The information was given by Mira El-Baphe, public relations at the United Development Company, owner of the project. The company will not provide however details about the Brazilian buyers, informing only that four Brazilians from the southeastern state of São Paulo bought property in the island.

The island is the first location in Qatar in which foreigners are allowed to fully own a home. The remaining options for non-natives to live in the Arab country are either to rent a house or apartment, or to lease one for a 99-year period. After that period, the real estate needs to be returned to the government.

The Pearl, which is under construction and should occupy an area of 4 million square meters (43 million square feet), was visited Thursday, November 22, by the Brazilian construction sector mission that went to Doha. The first portion of the island, named Port Arabia, is already sold-out, and will start being inhabited in mid-2008.

Port Arabia will have apartment buildings and houses, as well as a marina with capacity for 400 boats, and premises for services such as cafés and restaurants. The total area will be one million square meters (11 million square feet). The whole project extends over 32 kilometers (20 miles) of coastline.

The island will also feature, on one of its extremities, nine small islands that are going to be private properties. Each of these costs US$ 25 million, and all of them have already been sold, according to Mira. They are the project's most expensive sites. The multi-million dollar islands, however, do not include houses, and construction is up to the owner.

The lowest-priced real estate units in The Pearl are studios, currently valued at US$ 400,000. The units' prices, according to Mira, have recorded high increases since sales began. The first studios, according to her, sold for US$ 200,000. That is, nowadays they are worth twice as much.

Most of the house and apartment owners are from the Gulf itself, especially Qatar. There are also many North Americans. The presence of foreigners on the island, according to the public relations, is good for Qatar, as it ends up promoting the Arab country.

Of the second portion of the island that will become operational, 70% has already been sold, according to Mira. However, the other areas have not even been offered for sale yet. Half the buyers are investors, according to her. The other half is comprised of people who intend to live at the location.

The project is not entirely implemented by the United Development Company. Some of the investors have bought shares and take charge of construction themselves, though following the specifications for the island's plant.

Brazilian businessmen who visited the site in which a miniature model of the project is on display, and from where part of the works can be seen, became interested in supplying construction material for The Pearl.

They were instructed to contact the real estate developer, which in turn should forward them to the departments in charge. Both the United Development Company and the investors that are building part of the work buy construction material.

The island will have a total of 40,000 inhabitants when construction is finished. The company that owns the project is one of the largest private companies in Qatar. It was established in 1999 and operates not only in the real estate sector, but also in other areas, such as infrastructure, energy, and investment.

The Brazilian delegation that visited The Pearl was in Qatar from November 20 to November 22. The mission is promoted by the Arab Brazilian Chamber of Commerce and the Brazilian Export and Investment Promotion Agency (Apex-Brasil).

Anba

It will be the fourth trip of the kind in less than two years with the participation of the Arab Brazilian Chamber.

"We are going to take the companies to get to know countries that are experiencing a process of heavy investment in the infrastructure and civil construction fields," said the president at the organization, Antonio Sarkis Jr. "Those are countries that justify a strong presence due to their market potential," he stated.

Besides the mission, the Chamber and Apex will promote, from November 25 to 29, the participation of Brazilian companies in the Big 5 Show, the leading fair for the construction material in the Middle East.

Just to have an idea, last week, Proleads, a market survey company based in Dubai, in the United Arab Emirates, published data according to which real estate developments underway in the Gulf Cooperation Council (GCC) countries, a bloc comprised of Kuwait, Qatar, Emirates, Saudi Arabia, Bahrain, and Oman, total US$ 1 trillion.

The figure includes all types of commercial and residential buildings, educational, medical and sports premises, theatres, hotels, theme parks, mixed-use buildings, and stores. The Projects are in different phases, from planning to construction.

The United Arab Emirates is the country with the largest volume of developments, estimated in US$ 430 billion, according to the survey company. If infrastructure works, such as roads, bridges, ports and airports are also taken into account, the value of real estate projects underway in the GCC totals more than US$ 1.25 trillion, according to Proleads.

"We are partners with the Arab Brazilian Chamber of Commerce, and of course the Middle Eastern market is becoming increasingly important. Just have a look at the expansion of our exports to the region," said the president at Apex, Alessandro Teixeira.

From January until September of this year, exports of Brazilian construction material to the three countries to be visited have totaled almost US$ 10 million, a 33.7% increase over the same period of 2006.

Considering all of the Arab countries, sales have reached US$ 32.9 million up until September, an increase of 76.5%, which places the region in the 19th position in the ranking of main importers from Brazil.

