News

Jordanian companies want to invest in Brazil

23 de junho de 2016

São Paulo – Jordanian companies showed interest in making investments in Brazil and also in the expansion of bilateral trade, according to the Brazilian ambassador in Amman, Francisco Luz. In an interview to ANBA, the diplomat said that he has been meeting with representatives of private groups in Jordan with the goal of promoting business between the two countries.

He pointed out that trade increased until it surpassed USD 300 million annually in 2008 but then it started to fluctuate and last year registered below USD 250 million. “There is potential to reach USD 500 million, and we’re at the halfway point”, said Luz.

Among the business owners that met with the ambassador recently is the president of the TAG-Org group, Talal Abu-Ghazaleh. “It’s the largest patent office in the world, with around 100,000 clients worldwide, with more than 1,000 in Brazil”, said Luz. Despite its Brazilian clients, the company doesn’t have an office in the country, but plans to do so in the future.

Besides the intellectual property sector, the company is especially interested in making investments in the education sector, in which it’s also strong, possibly in a partnership with a Brazilian institution. “Among the Brics, Brazil is the only country in which they don’t have a subsidiary company”, said the diplomat, referring to the bloc formed by Brazil, Russia, India, China and South Africa.

Luz made contacts also with executives from other large Jordanian business groups, such as the Manaseer, a holding company that owns 19 companies in different sectors; Hikma, from the pharmaceutical sector; and Hammoudeh, from the foodstuff sector.

This year, the Brazilian embassy assisted Manaseer with arranging a visit to the São Paulo and Rio Grande do Sul states of Brazil. According to the ambassador, the conglomerate is looking to import agricultural machinery, earthmoving equipment and concrete mixer trucks, and is considering opening an office in Brazil. “If they do [set up operations in Brazil], other [executives] will follow on their footsteps,” the ambassador said, stressing the group’s strength in Jordan. 

For its part, Hikma is looking into acquiring some Brazilian generic drug manufacturer or forming a joint venture with Brazilian partners in the industry. “They are looking for a generic drug lab in Brazil to buy out,” the diplomat said. 

According to Luz, despite the fact that Brazil’s in recession, Jordanian business owners believe this is a time of opportunity. “They are looking at [the scenario in Brazil] as an ideal one to invest, because prices are low right now,” he said. The weak economy and the strengthening US dollar relative to Brazil’s real have made Brazilian assets that much more attractive to foreigners.

Trade

The ambassador mentioned other recent developments that could fuel bilateral deals, including the Jordanian government’s move of slashing from 25% to 10% the import tax on frozen poultry for use by the food industry. Poultry and beef are the top-selling Brazilian products in Jordan.

Moreover, Jordan has cleared livestock imports following a hiatus, and sales should begin again soon. 

Luz also expects auto sales to increase after Mercedes-Benz decided to supply Brazilian-made medium-sized trucks to the Middle East, as reported by ANBA last month. 

On the other hand, the ambassador sees room for growth in fertilizer trade, since Jordan is a producer of phosphate and potassium and Brazil is a major importer. 

*Translated by Sérgio Kakitani & Gabriel Pomerancblum