DCCI members see rebound in Latin America-bound exports in Q1
The value of Dubai Chamber members’ exports and re-exports to Latin America surged 69 per cent to reach a record $60.5 million in the first quarter of 2021, a trend supported by increased activity among companies in Dubai that are already trading with the region.
New data released Dubai Chamber of Commerce and Industry indicated that the increase in Latin America-bound shipments among members reflected a long-term trend rather than a Covid-led rebound as the declared value of COOS increased at a compound annual growth rate (CAGR) of 17.4 per cent since Q1-2016.
The uptick in exports came as Dubai Chamber gradually expanded its presence and activities in Latin America in recent years. Ater opening its first representative office in the region in Brazil in 2017, the organisation established two more offices in Panama and Argentina, which play a crucial role in identifying trade and investment opportunities in promising markets.
In addition, the offices organise trade missions, business forums and high-level meetings, while they also promote Dubai as a global business hub at major exhibitions and conferences.
Three quarters of the $60.5 million worth of exports and re-exports to Latin America in Q1-2021 were atributed to three key markets —namely, Brazil, which accounted for the largest share of 36 per ce, followed by Mexico ( 26 per cent) and Venezuela (14 per cent).
The total number of COOS issued for shipments targeting Latin America in Q1-2021 reached a record 739 certificates, which is double the level recorded 5 years ago.
According to 2019 estimates by the International Trade centre (ITC), there is an untapped export potential of $545 million in UAE exports to Latin America a year. This presents an opportunity for UAE companies to double the value of exports to the region in the short term.
According to ITC estimates, Mexico stands to offer the highest growth potential for UAE exporters in Latin America with an estimated $174 million worth of potential exports that could be realised in the near term. Brazil is second with $118.5 million, followed by Colombia with $59 million.
Other promising Latin America markets, namely Chile, Peru, Argentina, Panama, Uruguay, Paraguay and El Salvador offer a cumulative $194 million in annual untapped potential for UAE exporters, according to the estimates.
Established in 1965, the Dubai Chamber of Commerce & Industry is a non-profit public entity, whose mission is to represent, support and protect the interests of the business community in Dubai by creating a favourable business environment, supporting the development of business, and by promoting Dubai as an international business hub. Meanwhile the
Dubai Chamber of Commerce and Industry has released a new report highlighting its key CSR achievements in 2020, as well as the outcome and impact of campaigns, initiatives, events and activities it organised during the year, which relate to community, environment, workplace and marketplace.
The report, published by the Chamber’s Centre for Responsible Business, revealed that in 2020, the Chamber donated Dhs10 million towards the Community Solidarity Fund Against Covid-19, which benefited 200,000 individuals and supported its efforts to mitigate the impact of Covid-19 on the business community and provide humanitarian and logistical support during challenging times.