Alagoas is a tiny state, located in the northeastern regions of Brazil. The state lies between the states of Pernambuco and Sergipe. The city of Maceio is the capital city of Alagoas. The city is known for its beautiful tourist attractions and good seafood. As per the IBGE census of 2007, there were about 3,057,000 people living in the state. More than 65% of the state’s population is concentrated in the urban area. The state has a good mix of people from different ethnic and racial backgrounds living together.
The state plays a crucial role in contributing towards the national economy of Brazil. The state accounts for about 0.7% of the total GDP of Brazil. The economy of Alagoas is largely dependent on the service sector, which accounts for 55% of GDP. The next major component contributing to the GDP is the industrial sector - it accounts for 37% (approx). The state also has a significant agricultural sector; it represents about 7% of the GDP. The state also contributes significantly to the exports of Brazil. Sugar, tobacco, chemicals and alcohol are the leading goods that Alagoas exports.
Over the years, the economy of Alagoas has been largely dependent on the agricultural sector. The state has a large sugarcane plantation and much tobacco farming. Tobacco farming is mainly concentrated in the city of Arapiraca. Sugarcane is grown extensively, mainly for producing sugar and alcohol. Though sugar is produced on a large scale in the state, it still has a plenty of scope for increasing the productivity. Thus, foreign investors can invest in producing or processing of sugar. Investing in production of alcohol from sugarcane also promises profitable returns.
The tourism industry in Alagoas is also on the rise. The beautiful beaches and the coconut palm plantation have been major factors for pulling in large number of tourists in the state. Tourism is particularly prominent in the coastal region of north Alagoas, in towns like Japaratinga and Maragogi. Foreign investors can consider investing in the tourism sector of Alagoas. Foreigners can invest in building resorts, hotel accommodation facilities, beachside villas, etc.
The rising tourism, the overall development of the Alagoas economy, the decrease in the rate of land and properties…all these factors have been crucial in increasing the number of immigrants coming to the state. As a result, the real estate industry has witnessed an upsurge. Thus, there is great opportunity for foreign investors to invest in the real estate sector of Alagoas. Investors can invest in constructing residential and commercial buildings.
Alagoas has the second largest natural gas reservoir in the country. The state produces about 917 million cubic meters of oil. However, there is great scope for extraction of oil. Hence, foreign investors can consider investing in the natural gas and oil sectors as well.
Advantages of Investing in Alagoas: