(MENAFN - Khaleej Times) Mexico brazil chile and argentina in focus for investment
the dubai chamber of commerce and industry has issued four studies compiled by the economist intelligence unit or eiu on mexico brazil chile and argentina on the occasion of a high-profile uae official delegation visit to latin america headed by his highness shaikh mohammed bin rashid al maktoum vice-president and prime minister of the uae and ruler of dubai.
coming as part of the dubai chamber’s initiative of highlighting and exploring upcoming economies of the world for its members the studies focus on important areas of investment potential for uae businesses while providing a clear guideline for the country’s investors to make the best of these opportunities.
hamad buamim president and chief executive officer of the dubai chamber stated that these studies which are in line with the dubai chamber’s new strategy of enhancing the competitiveness of dubai businesses in the overseas markets while stimulating the economic growth of the emirate has launched idubai market intelligence unit as one of the pillars of the strategy which provides stakeholders with statistical studies and reports on local regional and global markets and their investment potential.
buamim further stressed that these studies with their facts and figures help investors to make sound investment decisions in these promising markets while they also contribute to enhancing the competitiveness of dubai and the uae businesses to plan a successful strategy to explore and enter new markets.
he also informed about the dubai chamber’s plans to open a representative office in the brazilian capital sao paulo to provide a gateway to uae investors to enter the latin american market which he said promises ample investment opportunities for the country’s investors.
according to the report uae imports from mexico were over three times bigger than exports in 2013 as the planned reforms will increase competition in major and improve infrastructure and education as a result of which mexico’s structural-growth rate could rise from under 3.5 per cent to 4.5 per cent per annum.
the study states that the services sector accounted for 62 per cent of the gdp of mexico in 2013 followed by the manufacturing sector (18 per cent) oil and gas (eight per cent) construction (eight per cent) and agriculture and fisheries (three per cent) indicating that the presence of an extensive network of free trade agreements with over countries make it easier for the country to trade with most parts of the world with access to over 70 per cent of global gdp.
the study adds that the leading exports of mexico during the year 2012 were manufactured goods (82 per cent) as automotive formed a major component of manufactured exports followed by oil (14 per cent) and agricultural products (three per cent) while the export markets were us taking on 78 per cent of mexican exports followed by canada (three per cent) spain (two per cent) and china (two per cent). vehicles were 21.6 per cent of the manufacturing sector and 18.9 per cent of mexico s exports in 2012.
also the expected growth of the mexican economy in 2014 comes from its developing consumer market diversity of its economy optimistic outlook for fdi and an improving business environment ensured by the commitment of the mexican government to increase investments are factors enhancing the strength of the mexican economy and luring investments to the country the report adds.
it further states that uae imports from mexico overshadowed exports in 2013 and was valued at 479 million as almost half of these imports (230 million) were trucks for the transport of goods machinery parts (52 million) organic chemicals (50 million) and electrical equipment (49 million) are also significant.
uae exports to mexico totalled 143 million. about two-thirds (94 million) of these exports consisted of aluminium. the remainder is spread thinly over a number of product categories the largest being machinery (12 million) iron and steel (8 million) and plastics (6 million).
another study on brazil commissioned by the dubai chamber and compiled by the eiu states that trade and consumer goods companies which stand to benefit from an increasing middle class are the leading drivers of the country’s economic growth.
figures quoted in the report on uae’s trade with brazil state that the emirates imports from brazil were over 2.5 billion in 2013 and consisted of raw sugarcane (452 million) refined sugar (409 million) and meat (605 million) mainly poultry. iron ore (257 million) is also significant while gold also accounted for 108 million of imports in 2013 up sharply from 50 million in 2012.
also uae exports to brazil totalled 611 million in 2013 out of which 430 million worth of exports consisted of petroleum oils (not crude) fertilizers (49 million) and ships and boats (49 million) were also prominent. trade was around 20 per cent of gdp in 2012.