The data were supplied by the Foreign Trade Secretariat (Secex) of the Brazilian federal government, compiled according to the list of products of the Brazilian Association of the Construction Material Industry (Abramat).

Until last Friday, October 26, 21 companies and organizations had enrolled to participate in the mission. They belong in the segments of ceramic tiles, ornamental stones, metallic structures, aluminum, synthetic grass, tools, hydrometers, metallic doors, electric cables, sanitary metals, wood and wooden products, furniture, gypsum, as well as trading companies that sell products in those fields.

The number of participants may increase, because the Federation of Industries of the State of Paraná (Fiep) is also inviting businessmen in the southern Brazilian state to participate.

"Our idea is to keep up the promotion actions in the field of construction," said the secretary general at the Arab Brazilian Chamber, Michel Alaby. "And we are taking new companies," he claimed.

Economies on the Rise

The three countries to be visited are currently enjoying great liquidity, due to revenues from the oil and gas industry, and the price of oil continues to rise in the international market, having surpassed US$ 90 per barrel last week, which allows for a forecast of even greater availability of capital in the future. "There is no risk of contingency, of developments not being executed," said Alaby.

The first stop will be Kuwait, a country that, according to data collected by the Arab Brazilian Chamber, posted a Gross Domestic Product (GDP) of US$ 102.2 billion in 2006, at a real growth rate of 12.7% in comparison with 2005. With a population of 3.2 million, the nation has a per capita GDP of more than US$ 32,000.

Kuwait owns approximately 10% of all global oil reserves, and activities related to the commodity answer to 50% of the GDP, 95% of exports, and 80% of government revenues. Exports from Brazil to the Arab country totaled US$ 158.7 million from January to September, according to the Secex, a 74% increase over the same period of last year. The main items shipped were chicken meat, bovine meat, sugar, caterpillar tractors and other machinery in the genre, and frozen juice.

In turn, imports of Kuwaiti products totaled US$ 77.3 million, compared to only US$ 550,500 in the first nine months of 2006. The main products imported were diesel and naphthas for the petrochemical industry.

Qatar, the second stop in the trip, recorded a GDP of US$ 52.7 billion last year, 7.1% more than in 2005. With a population of just 900,000, the country has one of the world's highest per capita incomes, at US$ 52,700. The natural gas industry is expanding rapidly in the country, which is already the world's leading producer of Liquefied Natural Gas (LNG).

Oil and gas account for more than 60% of the GDP, 85% of exports, and 70% of government revenues. Brazilian exports to Qatar totaled US$ 100.3 million from January to September, a 110.7% rise in comparison with the same period of 2006.

The main items shipped were iron ore, chicken meat, trucks, shotgun clips, and bovine meat. Imports, on the other hand, have totaled US$ 12.7 million, against just US$ 102,000 in the first nine months of last year. Urea was virtually the only exported item.

The United Arab Emirates will be the last stop. The country, according to data compiled by the Arab Brazilian Chamber, posted a GDP of US$ 163.1 billion in 2006, an increase of 8.9% in comparison with 2005. With 4.9 million inhabitants, the per capita GDP is US$ 35,700. The emirate of Abu Dhabi concentrates the bulk of oil production, but Dubai is the leading commercial hub, and the epicenter of the Middle East real estate boom.

Brazilian exports to the Emirates totaled US$ 937.3 million between January and September, 40% more than in the same period of last year. The main items shipped were sugar, chicken meat, caterpillar tractors, soy, gasoline, and aircraft. In turn, imports stood at US$ 268 million, a 36% rise over the first nine months of 2006. The main items in the export basket were diesel, aviation kerosene, liquefied propane and butane, and aluminum residue.

In the three countries, the businessmen will attend seminars and business roundtables at local chambers of commerce, and will pay visits to real estate projects and construction material retail stores. In Dubai, they will join the members of another mission, organized by the Federation of Industries of the State of Santa Catarina (Fiesc), which will be coming from India.

Also in Dubai, the delegation will visit the Big 5 Show. The fair will have a Brazilian pavilion featuring 29 exhibitors in the fields of ceramic tiles, ornamental stones, sanitary metals, glass, bathroom accessories, electric material, pipes, tools, domestic utensils, and others.

"Part of the mission, in Kuwait and Qatar, will focus on the discovery of opportunities in civil construction, and on how to position ourselves in the sector. Upon attending the Big 5, on the other hand, our aims are to improve the Brazilian market positioning, and increase our insertion in the region," said the coordinator at the Apex international events unit, Juarez Leal.

