UAE Bets on Mercosur Deal in 2025

Reem Al Hashimy, UAE Minister of State for International Cooperation, said on Monday (28) that the United Arab Emirates hopes to finalize a trade agreement with Mercosur by the end of this year.

Speaking in Rio de Janeiro during the first BRICS foreign ministers meeting, which the UAE participated in as a permanent member, Al Hashimy praised the strengthening partnership with Brazil and highlighted the potential for further investment.

The minister expressed confidence in President Luiz Inácio Lula da Silva’s vision and pointed to joint projects in other countries as evidence that the relationship is neither isolated nor occasional.

“We strongly believe that not only is the partnership’s potential significant, but we also believe in Lula, in his vision, and his support for institutions,” she said in a conversation with journalists during a side event at the BRICS meeting.

UAE Deputy Minister Saeed Al Hajeri argued that Brazil could serve as a gateway for UAE operations in Latin America and emphasized the investments made by Emirati companies and sovereign wealth funds in Brazil. “Brazil could be the entry point into Latin America for the United Arab Emirates. We have a history of joint investments,” he said.

One example cited was Mubadala, the Abu Dhabi fund, which is “very well positioned in different sectors of the Brazilian economy,” according to Hajeri. The fund has investments in infrastructure (such as the Rio Metro), financial assets (such as the Americas Trading Group – ATG – which is leading the project for a new stock exchange in Rio), and education (including medical programs).

UAE representatives mentioned sectors such as food security, renewable energy, infrastructure and logistics, technology, and artificial intelligence as areas of interest for investment in Brazil.

In 2023, bilateral trade—excluding oil—surpassed USD 4 billion. For Hajeri, this is “just the beginning.” “Our goal is to significantly expand trade volumes, investment flows, and sector collaboration.”

Below is a historical overview of Brazil’s exports to the United Arab Emirates starting from January 2022. The data is from DataLiner:

Brazilian Exports to the United Arab Emirates | Jan 2022 – Feb 2025 | TEUs

Source: DataLiner (Click here to request a demo)

In an era of global uncertainty, Reem Al Hashimy emphasized that international cooperation is the way to face challenges. The UAE currently has 27 trade agreements and is negotiating several more.

“We are in the final stage of negotiations with Mercosur. We are eager to conclude it, and I believe it will happen this year,“ said the minister, who also mentioned ongoing talks with Mexico and the European Union.

Al Hashimy stated that BRICS should be a bloc for “cooperation, not confrontation,“ aligning with the message of Brazilian Foreign Minister Mauro Vieira, who used the exact phrase in his opening remarks at the Rio meeting.

Source: Valor Econômico

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