Middle East interest rises in Brazilian property

Middle Eastern interest in Brazilian property is rising, as the country's real estate become Shariah-compliant for the first time.

Shariah compliance is founded on the principle of "social justice" where companies are required to adhere to Islamic laws, which include prohibition of liquor, pork and vice, as well as fair and responsible trading practices.

Earlier this year, Brazilian property developer Ritz-G5 launched the first independent investment project to be compliant with Shariah law: a Natal-based premium residential project, Majestic Village.

"Having explored the possibilities provided by this region for the last two years, this certificate marks an important milestone for us," said Arun Rama, Managing Director of Ritz Property Investment Asia Pte Ltd.

"The regional Islamic finance market is very strong, and with our worldwide presence, our offering will enable us to tap a much larger funding pool."

Now, interest from Arab investors certainly appears to be on the up, with relationships between the two strengthening. Indeed, international tourist arrivals jumped 2.6 per cent to 27.4 million last year, with the number of passengers transported by Middle East airlines leaping 27.7 per cent.

One of the factors behind the growth was the FIFA World Cup, which central UAE carrier Emirates sponsored, flying over 18,000 passengers a day on flights to São Paulo and Rio de Janeiro over the course of the event.

Visitors from the region spent a total of US$2.7 million over the course of the month-long matches, with the UAE the highest spending nation, ahead of Saudi Arabia and Qatar.

Luiz Fernandes, CEO of Ritz-G5, says they have also noticed a rise in the number of visitors from the Middle East. 

"Many savvy business people from the region are recognising the plentiful investment opportunities in the country. The key is investing with an established company that develops projects of the highest standards and this is precisely what Ritz-G5 prides themselves on."

Recent figures from UNWTO showed that outbound tourism levels from the Middle East were rising in 2014 and rising fast - in the eight year period between 2005 and 2013 there was a standout increase of 41 per cent in the number of tourists from Middle Eastern countries making trips overseas.

Secretary General and CEO of The Arab-Brazilian Chamber of Commerce (ABCC), Dr. Michel Alaby, hopes this will only continue to develop further: £In the future, we hope to see a large segment of Brazil's international tourist arrivals coming from the Arab World and vice versa. This is achievable through continuous cooperation and collaboration among concerned authorities and organizations from the region and the country.£