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Invest in Pernambuco STATES INVEST IN PERNAMBUCO Sponsor: Despite the economic crisis that challenges Brazil, Pernambuco has been working to secure its achievements. Between 2015 and 2016, we enabled 90 new private investment projects. In addition to the strategic location, we have a comprehensive policy of state incentives. Our attractiveness is reinforced by the investment in professional training that prepares our people through the network of state vocational schools and partners, so that the population is integrated to the new ventures. PAULO HENRIQUE SARAIVA CÂMARA GOVERNOR OF THE STATE OF PERNAMBUCO Pernambuco is the geographic center of the Northeast and stands out in the logistics sector. The Suape Complex, connected to the main shipping sea routes, is one of the best public ports in the country. Our airport connects to several countries and is the second best in Brazil. The Transnordestina Railway is going to connect us with several productive hubs. Promoting development in other areas away from Recife is one of the priorities of the government, which offers incentives for the ones who invest outside the metropolitan region. RAUL JEAN LOUIS HENRY JUNIOR VICE GOVERNOR OF THE STATE AND SECRETARY OF ECONOMIC DEVELOPMENT American Chamber of Commerce for Brazil - AMCHAM International Affairs Department Brazil, 2017/2018 *This guide is part of the project ACKNOWLEDGMENTS The American Chamber of Commerce for Brazil, being the largest Amcham outside the United States is serving its members building bridges for Brazilian businesses worldwide. Our foreign investment attraction efforts are a key mission for Amcham. The “How To” guides published by Amcham Brasil are part of this initiative. With the support of some of our members and Brazilian States and cities, we are putting together strategic information on the most various aspects of doing business in Brazil and its opportunities. As part of BRICS (Brazil, Russia, India, China and South Africa) and representing the 9th largest economy of the world, and the 6th largest destination for foreign investment, Brazil has an intrinsic importance for the global market. More than ever it is a strategic time for businesses opportunities in Brazil. We welcome you and hope that the information you are about to read will contribute to your commercial and investment decisions linked to Brazil. Deborah Vieitas - CEO, Amcham Brasil Between 2007 and October 2016, the state of Pernambuco managed to attract more than BRL 21.1 billion in investments that generated more than 85,000 jobs from the coast to the hinterlands, according to numbers from the Pernambuco Development Program (Prodepe). That allowed the state to grow at a yearly rate of 4.7% over a seven-year period, well above the national average for Brazil. The 497-mile radius around Recife covers seven of the nine state capitals in the Northeast region, six international airports, ten international ports, and accounts for 90% of GDP in the region. Pernambuco also boasts a strategic location, at a shorter distance from Europe, Africa and North America than most Brazilian states. Thirty industrial districts offer the infrastructure required for factories that generate jobs and development to local citizens. The state also stands out for its Services Hub, located in Recife’s Commercial District, which is comprised of industrial facilities, restaurants, tech companies, several universities and a cultural market. All of these ingredients make Pernambuco the perfect place to welcome new production and infrastructure investments, backed by a state government that is intent on generating a competitive environment and fostering a positive business environment. Jenner Guimarães Rêgo - CEO, Economic Development Agency of Pernambuco STATES CONTENT 01 INTRODUCTION: ABOUT PERNAMBUCO 06 02 HISTORY, CULTURE AND TOURISM 08 03 THE 12 DEVELOPMENT REGIONS 10 04 INFRASTRUCTURE 11 05 INTERNATIONAL ECONOMY AND TRADE 14 06 TAX INCENTIVES 18 07 EDUCATION 19 08 ENVIRONMENT AND RENEWABLE ENERGY 21 09 INNOVATION, RESEARCH & DEVELOPMENT AND BUSINESS HUBS 22 10 ABOUT OUR SPONSOR 28 01. INTRODUCTION: ABOUT PERNAMBUCO Known for its natural beauty, cultural diversity and The state features several development hubs that spread hospitable people, Pernambuco has been a major driver of from the docks to the hinterlands, supported by a modern economic growth for the Northeast and for Brazil, with a and bold public administration. Infrastructure projects total GDP of BRL 155.143 billion in 2015, according to the on-going have been generating new advances. Brazilian Institute of Geography and Statistics (Instituto Brasileiro de Geografia e Estatística - IBGE). Occupying The next few pages of this guide will help you learn an area of 38,000 square miles, the state attracts not