latin American executives are now looking to increase engagement with the GCC, driven by opportunities in sectors like agriculture, renewable energy, and digital services.
SuperBridge Summit 2024
Highlighting the potential of both regions working together, the Dubai World Trade Centre (DWTC) and the SuperBridge Council have announced the SuperBridge Summit 2024. The summit will take place from 15 – 16 October at the Dubai World Trade Centre, in conjunction with GITEX Global, the technology showcase. This confluence of events is expected to attract over 10,000 global business leaders, entrepreneurs, and innovators to discuss emerging trends, share insights, and forge partnerships that can drive mutual growth.
The SuperBridge Summit will provide a platform to explore the knowledge exchange between the two regions. The GCC’s expertise in infrastructure development, particularly in large-scale road, energy, and telecommunications projects, offers valuable lessons for Latin America, where infrastructure remains a critical growth constraint. In turn, Latin America’s innovations in digital finance, agriculture technology, and renewable energy align with the Middle East’s diversification goals and pursuit of sustainable growth.
Trixie LohMirmand, executive vice president at the Dubai World Trade Centre noted: “The synergies between the Middle East and Latin America are stronger than ever. The SuperBridge Summit 2024 will provide an unprecedented opportunity for businesses to redefine their strategies, engage with new partners, and capitalize on the vast potential these regions offer.”
Fernando X. Donayre, CEO of Inca Investments added: “We are witnessing a paradigm shift in global trade and investment flows, where regions like the Middle East and Latin America are emerging as new growth engines. The Summit is the ideal platform to connect, strategize, and foster partnerships that will drive sustainable development for decades to come.”
