Higher trade activity between Brazil and the Middle East to be expected (By IFN)

Higher trade activity between Brazil and the Middle East to be expected

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BRAZIL: A delegation of 30 Brazilian companies is currently in the UAE discussing investment opportunities, particularly in the private equity and venture capital sectors. To many, the delegation, which is part of the Brazilian Trade Mission, could mark the beginning of a rise in trade activities between the South American country and the Middle East. Though Brazil holds the title as one of the world’s biggest exporter of Halal food, the country has only just begun to open up to the prospects of Islamic finance. Earlier in January, the country made its debut Islamic agri-financing deal, which was mobilized by Cayman-based Abu Dhabi Equity Partners (ADEP). The deal saw the structural combination of Wakalah and Murabahah to finance a leading sugar and ethanol producer in the agriculture state of Mato Grosso do Sul. Brazil’s prior flirtation with Islamic finance came six years ago when Comissão de Valores Mobiliários (Securities and Exchange Commission of Brazil) proposed a Sukuk issuance, in order to introduce Islamic finance in the country. The country’s most high profile Middle Eastern transaction to-date is the acquisition of the Venture Towers in Rio de Janeiro by the Abu Dhabi Investment Authority in 2008. Today it was also announced that international law firm  Maalouf Ashford & Talbot, which also has a Shariah advisory arm, have opened an office in Brazil as part of its expansion into the BRIC countries and MENA region. In light of these developments, Islamic Finance news is keeping an eye on Brazil as one of the breakout emerging market players of 2013.