World City Guide

Business

Business Profile
Portugal has come a long way since it was dubbed the ‘Poor Man of Europe’. Impressive infrastructure projects, like the new Vasco da Gama Bridge and the expanded metro system, are vivid demonstrations of the new face of the city. However, over the last few years, the growth level has slowed along with the rest of the global economy. Lisbon is still one of the fastest growing European cities, in economic terms, with a low unemployment rate of 4%. Portugal also has one of the lower unemployment figures in Europe, standing at 5.1% at the start of 2003.

In 1999, Portugal joined the EMU and tight fiscal policies ensured the country continued to meet the EMU criteria. The introduction of the Euro in 2002 finally sealed Portugal’s place in the developed Western European economy. Being part of the EMU has strengthened the country’s trading bonds with the other European countries – almost half the trade is with Spain, Germany and France. Membership of the EU has also brought with it a massive investment in infrastructure, which has boosted the domestic construction industry and made it easier to transport goods and generally do business. The successful staging of Expo 98 was a sign that Lisbon is now a progressive European city and silenced many of the critics who predicted that it would be a disaster. The European Football Championships in 2004 also look set for success and should bring more money into the city’s coffers.

There are storm clouds on the horizon, however, as Portugal becomes enmeshed in the global downturn, with rising unemployment and more difficult operating conditions. A number of large-scale infrastructure improvements (the most vivid demonstration of Lisbon’s ambitions over the last decade) have been out on hold by the new PSD government of Manuel Durao Barroso, including plans for a new airport and a new rail bridge across the Tagus, which would open up fast connections to the Algarve.

The main industries and employers in Lisbon are tourism, followed by finance, insurance, consulting and telecommunications. The Baixa district is the location of many of the banks and major financial services. Many multinationals, including KPMG, Arthur Anderson and Barclays Bank, have a presence in the city and their bases of operations for the entire country are usually located here.

The Portuguese Investment, Trade and Tourism Institute, Avenida 5 de Outubro 101 (tel: (21) 793 0103; fax: (21) 793 5028; website: www.portugal.org ), offers English-language assistance on doing business in Lisbon. The British Council, Rua Simao Bolivar 259 (tel: (21) 321 4500; fax: (21) 347 6151; website: www.britishcouncilpt.org ), provides translation services.

Business Etiquette
Doing business is Lisbon is far less bureaucratic than it used to be but can still require a lot of patience, despite the fact that a reasonably good level of English is spoken in business circles. Appointments might stretch on for longer than anticipated, with long lunches common. Even the most rudimentary of business transactions and dealings seem to take longer in Lisbon than in most European capitals.

Shaking hands is customary when meeting and taking leave and business cards are exchanged after introduction. When addressing someone, it is customary to use their title (especially if they have a profession (engenheiro, for example) or university degree) followed by their full name. Regardless of their degree, university graduates are usually referred to as ‘Doctor(a)’. Mr, Ms and Mrs translate to Sr, Sra and D (for ‘Dona’). Co-workers often refer to each other as ‘colleague’.

Business suits are standard office attire for both men and women. It is advisable for visitors to enquire whether or not the same attire should be worn for social functions. It is considered very rude to write anything official in red ink. Normal business hours are Monday to Friday 0900-1300 and 1500-1800.

Business socialising generally focuses on eating and drinking in bars and restaurants, with this seldom extending to people’s homes. Alcohol will usually be drunk with all meals, although local business people hardly ever overindulge during business meetings.