Tamer Mansour, the Secretary-General of the Arab Brazilian Chamber of Commerce (ABCC), emphasised that the United Arab Emirates holds significance not only as a strategic market for Brazil but also as a pivotal exporting gateway to access various markets, particularly those aligned with halal products.
‘In navigating a vast consumer market, Brazilian businesspeople sometimes take time to realise that the immense opportunity for their companies in the United Arab Emirates lies precisely in the re-exportation of goods,’ he told the Emirates News Agency (WAM).
Mansour underlined the UAE’s status as the largest consumer market for Brazilian goods in the region, accounting for imports valued at approximately US$3 billion in 2022. He also highlighted the UAE’s position as the primary purchaser of Brazilian halal protein in the Arab League.
Mansour further elaborated on the UAE’s attractiveness as a business destination, specifically mentioning the country’s extensive network of free trade agreements and its wel
l-developed infrastructure.
‘The UAE’s extensive network of free trade agreements, coupled with its well-developed infrastructure and business-friendly environment, makes it an attractive destination for Brazilian companies seeking to expand their reach into global markets,’ he added.
In 2022, JBS, a major Brazilian company known as the world’s top supplier of beef and poultry, acquired two plants in the UAE and Saudi Arabia. These plants make specialised products and, as per JBS, are part of their plan to grow in making and distributing ready-to-eat foods, especially targeting leadership in the Halal market.
‘We believe that the Arab world is a benchmark when it comes to Halal, which is why our production plants for the Halal market are in the UAE and Saudi Arabia,’ said Marcelo Siegmann, Export Director of Seara Alimentos LTDA, part of the JBS group, to WAM.
The market, targeted by JBS, is estimated to grow further in the coming years. The Organisation of Islamic Cooperation (OIC) estimates that Muslim
consumer spending on food may reach US$1.5 trillion in member countries by 2026.
Speaking about the UAE, the second-largest market for Brazilian chicken exports by JBS, Marcelo Siegmann mentioned plans to grow the distribution network and enhance the processing plant in the country. According to the Export Director of Seara, the UAE stands out as a benchmark for the regional and global business landscape. Siegmann concluded, “It is a very safe and stable business environment.”
The Brazilian Halal Industry
ABCC states that businesses related to products and services that follow Islamic tradition generate a turnover of US$5 to $6 billion per year, besides employing hundreds of thousands of people – significant for the Brazilian economy.
The participation of Brazil in the global halal market dates back to 1977 when the country exported chicken to Saudi Arabia. Since then, its presence has grown significantly. ‘Brazil is now the largest global exporter of certified halal protein, also the largest supplier of
food and beverages to the OIC, having sent US$23.4 billion in Food and Beverage (FB) to the bloc last year,’ declared Tamer Mansour, from the ABCC. However, there’s still potential for further growth.
Mansour highlighted that despite Brazil’s leadership in this sector, the country currently provides only 10 percent of the total food and beverage purchases made by the OIC. Additionally, there’s another concern, as pointed out by Mansour. Brazil predominantly sells basic food commodities such as sugar, soy, corn, coffee, and wheat. “We aim to introduce value-added Brazilian food items to the Muslim world. Brazil boasts a highly competitive food industry capable of supplying products meeting Islamic market needs in terms of price, quantity, quality, standardisation, and certification,” he emphasised.
To raise the country’s profile in this market, the Arab-Brazilian Chamber and the Brazilian Trade and Investment Promotion Agency (ApexBrasil) have come together to promote and boost the exports of Brazilian halal
products – with promotional activities abroad and encouraging companies to get the certification. The Halal do Brasil Project was formalised in September 2022.
‘It was created to enable companies that do not yet sell to Muslim countries to start exporting value-added foods to these markets. The focus is to stimulate the sale of industrialised, processed, and semi-processed foods,’ revealed Silvana Gomes, the Marketing and content director of the ABCC. The potential is to insert up to 500 companies in the global halal market until the end of the project in 2025, according to Gomes.
To make that happen, both entities are set to invest around US$3 million in commercial promotion activities at fairs outside of Brazil and in subsidising the first certification of 50 companies that manufacture high-value-added products until the end of the project. ‘We aim to reshape the perception held by Arab retailers and distributors regarding Brazil. Rather than viewing us solely as competitive exporters of food commodities,
we aspire to be acknowledged as providers of value-added food products,” stressed Gomes.
In addition to the food sector, Tamer Mansour emphasises the necessity for the country to broaden its export portfolio. “Brazil ought to cultivate other halal segments where it currently holds a minimal presence, such as cosmetics, pharmaceuticals, personal hygiene products, tourism, and financial services. These sectors represent billion-dollar opportunities in the Muslim world, yet remain largely untapped by Brazilian companies,” recommended the Secretary-General of the Arab-Brazilian Chamber.
Source: Emirates News Agency