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Portugal is the 4th most open country for FDI
OECD, FDI Regulatory Restrictiveness Index 2023
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Investment
Open Economy
The Portuguese economy is open, diversified, innovation-driven and focused on the global market.
International Benchmarking
Portugal is an open economy and a business-friendly location.
As one of the oldest nations in Europe with stable borders, Portugal has a politically stable environment with a democratically elected parliamentary government and is welcoming foreign business and investment.
High-value, diversified economy
Over the past decade, Portugal has grown into a diversified and service-based economy, increasingly oriented towards technology and innovation.
Manufacturing industries are undergoing significant transformation and investing strongly in disruptive solutions to increase their competitiveness: the automotive sector, aeronautics, automation and robotics, pharma and medtech, and renewable energies are just a few examples. On the other hand, traditional industries like textiles, footwear, agri-food and building materials, have turned into high-value businesses, blending tradition and innovation to provide sustainable high-tech products.
At the same time, more and more international companies from various sectors are expanding their competence centres to Portugal, many of them specialised in high value-added activities, such as software development, data management, cloud, blockchain, cyber security and artificial intelligence.
Focused on the global market
Portugal’s international outlook and growing participation in global production chains have played a key role in the Portuguese economy.
In 2022, national exports represented 50% of GDP, and Portuguese products and services are becoming internationally recognised for their quality, design, environmental concern and differentiation.
Among Portugal's main exports are tourism, machinery, motor vehicles and transport equipment, business services, common metals, mineral fuels, plastic and rubber, agricultural products and chemicals. The country’s top export markets include Spain, France, Germany, the UK, U.S., Netherlands, Italy, Belgium, Ireland and Brazil.
Attracting FDI
As a business-friendly country with a welcoming culture and internationally recognised talent, Portugal is considered a top destination for foreign direct investment (FDI).
Over the last 5 years, Portugal registered the 3rd highest growth rate in number of FDI projects – a whopping 40% - strengthening its position at the Top 10 preferred locations for investors, according to the latest EY Attractiveness Survey – Portugal. Currently, the main investing countries in Portugal are the U.S., Germany, France, the UK and Spain.
Portugal is also listed on the Kearney FDI Confidence Index 2024, ranking among the top 25 countries worldwide, and was considered the 4th most open country for FDI in the OECD's FDI Regulatory Restrictiveness Index 2023, in a total of 104 countries.
Portugal’s pro-business policies have supported this upward trend in foreign investment. Reflecting the country’s actual degree of integration and openness into the world economy, Portugal entered into several Bilateral Agreements and Conventions with different countries and supranational entities.
