MercoPress. South Atlantic News Agency

Argentine FM lands financing deals for transition infrastructure

The agreements fall within “the government's priorities in promoting energy transition, territorial integration, logistics, and sustainable mobility”

Argentine Foreign Minister Santiago Cafiero, who is on a Middle East official tour, Monday announced he had reached agreements worth over US$ 1 billion to finance infrastructure works regarding energy and climate change through 2023.

“It was agreed to work on a portfolio of projects that would exceed US$550 million by 2022 and potentially new US$450 million approvals by 2023″, Argentina's Foreign Ministry said in a statement.

Cafiero released the information after a meeting with presidents and CEOs of companies and entities of the United Arab Emirates, in a networking event between Argentine and local companies.

Together with the Saudi Fund for Development of the Kingdom of Saudi Arabia, Kuwait Fund for Arab Economic Development of the State of Kuwait, Abu Dhabi Fund for Development of the United Arab Emirates, Qatar Fund for Development, and OPEC Fund for International Development, Cafiero worked on identifying ”infrastructure works for the development and to face the challenges of adaptation to climate change,“ the Ministry also said through a statement.

Among the strategic sectors targeted by Argentina's top diplomat were the hydrogen agenda, climate change, energy generation and transmission, sustainable mobility, water and sanitation, housing, health, and education.

”They are framed within the government's priorities in promoting energy transition, territorial integration, logistics, and sustainable mobility,” the Ministry's statement added.

In 2021, Argentina's trade exchange with the Middle East showed a surplus of US$ 2,922 million, with US$ 4,501 million of exports against US$ 1,579 million of imports. Trade with the Middle East represented 5.8% of total exports and 2.5% of total imports. Saudi Arabia and Israel accounted for 45.2% of total shipments to the region. Flour and pellets from soybean oil extraction; corn grain; beef; seamless pipes; yerba mate; and bran, sharps, and residues of leguminous plants accounted for 85.9% of total exports. The United Arab Emirates delivered 49.4% of Argentina's purchases in the region and 81% of operations with that country were imports of diesel oil.

Five product groups accounted for 91.5% of Argentine exports to the United Arab Emirates: Mineral fuels, mineral oils, and products of their distillation; bituminous materials; mineral waxes (65.3%); Cereals (11.6%); Residues and wastes from food industries, prepared animal feed (10%); Manufactures of iron or steel (4.8%); and Meat and edible meat offal (1.5%).

The Public-Private Council for the Promotion of Exports identified the United Arab Emirates as a target market and designed trade promotion actions focused on fruit (lemon complex, sweet citrus, stone fruits, other fruits); meat (poultry and sheep complex), and regional economies (beekeeping complex).

The networking meeting between Argentine and UAE companies and presidents and CEOs of companies and entities sought to disseminate Argentine technological capabilities in the fields of

Energy Transition, Knowledge-Economy (Software Industry and Digitalization), Satellite Industry, Biotechnology applied to human health and Food Safety.