Besides the 2022 World Cup, do you know what else the Brazil and Qatar have in common? Alllog Blog answers you: the business relationship.
Over the years, Brazil has strengthened and advanced its trade relationship with the host country of the World Cup. And the flagship that drives the numbers between Brazil and Qatar is the Brazilian chicken. In the first half of this year, the growth in exports of the product to the country was 45 % in volume and 84 % in revenue compared to the same period in 2021.
A strong economy
Qatar has experienced a rapid economic growth over the past few years thanks to high oil prices. Economic policy is not focused on development associated with natural gas reserves and increasing private and foreign investment in non-energy sectors, but oil and gas still represent more than 50 % of the country’s GDP, around 85 % of revenues exports and 70 % of government revenue.
The country has extensive oil reserves, while the gas reserves of Qatar Petroleum, the giant in North Field which lies on the border with Iran, is almost as large as the peninsula where the country is located.
Brazil and Qatar: trade deficit
Brazil is the 18th main trading partner of Qatar, which has several investments in the country, mainly in the banking, real estate and energy areas. In a December auction last year, Qatar Energy Company, together with a global consortium, bought part of the sepia pre-salt field, located in Bacia de Santos, now holding 21 % of the oil field.
In 2021, Brazil registered a deficit of US$ 505 million in the trade relationship with the country, which means that more products were imported from Qatar than exported to the destination. Even so, the country was in the 44th place in the ranking of imports.
Brazilian products exported to Qatar (ranking):
1st – Poultry meat and giblets
2nd – Non-electric motors and machines, and their parts
3rd – Iron or steel tubes and hollow profiles
4th – Fresh, chilled or frozen beef
5th – Alumina (aluminum oxide), except artificial corundum
6th – Other products – Processing Industry
7th – Petroleum fuel oils
8th – Weapons and Ammunition
9th – Unground corn, except sweet corn
10th – Inorganic chemical elements
