São Paulo – Construction material importers from Kuwait, Sudan and Saudi Arabia have engaged in matchmaking with Brazilian enterprises this Thursday (26th), at the offices of the Arab Brazilian Chamber of Commerce , in São Paulo. The event is part of the World Cup Project, organized by the Brazilian Export and Investment Promotion Agency (Apex-Brasil) and sectorial organizations.

Prior to the matchmaking, the participants were welcomed by Michel Alaby, the Arab chamber CEO, and watched a project presentation. “The Arab Chamber is the only Brazilian chamber recognized by the Arab League and the General Union of Chambers of Commerce, Industry and Agriculture for Arab Countries, when it comes to issuing export documentation to Arab countries,” said Alaby, who placed the organization at the executives’ disposal.

Malik Alkhatim, general manager of Sudan’s Bafajar Brothers for Multi Activities, has come to Brazil looking to purchase electrical material, such as lighting fixtures, cables, wiring devices etc.

“I hear a lot about Brazilian products. I am aware that the quality is great, now we will see whether the pricing is competitive,” the executive said. The company is active in Sudan and South Sudan and buys most of its product from China, apart from being a distributor of France’s Schneider.

Reginaldo Damião, representing Magnamed, was one of the exporters who spoke with Alkhatim. Magnamed manufactures medical ventilators, especially lung and ambulance ventilators, apart from those used in intensive care.

Damião explains that his company deals with construction companies specializing in turnkey projects, i.e. those involving everything from the project to the purchase of equipment for the hospital or any other venture at hand.

“He works with turnkey projects. They build the hospital and install the products. They have several projects underway,” said the Magnamed executive, noting that he hopes to do business with the North African buyer.

The Brazilian company already sells to several Arab countries, like Egypt, Saudi Arabia, Jordan, Lebanon, Morocco, Algeria, Tunisia and Sudan.

Sajauddin Amiji, representing Atraco General Trading, from Saudi Arabia, attended the matchmaking round in order to purchase iron, ceramics, wood and other building material. “We buy from several different countries, mostly China, India, Italy and United States. We are looking to diversify our suppliers and to find more product” said Amiji.

ITG Construction, owned by Kuwait’s holding company Sultan Center, is dealing with Brazil for the first time. “We are seeking all sorts of building materials, from wood to glass, from basic materials to specific ones like ceramic, finishes etc.,” said director Munish Gujral.

The company does not import any material from Brazil yet, and its leading suppliers are in the United States, Italy and Germany. According to Gujral, the matchmaking will likely lead to deals being closed. “We are seeking out partners, it is still too early to tell, but I think Brazil has good products,” he asserted.

One of the exporters who are hoping to strike a deal with ITG is Cláudio Araújo, representing extruded ceramics manufacturer Gail. “The matchmaking was very interesting; I spoke with a delegate from Kuwait, a market where we are already active. We have several projects there, and he really enjoyed our product,” said Araújo.

*Translated by Gabriel Pomerancblum

São Paulo – The United Nations Educational, Scientific, and Cultural Organization (Unesco) included 26 new sites to the World Heritage List during the 38th session of the World Heritage Committee, ended this Wednesday (25th) in Doha, Qatar. Three of them are located in Arab countries: the Erbil Citadel, in Iraq, the historic centre of Jeddah, in Saudi Arabia, and the Land of Olive and Vines, in Palestine.

With the additions made during the ten-day meeting at the Qatari capital, the World Heritage list is now comprised of 1007 cultural, natural and mixed sites in 161 countries.

The Erbil Citadel dominates the landscape of the central region of Iraqi Kurdistan’s capital, in the northern part of Arab country. The local is inhabited since ancient times, it used to be an important political and religious Assyrian centre, according to the Unesco, but evidence found there seem to suggest the place’s inhabiting is much older.

 The fortified urban settlement lies atop a hill and the junction of the walls and the hillside gives one the impression of facing a huge wall. The hill, according to Unesco, was manmade, after generation upon generation have erected and re-erected on the same location. It is considered one of the world’s oldest continuously inhabited sites.

Up until the past decade, there were still people living in the citadel’s stone and mud houses, but the last families were removed to enable restoration works. For this reason, a good part of the site is now closed to the public. Facing the fortress, at the bottom of the hill, stands Erbil’s central bazaar, a busy popular trade hub.

Since the beginnings of Islam, the city of Jeddah is regarded as the gateway for pilgrims headed for Mecca. In the past, travellers would arrive at the Red Sea port; now, their entry point is the international airport.

The centuries spent as a rendezvous and a trade hub are reflected by the historical centre, where wealthy merchants have built their limestone and coral houses. The ancient city gates harking back to the city’s walled period are still there, as are the hectic “souks” (markets) and even a cemetery where Eve is said to be buried. The faces of local people denounce Jeddah’s cosmopolitan character.

The Palestinian site included in the list, according to Unesco, is located a few kilometres southeast of Jerusalem, in a mountainous area between the cities of Nablus and Hebron. The locality, where the village of Battir is, is composed of farmed valleys whose highlights are stone terraces, some irrigated, others dry, where vines and olive trees are grown. The irrigation is made via galleries, and the water comes from underwater springs.

Whereas Erbil’s Citadel and Jeddah’s historic centre are cultural heritage sites, this is a mixed heritage site, i.e. both cultural and environmental. The Palestinian site has also become a part of the list of endangered world heritage sites.

During the meeting in Doha, the Qatari prime-minister, Abdullah Bin Nasser Bin Khalifa Al Thani, also announced a US$ 10 million donation to a new fund designed to protect protected World Heritage Sites from conflicts and natural disasters.

*Translated by Rodrigo Mendonça and Gabriel Pomerancblum

São Paulo – Brazilian rice exports are on the way up, and Arab countries rank among the top buyers this year. According to figures released by the Rice Institute of Rio Grande do Sul (Irga, in the Portuguese acronym), foreign sales were up 35% year-to-date through May this year from the same period last year, and up 66% from March through May this year from the same period in 2013. The commercial year for the rice crop begins in March, as harvesting usually takes place between February and April.

Year-to-date through May, 557,060 tonnes of rice were shipped abroad from Brazil. From March through May, 383,300 tonnes were exported. In both periods, Cuba was the leading buyer, followed by Venezuela. Year-to-date, Cuba imported 115,300 tonnes and Venezuela imported 87,400. Next in the ranking are Sierra Leone, Senegal, Gambia, Nicaragua, Bolivia, Switzerland, Netherlands and Peru.

Saudi Arabia was the 17th leading buyer of Brazilian rice year-to-date through May, at 4,000 tonnes. Libya ranked 19th at 1.9 tonne. Year-to-date through May 2013, Libya did not purchase any rice from Brazil, and Saudi imported 3.1 tonnes. In other words, Saudi imports were up 30% so far this year.

“Saudi Arabia is one of nine target countries of the Brazilian Rice program. Jordan is another,” says the Irga chief of cabinet and coordinator of the Sectorial Chamber for Rice of the State of Rio Grande do Sul, César Marques. Brazilian Rice is a product promotion project carried out by the Irga, the Brazilian Rice Industry Association (Abiarroz) and the Brazilian Export and Investment Promotion Agency (Apex-Brasil).

The enterprises affiliated with the project take part in initiatives designed to increase exports, such as trade shows and matchmaking, and receive assistance in training, with an emphasis on food security. The promotional actions focus on the project’s selected target countries. Initiatives targeting the Arab world include attending the Gulfood, a food industry fair held in Dubai. Marques explains that the Middle East consumes plenty of rice and that the market’s requirements are the same as Europe’s. He believes exports to the region may increase.

The Rio Grande do Sul Rice Sectorial Chamber for Rice coordinator says Brazilian exports began to rise in 2011, when the country had a bumper crop. At that time, prices dropped to R$ 17 (US$ 7.6 at current exchange rates) per 50-kg bag of shelled rice (April 2011). “Had there not been a government intervention, people everywhere would have gone bankrupt,” he says.

