UAE‑MERCOSUR diplomatic tour 2026: Reem Al Hashimy seeks new South‑American partnerships
High‑profile circuit across the Southern Common Market
Abu Dhabi’s senior diplomat for global outreach, Reem Al Hashimy, the United Arab Emirates’ Minister of State for International Cooperation, arrived in Buenos Aires on to launch a two‑week “strategic partnership tour” of the MERCOSUR bloc. Over the next 14 days she will travel to Argentina, Brazil, Paraguay and Uruguay, meeting heads of state, ministries and business councils to deepen trade, investment and technology links.
Why MERCOSUR matters to the Emirates
MERCOSUR, the customs union that groups the four largest economies of South America, represents a combined GDP of roughly US$ 2.3 trillion and a market of more than 260 million consumers. For the UAE—a resource‑rich nation pursuing aggressive economic diversification—the bloc offers complementary strengths: abundant agricultural output, a growing renewable‑energy sector and a gateway to the wider Latin American region.
According to the United Nations Comtrade database, bilateral merchandise exchange between the UAE and MERCOSUR nations rose from US$ 1.2 billion in 2020 to just over US$ 2.0 billion in 2025
. The bulk of UAE imports from the bloc are soybeans, beef, corn and other food commodities that underpin Gulf food‑security strategies, while UAE exports consist mainly of petrochemicals, aluminium and an expanding portfolio of high‑tech services such as aerospace engineering and digital solutions.
The visit aligns with three broader trends:
- UAE “Economic Vision 2030” aims to source at least 30 % of food imports from diversified partners.
- Both sides seek cooperation on renewable‑energy projects—Brazil’s wind‑farm capacity, Argentina’s lithium reserves and Uruguay’s grid integration.
- The shifting geopolitical landscape, with the United States and China courting Latin America, offers the UAE an opportunity to carve a niche.
Diplomatic itinerary rooted in concrete outcomes
Argentina: agribusiness, green‑hydrogen and digital transformation
In Buenos Aires Al Hashimy met President Sergio Martínez and the Argentine foreign minister. The parties signed a memorandum of understanding (MoU) covering agribusiness, renewable energy and digital transformation. A joint task force will explore investment in Argentina’s emerging green‑hydrogen corridor, where Emirati firms could finance and provide engineering for electrolyser plants powered by wind.
Brazil: expanding free‑trade and offshore wind
In São Paulo the minister chaired a round‑table with Brazil’s Ministry of Development, Industry and Trade and the Brazilian‑UAE Business Council. Discussions focused on easing customs procedures for perishable goods and creating a “digital trade corridor” that would use blockchain to streamline documentation. Brazilian officials highlighted potential UAE investment in offshore wind farms, supporting Brazil’s 12‑gigawatt wind‑energy target for 2030.
Paraguay: logistics hub for trans‑American freight
Meetings in Asunción centered on a joint logistics platform. The UAE proposed building a state‑of‑the‑art dry‑port and cold‑storage facilities that could serve as a distribution node for agricultural products destined for the Gulf and North‑African markets, leveraging Paraguay’s land‑locked position as a natural hub.
Uruguay: solar‑plus‑storage pilot and knowledge transfer
The final leg takes Al Hashimy to Montevideo, where she will attend the inauguration of a pilot solar‑plus‑storage farm built by a consortium that includes Emirates‑based renewable‑energy developer Masdar. Uruguay’s leadership in renewable integration makes it an ideal partner for the UAE’s clean‑energy ambitions, and a high‑level dialogue on workforce training is slated to follow.
Beyond trade: a broader geopolitical calculus
Analysts note that the tour also serves a geopolitical purpose. By establishing a foothold in MERCOSUR, Abu Dhabi can diversify its sovereign‑wealth‑fund portfolio, reducing exposure to oil‑price volatility and Indo‑Pacific tensions. The visit arrives as MERCOSUR members reassess foreign‑policy alignments—Argentina’s tilt toward the EU, Brazil’s South‑South focus and Uruguay’s climate‑diplomacy—creating openings for a Gulf partner that offers capital without the political strings often attached to Western aid.
Economic stakes and potential challenges
Key obstacles include the lack of direct shipping routes, which currently force cargo through European hubs, adding time and cost. The proposed Paraguayan dry‑port aims to mitigate this bottleneck but will require substantial public‑private investment and multi‑jurisdictional coordination.
Regulatory divergence is another concern. While MERCOSUR shares a common external tariff, each member retains autonomy over agricultural standards. Aligning Emirati food‑safety requirements with South‑American practices may necessitate joint certification bodies.
Political volatility—currency swings, election cycles—poses risk to long‑term projects such as green‑hydrogen plants or offshore wind farms. UAE sovereign‑wealth funds are expected to conduct rigorous due diligence before committing capital.
Roadmap for sustained engagement
If the MoUs translate into projects, the next phase could involve:
- A bilateral investment treaty to protect capital flows.
- A joint research institute on renewable‑energy technologies.
- A digital trade‑facilitation platform to reduce paperwork and accelerate customs clearance.
- Establishment of a UAE‑MERCOSUR strategic council meeting annually.
Knowledge exchange is also on the agenda: the UAE’s smart‑city and desalination expertise could aid Argentine and Brazilian municipalities, while South America’s biofuel and low‑cost agriculture experience could support the Emirates’ food‑security goals.
Conclusion
Reem Al Hashimy’s Latin‑American itinerary marks a decisive step in the United Arab Emirates’ pursuit of a more diversified and resilient economic future. Targeting the MERCOSUR bloc—a region rich in agricultural output, renewable‑energy potential and logistical gateways—Abu Dhabi aims not only to open new markets for its exports but also to embed itself in supply chains that will shape global trade in the coming decade. The tour’s success will depend on converting high‑level agreements into operational projects, overcoming logistical and regulatory barriers, and maintaining political momentum amid shifting domestic landscapes. If achieved, the partnership could become a model of South‑South cooperation reshaping the commercial map between the Gulf and the Southern Hemisphere.
