Good Reasons to Invest in Portugal

1. A Qualified Workforce:

In 2010, 77.800 people graduated from Portuguese universities, 30% of whom in

technological areas. In secondary education enrolment, the Global Competitiveness

Report 2011-2012 (World Economic Forum) ranks Portugal 13th

out of 142 countries.

Portuguese students have an excellent knowledge of foreign languages. English is

mandatory in primary school since 2009. According to the National Statistics Institute

(INE), 20% of highly qualified Portuguese workers have foreign languages degrees.

English, French, Spanish, German and Italian are the top five foreign languages

studied in Portugal.

2. Competitive Costs

Labour costs in Portugal are lower than in most European countries. The

minimum wage in 2011 was 565€ per month, with a 14-month base salary per year.

The average growth rate for labour costs in the last 4 years was 4% in Portugal and

11% in eastern European countries.

The price of both electricity and gas in Portugal for industrial consumers is below

the EU average (at 27):

Figure 1: Students enrolled in higher education institutions by field of

study, 2011

Portugal is one of the countries with lowest office and industrial space rent prices

per sq.m.. For example, Lisbon is the 8th

of 53 towns around the world with the lowest

industrial space cost. In Oporto, the second biggest city, this cost is further reduced by

25%.

3.Physical

infrastructure:

Portugal has six

international airports (four in

the continent and two more

in the islands). Oporto

airport has been considered

in 2011, by the Airports

Council International one of

the best three European

airports. Two of the five

Portuguese ports, have

international capacity

(Lisbon and Sines). Sines is

the first deep-sea water port

that the Post-Panamax

Vessels find on their way to

Europe coming from Asia

through Panama. According

to the OECD, Portugal is in

the top 3 European countries

with the longest motorway

per capita and also has a very

extensive railway network connecting the most important cities in the country.

3. Technological infrastructure:

According to the ITIF (Information, Technology and Innovation Foundation),

Portugal ranks 9th

out of 30 countries in terms of lowest broadband price. More than

90% of Portuguese companies have broadband connection. Coverage is spreading at a

rate of 24, 5% across the country. Portugal is the European country with wider DSL

coverage - around 95% of the country enjoys total DSL coverage - and 90% of public

services are already online. In May 2011, Portugal has been awarded by the United

Nations Public Services first prize in the “Improving Delivery in Public Services”

category. More than one million users in Portugal are already connected by Next

Generation Network (NGN).

4. Business Friendly Environment

The excellent technological infrastructure available in Portugal makes it a very

good place to set up a business. Portugal has been considered by the UN a case study

in “e-government” and has created procedures to register a company in less than one

hour and to do it online.

Portugal is ranked 2nd

in the Migrant Integration Policy Index, 2011, an indicator

of its openness to foreign cultures. Combined with the high number of international

schools and the excellent quality of life, this contributes to attract expatriates from all

over the world.

5. Geographical Location

Portugal has a strategic geographical location, at the intersection of the

Atlantic Ocean, the Mediterranean and the North Sea. Portugal can be a strategic

business platform between the Americas, African countries and Northern Europe.

Portugal has privileged relations with Portuguese speaking countries, present in four

different continents and representing a 250 million people market.

Figure 2: Technological availability in Portugal

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6. Quality of Life

Portugal is an excellent place to live. It is safe, with a sunny climate,

environmentally responsible, rich in leisure and culture, with high quality healthcare

and education facilities. In terms of quality of life for employees, Lisbon is ranked

14th

out of 34 cities (European Cities Monitor 2009).

Among the sites inscribed in the World Heritage List of UNESCO, 13 are located

in Portugal.

Image 1: Portugal’s privileged geographical position

Some Key Sectors

Aeronautic and automotive sectors have been considered strategic for the

Portuguese economy, receiving close attention by Portuguese decision-makers and

entrepreneurs in recent years. Portugal is involved with several institutions and

programmes focused on R&D for the aeronautics sector. EMBRAER, one of the

world’s biggest aeroplane manufacturers, is setting up in Portugal two new production

centres. A wide range of aircraft components are manufactured in Portugal: there are

around 140 companies in this sector comprising 7 000 jobs and a turnover of 680M€.

