Brazil sees 7% rise in machinery exports to Arab world
Top three importers last year were Egypt, Saudi Arabia and the UAE
Brazilian exports of machinery and construction products to Arab countries grew by 7% last year, according to the Arab-Brazilian Chamber of Commerce (ABCC).
Arab countries purchased $226.3 million worth of machinery in 2015, compared to $211.4 million in 2014. The growing volume of outbound trade demonstrates rising demand for Brazilian products in the Arab World, ABCC said in a statement.
The top three importers of Brazilian machinery were Egypt at $63.8 million, Saudi Arabia at $56.23 million, and the UAE at $51 million.
Self-propelled bulldozers and angle dozers were the most traded item, followed by self-propelled front-end shovel loaders. Other top items imported from Brazil included graders and levellers, compressors for refrigerating equipment and compression-ignition internal comb piston engines.
“The robust trade of machinery and construction goods from Brazil to the Arab World reinforces growing popularity of high quality Brazilian products in the regional markets,” said Dr. Michel Alaby, secretary general and CEO of the Arab-Brazilian Chamber of Commerce.
“Arab countries have shared extremely amicable business relations with Brazil and have contributed significantly to [the] local economy by regularly exporting Brazilian products and the demand will continue in the mid- and long-term in the booming Arab construction sector.”
The UAE leads the Arab region in importing construction goods from Brazil, with a value of $15.25 million last year, followed by Saudi Arabia and Egypt at $7.69 million and $7.15 million respectively. Among the most imported items are plywood, veneered panels, and granite.
The announcement comes in the midst of a prolonged economic slowdown in Brazil. The country saw its credit rating cut to junk last month by Fitch Ratings – the second major ratings company to do so after Standard & Poor’s downgraded Latin America’s largest economy in September.
The slowdown has eaten into the revenues of several major equipment manufacturers, with JCB announcing last September that it would cut 400 jobs worldwide on account of tough economic conditions in Brazil, Russia and China.
