Portugal strengthens appeal to foreign investors with €22bn project pipeline

Portugal is reinforcing its reputation as one of Europe’s most attractive destinations for foreign investment, with government figures revealing a pipeline of 85 foreign direct investment (FDI) projects worth more than €22 billion and a growing international profile in sectors such as technology, artificial intelligence and data centres.

Speaking in Parliament, Economy and Cohesion Minister Manuel Castro Almeida said the Portuguese Trade & Investment Agency (AICEP) is analysing 85 foreign investment projects with a combined value exceeding €22 billion.

The minister highlighted what he described as Portugal’s increasingly favourable image abroad, arguing that the country is benefiting from a reputation for political, economic and social stability.

“We are on the right path with foreign direct investment and very confident because Portugal’s image abroad is highly favourable to investment,” Castro Almeida said. “Portugal enjoys a good reputation and is considered a country with political, economic and social stability that is friendly to investment.”

According to the minister, 2025 recorded the highest value of investment contracts signed through AICEP since the arrival of Autoeuropa, one of Portugal’s most significant industrial investments.

The figures come as Portugal continues to improve its standing among international investors. The latest EY European Attractiveness Survey ranked Portugal as the ninth most attractive investment destination in Europe, with 186 FDI projects announced in 2025.

The country also ranked eighth in Europe for job creation linked to foreign investment, generating 11,591 new jobs.

Particularly noteworthy was Portugal’s performance in future-focused sectors. The EY survey placed the country among Europe’s top five destinations for FDI projects related to artificial intelligence and data centres, underlining its growing role as a hub for digital infrastructure and emerging technologies.

Analysts point to a combination of factors behind the country’s success, including its strategic Atlantic location, highly skilled workforce, expanding technology ecosystem and strong credentials in sustainability and renewable energy.

The government believes further growth can be achieved by tackling one of the biggest complaints among investors: bureaucracy.

Castro Almeida pledged a “profound reform” of Portugal’s licensing system before the end of the current legislature, promising to simplify procedures for businesses operating across industry, tourism, commerce, services and hospitality.

“We are preparing a deep reform of the licensing regime,” he said. “This war on bureaucracy has one objective: reducing deadlines, eliminating uncertainty and lowering costs for those who want to invest and create wealth.”

The planned reforms include a unified digital platform allowing companies to submit applications through a single process, while different branches of the state coordinate internally.

The minister also highlighted support mechanisms provided by the Portuguese Development Bank, saying state-backed guarantees helped reduce borrowing costs for businesses and encouraged productive investment.

Alongside investment promotion and administrative reform, the government is prioritising innovation and closer collaboration between universities and businesses, with the aim of increasing productivity and creating higher-value economic activity.

With record levels of investor interest, a strong international reputation and a pipeline of major projects under consideration, Portugal appears well positioned to strengthen its role as one of Europe’s leading destinations for foreign investment.

Source: ECO, EY