Major investors in Porto guarantee an economy with a sustainable impact

If the results of investing in a consistent strategy to attract large companies were already visible, they have now been proven. The conclusions of a study on Porto Leading Investors, the programme that brings together companies and investors that have been contributing to the city's economy, present it as 'a powerful lever for the country's economic and social development'. 26,000 jobs were created and EUR 222 million were invested in Porto over four years and the future is still growing.

Talent. Technology. Tolerance. From the point of view of the Councillor for the Economy, Employment and Entrepreneurship, these are the main factors attracting foreign direct investment (FDI) to the Porto region.

'We know the factors that determine the success of FDI attraction policies, and it is essential that we are all clearly aligned so that they can be sustained and leveraged as a strategy for the country's economic and social development',Ricardo Valente underlined at the presentation of the Porto Leading Investors impact study, this Thursday morning, at the Soares dos Reis National Museum.

Considering the political, economic, legal, technological, but also social and cultural factors that characterise Porto and the region, the Councillor sees the results of the study as 'significant in terms of added value creation, investment in research and development, a reduced ecological footprint, a strong export drive and the creation of qualified jobs'.

However, he adds, 'it is essential to recognise that there are challenges to be faced'.

In Ricardo Valente's own words, the economic, social and environmental impact of Porto Leading Investors can be amplified in two distinct but complementary ways: 'by supporting the consolidation and expansion strategies of the companies already included in the programme, and by attracting new companies through the promotion of a dynamic and competitive business ecosystem'.

It will be the 'strategies of offering a high quality of life, a challenging innovation environment, and the creation of mobility and housing conditions' that will make this ambition a reality.

EUR 2,073 million impact on national production and 26,000 jobs created

Taking into account the direct, indirect and induced impacts of the activity, the study reveals that, in four years, the 43 companies that make up Porto Leading Investors have invested EUR 222 million. In 2022 alone, where data are reported, the impact on national production was EUR 2,073 million and EUR 1,166 million on Gross Value Added (1% of the national total), which translates into EUR 15 generated for every euro invested.

In terms of tax revenue, the impact is EUR 209 million, and the impact on household income is 715 million. In terms of employment, there were 25,731 new jobs.

It's important to highlight that 65% of these companies' suppliers are national, that 88% of their activities are in the area of innovation and that 44% of these investors offer products or services with a direct positive environmental impact.

When compared to the national average, the group of companies outperforms on several parameters: in labour productivity (up 4%), in the intensity of value creation (up 23 percentage points) and in innovation activities (up 40 percentage points).

Besides economic values, the study also shows a 'clear commitment to ecological values', with the products and services developed by 44% of Porto Leading Investors having a significant positive environmental impact.

In addition, 79% of companies develop social initiatives in the community and half use social criteria when selecting their suppliers.

For the future, the group of companies currently included expects to grow by 14%/year until 2026, in terms of the number of jobs created.

The presentation of the study's results was also the opportunity for a round table discussion on the attractiveness of Porto in terms of FDI. Pedro Sousa Rodrigues acknowledged that the city 'has managed, in recent years, to present itself well abroad', highlighting the strength of the 'Porto' brand and that the main factors that bring investors to the city are talent and quality of life. Despite the 'negative external shock', with the decrease in international investment, the advisor to AICEP's board of directors emphasises that 'Porto continues to enjoy interesting demand'.

Maria Moura Oliveira highlighted the fact that '16% of the companies that make up Porto Leading Investors were connected to UPTEC', which is confirmation that 'we have talent and technology capable of rivalling the international ecosystem'.

For his part, João Maia, director-general of the Portuguese Footwear, Components, Leather Goods Manufacturers' Association, pointed out that the footwear sector 'was one of the first to attract foreign investment', which helped its development, and that 'some of those investors are still here and reinvesting'.