DREM releases data on foreign affiliates in the Autonomous Region of Madeira
The Regional Directorate of Statistics of Madeira (DREM) releases today a time series of Statistics on foreign affiliates in the Autonomous Region of Madeira (ARM), for the years 2010 to 2021. The data from 2010 to 2020 are final and those for the year 2021 are provisional and will only become final in July 2023.
The information comes from the Integrated System of Accounts for Enterprises (SCIE), which derives from a process of integration of statistical information on enterprises, based on administrative data, mainly on the Simplified Business Information (IES), providing the main economic indicators characterising the structure, change and origin of capital control of affiliates of foreign enterprises in the Autonomous Region of Madeira.
A foreign affiliate in Madeira is an enterprise resident in Madeira, controlled by an institutional unit not resident in Portugal. This control is understood as the power to determine the general policy of the enterprise, choosing, if necessary, its directors.
Within the scope of this study, only enterprises incorporated as companies were considered, since all foreign affiliates in Madeira and even in Portugal take this legal form.
In 2021
Gross Value Added of the foreign affiliates increased by 125.3% and the number of companies while head offices in the Autonomous Region of Madeira decreased by 7.8%
In 2021, there were 188 affiliates of foreign companies in the Autonomous Region of Madeira (ARM), -7.8% compared to 2020, corresponding to 1.8% of the total number of non-financial companies headquartered in the Region. In the country, this ratio was 2.1%.
Foreign affiliates in the Autonomous Region of Madeira employed around 4,070 people (+36.0% than in the previous year), representing 6.3% of the total employment of non-financial companies in this region (17.7% in the country). On average, in Portugal, each affiliate employed 60 people in 2021, a figure higher than that of companies headquartered in the ARM (6 people).
The Turnover of foreign affiliates in the ARM increased by 84.1% (7.3% of the share of the total turnover of regional non-financial companies), between 2020 and 2021, to 506.4 million euros.
The Gross Value Added (GVA) of foreign affiliates in the ARM was 202.5 million euros, concentrating 11.1% in the total GVA of regional companies. Compared to the previous year, there was an increase of 125.3%, substantially higher than the GVA of all the companies with head offices in the Autonomous Region of Madeira, which was 43.6%.
At a national level, the GVA of foreign affiliates grew 14.8% in 2021, below the increase in the GVA of non-financial companies in Portugal (+15.8%), and represented 27.6% of the total GVA of non-financial companies.
In 2021, 69.1% of the affiliates of foreign companies in the Autonomous Region of Madeira and 95.5% of the turnover corresponded to companies headquartered in the European continent (89.7% in EU countries), followed by the American continent, with 4.8% of affiliates and 1.3% of turnover.
In the Autonomous Region of Madeira, among the five countries with the greatest contribution to Turnover, all belong to the European continent.
The country of origin of the capital control with the highest share in terms of affiliates in the Autonomous Region of Madeira was Malta, with 20.2%.
In 2021 in the Autonomous Region of Madeira, by sector of activity, the following activities stand out: "Other Services", "Construction and Real Estate Activities", "Hotels and Restaurants" and "Commerce", with 63, 44, 25 and 24 foreign affiliates, respectively.
According to the analysis made by DREM, the affiliates of foreign companies which are licensed in the International Business Centre of Madeira (IBC) represent 21.8% (20.9% in the previous year) of the total number of affiliates in Madeira and 27.9% (41.6% in 2020) of the turnover of companies owned by entities headquartered in foreign countries.
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