The stand will occupy an area of 480 square meters, 60% more than last year, when 27 companies participated. The Apex estimates that business deals worth US$ 8 million will be closed during the fair, and another US$ 25 million in the 12 following months. Last year, the Big 5 attracted 41,400 visitors from several countries.

Before the mission and the fair, a preparatory mission will be held on October 31st, at the head office of the Arab Brazilian Chamber, for the participating companies.

Anba – www.anba.com.br

The objective is to promote Brazilian products in the markets in the region and increase exports to the Arab countries. In 2005, sales to the countries in the League of Arab States reached US$ 5.2 billion, with growth of 29%.

The first event that the Arab Brazilian Chamber is going to participate in is Khartoum International Fair, in Sudan, between February 1st and 10. The second will be Cairo International Fair, between March 16 and 24, in Egypt.

Qatar Direct

Qatar Airways is interested in establishing a direct flight between Brazil and Qatar, according to Sarkis Jr.

In 2005, bilateral trade between Brazil and the Arab world reached US$ 10.5 billion. The establishment of direct flights between both regions may further increase trade. Other airlines, like Emirates, have already said they would create direct flights to Brazil.

Anba

The capital city of Qatar, Doha, will host, in the beginning of October, a meeting of the International Fund for Agricultural Development (Ifad), of which Brazil will participate.

Created in 1978, the fund works as an international bank financing projects that aim at reducing poverty in the rural zones.

Brazil is one of the 164 members of the group that maintain the fund. In this number are 20 Arab nations and the countries of the Mercosur, economic bloc including, as well as Brazil, Argentina, Paraguay and Uruguay.

The meeting that will take place in Qatar on the 1st and 2nd of October, will be used to discuss the financial contributions to the organization. Every three years, Ifad member countries re-look and redefine this matter.

According to the general coordinator of Policies with International Financial Organizations of the Brazilian Ministry of Planning, Benvindo Belluco, there have already been two meetings, in Rome, headquarters of the Ifad, in April and July, to deal with the contributions.

The third will take place in Qatar, which, according to Belluco, offered to host the next meeting, and the last will take place in Rome, in December.

Belluco affirms that the initial proposal is for the new contributions to add up to US$ 800 million. The last contribution made yielded US$ 400 million. Brazil collaborated with US$ 8 million, and is the country in Latin America that contributes the most.

It is also the second greatest contributor amongst the developing nations, losing only to China. In the last statement released, the fund had a total of US$ 4.5 billion in capital.

The money is used to finance projects in the rural area such as the constructions of wells or improving activities that generate income.

Brazil, for example, managed to approve, in December last year, a US$ 47.39 million project to finance the creation of 3,000 agribusiness industries in 100 cities in the Northeast of the country. The project was approved, but the liberation of the money has not yet been signed.

Algeria, which is a member country, obtained, also in December, the approval of US$ 39.62 million in resources to develop the agricultural communities in the mountain regions.

The money will be used in a period of seven years for irrigation infrastructure, soil preservation, ecosystem management, improvement of rural roads, as well as the creation of agricultural micro-undertakings.

Some poorer countries receive donations, instead of financings. In the case of credit operations, the Libor is the interest rate charged, as well as a commission varying from case to case and which normally is between 2.6% and 3% per year. The due terms are also negotiated according to the project and destination country.

In the Qatar meeting the quantity of money each member country will direct to the fund and the payment periods will be discussed. Some countries pay in cash. The fund is made up both by developing countries as by rich nations, such as the United States, Canada, Japan and France.

The Ifad is one of the international organizations committed to the millennium objectives, stipulated by the United Nations Organization (UN) to reduce world poverty by half between 1990 and 2015.

According to information in the organization’s website, there are currently 900 million poor people in the rural zones, about three quarters of the total poor population in the world.

The Ifad elaborated its strategic plan, for the period of 2002 to 2006, with the objective of working for the millennium goals.

Anba – www.anba.com.br

In the supermarkets of Qatar, the words chicken and Brazil are very close. Brazilian chicken dominates the shelves of large local supermarket chains.

A visit to Carrefour at one of the main shopping malls in the city of Doha, the City Center, shows this. The brands sold there are Sadia, Doux Frangosul, Pena Branca, Perdigão and Seara.

Even some local brands, like the Co-op Islami and Halal Frozen have the words “Made in Brazil” on them.

One of the professionals responsible for the meat sector at the Carrefour in City Center stated that the Brazilian product answers to 90% of the total offered.

Apart from frozen chickens, the Brazilian brands also sell greater added value products at the supermarket, among them chicken sausages, meatballs, breaded chicken, nuggets and hamburgers.

In these cases, however, the main products are made by Sadia. A 1.5 kg packet of whole chicken produced by Sadia is sold for around US$ 2.75 at the Carrefour in Qatar.

