Portugal, a small yet historically trade-driven country, has long enjoyed strong ties with the Middle East, especially the Gulf region. The connection goes beyond mere economic relations; it reflects a shared history of mutual respect and collaboration rather than exploitation, as seen in some other commercial partnerships with these nations. Today, Portugal continues to cultivate partnerships based on equity and respect, focusing on sustainable investments and shared development goals.

During their visit, the delegation held key talks with officials from Abu Dhabi and Dubai, including representatives from Saudi Arabia, discussing investment opportunities and financial cooperation. A major development highlighted was the intention to form a “strategic partnership” with Saudi Arabia for co-financing projects, primarily through the Banco de Fomento, Portugal’s public development bank. This partnership would not only involve funding for projects in Portugal but also for Saudi and Emirati investors exploring opportunities within Portugal.

This is a strategic move to diversify Portugal’s sources of investment, moving beyond the traditional European and domestic avenues. By focusing on Middle Eastern sovereign funds and institutional investors, Portugal is positioning itself as an attractive partner in the global marketplace, particularly in sectors like logistics, infrastructure, and renewable energy.

The interest from Saudi Arabia is particularly notable in sectors such as port concessions and solar energy parks. The government of Portugal has recently signaled plans to extend the duration of port concessions to 75 years and to enhance its strategy for logistics infrastructure, including expanding port capacities in Leixões, Sines, and Figueira da Foz. These initiatives have caught the attention of Saudi investors looking to strengthen their portfolios in the logistics sector, recognizing the potential for long-term growth in this area.

Beyond infrastructure, Portugal’s pharmaceutical and agro-industrial sectors are also attracting attention. There is a growing interest from the UAE in Portuguese agro-food innovations, which could offer new opportunities for export, and potential partnerships in pharmaceutical research and production. This broadening of investment opportunities reflects Portugal’s effort to build a diversified and future-proof economy.

In conclusion, the strengthening of economic relations between Portugal and the Middle East reflects a forward-thinking approach to international partnerships. By tapping into new global markets for investment and co-financing, Portugal is ensuring that its economy remains competitive and resilient, while also contributing to global development through collaborative partnerships. This strategic approach demonstrates Portugal’s ability to evolve its historical trading ties into modern, mutually beneficial collaborations that extend well beyond simple commerce.

Author

Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.

Paulo Lopes