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Latin America an important economic partner for Dubai

Machu Picchu, Cusco region, Peru: Overview of agriculture terraces, Wayna Picchu and surrounding mountains, Unesco World Heritage Site.

The Latin America and Caribbean (LATAM) region can be an important economic partner to help Dubai meet its new target of boosting foreign trade to Dhs2 trillion over the next five years, according to a new guide published by Dubai Chamber of Commerce and Industry (DCCI).

The guide, titled Why Latin America? features valuable insights on promising economies in the region and key growth sectors, as well as trade and investment opportunities that offer the most potential for UAE companies and investors.

Why Latin America? was released ahead of the Global Business Forum Latin America 2022, which Dubai Chamber is organising in partnership with Expo 2020 Dubai on March 23rd-24th.

The guide highlights the advantages for Dubai companies and investors in doing business with LATAM, a 27-country region that stretches from Mexico to Argentina, also including the Caribbean islands. The report concludes that the region’s largest markets have solid macroeconomic indicators that make it safe for investment.

Held under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, the fourth edition of the forum bears the theme Towards a Resilient Future. The forum brings together heads of state, ministers, government officials, business leaders and industry experts from the UAE and Latin America to explore new avenues of economic cooperation.

Citing IMF statistics, the guide noted that Latin America’s trade volumes grew 9.5 per cent in 2021 and are projected to continue growing over 2021-2025 at an average of 5.8 per cent for imports and 6.7 per cent for exports. This represents a significant increase to the average trade growth rates during the 2015-2019 pre-pandemic period, which were 1.9 per cent for imports and 1.3 per cent for exports.

The combined GDP of LATAM reached $5 trillion in 2021, the guide noted, adding that the regional economy grew by 6 per cent in 2021 and it is expected that it will grow by 4.3 per cent between 2021 and 2025. This makes it a prime region for bilateral trade, offering Dubai-based investors and commercial organisations promising returns on investment and also positioning the region as key to helping Dubai meet its foreign trade targets.

The report also projects LATAM’s overall economy and GDP to grow in the post-pandemic era. It highlights that in 2021, the region’s economy represented 5.3 per cent of that of the world, led by Brazil and Mexico, with their GDP figures corresponding to $1.6 trillion and US$1.3 trillion respectively.

The study ranked Brazil and Mexico as the first and second largest economies in the region, accounting for $1.6 trillion and $1.3 trillion in GDP, respectively. Argentina ranked as the third largest economy in Latin America, with a GDP of $455 billion, followed by Chile with $331 billion, Colombia with $301 billion, and Peru with $226 billion.

In addition, it reveals that Latin America is home to 8.3 per cent of the world’s population, with Brazil having the largest population with 213 million people followed by Mexico with 129 million, making them the 6th and 10th most populated countries in the world respectively. They are followed by Colombia at 51 million, Argentina at 45.8 million and Peru at 33.8 million.

“Economic indicators show that Latin America is regional market offering tremendous potential for UAE businesses that are keen to expand their reach in markets that offer a wealth of growth opportunities. The Why Latin America? guide provides clarity on key trends reshaping Latin American markets and business prospects that companies in the UAE can explore in further detail at GBF Latin America 2022 in Dubai,” said Hamad Buamim, President & CEO of Dubai Chambers.

GBF Latin America 2022 is an ideal platform to learn about the economic potential that Latin America offers, as well as Dubai’s pivotal role in linking global economic markets, he explained.

Dubai Chamber of Commerce recently hosted a delegation from the Tanzania Chamber of Commerce, Industry & Agriculture at its headquarters, where it shared best international practices adopted in digital services, membership and smart transformation.

Atiq Juma Nasib, Senior Vice President for Commercial Services at Dubai Chamber of Commerce; and Abdulla Al Theeb, Director of Membership and Documentation at Dubai Chamber; received the delegation. It was headed by Paul Faraj Koyi, President of Tanzania Chamber of Commerce, Industry & Agriculture; and Abdul Mwilima, Chairman of Chamber of Commerce, Industry & Agriculture – Kigoma Region.

Nasib said that the economic relations between the business communities in Dubai and Tanzania are solid and historical, stressing the Dubai Chamber of Commerce’s keenness to exchange experiences, knowledge and best practices with various chambers of commerce worldwide to serve common goals.

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