The Dubai Chamber of Commerce and Industry (DCCI) has conducted a study to explore investment opportunities for GCC countries in Latin America and create a roadmap for bilateral relations between the two regions. The study comes in the lead-up to the Global Business Forum (GBF) on Latin America, which the Chamber is preparing to host on November 9 and 10 at Atlantis, The Palm, Dubai.
The research identified the most promising sectors for cooperation between the two regions. These included agricultural and food products, aviation services, logistics, industry, banking and finance, trade, and investment. His Excellency Hamad Buamim, President and CEO of Dubai Chamber, said: “This study identifies opportunities within key strategic sectors, as well as the prominent economic traits for the countries of the Gulf Cooperation Council and their Latin American counterparts.”
The study underlines the importance of developing the aviation sector to include direct flights to and from Latin America, seeing as the Gulf occupies a central geographical position, which enables it to be a hub connecting Latin America to major destinations such as China and Japan, all while shortening the duration and the journey, the number of stops, and the cost.
With that in mind, Emirates Airline – Dubai’s national carrier – has recently signed an agreement to exchange codes with Brazilian Airlines GOL, which allows travellers to book flights with both airlines using one booking and increases connectivity between Brazil and the GCC. The agreement is expected to be expanded to include the rest of Latin America and the Caribbean.
On the same note, the study goes on to note the positive effect that the mutual diplomatic visits have had on the bilateral relations between the countries in the GCC and Latin America. The report specifically highlights the 2014 visit of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to Mexico, Brazil, Argentina, and Chile, and the benefits it had on the bilateral relations between the UAE and these countries.
As for the Trans-Atlantic shipping, ports, and logistics sectors, DP World stands out as the largest GCC investor in Latin America, injecting as much as $4 billion in investments all across the region. In June 2016, DP World won the exclusive rights to develop and run a deep-water port in Posorja, Ecuador, for 50 years – Posorja lies in close proximity of Guayaquil, the country’s commercial capital.
The study goes on to reveal that the banking and finance sector witnessed mild growth on the back of the investment partnership forged by the Abu Dhabi Investment Authority with BTG Pactual, Brazil’s largest investment firm for 2010. Additionally, Brazilian banks Banco do Brasil and Itaú have a presence in Dubai, seeing how it is important for banks to have branches or representative offices close to their customers.
As oil prices continue on their downward trajectory when compared with previous years, GCC investors look to diversify and balance their portfolios by exploring new markets in Latin America, and attracting more foreign investments into the GCC region.
