DREM releases data on foreign affiliates in the Autonomous Region of Madeira
The Regional Directorate of Statistics of Madeira (DREM) has published today the final data on the Statistics of Foreign Affiliates in the Autonomous Region of Madeira for the year 2023. This information is derived from the Integrated Business Accounts System (SCIE), which results from a process of integrating statistical data on enterprises, primarily based on administrative records such as Simplified Business Information (IES). It provides key economic indicators that outline the structure, evolution, and origin of the capital control of foreign affiliates in the ARM.
A foreign affiliate in the ARM refers to an enterprise resident in the Region but controlled by a non-resident institutional unit in Portugal. Control is defined as the ability to determine the general policy of an enterprise, including the appointment of its administrators if necessary.
In the scope of this study, only enterprises constituted in the legal form of a company were considered, as the entirety of foreign affiliates in the ARM and even in Portugal assume this legal form.
In 2023
Employment and Gross Value Added (GVA) of foreign affiliates increased despite a reduction in the number of enterprises
In 2023, there were 226 foreign affiliates in the ARM, a 3.0% decrease compared to 2022, representing 1.9% of the total non-financial companies, a percentage lower than the national average (2.1%).
Foreign affiliates in the ARM employed approximately 4,983 persons (+9.3% compared to the previous year), accounting for 6.6% of the total employment in non-financial companies in the region (18.5% nationally). On average, each affiliate employed 22 persons, higher than the average of companies headquartered in the ARM (6 persons).
The Turnover (VVN) of foreign affiliates in the ARM declined by 4.1% between 2022 and 2023 to 1,313.3 million euros, representing 13.9% of the total turnover of regional non-financial companies.
The Gross Value Added (GVA) of foreign affiliates in the ARM reached 329.7 million euros, representing 11.9% of the total GVA of regional companies. This marks a 4.4% increase compared to the previous year, although it lags behind the 13.0% growth in the GVA of companies headquartered in the ARM.
At the national level, the GVA of foreign affiliates grew by 11.3% in 2023, lower than the 13.6% increase in the GVA of non-financial companies in Portugal. Foreign affiliates accounted for 27.8% of the total GVA of non-financial companies in the country.
In 2023, 69.9% of foreign affiliates in the ARM, 86.7% of employment, and 57.9% of turnover were linked to enterprises headquartered in the European Union.
That year, 84.1% of foreign affiliates in the ARM were controlled by enterprises based in Europe, followed by the Americas with 12.8%. Among the top five countries contributing to turnover in the ARM, four were from Europe.
Malta was the leading country in terms of the number of affiliates in the ARM, accounting for 17.7% (down from 18.0% in 2022). Regarding GVA, affiliates with decision-making centres in Luxembourg contributed 34.1% (31.9% the previous year) of the GVA of foreign affiliates.
By sector of activity, "Other Services" and "Construction and Real Estate Activities" stood out with 81 and 53 foreign affiliates, respectively (88 and 55 in the previous year).
According to DREM's analysis, foreign affiliates licensed under the Madeira International Business Centre (CINM) accounted for 19.5% of all foreign affiliates in the ARM, 8.2% of employment, 19.7% of turnover, and 30.5% of the GVA of enterprises controlled by entities headquartered in foreign countries.
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