Bilateral discussions have progressed towards multiple joint undertakings. Prominent among these is the ongoing modernization of Silvio Pettirossi Airport, where UAE funding is being considered under Paraguay’s Public-Private Partnership (PPP) law. This project, contested by regional players like Corporación América and local construction firms, signifies a critical logistics upgrade connecting South America with the Middle East. Other infrastructure projects include the Bioceanic Corridor—a strategic transnational route supported by a cooperative declaration signed at COP28—and additional ventures slated for announcement imminently.
Paraguay’s government projects a historic infrastructure investment cycle of approximately $3.2 billion for 2026, with UAE partnership facilitating capital inflows without burdening national fiscal resources. The engagement extends beyond transport, encompassing renewables and technology sectors to diversify Paraguay’s economic profile. Trade data reflects a sustained commercial exchange, albeit with a trade deficit for Paraguay in recent years. The alliance builds on a bilateral trade agreement signed in 2023 and high-level diplomatic exchanges including President Santiago Peña’s visit to Abu Dhabi.
This evolving partnership enhances Paraguay’s strategic positioning within Mercosur and reinforces the UAE’s emergence as a global trade and logistics hub, with infrastructure investment serving as a cornerstone for deepened economic integration.
This article was curated and published as part of our South American energy market coverage.
