By Sergio Goncalves

LISBON (Reuters – Portugal has nearly doubled its investment in export-focused projects since the start of the pandemic, according to the head state agency that promotes investments and exports.

AICEP offers tax breaks as well as other incentives for investment and exports. 2.68 billion euros (or $3.05 billion) was attracted by such investments “with high added value” and “innovation”, following 287 millions euros in 2020.

Luis Castro Henriques is the chief of this group. He said that investors had shown no concern about Portugal’s political stability before a snap election in January. This was after Parliament rejected the budget bill by the Socialist minority government for this year.

The previous record for investments in 2019 was 1.17 billion euro, which was before the outbreak of coronavirus.

AICEP was unable to travel with executives due to the pandemic. AICEP used online contacts extensively and attracted investments of 97 in 2021. Foreign companies accounted for around 80% of funding.

Castro Henriques stated, “These numbers prove that Portugal is highly competive as we are capturing investments in an open worldwide competition.” He also pointed out that money was regularly coming from sources like South Korea or the United States to complement European investment.

These projects include a South Korean wind-turbine manufacturer CS Wind’s metalworking facility, a BorgWarner (NYSE) production line that produces components for electric vehicle engines, and many others from the aerospace, automotive and pulp and paper sectors.

AICEP offers incentives, tax breaks, and loans from European Union cohesion fund to only export-oriented companies.

AICEP’s most recent five-year incentive plan is expected to support projects that add more than 2% GDP and thousands of new jobs.

($1 = 0.8842 euros)