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Work And Investment In Brazil

March 09, 2018

Work and investment in Brazil

  • Brazil:

It’s officially known as the Federal Republic of Brazil, with a total area of 85,157,60 , and its capital, Brasilia, one of the largest Portuguese-speaking countries all over the world, and the largest country in Latin America in both population and area.

Brazil has borders with 10 countries: Argentina, Bolivia, Colombia, Guyana, French Guiana, Paraguay, Peru, Suriname, Uruguay and Venezuela. More than 5 million foreign tourists come to it each year to visit many of Brazil's famous tourist attractions.

Work and investment in Brazil

  • Economy in Brazil:

Brazil has the sixth largest economy in the world and the first economy in Latin America, and it economically depends on its natural and mineral resources since the discovery of Brazil. At the beginning of the Brazilian economy, they extracted red-colored wood called Pau-Brazil, which is exported to Europe to be used in painting. In the sixteenth and seventeenth centuries, Brazil exported the largest share of its production of gold, copper, silver, precious stones and diamonds to Europe and the rest was being sold in the Brazilian market.

By the beginning of the eighteenth century, Brazil was the world's most famous producer and exporter of coffee, and in the middle of the same century, the (Seringueira tree) was discovered and the rubber was extracted from it in the Amazon forests and began to be used in European factories and North America, and hence, the Brazilian natural rubber ring began. Currently, Brazil is one of the largest exporters of rubber in the world.

 

Information about Brazil for those who think about investing in it:

  • Brazil has the largest diversified industrial base in Latin America and the Caribbean Sea.
  • The largest producer of coffee, cane sugar, and oranges.
  • One of the world's largest producers and exporters of raw metals and manufactured metals.
  • Brazil's tourism infrastructure is very good.
  • The largest producer of regional aircraft worldwide.
  • The second largest exporter of nutritious substance in the world.
  • The third-largest manufacturer of shoes and leather in the world and is characterized by the quality of its manufacture.
  • The third-largest producer of soft drinks in the world.
  • The fourth largest commercial aircraft manufacturer in the world.
  • Brazil ranks fifth in the rubber industry worldwide.
  • The sixth largest cosmetic market, with annual sales of 9 billion dollars.
  • The seventh largest chemical industry in the world.
  • The eighth largest producer of iron and steel with 27 million tons a year.
  • Is the tenth largest car producer with 1.8 million cars a year.

Work and investment in Brazil

  • Is Brazil a fertile ground for investors?

Brazil has unique geographical and natural advantages to attract foreign investors. It also has large human resources of about 210 million citizens, abundant raw materials and diversified economy. Brazil has a unique geographical location that allows easy access to other South American countries.

On the other hand, the Brazilian government has put some reforms to increase the investment opportunities in the country, including:

  • Giving priority to rehabilitation of infrastructure.
  • Giving some flexibility to the sectors that were controlled by the government such as telecommunications, electricity, oil and natural gas.
  • Granting powers to expand foreign companies.
  • Opening mining activities and investment in the field of electrical energy for foreign investors.

 

  • The most important investment sectors in Brazil:

The agricultural sector is one of the most important investment sectors in Brazil. Brazil's agricultural sector accounts for about 40% of exports.

The most important marketing products are:

  • coffee, with annual export revenues of about $ 3 billion.

Work and investment in Brazil, Brazilian Coffee

  • Bananas also have their own place. Brazil produces about 6 million tons and its export revenues are about 5 billion dollars. Brazil is the second largest producer of bananas in the world after India.
  • Orange, where Brazil exports around 800,000 tons of oranges per year, Brazil is the largest exporter of oranges in the world.

Tourism is also one of the most important elements of investment in Brazil. Brazil has huge foreign investments in this field, with investments amounting to about $ 74 billion. The Brazilian government is seeking to double this figure by actively encouraging investors by giving investors many privileges and tax cuts.

Other sectors attracting Brazilian investors include the industrial sector, which attracts 85% of investments, and the chemicals sector attracts 11% of investments.

 Work and investment in Brazil, tourism in Brazil

  • Arab investors in Brazil:

One of the most important Arab investors in Brazil is Joseph Safra, a Lebanese businessman and billionaire who emigrated with his father Yacoub Safra, a famous businessman to Brazil in the 1950s. He holds Lebanese and Brazilian citizenship and is the second richest man in Brazil. He is the owner of “Banco Safra” in the Brazilian city of Sao Paulo that considered the ninth largest bank in Brazil.

Work and investment in Brazil, Brazilian Arabic

 

  • Conclusion:

All of the above factors make Brazil a fertile ground for investment in many different areas, but it is worth mentioning that, despite the openness to global trade, there are some administrative barriers to global trade. Brazil's labor law requires foreign companies to spend large costs and this resulted in a significant spread of informal business activities in local markets. The state also prohibits foreign investments in many sectors such as insurance, aviation and media.


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