“The meat is very good,” stated Mohamed Assan, a resident of Qatar who buys at the supermarket. Assan stated that he buys the meat conscious of its Brazilian origin.

The Carrefour in Qatar also sells Brazilian coffee, packed in other countries, under the brand Brésil Pur Arabica, which belongs to the supermarket itself, but comes from France.

There is also another brand, Café Super Brasil, which is produced in Brazil but packed in Lebanon.

Chicken is, in reality, the main product exported by Brazil to Qatar. Last year, the country sold to the Arab nations a total of US$ 41 million, of which US$ 25 million correspond to chicken.

The other main products in the basket are iron ore, cattle beef, car parts and machinery and tyres.

The presence of Brazilian shoes is also visible in Qatar. At the Shoe Mart, in City Center, beside Italian and Thai shoes, you may also see Brazilian brands like Ferracini, West Coast, Dumond, Azaléia, Piccadilly and the less known Depp.

Dilip Biswararma, who is responsible for the male shoe sector at the store, where the Ferracini and West Coast brands are sold, stated that most of the buyers of Brazilian shoes chose them due to the comfort.

Chinese

The person responsible for the female shoe sector, Ian Rodrigo, stated that among the Qatari consumers there is a certainty that shoes Made in Brazil are better than the Chinese. The Brazilian female shoes sold at the store are similar to those sold in Brazil.

In the case of Dumond, for example, one of the most sold shoes is an orange pointy pair. Rodrigo stated that Arab women look for coloured shoes for use at parties at the end of Ramadan.

At stores in the shopping malls of Qatar, few of the products are local, which shows the import potential of the country.

In Carrefour, it is possible to find clothes made in the United Arab Emirates, carpets made in Pakistan, shoes made in India and England, sugar from Hong Kong and coffee from Germany.

The country imports a large part of what it consumes, as it does not have a diversified industry. Most of the income of Qatar comes from the production of natural gas and petroleum.

Brazil and Qatar

Brazil had revenues, in the first five months of the year, of US$ 18 million with exports to the country, a growth of around 8% over the same period in 2004, when revenues totalled US$ 16.5 million. Last year, the growth over 2003 was 35%.

Brazil also imports products from Qatar, but at a smaller volume. Last year, imports from the Arab country totalled US$ 13,900.

ANBA – Brazil-Arab News Agency – www.anba.com.br

The need for reform of the United Nations (UN) was a consensus among the countries of the G-77, the group of developing nations whose representatives have been meeting in Doha, Qatar, since last Sunday, for the Second South Summit.

The conclusion was presented to journalists yesterday by the president of the G-77, the minister of Foreign Relations of Jamaica, Delano Franklyn, after discussions that took place at the meeting.

Diplomatic representatives of the 132 countries that are part of the G-77 are discussing the action plan to be put in practice at the meeting and also the final declaration to be issued.

On Wednesday and Thursday, the heads of state of the nations that are members of the group will meet in Doha. Brazilian President Luiz Inácio Lula da Silva will not be present. He should be represented by a Brazilian diplomat.

According to the director general of the Economic Department at the Brazilian Foreign Office (Itamaraty), Piragibe Tarragô, the efforts of the countries of the G-77 are for the reform of the UN not to be postponed and to take place at the next general assembly, scheduled for September, in New York.

According to Tarragô, the reform may bring changes to international economic cooperation, which would benefit developing countries.

Apart from the modifications in the UN Security Council, which are requested by developing countries like Brazil, another plea is for international finance organizations like the World Bank and the IMF to listen more and take into consideration the needs of the poorer nations.

This change could bring advantages to the countries when they are going to negotiate their finances with these institutions.

Among the documents being formulated at the meeting are from mechanisms to fight poverty and diseases like AIDS to an economic comparison between the countries of the South and systems for improvement of economic relations with the countries of the North, as the richer nations are called.

The importance of the Global System of Trade Preferences Among Developing Countries (GSTP) will also be included in the action plan for the meeting, according to Tarragô.

The director general stated that, at the meeting, developing countries are being called to integrate the GSTP, a system that reduces export tariffs for developing nations. The program already exists, but there are few countries participating in it, around 46.

The intention is for expansion in the number of members, products and tariff reductions. The discussion was released during the United Nations Conference on Trade and Development (Unctad), which took place in São Paulo in the middle of last year.

The document formulated by the countries also states that agricultural subsidies practiced by rich nations are a problem that must be solved as soon as possible.

This discussion, however, is in the hands of the World Trade Organization (WTO) and not the UN, the organization to which the G-77 is connected.

