Investing in Ceará

canoa beach

The state of Ceará is located in the northeast of Brazil, along the Atlantic coast. Ceará is blessed with 573 km of coastline and a pleasant climate throughout the year. 

A number of factors make Ceará a particularly good region for a Brazilian investment:
  •  Ceará is one of the fastest growing states in Brazil, with GDP increasing 7.9 percent in 2010.
  •  Ceará's principal city, Fortaleza, Brazil's closest major city to North America and Europe.
  •  Famous for its beaches, Ceará is experiencing rapid development of its tourism centers.
  •  Ceará is the location of large-scale infrastructure and industrial development, particularly at the port expansion and industrial complex at Pecém. 
  •  Ceará is increasingly becoming the commercial hub for the entire northern region of Brazil.


Pecém Port and Industrial Zone

pecem cranes

While picturesque beaches make Ceará one of Brazil’s most popular tourist locations, the state is also becoming a major center for the energy industry. With the ongoing expansion of the port and industrial zone at Pecém, Ceará is also becoming the major transit point for goods traveling to and from northern Brazil.
 
  • The port has initiated a phased expansion that will last through 2016, with an investment of approximately $1.2 billion into the port facilities.
  • The first of two new 360-megawatt coal-fired thermoelectric plants is scheduled to come online in July 2011, with the second starting operation in January 2012. The $1.6 billion
  • Investment will bring eight thousand new jobs to the area. With the new power facility starting operation this year
  • Petrobras is building a new refinery at a cost of $11 billion. Work is scheduled to complete in 2014, providing 90,000 new jobs, mostly in Ceará.
  • Companhia Vale do Rio Doce is building a steel slab plant in cooperation with two major Korean companies Dongkuk and Posco. Due to start operation in 2014, the steel plant will cost approximately $6 billion, and will grow to capacity of 6 million metric tons of output per year.
  • Several other large corporations are developing new facilities in Pecém with investment levels in the billions, including, Mitsubishi Heavy Industries, Votorantim Cimentos, Transnordestina, and Pilar-Ipojuca. 
  • In Caucaia, located between Fortaleza and Pecém, the local government is working with local business to invest $170 million to build a retail and commercial center, Cidade do Atacado (Wholesalers’ City). The center is due for construction in 2012.
 
On the basis of already-committed infrastructure investment, the areas around Fortaleza and Pecém are sure to experience robust, sustained growth through the next decade. At MDMY Investment, we think this story is compelling due to the size and the predictability of future large-scale investments into local industrial infrastructure.


jericoacoara sunrise
 

Tourism in Ceará

Ceará is Brazil's number one domestic tourism destination. Most tourists are attracted to the beach areas, which are divided into the Sunset Coast (Costa do Sol poente) north of Fortaleza, and the Sunrise Coast (Costa do Sol nascente) to the south. 
 
Leading up to the 2014 World Cup, the government is committing $6 billion to develop tourism centers and transportation systems. Plans include doubling airport capacity to 9 million passengers per year, a new $135 million aquarium in Fortaleza, and a $30 million renovation of the Fortaleza boardwalk. 
 
While Ceará has long been a popular domestic tourist destination, during the past decade it has also become one of Brazil's principal attractions for foreign tourists. Over 80 percent of tourists visit the state's coastal areas, including Fortaleza beaches, Cumbuco, Canoa Quebrada,  Morro Branco, Jericoacoara, Porto das Dunas, Lagoinha, and Taiba. 
 
The number of tourists is growing rapidly, as demonstrated by the 20% increase in arrivals at Fortaleza's airport during the past year. Ceará's tourism areas are experiencing a highly beneficial combination of government spending to upgrade infrastructure, a growth in number of visitors, and a growing middle class that has a larger quantity of disposable income. This combination creates a range of excellent opportunities for investment in properties or businesses.