The automotive industry had a production volume of 160.000 vehicles in 2010.

In the past 15 years the auto components industry has grown by more than 200% with

a turnover of more than 6 billion Euros in 2010 and is now one of the main export

sectors of the Portuguese economy.

Renewable energies are another important sector. Portuguese climate is very

favourable for the production of four major types of renewable energy: wind, solar,

water and earth. Objectives, especially for the first three types of energy production,

are very ambitious. Portuguese companies are working towards the achievement of

the following targets:

Growth from 2.500 MW of energy produced from wind in 2008 to

8500 MW in 2020;

Image 3: Automotive industry in Portugal

Image 2: Aeronautic industry in Portugal

Implementation of 10 hydro projects of the National Hydro Plan, in

order to reach the production of 8.600MW of energy from water;

Reaching 1500 MW of solar energy in 2020, from a baseline of only

150 MW in 2010.

The ultimate goal is the creation of an industrial cluster of renewable energies.

The first world prototype of a floating wind turbine has been mounted in Portugal

in 2011. This project is essential to launch the so-called “Sea Economy” in Portugal,

since these types of turbines are the only way to produce wind energy in deep waters.

Installing wind mills in the ocean will preserve landscapes, natural reserve parks and

reduce the visual impact of the turbines.

Agriculture and mining are another two sectors in which it is well worth to

invest.

The Portuguese Mediterranean climate is excellent for agriculture, allowing two

crops a year. In the Alentejo region, Portugal has the biggest artificial water reservoir

in Europe, the Alqueva, offering a wide range of opportunities in agriculture and

farming. The Alqueva irrigation area is, currently, 164 000 ha, but the Global

Watering System of Alqueva, which is being developed, will increase it by 110 000

ha.

Image 4: Some of the most ambitious Portuguese projects in the energy sector

Image 5: Floating Wind Turbine

This modern and wide irrigation system makes this region ideal for the

production of high quality meat and milk, as well as for vineyards, olive groves and,

in some cases, fruit and vegetables. This region is strongly indicated for investing in

agro-industry.

Portugal has a long tradition in mining and a well established legal structure in

this sector. A complex and diversified geology endows Portugal with a considerable

mining potential, with a considerable number of ore, industrial and ornamental stone

deposits. The main products extracted from Portuguese mines are copper, zinc and

lithium, but they are also rich in gold, uranium and magnesium.

In the National System for Geo Scientific Information On-line Database, a wide

range of information is available, including technical reports and business

opportunities.

In a nutshell, mining investment in Portugal is supported and protected by good

legislation and a pragmatic and patient approach with respect to project development

and benefits from well organized and comprehensive sources of information.

Image 6: The Irrigation System of Alqueva, in the Alentejo

Image 7: Mines and extraction infrastructures in Portugal

ICT

The Information and Technologies Sector has been growing considerably for the

last few years. It already represents 4% of the Portuguese GDP comprising currently

around 14.600 companies and almost 80 000 jobs. Two products developed by

portuguese technology are the ATM system, the most advanced in Europe, and the

Via Verde, a payment system processing over 500 000 transactions a day, which

offers great speed and convenience in highway tolls, fuel filling stations and parking

facilities.

Some of the most important international players in this area, operating in

Portugal:

Business Services

This sector already has a turnover 1.3€ billion and represents 1% of the

Portuguese GDP. Portugal is currently among the top 11 countries as the best

worldwide destinations to establish outsourcing activities either in offshore or

nearshore, according to Garner Consulting, 2011. Lisbon has been recently considered

a hotspot for the development of SSC’s activities.

Some of the most important international players in this area, operating in

Portugal: