The Dubai Chamber of Commerce and Industry (Dubai Chamber) has published a new guide titled ‘Why Latin America?’ to examine the economic potential in Latin America as part of the foreign trade expansion.
‘Why Latin America?’ is released ahead of the ‘Global Business Forum Latin America 2022’ (GBF LATAM) organized by the Dubai Chamber in collaboration with Expo 2020 Dubai at the end of March. The guide provides valuable insights into the region’s promising economies, key growth sectors, and potential business and investment opportunities for UAE companies and investors.
The guide features the benefits for Dubai companies and investors in doing business with LATAM, a region of 27 countries ranging from Mexico to Argentina, including the Caribbean islands. The report concludes that the region’s largest markets have strong macroeconomic indicators that make it safe to invest.
“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.”
According to the new guide, the Latin American and Caribbean (LATAM) region is set to become a major economic partner in helping Dubai’s new goal of raising foreign trade to $544.51 billion (AED2 trillion) over the next five years.
Citing IMF statistics, the guide noted that Latin America’s trade recorded a 9.5 percent growth in 2021 and is 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 periods, which was 1.9 percent for imports and 1.3 percent for exports.
The report also predicts that LATAM’s overall economy and GDP will grow in the post-pandemic period.
The study ranked Brazil and Mexico as the first and second largest economies in the region, accounting for $1.6 trillion and $1.3 trillion in GDP, respectively. Argentina was ranked as the third-largest economy in Latin America, with a GDP of $455 billion, followed by Chile with $331 billion, Colombia with $301 billion, and Peru with $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.
Held under the patronage of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, the fourth edition of the Global Business Forum Latin America 2022 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.
The forum will be an ideal platform to learn about the economic potential offered by Latin America and Dubai’s vital role in connecting global financial markets.