Portugal’s Growing Role in Europe’s Defence & Security Landscape

Portugal is quietly becoming one of Europe’s most dynamic players in defence, security and advanced technology. With more than 400 companies active in the sector and a rapidly evolving European security environment, the country is strengthening its industrial base, attracting investment and integrating deeply into EU level operations.

As highlighted in our recent market report, “Portugal’s defence sector now includes more than 400 companies and is becoming more technologically advanced and export oriented, particularly in aerospace, maritime services, communications, software and unmanned systems.”

For the CCLBL community, this evolution opens new doors for innovation, partnerships and cross border business opportunities.

Why this matters now
Europe’s security landscape has changed dramatically since Russia’s invasion of Ukraine. EU and NATO members — including Portugal — are increasing defence spending and accelerating industrial cooperation. Portugal’s defence budget reached €4.48 billion in 2024 and is on track to meet NATO’s 2% target sooner than expected.
This investment is not only military — it is also industrial, technological and economic, creating opportunities for companies across sectors such as:
• Aerospace & MRO
• Maritime engineering
• Software, cyber & C4ISR
• Drones & unmanned systems
• Space & satellite imagery
• Dual use innovation (civil + defence)

Portugal’s defence champions
The report highlights several Portuguese companies that are already shaping Europe’s security capabilities:
• OGMA – a major aerospace MRO and aerostructures hub
• Arsenal do Alfeite – the Navy’s strategic shipyard
• TEKEVER – Europe’s leading maritime surveillance drone provider
• Thales Edisoft – software and systems integration for defence and space
• GEOSAT – high resolution satellite imagery for global security
• Critical Software – mission critical systems and AI for defence projects
These companies are not only serving Portugal — they are delivering capabilities to EU agencies, NATO partners and global clients.

Portugal as a European security enabler
Thanks to its Atlantic geography and large Exclusive Economic Zone, Portugal plays a central role in European maritime security. Several EU agencies rely directly on Portuguese infrastructure and technology, including:
• EMSA (maritime surveillance using Portuguese drones and EO platforms)
• Frontex (border operations supported by TEKEVER RPAS)
• SatCen (satellite imagery processed by Portuguese software companies)
• MAOC N & EUDA (drug route monitoring supported by national naval and aerial assets)
As the report notes, “Portuguese forces and systems are increasingly woven into the operational tools of European agencies… making the country’s EEZ a central testing ground for the fusion of defence, law enforcement and maritime safety missions.”

Funding and opportunities for companies
Both European and national instruments are available to support innovation and industrial growth:
• European Defence Fund (EDF) – major grants for cooperative R&D
• EDIP – support for joint procurement and industrial ramp up
• ASAP – ammunition and missile production capacity
• Banco Português de Fomento – long term financing for industrial investment
• Portugal Ventures / Portugal Tech – equity for high tech and dual use startups
• ANI & idD – national gateways to EU programmes and international partnerships
These tools are particularly relevant for SMEs and mid caps — including many CCLBL members — working in engineering, software, sensors, materials, AI, robotics or maritime technologies.

Why this matters for CCLBL members
This sector is no longer “traditional defence.” It is a technology driven, export oriented ecosystem where:
• Belgian and Luxembourgish companies can find partners, suppliers or clients
• Portuguese firms can access EU funding and cross border consortia
• Innovation clusters can collaborate on dual use technologies
• Startups can scale through European programmes and venture capital
For our Chamber, this is a strategic area where Portugal’s strengths meet Benelux expertise — from aerospace to cybersecurity, from maritime systems to advanced engineering.

Closing note
Portugal is positioning itself as a specialised provider of critical enablers within the European defence system. For our business community, this means new opportunities to collaborate, innovate and grow across borders.