Lisbon, April 12, 2026 (Lusa) – The US and the Middle East are emerging as strategic markets for Portuguese defence companies, amid growing global demand and the sector’s international expansion, according to José Neves, the president of the cluster.
In an interview with Lusa conducted prior to the ceasefire agreement between the US, Israel, and Iran, he confirmed a strengthening of Portugal's international presence, saying that Portuguese companies were expanding their operations into the US, highlighting the significant impact of trade fairs in the Middle East, where Portuguese firms had secured new contracts.
“I cannot give many details, but I am aware of some Portuguese companies that are expanding operations to the US,” regarding the cluster, which comprises around 180 entities, including companies, universities and research centres in the aeronautics, space and defence sectors.
He said that it was a very open and interesting market with large contracts, which had often led companies to talk amongst themselves to assess the need for joint ventures between Portuguese and American firms.
Despite the potential of external markets, he said that the current geopolitical climate, specifically the conflict in the Middle East, was primarily accelerating the sector's structural transformation, marked by a greater focus on technology and innovation.
He also highlighted the challenge posed by the war in the Middle East, saying that some European equipment was being diverted from Ukraine to other conflicts, and that in the medium term, this could open up opportunities for companies to produce for Europe and emerging markets in other regions of the world at the same time.
“War is increasingly less about large-scale operations and more about small-scale operations with very rapid developments that adapt on a daily basis,” he said, pointing to a new paradigm based on drones, electronic warfare and adaptability.
He believed that Portugal was well-positioned to capitalise on that shift, as Portuguese companies had demonstrated the ability to respond quickly to new requirements on the ground.
Furthermore, he highlighted the concept of "New Defence", a strategy based on innovative, nimble companies capable of meeting shortened development cycles.
“Changes to drones [...] happen every two weeks, not every two years,” he said, emphasising that this evolution favoured countries with more flexible companies, such as Portugal, at a time when Europe was seeking to strengthen its autonomy in the defence sector.
“This new trend [...] fits the profile of Portuguese companies,” he said, adding that the capacity for rapid innovation could be a competitive advantage in the international market.
Beyond technology, he identified human resources as a primary challenge for the sector’s growth, as demand for skilled talent rose across Europe.
He said that the main difficulty was not recruitment but retention, as highly skilled workers often became targets for foreign markets offering higher salaries.
However, he emphasised that Portugal had managed to attract talent through a combination of innovative projects and opportunities for professional development, noting that developing drones, satellites, and aircraft posed enormous challenges.
Neves described this evolution as part of a broader European effort to bolster defence production capacity following decades of external dependence, particularly on the US.
“It is not something that can be revolutionised overnight [...],” he said, emphasising that boosting production and improving the skills of the workforce would take several years.
According to him, that transformation, combined with growing international demand, created an opportunity to strengthen Portugal’s position in the global defence industry.
SCR/MYAL // ADB.
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