Portugal invests heavily in the Defence Industry
Defence News Europe - Portugal is investing heavily in the Defence Industry. Here are Portugal´s investments in the Defence Industry in 2026, according to a speech by Portugal´s Minister of National Defence, Nuno Melo, at the conference “Defense Industry: Positioning Portuguese Companies” organized by CIP – the Portuguese Business Confederation, in partnership with idD Portugal Defence. Portugal´s Minister of National Defence announced that Portuguese companies are participating in acquisitions and defense projects, in the national Defence sector that grew 26% in business volume in 2025.
Here are Portugal´s investments in the Defence Industry in 2026:
Portugal´s Minister of National Defence, Nuno Melo, highlighted that, within the scope of SAFE investments (European loans totaling around 5.8 billion euros to be executed until 2030), Portugal´s Defence industry was integrated into the acquisition processes, citing as an example the new Italian frigates in which the participation of the national industry is around 325 million euros.
Regarding drones, Portugal´s Minister of National Defence mentioned that the acquisition is 100% carried out by Portuguese companies. For every piece of equipment, whether for land, sea, air, space, or cyberspace, each acquisition involves the participation of Portuguese companies, to a greater or lesser degree.”
Portugal´s Minister of National Defence also highlighted the planned investments for shipyard Arsenal do Alfeite, exceeding 100 million euros, which, he stated, "guarantees the revitalization of an entity that will be catapulted into the 21st century and around which many other companies will gather," boosting the economic impetus in the region and creating job opportunities. Public company Arsenal do Alfeite, that is a subsidiary of idD Portugal Defence, is located within the Lisbon Naval Base on the south bank of the Tagus River. It is primarily dedicated to meeting the shipbuilding, maintenance, and repair needs of the Portuguese Navy, other NATO navies, and commercial vessels, utilizing advanced technologies, particularly in the areas of electronics, optronics, weaponry, mechanics, and electrical engineering.
Minister of National Defence, Nuno Melo, highlighted that Portugal´s Defence sector now has 466 companies, the highest number ever registered, adding that “the sector's turnover increased by 26% and jobs by 18%” in 2025, a trend that is expected to be reinforced in 2026.
