In order to enhance their commercial relationship, Brazil and Turkey organized a forum on the 9th November at the head office of the Federation of Industries of the State of Sao Paulo. The main objective of the forum was to foster the trading business in sectors like agribusiness, social media, tourism and logistics. Up until October, Brazilian exports to Turkey reached US$1.49 billion while Turkey's exports to Brazil amounted to US$387 million.

On another note, an Iranian delegation visited the Brazilian Confederation of Agriculture and Cattle Raising in Brasília on the 24th November. The focus of the visit was agribusiness which is very relevant in Brazil. Brazilian agribusiness products are exported to several countries around the world and food security has become a significant geopolitical aspect for any country. Iran is Brazilian's fifth-largest commercial partner for agribusiness products in Asia.

Brazilian exports to Arab countries between January and October 2017 reached US$11.4 billion, which means a 22.31% increase compared to exports made during the same period in 2016.

Saudi Arabia also sees Brazil as a significant business partner for supply of grains and animal foods. A Saudi technical team visited soya farms and corn plantations in Brazil as well as plants where animal foods are produced. As mentioned previously, food security even when it is indirect — grains and animal foods — is a key issue in the politics of any country.

With such large amounts of exports by Brazil, a Shariah compliant product like Murabahah could be an alternative means for the import financing of Brazilian products in the MENA region.

Este artigo foi publicado no Islamic Finance News Volume 14, Issue 50, dia 13 de dezembro de 2017.

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