UAE and Brazil Align Efforts for G20 Success

UAE has emerged as one of the leading economies in the Middle East, achieving a GDP growth rate of 7.9% in 2022. This economic powerhouse shows its dedication to encouraging international partnerships and deepens global economic cooperation consistently.

Brazil and UAE have started a vital diplomatic relationship that lines up with their G20 agenda priorities. Their partnership brings together the Middle East’s most vibrant economy and Latin America’s largest nation. This creates opportunities to work together strategically and shape global economic policies. Both nations will benefit from new possibilities in the international arena.

Strategic Partnership Evolution

Brazil and UAE started their diplomatic journey in 1974, laying the groundwork that evolved into a resilient strategic partnership. Brazil took the first step by setting up its Embassy in Abu Dhabi in 1978. The UAE responded by choosing Brasília as the location for its first Latin American Embassy in 1991.

This partnership has grown stronger recently with several breakthrough developments. The countries have signed:

• A memorandum that promotes UAE investments in key Brazilian sectors
• An agreement that strengthens customs cooperation between Abu Dhabi Customs and Brazil’s Tax Authority
• A framework that focuses on joint African initiatives
• A knowledge exchange program that includes planting 10,000 palm trees in Bahia

Their relationship has matured into a complete comprehensive strategic partnership. It now includes technology, tourism, culture, space exploration, trade, and renewable energy sectors. Trade between these nations has reached new heights. Bilateral trade exceeded $4.3 billion in 2023, making UAE Brazil’s second-largest Middle Eastern trading partner.

Crown Prince Sheik Khaled bin Mohamed bin Zayed Al Nahyan’s discussions with President Luiz Inacio Lula da Silva have strengthened these bonds further. Both nations show steadfast dedication to advancing mutual interests in environmentally responsible development and economic cooperation.

Economic Collaboration Milestones

Diplomatic efforts between the UAE and Brazil have yielded tangible economic achievements. Both nations signed two substantial memoranda of understanding. One focuses on promoting UAE investments in strategic Brazilian sectors. The other creates a stronger customs partnership between Abu Dhabi Customs and Brazil’s Tax Authority.

Both countries have made great strides in their economic partnership through the Comprehensive Economic Partnership Agreement (CEPA) negotiations between the UAE and MERCOSUR. The third round in Uruguay concluded successfully. This agreement will substantially boost trade and investment flows between the UAE and Latin America.

Trade relations have flourished with key commodities flowing between both nations:

• Brazil exports chicken meat, bovine meat, and sugar to the UAE
• The UAE supplies oil, urea, sulfur, and aircraft parts to Brazil

UAE investments in Brazil have reached AED 18.36 billion, and Mubadala leads as the largest Emirati investor. Major UAE organizations like DP World, Emirates Airline, First Abu Dhabi Bank, and Yahsat now have a strong presence in Brazil. Brazilian companies have also established themselves firmly in the UAE. Nearly 40 companies, including industry leaders Vale, Embraer, and WEG, operate in the Emirates, strengthening economic ties between both nations.

Strategic collaborations have reinforced UAE’s position as a global trade hub. The nation continues to broaden its network of international trade agreements and investment opportunities. This partnership serves as the life-blood of UAE’s strategy, which has led to finalizing CEPAs with more than 20 countries worldwide.

G20 Summit Agenda Alignment

Brazil took over the G20 presidency on December 1, 2023, and has led a detailed agenda that focuses on global cooperation and sustainable development. The UAE strongly supports Brazil’s presidency priorities, which include:

• Enhancing global governance systems
• Curbing poverty and hunger
• Addressing climate change and energy transitions
• Promoting sustainable development initiatives

Both nations’ global objectives show growing alignment through UAE’s participation as a guest country at the G20 Summit in Rio de Janeiro. His Excellency Saleh Al Suwaidi led a UAE delegation at the Fourth G20 Sherpa Meeting and helped draft the G20 Rio de Janeiro Leaders’ Summit Declaration.

Brazil made a key move by supporting the UAE Declaration on Global Climate Finance Framework, which launched at COP28. The initiative has gathered more than AED 312.13 billion in funding and created 11 pledges and declarations. COP and G20 presidencies work together with a steadfast dedication to make climate finance available. This collaboration becomes even more important as Brazil gets ready to host COP30 in Belém in 2025.

The UAE shows its support through major financial initiatives. These include UAE banks’ plans for sustainable financing through 2030 and contributions to the International Monetary Fund’s resilience and sustainability trust, which helps climate-vulnerable countries.

The deepening ties between the UAE and Brazil represent a remarkable chapter in international cooperation that shows how countries from different parts of the world can create meaningful economic and diplomatic bonds. These two nations share a vision that goes beyond their relationship and they tackle global challenges through active roles in G20 initiatives and climate action commitments.

The partnership stands on solid economic ground with trade numbers that exceed $4.3 billion and UAE investments of AED 18.36 billion. Both countries arrange their positions on major global issues and show steadfast dedication to sustainable development and climate finance, which makes them powerful voices in international discussions.

This mutually beneficial alliance shows other nations how shared goals and mutual respect can boost substantial economic growth while tackling urgent global challenges. The way they work together on G20 priorities and climate initiatives points to a bright future for international partnerships that focus on sustainable growth and economic success.