(PRWEB) December 04, 2012
As American companies struggle to make an impact in Brazil, Waseem Saddique, CEO of Housetech Developments, announces increased interest from European Countries to 'set up shop' in Pernambuco.
Waseem Saddique comments: “The reason for this is simple. European companies have identified the potential of a number of regions in Brazil, especially Pernambuco and other Northeastern states."
European companies, including: Fiat, Nestle, Novartis and around two dozen other European countries have, between them, invested a staggering $4 billion into the state of Pernambuco alone.
Whilst a number of American companies have invested in Pernambuco state, the level of investment has been somewhat less significant when compared with their European rivals. American companies such as Kraft, Alcoa, Pepsi and a further four high profile American organisations have invested approximately $244 million between them.
American companies have claimed that conducting business in Brazil is immensely frustrating, costly and incredibly time-consuming. They concede that, in order to thrive in the Brazilian economy, patience and a long-term investment strategy are the key criteria for survival in what’s considered a very competitive market.
Waseem Saddique identifies: “This is where the difference between European companies and American companies becomes obvious. European companies have concentrated their efforts on long-term investment opportunities, capitalising on the growth taking place in the Northeast of Brazil.”
Mr Saddique added: "In contrast American business owners relied heavily on short-term profits and their efforts focused on already saturated economic markets like Rio de Janeiro and Sao Paolo. Unfortunately for the United States, the ventures of their companies represent a missed opportunity.”
Between 2004 and 2011, both American and European countries invested in Pernambuco as they began to realise the potential for growth in the North-eastern state. Thriving sectors such as the tertiary sector, manufacturing, the Brazilian real estate market and the tourism industry all provided encouragement for international organisations to descend upon Brazil, especially the Northeast of the country.
Large companies, based in Europe, purchasing areas of land in order to construct new buildings needed to establish their business across the Pernambuco region and to expand their reach across Brazil. The Northeast region of Brazil has become an epicentre from growth and development.
Waseem Saddique comments: “Brazil’s Northeast is making progress towards closing the economic gap on the country’s Southern regions. Currently, Brazil’s Northeast is one big construction centre and it only looks set to continue ahead of major sporting events arriving in Brazil very soon.”