Brazil-UAE Relations Go from Strength-to-Strength

December 24, 2020

3 min read

DUBAI, UAE (DECEMBER 23 2020) – The bilateral cooperation and relationship between Brazil and the United Arab Emirates are at an all-time high. According to President Jair Bolsonaro relations between the two countries are at their best ever.

President Bolsonaro echoed this sentiment at the recent opening of the Economic Forum for Brazil and Arab Countries, hosted by the Arab-Brazilian Chamber of Commerce (ABCC). Due to the current pandemic, the forum was hosted online by the ABCC, in partnership with the Union of Arab Chambers and the Arab League.

The virtual engagement session was a follow-on from the Brazilian President’s visit to the United Arab Emirates (UAE) last year, to enhance and strengthen ties with the Middle East. President Bolsonaro’s mission was to bolster relations with the Arab political leadership to secure sovereign investment for Brazil’s key strategic sectors: energy, innovation, science, and technology.

It was mission accomplished in Riyadh, when Saudi Arabia’s Public Investment Fund (PIF) pledged to invest US$ 10 billion in Brazil, following bilateral talks between Saudi Crown Prince Mohammed Bin Salman and President Bolsonaro.

Of the UAE’s $1 trillion Sovereign Fund, Brazil currently receives a small portion in the region of $5 billion. Therefore, an opportunity exists to significantly increase this investment, especially in the phenomenally successful energy sector, among other.

Proof that the Riyadh engagement was more than just a ‘talk-shop,’ cooperation between the two countries was cemented further with the formation of the Brazil-Saudi Arabia Inter-Ministerial Committee for Trade and Investment Promotion. The committee was tasked to lead and follow through with discussions to deliver on the commitments made by both sides.

“Although Brazil’s energy sector is full of potential, it is complex, and the unfamiliar, tough regulatory landscape makes it difficult for investors to navigate. Therefore, Mangifera Analytics, is proud to announce the launch of its ground-breaking market intelligence platform for UAE investors geared specifically for the country’s energy sector,” said Rachel Andalaft, CEO of Mangifera Analytics.

The idea behind Mangifera’s new level of market intelligence is to make Brazil’s expert insider-knowledge available to potential UAE investors. It is a must-have for UAE investors who are seriously considering Brazil’s Energy Sector as the next big investment opportunity.

Why choose Mangifera Market Intelligence?

“Mangifera’s comprehensive insights includes reports, datasets, analyses, and project development requirements needed to navigate the Brazilian Energy Sector. In addition, we have the experience and expertise to provide a range of services tailor-made to suit each client’s unique needs. We provide an all-encompassing service from financial modeling to custom-made reports and datasets, as well as one-on-one consulting through REA Consult, our sister company,” said Andalaft.

For prospective UAE investors, the detailed catalogue of reports and datasets address some of the critical hurdles faced in the development of renewable energy projects in Brazil.

Why invest in Brazil?

  • The Climatescope Report shows that Brazil is one of the most attractive emerging markets for investment in renewable energy, ranked number three globally in 2020, just behind Chile and India.
  • Brazil was a pioneer in competitive auctions for renewable energy projects, signing around 30 GW of contracts between 2009-2019. Its energy matrix remains mostly hydroelectric, accounting for 63% of total installed capacity and 64% of generation in 2019.
  • Wind and solar penetration have been growing, with more than 10 GW of capacity added between 2015-2019. Wind energy jumped from 5% of the country’s total capacity to 9% last year. The solar sector is experiencing a boom and jumped from almost zero in 2015 to 3% of total capacity in 2019.
  • In 2019, the country attracted $4.8 billion for clean energy projects, equating to a 47% jump from the previous year.
  • The electricity sector is currently one of the largest destinations for foreign direct investment. The country has almost 176 000 MW of installed capacity, about 158 000 km of transmission lines and 85 million consumer units. The goal is to increase clean sources, distributed energy resources, and to provide new technologies and business models
  • In the period between January and October 2020, the solar sector alone attracted over US$ 1,4 billion in debt financing – a 25% growth in relation to 2019. The local market saw a growing number of European financiers entering the country.

“Brazil is open for business and investment. In 2019, 35% of foreign capital was pumped into the Mines and Energy Sectors. The reason being that foreign investors and their long-term investments are treated with respect and equality in our country. Although the energy sector presents a lucrative opportunity for UAE investors, it is a complex and tough environment to navigate without sound insider knowledge. Let Mangifera work with you to help you unlock the investment opportunities being presented,” added Andalaft.

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