Brazilian investments in Portugal have grown but still remain below potential, representing approximately 4% of total foreign investments as of early 2024. Key areas for collaboration include the startup ecosystem and the tourism sector. AICEP aims to enhance understanding and support for Brazilian investors to further boost investment levels, fostering a more robust economic relationship between the two countries.
Brazilian investments in Portugal have experienced substantial growth, yet remain below potential due to the nations’ shared cultural and historical ties. Insights from Paulo Rios of Portugal’s Agency for Investment and Foreign Trade (AICEP) indicate that while Brazilian investments surged to approximately 176 million euros between 2015 and 2021, they currently represent only 4% of Portugal’s total foreign investments. This figure has grown by an annual average of 12%, positioning Brazil as the second-largest investor nation outside of Europe, just behind the United States.
Recent data shows that Brazilian investments reached 5.3 billion euros in early 2024, reflecting a 10% increase from the previous year. However, the full potential of these investments remains largely untapped. A significant area for collaboration lies within the startup ecosystem, where Brazil’s dynamic startup culture aligns with Portugal’s innovative environment, offering ample opportunities for testing new products before venturing into the larger European market.
Additionally, Brazilian investments in the real estate and hotel sectors are notable, particularly as Portugal’s tourism industry continues to flourish, gaining international recognition. Cities such as Lisbon and Porto boast robust tourism infrastructures and attract millions annually. However, Brazil’s underutilized resources in the tourism sector highlight the potential for exciting future collaborations.
Furthermore, large-scale investments, exemplified by Embraer’s involvement in the aviation sector through its significant stake in the Portuguese company OGMA, showcase the willingness of Brazilian firms to strengthen connections with Portugal. These investments not only enhance the presence of Brazilian businesses within Europe but also contribute valuable expertise to the Portuguese market.
Despite this growth, AICEP seeks to heighten the influx of Brazilian investments by fostering mutual understanding and closer business relationships. While a shared language provides a foundation, the focus must pivot to educating Brazilian investors on local opportunities and offering adequate support to facilitate growth.
AICEP plays a critical role in guiding Brazilian investors from exploration through to deal finalization. For companies aiming to expand into Europe, Portugal serves as an appealing gateway, especially due to its favorable regulatory climate and strategic access to the European market.
In summary, Brazilian investors hold significant opportunities within the Portuguese market across various sectors, including real estate, hospitality, startups, and technology. Now is the opportune moment for Brazilian enterprises to engage with Portugal as a key partner in their European expansion efforts. By leveraging cultural and economic ties, both nations can achieve success and strengthen their economic relationship going forward.
Brazilian investments in Portugal are on an upward trajectory, but there still exists untapped potential for expansion across various sectors. The focus on startups, real estate, and technology, allied with strategic support from AICEP, underscores the growing collaboration between the two nations. As Brazilian companies increasingly consider Portugal a pivotal partner for European expansion, the synergy forged through their shared ties can lead to mutual success and a fortified economic relationship in the future.
Original Source: www.theportugalnews.com
