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The Brazilian Export Promotion Agency (Apex) and the Brazilian Furniture Industry Association (Abimóvel) signed July 8, an agreement to increase furniture exports to the United Arab Emirates.
The agreement forecasts investment of US$ 7.6 million in trade promotion activities.
According to the executive superintendent of the Abimóvel, Miguel Sanchez Junior, Brazilian furniture exports to the United Arab Emirates, from January to May this year, reached US$ 2.4 million, which represents half of the total for last year.
"The Emirates have potential to become one of the main Brazilian markets," stated Sanchez.
Last year, exports to the Arab countries in general total led US$ 5.6 million, which represented a growth of 600% compared to foreign sales in 2003.
According to Sanchez, the Brazilian furniture export figures show that the Arab market is the one that has been presenting the greatest growth in percentage terms, whereas the United States is the country that purchases most in absolute terms.
In the first five months of the year, the US have already imported the equivalent to US$ 163 million in Brazilian furniture.
According to the project manager at the Apex, Rogério Bellini dos Santos, the civil construction and hotel sector are in expansion in the Emirates.
"The Emirates want to attract new suppliers. The market is therefore very attractive for Brazilian companies," he said.
Currently, 181 furniture sector companies have participated in the Apex-Abimóvel project, baptized Brazilian Furniture.
With the new agreement, over 220 companies should start integrating the program and exporting. The project also forecasts the generation of another 8,500 jobs.
"This year we are forecasting an export growth of at least 20%," stated the president of the Abimóvel, Domingos Sávio Rigoni.
Last year Brazil exported US$ 940.6 million, which represented an increase of 42.2% when compared to 2003. With the new agreement, the country hopes to export around US$ 55 million more in 2006.
Apart from the United Arab Emirates, the new agreement forecasts promotion on other markets, like Mexico, Canada, the United States, the United Kingdom and Japan.
Fair in Dubai
Brazilian producers have already participated in four editions of the Index, the largest furniture fair in the Middle East. According to Sanchez, there are more and more businessmen interested in participation.
Last year, the fair, which also has the support of the Arab Brazilian Chamber of Commerce (CCAB), counted on 35 Brazilian companies, which occupied a space of 500 square meters.
"For this year an area of over 1,200 square meters will be necessary at the fair so as to receive all those interested," stated Sanchez. Index 2005 is going to take place between November 28 and December 02, in Dubai.
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