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# Business in Lisbon: opportunities for British companies in Portugal
## A former port of empire, Lisbon's historical trading links with Britain
have fuelled a strong exports market, writes Paul Bray.
![Lisbon's dramatic memorial to explorer Vasco da Gama ][1]
Thriving: Lisbon's dramatic memorial to explorer Vasco da Gama
11:53AM BST 08 Apr 2010
Your starter for ten: a cosmopolitan Atlantic seaport now reborn as a
financial and services centre, a former European Capital of Culture, and home
to a pair of diehard soccer rivals. Begins with 'L'. Liverpool?
![Lisbon's historical Rossio square][2]
Warm welcome: Lisbon's historical Rossio square
It could just as easily be Lisbon - a fact worth pondering if you watched
Liverpool FC and Lisbon's Benfica battle it out in their second-leg UEFA
Europa League quarter-final tie.
It's also worth pondering if you're a business seeking markets and expertise
in Europe and beyond. Trade between the UK and Portugal is worth roughly €2
billion a year in each direction.
The UK is the fifth-largest exporter to Portugal, with road vehicles,
pharmaceuticals, fuel, drink and industrial machinery among the British
merchandise the Portuguese can't seem to do without.
Much of it ends up in the Lisbon region, home to more than one in six of
Portugal's 11 million people, as well as central and local government and an
army of financial services and hi-tech firms.
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The number of UK companies approaching the British-Portuguese Chamber of
Commerce in the city has doubled in the last two years, says the chamber's
research officer, Claudia Vidreiro - perhaps because the recession hasn't
bitten as deeply in Portugal as in many of her European neighbours.
But Lisbon's trading links with Britain go back centuries, and a number of
leading UK firms already have a major presence there, including
GlaxoSmithKline, Barclays and BP. Logica recently opened an innovation centre
in the city, and Arup is working on the master plan for Lisbon's new airport,
due to open in 2017.
Another major transport project will be the planned €8.2 billion high-speed
rail link between Lisbon and Madrid, while the Portuguese government recently
announced a €21 billion renewable energy programme including large-scale wind
farm and hydroelectric projects.
Telecommunications are being upgraded to fibre-optic, and major investment is
planned to improve schools and hospitals.
It all adds up to a lot of enticing opportunities for UK firms in the
engineering, construction, transport, energy and telecoms sectors, to name but
a few, says Renata Ramalhosa, head of the Foreign and Commonwealth Office's UK
Trade & Investment team in Lisbon.
Lisbon, like Liverpool, was the port of empire, and retains strong trading
links with Portugal's former colonies.
"UK firms are using Portugal as an export route to Angola and Brazil, which
are both rapidly-growing markets," says the British ambassador to Portugal,
Alex Ellis.
Niche markets are also opening up. Lisbon, with its unspoiled architecture and
quality of natural light, is becoming a favourite location for movies and
fashion shoots, says Vidreiro (yet another parallel with Liverpool), and
specialist tourism is flourishing well away from the over-developed Algarve.
Craig Sharp, an Isle of Wight-born surfer and businessman, runs Pocean, a
sports holiday and property rental company at Ericeira, 20 miles north of
Lisbon on the so-called Silver Coast.
"I was drawn here because the traditional Portuguese culture is still embedded
in this area," he says. "It's rich with vineyards and quaint little fishing
villages, and Lisbon is a great city. It has a thriving, modern commercial
district around the Expo '98 site, characterful cobbled streets and vibrant
nightlife in the attractive Barrio Alto district. It has more ambience than
Barcelona, and there's none of the loutish behaviour you see in British
cities."
In less than three years Pocean has grown to employ around 30 people.
"Portugal is a lot more bureaucratic than the UK if you're setting up a
business, and it's advisable to hire a local lawyer and accountant," says
Sharp. "But the people here are friendly and open-minded, and as long as
you're contributing to the local community it's quite easy."
Personal relationships are important, and a lot of business is transacted over
lunch.
"We still have many family firms and the majority of workers are employed by
small and medium-sized businesses," says Vidreiro.
"The equipment and technical expertise of Portugal's traditional manufacturing
sectors such as textiles, ceramics, furniture and building materials are
first-rate," she adds.
With the minimum wage at less than half the UK level, this makes Portugal
attractive for high-quality production outsourcing.Portugal's expertise in hi-
tech fields such as ICT, renewable energy and aeronautics is also attractive
to UK investors, says Mr Ellis.
"Strong technical skills can be recruited at very competitive rates." The
country's long trading history with the UK is an added advantage.
"The Portuguese have no complexes about the British, and English is widely
spoken," says Ellis. "It's interesting to see the number of UK firms who are
using Portugal to gain their first experience of export markets."
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the success of British companies in the Lisbon region. The same hunger to
forge ahead lies behind the development of the stylish new SEAT Exeo.
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Standard equipment includes dual-zone climate control, integrated Bluetooth
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Innovative advances in both petrol and diesel engines have produced a powerful
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One of many reasons why the SEAT Exeo is firmly in the lead.
**[The SEAT Exeo ][6]**
**[SEAT Fleet and Business Sales][7] **
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