– Abu Dhabi
Strategic pivot toward the Global South
Reem Al Hashimy, the United Arab Emirates’ Minister of State for International Cooperation, arrived in the Southern Cone on Monday to begin a four‑city tour of the MERCOSUR bloc—Argentina, Brazil, Paraguay and Uruguay. The visit underscores the UAE’s “global south” strategy of diversifying trade routes, securing food supplies and tapping emerging markets for its sovereign wealth fund.UAE Ministry of Foreign Affairs, press release
“The purpose of this visit is to translate the goodwill that has been built over the years into concrete projects that benefit both our peoples,” Al Hashimy said at Buenos Aires airport. “We are looking at partnerships that span agriculture, clean energy, infrastructure, and digital innovation.”
Historical backdrop: From occasional contacts to systematic engagement
Bilateral ties date back to the early 2000s with trade in petrochemicals and aluminium. Notable milestones include a 2015 MOU on renewable‑energy cooperation with Brazil and a 2018 agreement with Argentina on agricultural‑technology transfer.Embassy of the UAE in Brazil, 2015‑2018
Since Al Hashimy’s 2016 appointment, the UAE‑Latin America Business Council, launched in 2022, has facilitated more than $3 billion in trade deals, laying the groundwork for today’s strategic alignment.
Economic stakes: Trade, investment and food security
MERCOSUR’s combined GDP exceeds $2.5 trillion, while the UAE’s sovereign wealth fund totals roughly $900 billion. Bilateral trade in 2025 was $2.1 billion, dominated by UAE imports of soybeans, corn and beef.UAE Trade Statistics Office, 2025
Discussions will focus on expanding these imports and attracting South American capital into non‑oil sectors. “We are eager to see Argentine agritech firms establish research hubs in Abu Dhabi, and Brazilian renewable‑energy companies partner with Emirates‑based investors,” said Brazil’s senior trade envoy Carlos Silva.
Key discussion points by country
- Paraguay: Joint ventures in green hydrogen leveraging hydroelectric power for the UAE’s net‑zero 2050 strategy.
- Uruguay: Exploration of a “Silk Road of the South” linking Abu Dhabi’s ports with Montevideo’s free‑trade zone.
- Argentina & Brazil: Agritech research centres and renewable‑energy co‑financing.
Diplomatic dimensions: Beyond economics
Al Hashimy will meet the MERCOSUR Secretariat in Montevideo to position the UAE as a reliable partner in multilateral forums such as the United Nations and the World Trade Organization.UN Press Release, 2024
The outreach arrives as China’s Belt and Road Initiative expands in Latin America and the United States recalibrates its engagement, offering the Emirates a chance to present a non‑interventionist, private‑sector‑driven partnership model.
Expected outcomes: MoUs, joint ventures and institutional frameworks
While final texts remain confidential, insiders anticipate MoUs covering:
- Agricultural technology & food‑safety: Joint research centres for drought‑resistant crops and supply‑chain traceability.
- Renewable energy & green hydrogen: Co‑financing pilot projects using Paraguay’s hydro potential and Brazil’s bio‑fuel expertise.
- Infrastructure & logistics: Feasibility studies for a direct shipping lane between Jebel Ali and Buenos Aires, plus digital customs platforms.
- Education & cultural exchange: Scholarships for Latin American students in UAE universities and reciprocal language‑training programmes.
A “MERCOSUR‑UAE Strategic Dialogue” is also expected to be formalised, creating an annual ministerial forum for monitoring progress.
Private‑sector reactions
María González, CEO of Argentine agribusiness group AgroTech, said, “The UAE’s sovereign wealth fund has the capital and appetite for long‑term projects. Financing next‑generation irrigation systems would be a win‑win for food security in both hemispheres.”
Brazilian renewable‑energy firm GreenWave, fresh from a $500 million offshore‑wind contract in the Gulf, added, “When a minister personally visits our country, it sends a clear message that the partnership is political as well as commercial.”
Challenges and caveats
Analysts warn that trade imbalances, divergent regulatory regimes and the need for robust dispute‑resolution mechanisms could slow negotiations. Domestic reforms in the UAE—particularly labour law and corporate‑governance changes—must align with Latin American expectations for transparency.Latin American Institute of International Studies, briefing 2026
Volatile commodity prices and lingering post‑pandemic supply‑chain disruptions also pose macro‑economic risks that could affect project timelines.
Looking ahead: A blueprint for South‑South collaboration
After the MERCOSUR leg, Al Hashimy will continue to Chile, Peru and Mexico later this month, potentially establishing a template for UAE engagement with other emerging markets.
“Our ambition is not merely to sign agreements, but to build enduring bridges that enable our societies to prosper together,” Al Hashimy said. Success will be measured not only by the number of contracts signed but by the durability of the collaborative frameworks that emerge.