ANBA – Brazil-Arab News Agency – www.anba.com.br

The emir of Qatar, Hamad Bin Khalifa Al Thani, is going to make a personal donation of US$ 10 million to a fund to fight poverty.

The idea for a fund to fight world poverty was presented last year by Brazilian President Luiz Inácio Lula da Silva, during the general assembly of the United Nations (UN).

The emir’s announcement should take place during the Second South Summit, a meeting between developing countries that are members of the G-77, taking place this week in Doha, Qatar.

The summit began yesterday and will go on up to Wednesday (16). The creation of mechanisms to fight hunger will be included in the action plan for the meeting. The G-77 is part of the United Nations (UN).

Anba

The reduction of trade tariffs between developing countries will be one of the themes discussed during the 2nd Summit of the South, meeting of ministers and heads of state of the developing nations, which will take place between next Sunday (12) and the 16th of June, in Doha, capital city of Qatar.

The meeting will gather representatives from China and the 132 members of the G-77, group of the less developed countries related to the United Nations Organization (UN).

According to information from the Itamaraty, the Brazilian foreign office, at the meeting, it will be made an evaluation of the advances made since the first summit, which took place in 2000, in Havana, Cuba.

One of the themes discussed at the time was indeed the application of the Global System of Trade Preferences (GSTP) to reduce trade tariffs between the developing countries.

The last negotiation round for the GSTP happened during the 23rd United Nations Conference on Trade and Development (Unctad), last June in São Paulo. According to the Itamaraty, the agreement should be concluded and operational by 2006.

Today, some rich nations already import determined quotas of products at reduced tariffs from the poorer nations. The idea is to implement a similar system, however with global and general rules, amongst the nations of the South.

Cooperation amongst the developing nations will be one of the central matters of the summit, which should also result in a joint political declaration and an action plan to give continuity to the measures discussed and implemented as of Havana.

According to information from the Itamaraty, combating poverty and hunger in the developing countries should also be part of the agenda of the 2nd Summit of the South.

The theme should be launched by Brazil, whose delegation will be led by the minister of Foreign Relations, Celso Amorim.

The developing countries should take the opportunity to define positions for the ministerial meeting of the World Trade Organization (WTO), to take place in December this year, in Hong Kong, and the meeting for high-level employees at the UN, which will take place in September, in the sidelines of the United Nations General Assembly, in New York.

Qatar

The meeting for heads of state will take place in Qatar between the 14th and 16th of June.

The agenda for the meeting, however, will start on the 12th with the meeting for high-level employees, and follows on the next day with the Foreign Relations Ministers of the countries involved.

The summit activities will take place at the Sheraton Hotel, 5 kilometers away from downtown Doha.

Qatar, the country hosting the meeting, is one of the members of the G-77. Located in the Arabic Gulf, its population is of approximately 743,000 inhabitants.

About 83% of the population lives in Doha. The official religion in the country is Islamism and the language spoken is Arabic.

ANBA – Brazil-Arab News Agency – www.anba.com.br

{mosimage}On May 23, 2005 the Al-Hayat newspaper from Beirut, Lebanon had an interesting article regarding the Latin American-Arab Summit in Brazil. The article was written by Mr. Ali Mohsen Hamid – Ambassador, Head of the Arab League bureau in the UK.

Mr. Hamid said: “…Brazil is not far from the US and still does not fear it. Ever since Brazil recuperated its independent national decision and regained its sovereignty under President Lula da Silva’s mandate, it is achieving great strides in all realms.

“In the economic and trade sector, Brazil is considered to be one of the top economic giants among southern countries, with annual exports exceeding US$ 100 billion. Brazil is also a contender for a permanent membership at the UN Security Council; a seat which the Arab World with its 300 million citizens is unable to gain.” 

The Security Council currently has 5 permanent and 10 rotating members. Five of the rotating members are elected each January 1st by the General Assembly to serve two-year terms, and they are chosen from several regional groups.

Several weeks ago, Secretary-General Kofi Annan proposed expanding the permanent membership of the Security Council beyond the 5 members: Russia, Great Britain, United States, France and China to include world powers that have emerged over the last 50 years.

Among the most talked-about candidates are Brazil, India, Germany and Japan. The proposals for reform at the UN are under preliminary discussion.

The Qatari government has asked various countries to help it win a rotating seat on the UN’s Security Council. Qatar’s candidacy is for the 2-year term 2006-2007, and Qatar has a very good chance of winning the Security Council’s membership due to the support of Asian and other nations of the world. 