When the market price was R$ 19.20, the federal government set a minimum price at R$ 25.80 and injected R$ 1.2 billion (US$ 538 million) into the sector – i.e. the government paid the different between the market price and the minimum price to growers who exported product. In that year, the product was sold to 74 countries, says Marques. In the following year, the commercial project was implemented in partnership with Apex-Brasil, and exports have grown steadily since, even though the market price is now R$ 36.

Rio Grande do Sul accounts for 95% of all rice shipped from Brazil, according to the Irga chief of cabinet. And the state’s government has also taken action to make rice more attractive and competitive, such as presumed credit of 7% of the ICMS (tax on circulation of industrialized goods), for states where rice is processed and grown locally (up to a maximum of 10% of the rice may be imported). Via these and other actions, the sector’s trade balance has remained on a surplus for the past four years, including 2014 to date.

According to projections from Brazil’s National Supply Company (Conab), the Brazilian rice crop should amount to 12.2 million tonnes in the 2013/2014 season. The prior crop was 11.8 million tonnes.

*Translated by Gabriel Pomerancblum

São Paulo – Last Tuesday evening (23rd) in São Paulo, the embassy of Oman in Brasília inaugurated the exhibition Tolerance, Understanding, Coexistence –Oman’s Message on Islam, featuring panels of photographs and texts portraying the history and the culture of the Gulf country. The show was designed by the Omani Ministry of Endowments and Religious Affairs, backed by the Arab Brazilian Chamber of Commerce and will be short-lived, lasting until next Friday (27th). From June 30th through July 4th it will feature in Foz do Iguaçu, Paraná.

The exhibition features books written in Arabic and 44 panels recounting the history of Oman, highlighting its culture, architecture, the role of women in society, arts and handicraft. The panels also show that in Oman, Islam, Christianity and Judaism coexist in harmony, as do the Islamic branches of the Sunnis, Shiites and Ibadis. Some of the panels depict the Arab country’s natural landscapes, its economy, the legal system, tourism and infrastructure. All photographs are accompanied by explanatory texts.

 The show also features four panels with Arabic phrases and words written in relief. When lit up, the words cast shadows resembling people praying.

World tour

At the opening cocktail party held by the Omani embassy, the advisor to the Ministry of Endowments and Religious Affairs, Mohammed Said Al-Mamari, stated that the exhibition aims to show the respect to diversity is a reality in Oman. The show has been to 47 cities in Japan, Germany, United States, United Kingdom, Austria, Netherlands, Slovenia, Spain, Italy, Belgium, Estonia, Lithuania and Kuwait.

“It is good to be able to hold the show in Brazil at a time when the country is in the spotlight because of the World Cup. It is a great opportunity to convey our message of tolerance and respect,” said Mamari. “We want to show that our country is a place where different people and cultures coexist peacefully,” he said. After Foz do Iguaçu, the exhibit will leave Brazil and should keep travelling for another three years. According to Mamari, cities in South and North America should host the show.

 Arab Chamber president Marcelo Sallum said he has travelled to Oman and that the country is a role model when it comes to being in good terms with all Middle East nations. “Commerce requires peace in order to take place. Thus being, we provide support to events of this kind with utmost satisfaction,” he told ANBA.

Service

Exhibition Tolerance, Understanding, Coexistence –Oman’s Message on Islam
June 25th to 27th
From 10:00 am to 8:00 pm
Club Homs – Paulista Avenue, 735, Bela Vista, São Paulo – SP
Admittance is free

*Translated by Gabriel Pomerancblum

São Paulo – Foreign direct investment (FDI) from Middle Eastern countries increased by 65% in 2013 from 2012, according to the World Investment Report 2014 disclosed this Tuesday (24th) by the United Nations Conference on Trade and Development (Unctad). The result was boosted by the Gulf Cooperation Council member nations, group consisting of Saudi Arabia, Bahrain, Qatar, United Arab Emirates, Kuwait and Oman. The FDI, as a general rule, are resources applied to productive sectors of the economy.

According to the organization, these countries have high level international reserves of hard currency. They are traditional producers and exporters of oil, gas and oil products, and therefore have large liquidity in dollar. Each member has increased foreign investments, but, according to the Unctad, Qatar stands out as it has increased fourfold the amount, and Kuwait, which has increased it by 159%.

