Medicinal Cannabis — Portugal’s next big investment sector?

Since February 2019, the cultivation, processing, wholesale, import and export, and transport of Medicinal Cannabis is now a legal endeavor and thoroughly regulated in Portugal.

The new law invigorated a stagnant economic sector. A long agricultural tradition with a skilled and relatively inexpensive workforce, coupled with the ideal climate for the plant cultivation and access to renewable energy, makes the country a privileged destination for investment.

New regulations will allow an entirely new sector to flourish at the junction of pharmaceuticals and agroindustry.

CBD is proven to have a positive effect in the relief of pain associated with muscle and bone trauma, headaches, symptoms related to cancer treatment and anxiety. It is gaining popularity as it detaches from the social stigma still somewhat associated with other Cannabis products.

The country is now open for international companies operating in this sector to establish a strategic foothold in Europe. Establishing an operational base in Portugal allows for production and easy export to other Member States of the E.U.. Brands will be able to launch operations in the E.U. in a tax and cost-effective manner.

Portuguese weather is perfect for these types of crops (Cannabis and Hemp), due to the possibility of prolonged sun exposure combined with the right amount of humidity which make it possible to grow hemp virtually anywhere.

Portugal has a clear advantage in comparison to other European countries, as costs with infrastructure are lower, and skilled workforce is cost effective. In the real estate market, large portions of undervalued farmland are still available.It is estimated that 2019 investments will amount to EURO 160M, leading to the creation of over 750 jobs. The tendency is investment to increase over the next years, even though red tape is the biggest obstacle.

Background and future perspectives

At the turn of century, Portugal decriminalized the consumption of certain types of drugs, including Cannabis. The consequences of this trailblazing measure were the reduction in transmissible diseases, the decrease of overdoses and the decline of drug use.

Portugal was considered as a case study in the fight against drugs and its model copied worldwide. The new regulations now place Portugal in the forefront of the exploration of Cannabinoid products.

Increasing integration of E.U. standards on production and quality control will lead to eased product placement in other European markets where plant-based solutions can be used for medicinal purposes.

Finally, demand for Cannabis based products will increase in jurisdictions where controlled recreational use of Cannabis is allowed.

More information at https://gfdl.legal/medicinal-cannabis-portugal-investment/