The government of Qatar under the leadership of Emir His Highness Sheikh Hamad Bin Khalifa Al-Thani has earned credibility and respect from other nations worldwide. Qatar deserves this opportunity and the support of other nations, because of its rising influence and leadership in the Arab world.

Al-Jazeera Satellite Channel, which is owned by the state of Qatar, has reported that 15 years ago Qatar decided to nominate itself to occupy the 2-year term Asian seat for period 2006-2007; which is the same seat of Arabs currently occupied by Algeria according to a cordial agreement between Asian and African continents.

The Arab-South American Summit – May 2005

The Brazilian media reported that the Brazilian government refused the US request to attend the summit, to make sure that the South American and Arab countries could discuss their issues freely, without American intervention. After the rejection American pressure was applied on many Arab leaders to boycott the summit in Brazil.

The United States is becoming aware of its declining influence in South America, and they know that an Arab-South American countries political and economic cooperation could further undercut the US international influence.

The US government was also worried because of some of the issues that might be discussed at the summit, and many of these issues would be at odds with U.S. policy ranging from the war in Iraq to terrorism.

Brazilian President Luiz Inácio Lula da Silva said to the heads of state and foreign ministers participating in the event: “We are facing a historic opportunity to build the foundation for a bridge of solid cooperation between South America and the Arab world.”

The meeting became a great success and from the list of nations invited to participate in the Arab-South American Summit, 15 heads of state attended the event including 7 of 22 Arab heads of state, and 8 of 12 South American leaders, and the other remaining countries were represented by their foreign ministers. 

Some Arab leaders gave in to the American pressure and they missed this golden opportunity in Brazil to conduct direct dialogue and discuss trade, foreign-policy and also to establish a common ground between the Arab and the South American countries.

The Emir of Qatar

Among the attending Arab heads of state, one in particular deserve’s a special mention and recognition for his foresight and understanding of the importance of this first summit.

The Emir of Qatar, His Highness Sheikh Hamad Bin Khalifa Al-Thani, a rising influential leader of the Arab world, realized the potential economic benefits that can be achieved from a strong trade and investments relationship between Qatar and Brazil.

Today, Qatar’s economy is the fastest growing economy in the Arab world. Its citizens are also the region’s wealthiest, with per capita income of $40,000.

In the last few years, high-energy prices for oil and gas has fuelled an economic boom that led Qatar’s economy to achieve an outstanding growth rate of 20 percent per year.

Increasing global demand for oil and gas should help the Qatari economy to sustain its high growth rate without overheating the economy in the coming years. 

On May 22, 2005 Reuters reported that Qatar’s Minister of Economy and Commerce, HE Sheikh Mohamed bin Ahmed bin Jassim al-Thani, announced that the Qatari government is planning to spend US$ 100 – US$ 120 billion in projects in Qatar within the next five to eight years.

He also said that the investment plan calls for: “US$70 billion to go into the hydrocarbons industry and the rest in infrastructure projects.”

Brazil and Iraq

In the past, Brazil had a great business relationship with Iraq, and during the years 1976 to 1990 Iraq became one of the major importers of Brazilian products and services.

Brazil exported over US$ 30 billion dollars of goods and services to Iraq during that period, a volume of business larger than the business that Brazil had individually with any European country.

Iraq was the ideal partner for Brazil at that time, and the Brazilian Ambassador Paulo Tarso Flecha de Lima had been the great architect of this partnership when he lead various commercial trade missions to Baghdad.

The trading with Iraq is the only example we have of Brazil having a strong and close business relationship with one of the petroleum producing countries of the Middle East.

Brazil bought a lot of oil from Iraq under a special agreement, and Iraq bought from Brazil automobiles, chicken, beef and pork products, tractors, coffee, sugar, military armament, and Brazilian construction companies built some of the most important infrastructure projects in Iraq.

The Brazilian construction company Mendes Júnior employed over 30,000 people in Iraq over the years, and among its most important projects they built the Baghdad-Akashat railroad, a major expressway and an irrigation system at the Tiger and Euphrates rivers. 

During these fourteen years the Brazilian government had very close ties with the Iraqi government of Saddam Hussein. Brazil always had some kind of foreign exchange crisis happening, and the Iraqi government was the only Middle East government willing to trade with Brazil at that time.

In 1990, Brazil had to accept the United Nations economic embargo against Iraq, but Brazil continued trading with Iraq over the following years under the “United Nations – Oil for Food” program.

For Brazil and Qatar the Future is Now

The timing of the Arab South American Summit in Brazil was perfect, since it was followed by this major Qatari government infrastructure investment plan announcement. 

