United Arab Emirates and the Republic of Paraguay have moved to broaden political and economic engagement following the official visit of Santiago Peña Palacios, marking a fresh phase in relations between the Gulf state and the South American country.A joint statement issued at the end of the visit outlined shared intent to strengthen cooperation across trade, investment, energy, agriculture, food security, logistics and multilateral diplomacy. The visit, which included high-level meetings in Abu Dhabi, was positioned by both sides as part of a wider effort to diversify partnerships beyond traditional regions and to align with shifting global trade patterns.
Officials from United Arab Emirates highlighted Paraguay’s role as a stable agricultural producer and an emerging investment destination in South America, while Paraguayan leaders underscored the UAE’s position as a financial, logistics and energy hub linking Asia, Africa and Europe. The joint statement noted that the two governments see scope for deeper collaboration in food supply chains, renewable energy and infrastructure financing.
Trade featured prominently in the discussions, with both sides agreeing to explore mechanisms to expand bilateral commerce and encourage private-sector partnerships. Paraguay, a major exporter of soybeans, beef and renewable hydroelectric power, has been seeking to add value to its exports and attract foreign capital into agribusiness, logistics and manufacturing. The UAE, for its part, has been pursuing long-term food security strategies through overseas investments and diversified sourcing.
Energy cooperation was identified as another pillar of the relationship. Paraguayan officials briefed their counterparts on the country’s surplus clean energy capacity generated from large hydroelectric projects, while the UAE shared its experience in scaling renewable energy, clean fuels and energy transition technologies. The statement indicated interest in knowledge exchange and joint ventures that could support Paraguay’s industrial development while aligning with the UAE’s global energy investment portfolio.
Diplomatic coordination also formed part of the agenda. Both countries reaffirmed support for multilateralism and dialogue-based solutions to international challenges, signalling intent to coordinate positions in international forums. The statement referenced shared views on the importance of economic openness, sustainable development and respect for international law, without detailing specific policy alignments.
The visit carried symbolic weight for Paraguay, which has been working to raise its diplomatic profile beyond the Americas and Asia-Pacific. Engagement with Gulf economies has gained momentum as South American countries seek new capital sources and market access amid changing global supply chains. For the UAE, expanding ties with Latin America aligns with a broader strategy of deepening South–South cooperation and securing partnerships in regions with growth potential.
Business delegations accompanying the president held meetings with Emirati investors and sector representatives, focusing on agriculture technology, logistics infrastructure and halal food production. Officials said these interactions were aimed at translating political intent into commercially viable projects, with follow-up mechanisms expected through joint committees and investment facilitation channels.
Cultural and people-to-people exchanges were also addressed, with both governments expressing interest in expanding educational cooperation, tourism promotion and cultural dialogue. While such initiatives remain at an early stage, officials framed them as important for sustaining long-term engagement beyond transactional economic ties.
Analysts note that the timing of the visit reflects a broader recalibration in global diplomacy, as middle-sized economies seek diversified partnerships to manage economic volatility and geopolitical uncertainty. Paraguay’s outreach to the Gulf mirrors similar efforts by regional peers, while the UAE continues to position itself as a connector between emerging markets.
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