The report adds that the resources originated in the region should increase in the future. On the other hand, the perspectives for the block as an investment destination are not bright, given the political uncertainties surrounding Middle East.

Last year, the flow of FDI for the nations in the region declined for the fifth consecutive year. The total amount posted was US$ 44 billion, a decline of 9% when compared to 2012, according to the Unctad. “High and persistent regional tensions continue to increase political uncertainty and hold back foreign direct investors,” said the organization on a communiqué.

There are, however, differences between the countries. Investment flow to Iraq, for instance, amounted to US$ 2.9 billion in 2013, an increase of 20% from 2012. In the Emirates, the inflow of resources reached US$ 10.5 billion, an increase of 9% in the same comparison. This has positioned the country as the second FDI recipient in the region last year, only behind Turkey.

Investments in Saudi Arabia dropped by 24% to $ 9.3 billion. This has repositioned the country from the second to third largest FDI recipients in Middle East.

Jordan’s flow has increased, while Lebanon’s and Kuwait’s decreased.

In North Africa, FDI flow stood at US$ 15.5 billion in 2013, down 7% from the previous year. The Unctad, however, points out that the overall level seen is relatively high and investors are expected to return.

Egypt remains as the main destination of investments in the region, in spite of a 19% decline to US$ 5.6 billion from last year. Other North African nations, however, received more resources than in 2012. Morocco and Sudan, for instance, attracted US$ 3 billion each.

Global flow

According to the Unctad, the global flow of foreign direct investment reached US$ 1.45 trillion last year, an increase of 9% from 2012. The organization estimates the total to reach US$ 1.6 trillion in 2014, US$ 1.75 trillion in 2015 and US$ 1.85 trillion in 2016. The projections are still below the record of US$ 2 trillion reached in 2007, before the international financial crisis.

In the years following the crisis, the international flow of direct investments was pushed by emerging countries, and last year these nations received US$ 778 billion, a record value equivalent to 54% of the world’s total.

In the next years, however, developed nations should resume receiving more resources. The Unctad forecasts that these countries’ share should amount to 52% of the total in 2016, after standing below 40% in 2012 and 2013.

Investments in developing countries, however, should reach a higher level in the next years.

Brazil

In Latin America, the FDI flow reached US$ 182 billion in 2013, up 6% from 2012. The increase was driven by Central America Central and the Caribbean.

Brazil, the main destination in the region, received US$ 64 billion, down 2% from the previous year. However the Unctad said that some sectors, such as the primary sector, auto, electronic and beverage industries, have actually received more resources. The organization pointed out the growth potential of the Brazilian auto industry, with new investments announced and under way.

The 2013 result, however, moved Brazil from fourth to fifth position among the nations with highest inflow of FDI. The country is behind the United States, China, Russia and Hong Kong. Russia, on the other hand, moved from the seventh to the third position.

*Translated by Rodrigo Mendonça

Brasília – Overseas spending by Brazilian travellers reached a new record in May. According to figures released by the Brazilian Central Bank (BC, in the Portuguese acronym) this Tuesday (24th), US$ 2.266 billion were spent last month, the highest amount ever for the period. In May 2013, expenditure reached US$ 2.221 billion.

Year-to-date through May, overseas spending by Brazilians amounted to US$ 10.484 billion, as against US$ 10.301 billion in the same period of 2013.

Spending by foreigners during trips to Brazil stood at US$ 531 million in May 2014, as against US$ 522 million in May last year. Year-to-date through May, foreigners spent US$ 2.849 billion in the country, as against US$ 3.027 billion in the same period of 2013.

The resulting travel account deficit was US$ 7.635 billion year-to-date through May and US$ 1.735 billion in May alone. The BC informed that it has revised its international travel account deficit projection for this year down from US$ 18.5 billion to US$ 18 billion.

As for Brazil’s current account deficit, the BC has kept its deficit projection for this year at US$ 80 billion. The deficit is expected to amount to 3.47% of the Gross Domestic Product (GDP); the prior forecast was 3.59%. The bank revises its projections on a quarterly basis.