And the current Qatari infrastructure development plan opens the door for Brazilian companies because they have extensive and actual prior experience from the time when they helped Iraq with similar infrastructure development projects.

The new Qatar and Brazil business relationship could signal to the world not only that the seeds planted at the first Arab-South American Summit in Brazil, already started producing positive economic results, but also would highlight the new partnership between a rising leader in the Arab world – Qatar – with the leader of South America and rising world economic power – Brazil.

On May 11, 2005, The Daily Star published an article saying: “It’s a deal: South American-Arab summit results in free-trade negotiations” – Businessmen describe the two regions as being highly complementary.

The article also said: “As leaders from South America and the Arab world rounded up meetings in the Brazilian capital during a two-day summit to boost political and economic ties, many business executives on the sidelines were trying to strike deals between two regions they said were highly complementary.

“Their efforts at a parallel investors conference got a boost when ministers announced negotiations on a free-trade area between six Arab Gulf nations, many of them rich in oil, and a South American economic bloc that includes the continent’s two largest economies.

“The trade zone would link nations of the Gulf Cooperation Council – Saudi Arabia, the United Arab Emirates, Oman, Bahrain, Kuwait and Qatar – with the Mercosur bloc, whose full-fledged members are Argentina, Brazil, Paraguay and Uruguay.”

US Influence Declining in South America

The Arab-South America Summit offered to the Arabs commercial alternatives not available before, which will reduce the European and American hegemony in the Arab world.

The Arab Summit laid the foundations to further reduce the gap between the Arab world and South America, an area of the world that is becoming one of the major industrial and commercial trading blocs in the world. 

On January 26, 2005 The Financial Times of London had an interesting editorial – “How America became the world’s dispensable nation.” 

That Financial Times article started by saying: “In a second inaugural address tinged with evangelical zeal, George W. Bush declared: “Today, America speaks anew to the peoples of the world.” The peoples of the world, however, do not seem to be listening. A new world order is indeed emerging – but its architecture is being drafted in Asia and Europe, at meetings to which Americans have not been invited.

….The US, it turns out, is a dispensable nation. Europe, China, Russia, Latin America and other regions and nations are quietly taking measures whose effect, if not sole purpose, will be to cut America down to size.

Ironically, the US, having won the cold war, is adopting the strategy that led the Soviet Union to lose it.”

To further illustrate the United States loss of clout and influence in South America, we just have to look at the results of the latest election of the head of the OAS.

One of US Secretary of State Condoleezza Rice’s goals in her trip to Brazil in late April 2005 was to convince President Lula to change his mind and have Brazil vote for the US candidate that would head the Organization of American States (OAS) for the next 5 years. 

One week later, the candidate that Brazil was supporting all along, in opposition to the United States, Mr. Insulza from Chile was the winner. It was the first time in the organizations 60-year history that the candidate supported by Washington did not win.

This particular election sends a clear signal to the world of how fast the United States is losing its influence in South America. At the same time that the US is losing its influence,

China is quickly replacing the United States influence in the Area.

China’s Rising Influence

In a very short period of time China is becoming the most important business partner of Brazil. China has been quickly replacing the United States’ influence in Brazil – and that is also happening in other South American countries

On May 17, 2005 – The Financial Times of London had another article trying to explain why US influence was declining in South America: “Latin lessons the US faces a loss of leadership.”

The article said: “Why have relations turned so sour? Economics is part of the reason. During the late 1980s and 1990s Latin America embraced free market policies and moved enthusiastically into the US orbit. But when reform often failed to produce growth that began to change, with many Latin Americans blaming the US for their problems.

“The failure of the Bush administration to help Argentina when it ran into a disastrous debt crisis at the end of 2001 was particularly damaging to its image in the region. “Whether or not Washington or Wall Street really bear the blame, many Latin Americans believe the US led them down the primrose path but then were simply not interested when times got tough,” says Julia Sweig, a Latin America specialist at the New York-based Council on Foreign Relations.

“After a number of South American countries embraced democracy, and many of the economic policies prescribed by Washington including all kinds of privatizations, the result of these changes did not benefit the South American population as expected.

“And South America’s less than impressive economic performance over the past 15 years has led to a fresh bout of soul-searching about what kind of economic model is right for the region.

“… In particular, the role of the state – which policymakers were trying to cut back for most of the 1990s – is undergoing a rethink, in part reflecting South America’s growing economic relationship with parts of Asia that have achieved much higher rates of growth.”

There is another factor that contributed to the current state of affairs in South America. After the collapse of the Soviet Union in 1991, the United States lost its interest regarding South America. 

