Since 2020, when the World Health Organization (WHO) declared the COVID-19 pandemic, the vulnerability of global economies highly dependent on international supply chains and traditional economic power structures has become more evident. The pandemic has hastened pre-existing trends and brought new dynamics that are reshaping global relations. One of the most significant highlights of this change is the growing relevance of emerging powers and new regions as economic development hubs.
Brazil’s diplomatic history is marked by a continuous search for an influential and balanced presence on the global stage. Since becoming independent, the country has sought to establish strategic bilateral and multilateral relations, implementing a foreign policy focused on economic cooperation and promoting a multipolar international order.
In the context of the new world economic order, with growing multipolarity and the reconfiguration of power centers, the conditions enable Brazil to strengthen its relations with the Arab market. With the rise of new economies and a focus on economic diversification, several Arab countries are seeking strategic partnerships to ensure access to new markets and technologies, as well as diversify their exports and ensure food security for their nationals. In this sense, the Brazilian economy, with its potential in sectors such as agriculture, energy, and technology, emerges to complement the economy of Arab countries, creating opportunities for mutual growth.
The diversification of Brazilian export destinations is crucial to reduce overdependence on a single market, such as China, which currently accounts for a significant share of Brazil’s exports. Although China is a critical trading partner, concentrating exports in a single market makes the country vulnerable to economic and political risks, such as oscillations in demand, changes in trade policies, and economic instability.
The economic path of the United Arab Emirates (UAE) and Saudi Arabia shows a remarkable transition from oil-based economies to economic diversification and innovation hubs. This change, combined with strategic policies focused on food security and sustainable development, offers new prospects for Brazilian agricultural products.
In 2024, Brazil celebrates 50 years of diplomatic relations with the UAE. Between January and August of this year alone, the country was the destination of US$ 3.3 billion in Brazilian exports, of which the agricultural sector accounted for US$ 2.24 billion (68%), especially its meat and sugar-alcohol complex.
Brazil has had diplomatic relations with Saudi Arabia for 56 years. In recent years, the talks have been boosted with official visits and the signing of cooperation agreements in areas such as defense and technology. With its expertise in agriculture and biofuels, Brazil offers solutions aligned with Saudi goals of economic diversification and food security within the “Vision 2030” framework. At the same time, Saudi investment in Brazil has increased, particularly in the infrastructure and energy sectors, reflecting growing economic interdependence. Between January and August 2024, Saudi Arabia was the destination of US$ 2 billion in Brazilian exports, of which 73.5% (US$ 1.47 billion) came from Brazilian agriculture and livestock, similar to the purchase pattern of meat and products from the sugar-alcohol complex.
Both countries are strategically located, functioning as bridges between Europe, Asia, and Africa, which eases global trade and makes them natural logistics hubs for several sectors, especially through their world-class ports and airports. Dubai, in the UAE, is one of the largest air and sea transport hubs in the world. In addition, the UAE and Saudi Arabia are politically stable countries, with robust economies open to international trade. They offer incentives for foreign investors and a favorable regulatory environment for setting up global companies, which in turn consolidate them as financial and trading centers.
All these competitive edges, as well as the active role of these countries in organizations such as the United Nations (UN), the World Trade Organization (WTO), and the Group of 20 (G20), reinforce the significance of closer relations among Brazil, the UAE and Saudi Arabia. The Brazilian Confederation of Agriculture and Livestock (CNA) is attentive to this scenario and, since February 2022, has kept an office in Dubai to support mainly small- and medium-sized rural producers in their search for new markets. Between September 24 and 26, a delegation of Brazilian businesspersons will participate in the Gulfood Green Fair in Dubai, focused on organic and higher added-value food products, as part of the AgroBR Project.
Elena Castellani, International Relations Advisor at CNA