London Tops Leading International Investment Tables

Powered by London, in a report by Ernst & Young this month, the UK maintained its leading position for inward investment into Europe in 2007, in what looks likely to be the benchmark for foreign ventures for some years. Similarly, in KPMG International's research, also unveiled this month, the UK remains the most popular European inward investment destination for corporates in the short to medium term.

Ernst & Young's tenth annual European Investment Monitor report revealed a record number of foreign direct investments (FDI) in Europe for the fourth year in succession, with a total of 3,712 FDI projects - a five per cent increase on 2006.

The UK's 19 per cent share put it ahead of France on 15 per cent, Germany's eight per cent, Spain's seven per cent and Belgium's five per cent share. Seven hundred and thirteen FDI projects were announced in total last year in the UK, a slight increase of four per cent on 2006 (685), compared with a dramatic increase of 19 per cent the year before (685 compared to 559 in 2005). 

London attracted 42 per cent of all FDI projects in the UK in 2007, masking a drop in the rest of Britain. Ernst & Young said Europe was developing "super cities" that had benefited from a concentration of investment in the service sector and London was top of this league. Last year, 305 foreign firms invested in London, almost four times as many as were attracted by the next most popular part of Britain, the south-east (with 83).

In the global survey of corporate investment plans carried out by KPMG International, corporate investment strategists from over 300 of the largest multinationals in 15 major economies were asked where they plan to invest in the next 12 months and in five years' time.

Gateway to London is pleased to report that the results look very positive for the UK, with an outlook of stability and continued growth. The UK lies third in the KPMG table for investment this year, behind only the US and China, with 14 per cent of respondents planning to invest. Looking ahead to 2013/14, the UK then actually increases its share of investment to 17 per cent.