Some South American countries including Brazil, instead of whining or crying over spilled milk, did something about it, as a capitalist country they started searching around the world for new partners to establish new ties to replace their lost business.

The US decline of influence with Brazil did not happen overnight or because of political reasons; it was as a result of economic reasons as Brazil found new partners.

The Brazilian need to find new markets for its products coincided with the economic explosion that has been happening in the Chinese economy in the last few years. Today, China has an insatiable need for commodities of all kinds to feed its amazing production machine.

A Brazilian Plan for the Future

The international media did give very little coverage at the time, but early in 2004 President Lula of Brazil, started talking with various countries to form the Group of Five (G5); for them to have meetings on a regular basis.

This new G5 group would counterbalance the economic power of the current G6 group. The G6 group more or less represents the past the new G5 group will represent the future.

The original members of the new G5 group will be: Brazil, Russia, India, China, and South Africa. In the last 12 months Brazil has finalized extensive economic agreements with these four countries.

Here is where the Arab Gulf nations such as, Saudi Arabia, the United Arab Emirates, Oman, Bahrain, Kuwait and Qatar enter the picture – they are also a part of the Brazilian strategic international business and economic development plan for the future.

Right now, Brazil is on its way to becoming one of the major countries of the future in terms of international business and economic development. Brazil is in a special position to help Qatar build its planned infrastructure, since Brazil has a large population of Arab descent.

Today there are over 10 million people of Arab descent living in Brazil, and they have made a valuable contribution to the social and cultural development of Brazilian society.

And these Arab/Brazilians will become an asset for Brazil, and once again with the business experience acquired in doing business with Iraq all these years, they will help implement with success these new international business endeavors in Qatar.

Finally, Brazil should give its total support to Qatar regarding its bid for a United Nations seat, and Brazil also should help Qatar secure a wide-scale support from the other countries of South America. 

Qatar can become the first major economic link between Brazil and the Arab Gulf nations. After this first step, we hope to establish a strong friendship between these countries and Brazil, and also the foundations for a new business and economic relations that will be mutually rewarding: for Brazil and for all these Arab countries of the Middle East.

Ricardo C. Amaral is an author and economist. He can be reached at brazilamaral@yahoo.com.

Fapinha, a Brazilian maker of mini vehicles for children, is going to export 150 mini buggies to Qatar and the United Arab Emirates up to the end of the year.

The company, which is based in the city of São Paulo, started selling to the Emirates at the beginning of the year. Up to now they have already sold 40 units. To Qatar, the company has been exporting since 2002.

According to the company commercial manager, Giampaolo Tognocchi, the products that arrive in the Arab countries are the Super Xingu and Jeep Adventure, two kinds of mini buggies.

Qatar purchases around 50 units a year. The Emirates should purchase 100 small vehicles this year. The distributor in the Emirates also ships the products to other Arab countries, like Saudi Arabia and Kuwait.

Apart from mini buggies, Fapinha also produces mini motorcycles, tricycles and quads. The vehicles are made out of fibreglass, have petrol-powered engines, accelerators, brakes, gears and electric starters.

They are recommended for children aged eight or over, and are turned to high-income consumers. In Brazil, the cheapest toy costs approximately US$ 2,000 and the most expensive around US$ 3,700.

According to Tognocchi, due to the buying power of the population, the Arab countries are a potential market for the company.

In Qatar, for example, the per capita income is US$ 48,000. In the Emirates, it is US$ 20,9 mil. The toy market in the Middle East has a turnover of approximately US$ 1.5 billion and grows around 11.5% a year.

In Brazil, Fapinha has 80 dealers for the small vehicles. São Paulo, which has one of the highest per capita incomes in the country, has the largest market and absorbs around 40% of production.

Fapinha has been on the market for 35 years and the brand is well known in Brazil. Exports began over 20 years ago and answer to between 10% and 15% of company production.

The company clients are in around ten countries. There are buyers in the Middle East, Europe, South America, the Caribbean and Australia.

According to Tognocchi, the company plans to increase exports. For this purpose, they are going to participate in four international fairs this year, in Mexico, the United States, Italy and Germany.

To the Arab countries there are no trips planned. The brand distributor in the Emirates, however, is going to look for new clients for the company in the region.

Fapinha has 80 employees and an industrial unit in the Campo Limpo neighborhood, in the city of São Paulo, the largest business center in Brazil, in the southeast of the country.

Most of the components of the mini vehicles are produced at the factory itself. Only the engine, tires, and some parts like headlights and bulbs are outsourced.

Fapinha – www.fapinha.com.br

ANBA – Brazil-Arab News Agency – www.anba.com.br