2. Madeira: Global Solutions
for Wise Investments
“Madeira’s Economy - Overview”
15th of November, 2010
Rafael Oliveira
3. 1 – Madeira Island Geographic Highlights √
2 - Economic and Social Framework
3 - Economic Data
4 - Economic Sectors
5 - Long-term Development of Madeira Island
Rafael Oliveira
5. 1 – Madeira Island Geographic Highlights √
2 – Economic and Social Framework
√
3 - Economic Data
4 - Economic Sectors
5 - Long-term Development of Madeira Island
Rafael Oliveira
6. Economic and Social
Framework
Above All ...
• Autonomous Region of Portugal;
• Political stability (same political party in power for the last 30 years);
• Own Parliament, democratically elected, with legislative powers;
• Regional Government nominated by the Parliament;
• Autonomous Tax Administration with extensive powers, including that
of issuing rulings;
• Portugal is a member state of the European Union (E.U.) for almost 20
years, and is a member of OECD;
• Part of the European Monetary System.
Rafael Oliveira
7. Economic and Social
Framework
Modern infrastructure
Intercontinental Airport:
• Winner of the international ”Outstanding Structures Award”;
• Linked to 45 worldwide airports;
• Several international airlines depart from and arrive at Madeira
Airport, namely (among others): EasyJet; Air Berlin; Condor;
Thompson, Jet2 and Transavia.
Road Network:
• 135 Km of highways;135 bridges and viaducts;163 tunnels.
Telecommunications:
• Excellent technical infrastructures, high bandwidth capabilities
as well as dedicated server hosting and housing facilities.
Rafael Oliveira
8. 1 - Madeira Island Geographic Highlights √
2 - Economic and Social Framework √
3 – Economic Data
√
4 - Economic Sectors
5 - Long-term Development of Madeira Island
Rafael Oliveira
11. 1 - Madeira Island Geographic Highlights √
2 - Economic and Social Framework √
3 – Economic Data √
4 – Economic Sectors √
5 - Long-term Development of Madeira Island
Rafael Oliveira
13. Economic Sectors
A modern economy based in the international services
(Tourism: 28%, IBCM: 21%)
• 196 hotels and excellent tourism facilities;
• GDP per capita and productivity above national average;
• Highly specialized and efficient professional services
providers;
• Qualified workforce, excellent language skills;
• A University (Madeira University) with a Carnegie Mellon
Masters Degree and several degrees, such as
management; IT; economics; medicine; biology;
• Low operational costs.
Rafael Oliveira
15. Economic Sectors
The International Business Centre of Madeira (IBC) is
an instrument of regional economic development of
Madeira, created with the goals of:
• Modernizing, diversifying and internationalizing
the productive structure of goods and services of
the Region; Attraction of foreign
investment through the
• Compensating structural weaknesses resulting granting of tax incentives
from the reduced size of the internal market and
from the ultra peripheral status of Madeira.
Rafael Oliveira
16. Economic Sectors
Benefits for Companies:
• Reduced corporate tax rates (0-5%) until 2020;
• No withholding tax on dividends;
• No withholding tax on interest and royalty payments;
• No capital duty;
• Lowest VAT rate in the European Union: 15%;
• Wide network of Double Tax treaties (50).
Rafael Oliveira
17. Economic Sectors
Results by the end of 2009:
More than 3000 companies licensed:
General Services Intellectual property (IP)
Trading Companies Telecom / e-business
Asset Management Shipping
Holdings Trusts
More than 240 vessels, yachts & oil rig platforms registered in MAR.
Rafael Oliveira
19. Long-term development of
Madeira Island
Companies in Madeira suffer from
permanent disadvantages that replicate
economic costs guided by these main
factors:
• Very Limited Internal • Isolation from the main • Economies of scale • Difficult access to
Market; European markets that and scope nonexistent; capital markets due to
reproduces transportation diminutive dimension;
over costs;
Rafael Oliveira
20. 1 - Madeira Island Geographic Highlights √
2 - Economic and Social Framework √
3 - Economic Data √
4 - Economic Sectors √
5 - Long-term development of Madeira Island √
Rafael Oliveira
21. Long-term development of
Madeira Island
Strategic Guidelines:
Until 2007 the European Union Structural Funds were primarily targeted into basic
infrastructures in transport, communications, energy and urban renewal;
For the period 2007-2013, following the Lisbon Strategy, the regional development
policy is to converge into a knowledge-base society as a result of 3 combined factors:
Business Competitiveness – Sustainable Development - High Qualified HR
Improve the regional organizational performance in order to provide Madeira’s
companies with the appropriate mechanisms for investment, performance and funding Knowledge-based
leading to an up-grade business network; Economy
Create all the conditions and proficiency for the development of value-added business
and International activities within the Madeira International Business Center;
Strengthen the competitivity of the MIBC for activities which fall within the scope of the
economy of knowledge, specifically e-commerce and telecommunications, so as to
place Madeira on the global map of the new economy.
+ Innovation = + Development = + Employment
Rafael Oliveira
Cerca 75% da população habita em apenas 35% do território, designadamente na costa sul. É nesta zona que se desenvolve a grande parte da actividade económica e se localiza a maior parte das unidades hoteleiras.