only more about the state and understand why its outlook tourists but also investors from all over the world, due to is so promising to investors. Many have already been a fertile and diverse business environment. convinced of the benefits Pernambuco offers. STATES 06 Source: IBGE/CondepeFidem STRATEGIC LOCATION Source: Economic Development Agency of Pernambuco As noted by historian Manuel Correia de Andrade, strategic location makes it a perfect distribution hub for Pernambuco’s geographical position had already gained the entire Northeast region. worldwide recognition as early as in the sixteenth Its centrality in the region also works in its favor: seven century1: “Ships preferred the Pernambuco shore because other Northeastern state capitals are within a 497-mile it was the closest to Europe.” The state has almost 125 radius from its capital Recife. Together, these cities miles of coastline and is on the main sea and air routes and their 36 million inhabitants account for 90% of to North America, Africa and Europe. In addition, its regional GDP. 497 miles 7 state capitals 6 international airports 10 international seaports 36 million inhabitants 90% of Northeast GDP HOW TO INVEST IN PERNAMBUCO 1 - Book: “Economia Pernambucana no século XVI” 07 02. HISTORY, CULTURE AND TOURISM HISTORY, CULTURE AND TOURISM AS difficult problems. This is the reason why the state is BUSINESS OPPORTUNITIES home to so many cultural treasures as: the baião of Luiz Gonzaga, the folk poetry of cordel literature, the art of According to some historians, including Carlos Bezerra Mestre Vitalino and other local craftsmen, the different Cavalcanti, it was January 1500 when Spanish navigator types of music as maracatu, frevo, manguebeat and so Vicente Pinzón arrived at Santo Agostinho Cape, even many other cultural expressions. before Pedro Álvares Cabral, in what would be known as Land of Santa Cruz (Os Pioneirismos de Pernambuco, a A state filled with natural beauty, beaches from North capitania que deu certo). That was how started a new and to South, historical cities, listed heritage sites, one-of-a- exciting page of history for Pernambuco and for Brazil. kind regions and tours, from the coast to the hinterland. The opportunities in Pernambuco begin with the state’s Conquests and centenary struggles run through its historical roots, and continue with the new possibilities people’s blood. The spirit of resilience and innovation made feasible by economic and technological advances shines through in the diversity of a popular culture that to the services and skilled labor that only Pernambuco values adaptations and finding different solutions to natives can offer. STATES Source: Carneiros Beach. Flickr. 08 Source: Porto de Galinhas Beach. Flickr. Its rich culture and unparalleled natural beauty make from Brazil’s Ministry of Tourism, the state welcomed Pernambuco an extremely attractive destination for approximately 70,000 international tourists in 2015, 70% tourists from all over the world. According to data of whom were European. HOW TO INVEST IN PERNAMBUCO 09 03. THE 12 DEVELOPMENT REGIONS Over the last few years, development in Pernambuco participation to define priorities through local city hall has been promoted through a program known as “All for meetings held across the state’s 12 Development Regions Pernambuco”, which seeks to employ some management (RDs), aligning the strategic development of each region practices commonly used in private enterprise to the to its potential. The model has served as a benchmark for state’s public administration. The model also contains several Brazilian states, in addition to winning the 2012 mechanisms that allow for public consultation and United Nations Public Service Award. STATES 10 Source: Economic Development Agency of Pernambuco. 04. INFRASTRUCTURE LAND INFRASTRUCTURE promoting quality of life and economic development throughout the State. The attraction of new investments has allowed major projects to get underway, including the Transnordestina AIR INFRASTRUCTURE Railway, which will connect the Northeast’s leading production hubs: the Metropolitan Arc and the The Recife/Guararapes - Gilberto Freyre International Hinterland Channel. Airport has been chosen as the best Brazilian airport by a passenger survey. In 20152, the Recife terminal was The state has more than 30 industrial districts ready named “Aeroporto + Brasil”, the most prestigious award given by the Brazilian Civil Aviation Secretary. Currently, to welcome new ventures – 13 of which are located the Gilberto Freyre International Airport operates an in the Recife Metropolitan Region. Overall, the state average of 156 daily scheduled flights, between landings has 13.1 square miles of total area ready to welcome and departures. new businesses.
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