Paraguay UAE Partnership Strengthens Energy And Technology Growth Prospects

President of Paraguay Santiago Peña Palacios has underlined the strengthening economic and strategic relationship between Paraguay and the UAE, describing "incredible opportunities" for collaboration in renewable energy, technology and infrastructure, while attending the World Governments Summit (WGS 2026) in Dubai and speaking to the Emirates News Agency (WAM).

Peña said Paraguay, which currently holds the Mercosur presidency, now views the UAE as a central global partner, not only a regional entry point. "The UAE has put itself at the centre of the world," he said, noting that travellers use Dubai as a worldwide connection hub rather than only for Middle East visits.

The President highlighted that Paraguay’s recent performance supports deeper engagement with the UAE, with gross domestic product expanding by 6% last year. "For many years, the country was punching below its weight. Now we are punching above our weight," he said, linking this progress to reforms introduced over recent years.

Peña stressed that Paraguay’s strengths are timely as global debates emphasise food security and energy transition. "Paraguay has it all. We are very large producers. We are a leader in energy and sustainability. We are 100 percent renewable energy, and we export a lot," he said, presenting these advantages as a basis for cooperation with the UAE.

Discussing bilateral ties, Peña recalled first visiting the UAE in 2015 while serving as Minister of Finance, when Paraguay was starting to access international markets. "I was impressed not with the wealth, not with the buildings. I was impressed with the wisdom and the clarity of the leadership of this country," he said, explaining why the UAE became an early focus.

He noted that an investment treaty between Paraguay and the UAE was signed in 2017, creating a formal base for joint projects. After winning the presidential election in April 2023, Peña chose the UAE for his first foreign trip. "Over the last two and a half years, I have come multiple times. We have engaged in several projects with the UAE," he said.

Peña described ongoing engagement with the UAE as a phase of learning and exploration. "Our country is full of natural resources. We produce food for 100 million people when we are only 6.5 million," he said, adding that Paraguay sits in the centre of a wider region of about 500 million people, which he sees as a substantial market.

The President also outlined Paraguay’s changing international outlook. "Paraguay was known as the island surrounded by land. For many years, we were isolated, even though we are in the middle of large countries like Brazil and Argentina," he said. He added that officials now prioritise outreach. "We have been interested in reaching out, changing views, and letting people know about Paraguay, about the history, about the situation today, and more importantly, what is coming for Paraguay."

Peña said participation in WGS 2026 in Dubai allows Paraguay to present this narrative to world leaders on a prominent platform hosted by the UAE. "We are trying to connect and make a bridge between the UAE and Latin America, and Paraguay can also play that role, possibly the right partner for this relationship going forward," he said, calling the scope for cooperation broad. "The areas we can work together are unlimited," he said.

Looking ahead, Peña expressed confidence about Paraguay’s prospects and its partnership with the UAE. "I have no doubt that among all the rising stars, Paraguay is the brightest one on the horizon," he said. He emphasised that long-term partnerships depend on trust and confidence, indicating optimism about how relations between Paraguay and the UAE will develop.

With inputs from WAM