Brazil: Brazil's cattle for Iraq and other developments
As I usually mention in my articles published by Islamic Finance news, due to its geographic area, its strategic position in South America and the size of its economy, Brazil is a country that, even in moments of economic and/or political crises, does not lose its place as a sovereign state, which is interesting for investments and also for trade.
In the specifi c case of foreign trade, it is quite interesting to note that entrepreneur Hayder Majeed Hameed, the owner of the Hameedan Group which focuses on animal protein, had visited Brazil to negotiate with companies for the export of 3,000 catt le to Iraq from the port of Barcarena in the state of Para in the Brazilian northern region. Hayder is also evaluating the possibility of acquiring a property in Para.
The reason for such an interest by the Iraqi entrepreneur is that the Islamic State would have destroyed approximately 70% of Iraq’s catt le so now the goal is to reverse this situation. Catt le
with Brazilian origins have no diffi culties adapting to the Iraqi climate. The question now is: could a foreign importer explore the possibility of acquiring Brazilian products using a Murabahah
structure outside of Brazil?
Another interesting piece of news is that the commercial agreement between Mercosur (Argentina, Brazil, Paraguay and Uruguay) and Egypt will enter into force in the month of August. The agreement was signed back in 2010, but Argentinian ratifi cation was necessary so that the agreement could enter into force. Argentina ratifi ed the agrément in July. The agreement encompasses, among others, food products, cars and automotive spare parts.
Finally, as mentioned in one of my previous articles, Brazil is organizing the next auction for November related to the exploration of the pre-salt area. One of the interested players would be PETRONAS, the Malaysian state-owned oil and gas company.
Este artigo foi publicado no Islamic Finance news Volume 14, exemplar 31, do dia 2 de agosto de 2017.