By Mohd Aamir and Lina Ibrahim
DUBAI, (WAM) – The Latin America and Caribbean (LATAM) region can be an important economic partner to help Dubai meet its new target of boosting foreign trade to AED2 trillion over the next five years, according to a new guide published by Dubai Chamber of Commerce.
The guide, titled Why Latin America? features valuable insights on promising economies in the region and key growth sectors, as well as trade and investment opportunities that offer the most potential for UAE companies and investors.
Why Latin America? was released ahead of the Global Business Forum Latin America 2022, which Dubai Chamber is organising in partnership with Expo 2020 Dubai on March 23-24.
The guide highlights the advantages for Dubai companies and investors in doing business with LATAM, a 27-country region that stretches from Mexico to Argentina, also including the Caribbean islands. The report concludes that the region’s largest markets have solid macroeconomic indicators that make it safe for investment.
Held under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, vice president, prime minister and Ruler of Dubai, the fourth edition of the forum bears the theme Towards a Resilient Future. The forum brings together heads of state, ministers, government officials, business leaders and industry experts from the UAE and Latin America to explore new avenues of economic cooperation.
Citing IMF statistics, the guide noted that Latin America’s trade volumes grew 9.5 percent in 2021 and are projected to continue growing over 2021-2025 at an average of 5.8 percent for imports and 6.7 percent for exports. This represents a significant increase to the average trade growth rates during the 2015-2019 pre-pandemic period, which were 1.9 percent for imports and 1.3 percent for exports.
The combined GDP of LATAM reached US$5 trillion in 2021, the guide noted, adding that the regional economy grew by 6 percent in 2021 and it is expected that it will grow by 4.3 percent between 2021 and 2025. This makes it a prime region for bilateral trade, offering Dubai-based investors and commercial organisations promising returns on investment and also positioning the region as key to helping Dubai meet its foreign trade targets.
The report also projects LATAM’s overall economy and GDP to grow in the post-pandemic era. It highlights that in 2021, the region’s economy represented 5.3 percent of that of the world, led by Brazil and Mexico, with their GDP figures corresponding to US$1.6 trillion and US$1.3 trillion respectively.
The study ranked Brazil and Mexico as the first and second-largest economies in the region, accounting for US$1.6 trillion and US$1.3 trillion in GDP, respectively. Argentina ranked as the third-largest economy in Latin America, with a GDP of US$455 billion, followed by Chile with US$331 billion, Colombia with US$301 billion, and Peru with US$226 billion.
In addition, it reveals that Latin America is home to 8.3 percent of the world’s population, with Brazil having the largest population with 213 million people followed by Mexico with 129 million, making them the 6th and 10th most populated countries in the world respectively. They are followed by Colombia at 51 million, Argentina at 45.8 million and Peru at 33.8 million.
“Economic indicators show that Latin America is regional market offering tremendous potential for UAE businesses that are keen to expand their reach in markets that offer a wealth of growth opportunities. The Why Latin America? – the guide provides clarity on key trends reshaping Latin American markets and business prospects that companies in the UAE can explore in further detail at GBF Latin America 2022 in Dubai,” said Hamad Buamim, president and chief executive officer of Dubai Chambers.
GBF Latin America 2022 is an ideal platform to learn about the economic potential that Latin America offers, as well as Dubai’s pivotal role in linking global economic markets, he explained.