The BC’s trade balance surplus (exports exceeding imports) forecast for this year has dropped from US$ 8 billion to US$ 5 billion. The services account deficit forecast (international travel, transportation, equipment rental, insurance and others) has been lowered from US$ 51.2 billion to US$ 47.6 billion.

Regarding the income account (profit and dividend remittances, payment of interest and wages), the US$ 39.9 billion deficit estimate has been maintained.

The net inflow of unilateral current transfers (US dollar donations and remittances to or from other countries, with no counterpart in services or goods) has been revised down from US$ 3.1 billion to US$ 2.5 billion.

Deficit

Year-to-date through May, the current transaction deficit was US$ 40.074 billion, as against US$ 39.295 billion in the same period of 2013. The sum is equivalent to 4.26% of the GDP.

Whenever the country incurs a current account deficit, the result has to be financed either via foreign direct investment (FDI) or via loans from foreign countries. FDI is considered the best mode of financing due to its long-term character.

However, the BC does not expect FDI to completely offset the deficit this year. The bank believes FDI should reach US$ 63 billion this year, same as in the prior estimate. FDI is now expected to amount to 2.73% of the GDP, as against 2.83% in the previous forecast. Year-to-date through May, FDI in Brazil stood at US$ 25.34 billion.

The BC expects foreign investment in shares traded in Brazil and abroad to amount to US$ 12 billion, as against US$ 5 billion in the prior forecast. Investment in bonds traded in Brazil should be US$ 18 billion; the previous estimate was US$ 15 billion.

*Translated by Gabriel Pomerancblum

São Paulo – Algeria is still going for the classification for the round of 16 at the World cup. After losing 2 – 1 against Belgium on Tuesday (17th), in Belo Horizonte, the Arab team won against South Korea 4 – 2 on this Sunday (22nd), in Porto Alegre. And once again supporters flocked to the stadium. According to Rio Grande do Sul’s government’s website, 42,000 people, among Algerians, Brazilians and South Koreans, watched the game at the stadium Beira-Rio.

After the victory, Islam Slimani, striker of the “greens”, as the Algerian team is known, stressed the support and enthusiasm of the supporters. “That is the way our supporters are, you haven’t seen a thing yet,” said the athlete, chosen as the best player in the match, according to the website of the government. The Algerian team went to the part of the stadium where the supporters were located to celebrate the victory.

One of these supporters is Dekkar Rafik, who is in Brazil for the first time and watches all Algeria’s games. “People here are very nice, everything is well-organized and there is a lot of beef in the city,” he said, according to the website. Barbecue is typically eaten in Rio Grande do Sul.

According to the government’s website, besides Algerian who flew to Porto Alegre, 30 buses took Algerian supporters from other Brazilian states to the city. There were also 800 people who were in Gramado, in the Gaucho Highlands (Serra Gaúcha).

According to information from the state government, the attendance of the Algerian public helped Gramado’s hotel break the occupancy rate by foreign visitors. Over 30% of the beds in the city were occupied by foreign tourists, surpassing previous 3% record.

With the result, Algeria got 2nd place in Group H with three points, behind Belgium, with six, and ahead of Russia and South Korea, both scoring only one point. Two teams per group move to the next stage.

Belgium is already classified, but which team gets the second spot will be decided only in the third turn of the group, which will be held on Thursday (26th). Algeria and Russia will play at stadium Arena da Baixada, in Curitiba, and South Korea and Belgium will play at the Itaquerão stadium, in São Paulo.

But there were also problems at the game on Sunday. According to the website of Porto Alegre’s mayor hall, supporter Djamell Marref was injured in the face in a brawl with fellow Algerian supporters and suffered a hemorrhage in one of the eyes. He was rushed to the hospital (Hospital de Pronto Socorro or HPS) and was in observation until this Monday (23rd) morning.

Another Algerian supporter, according to the mayor hall’s website, went to the First care unity (Unidade de Pronto Atendimento or UPA) of Fifa’s Fan Fest in Porto Alegre. According to the website, he fell and hurt his knee, though stiches were not necessary so he was released soon after.

*Translated by Rodrigo Mendonça