New Report: Portugal Ranks Among the World's Top Six Nearshoring Investment Destinations as Its Competitive Edge Shifts from "Low Cost" to "High Value"
International real estate consultancy Savills has released its 2026 Nearshoring Index, ranking Portugal sixth among 54 countries worldwide and among the top three in Europe. The report highlights Portugal’s growing role as a preferred destination for international companies seeking to establish new production capacity and strengthen their supply chains.
According to the report, amid global supply chain restructuring, rising geopolitical risks and an increasingly uncertain international trade environment, companies are no longer selecting investment destinations based solely on production costs. Instead, factors such as supply chain resilience, business environment, infrastructure and long-term sustainability have become increasingly important.
Business Location Criteria Are Evolving
Traditionally, Portugal attracted manufacturers and export-oriented businesses thanks to its competitive labour costs, strategic location and close integration with the European Union market.
However, the latest research suggests that as global supply chains continue to evolve, companies are placing greater emphasis on nearshoring—relocating production and supply chains closer to their key markets in order to reduce supply chain risks and improve operational efficiency.
Within this context, Portugal is gradually building a new competitive advantage based on its political stability, mature legal framework, modern infrastructure and highly skilled workforce.
Energy, Technology and Data Centres Emerge as Key Growth Sectors
The report identifies renewable energy, data centres, telecommunications infrastructure, artificial intelligence, logistics and advanced manufacturing as some of the sectors with the strongest investment potential over the coming years.
These industries require reliable energy supplies, advanced digital infrastructure and strong international connectivity, aligning closely with Portugal’s ongoing investments in the energy transition, digital economy and large-scale infrastructure development.
Analysts believe that as more international companies seek to build resilient European supply chains, Portugal is well positioned to benefit further from the global nearshoring trend.
Rising Investment Appeal
The report also notes that Portugal’s growing international profile will inevitably bring increased competition.
Market observers argue that maintaining Portugal’s attractiveness for high-quality investment will require continued improvements in industrial land availability, faster permitting procedures, expanded energy infrastructure and the development of a workforce equipped to meet the needs of emerging industries.
According to analysts, the latest ranking reflects a broader shift in how international investors perceive Portugal. Whereas the country once competed primarily on cost, it is now increasingly recognised for its skilled talent, green energy, modern infrastructure, strong connectivity to European markets and stable investment environment—qualities that are becoming key drivers of long-term international investment.
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