Today's Edition
SULTAN KHALIFA AL RUBAEI
The writer is a senior researcher and Deputy Head of Research and Advisory Sector at TRENDS
In recent years, relations between the UAE and Latin America have grown, reaching a level of strategic partnership. Both sides have been keen to sign agreements that would open trade and investment prospects, which would contribute to development and enhance living standards. The UAE has engaged with Latin America without considering the geographical dimension as a barrier to joining efforts to achieve sustainable development, especially since the UAE has become an international re-export hub that handles goods heading to and from Asia, Africa and Latin America.
The UAE approach to building development partnerships started to take shape in 2021, in conjunction with the 50th anniversary of the foundation of the UAE. In the next 50 years, economic partnerships will provide a model with Africa, Asia, Latin America, and elsewhere within the framework of the prudent leadership’s vision based on cooperation with the international community. This would enhance the UAE’s position as a global hub for business, finance, and innovation.
The pace of partnerships between the UAE and Latin American countries has increased recently, including with countries such as Costa Rica and Colombia. Negotiations are underway with Ecuador regarding a comprehensive economic partnership. The UAE and the Republic of Chile have managed to finalise negotiations for an economic partnership agreement. In this way, the UAE has taken relations with Latin America to a new stage of cooperation, allowing access to those markets without trade barriers, with the aim of reaching economic integration.
Agreements contribute to increasing investment, exchanging goods and services, and creating economic opportunities. This would allow UAE companies and investors to gain strong access to Latin American markets and enhance the UAE’s position as a gateway for the flow of trade and investment in a market that connects the Middle East and GCC countries with Latin America, especially in the sectors of agriculture, tourism, aviation, infrastructure, ports, logistics, transport, technology, renewable energy and the green economy.
Latin American nations play a pivotal role in the mining sector, boasting significant resources like copper, aluminium, lithium, silver, and gold, as well as abundant agricultural resources, food processing, and fisheries. Through partnership agreements, the private sector on both sides stands to benefit from strengthened commercial ties. Latin America and the Middle East represent vibrant markets and hold promising opportunities for the UAE and its counterparts to exchange experiences and knowledge across various fields of interest.
Trade stands as a cornerstone in the UAE’s vision for its relations with Latin American countries, acknowledging shared interests and contributing to the growth of non-oil trade. In 2023, the UAE’s non-oil trade hit a record high of $701 billion, driven by its openness to different countries and regions worldwide and its pursuit of diversified and promising external markets. This progress is notable given the economic, demographic, and geographic significance of Latin American countries, despite their geographical distance from the Middle East.
The relations between the UAE and Latin American and Caribbean countries extend beyond economic aspects, encompassing cooperation on pressing political matters within international organisations. The UAE has coordinated with Latin American countries during its tenure in the Security Council, with a focus on security and military cooperation, particularly in counterterrorism efforts. Notably, economic, trade and investment relations have seen tangible growth in recent years, with trade between the UAE and Latin America reaching $9 billion in 2022. Non-oil trade between the UAE and Brazil alone totalled $4.3 billion.
The UAE is dedicated to enhancing its trade partnerships with Latin American markets, aiming to elevate its relations to new levels that benefit both sides. This approach is not limited to Costa Rica, Colombia, Ecuador, and Chile, but extends to Mexico and Brazil, where stable and growing trade relations with the UAE already exist. The burgeoning markets in Latin America are increasingly important as they align with the UAE’s interests in diversifying commercial partnerships and increasing investments in technology, maritime transport, as well as clean and renewable energy.
