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Brazil Foreign Investment emerged in various industry sectors

 

Foreign Direct investments are very pivotal in Brazil’s industrialization and development. Friendly government investment policies and a large domestic market are at the forefront of this economic boom. Brazil’s foreign investment focus tends to lean towards a capital and technology-based production and service economy. Its liberal economic policies towards foreign investment enables her attract more FDI, creating employment and overseeing the gradual modernization of the economy that has subsequently seen the rise of Brazil as a current emerging super power. It is one of the main recipients of FDI in the developing countries.

 

However, reports have suggested that Brazil still finds it difficult to attract foreign investment on high technology. Special incentives are available for investments in the mining, tourism, fishing, reforestation and ship building projects. Brazil’s foreign investment largely continues to come from the US and the EU states. The real estate industry is experiencing a boom currently in the country. The North East of the country has emerged as a potential zone for investments in property. The infrastructural development of the country is a great avenue for foreign investment as it’s largely insufficient. Construction companies have certainly taken the lead and are doing big business.

 

Amongst the various investment market segments, land and real estate property are being touted as the best providers of investment opportunities in an emerging market. Real estate currently offers competitive prices that have attracted lots of both foreign and local investments. Other market leaders like the production sector have witnessed foreign company acquisitions and mergers. The services sector has grown tremendously. Brazil’s only undoing is the presence of the state in virtually everything. The delivery of services remains some how poor, even with a growing and productive service industry.

 

Nevertheless, Brazil has itself increased exports to new markets such as the UAE. Furniture exports have hit an all time high thanks to efforts to promote foreign outward investment by the Brazilian Agency for Export and Investment Promotion. The lumbering sector experienced marked economic boom with exports of the different types of wood increasing consistently. Importers from the UAE have made inroads into the Brazilian lumbering industry with sales of furniture going up.

 

All in all, sectors such as the energy sector have remained crucial to development. Investments in clean energy have attracted Brazil foreign investment. Investments in wind power, ethanol production amongst other clean energy forms are at the core of these investments.

 

6 May 2010