London top for foreign investment

London remains the leading city for foreign direct investment, according to the latest Global Locations Trend report from IBM*.

The report, which highlights the factors driving foreign direct investment and impacting economic growth around the world, also shows the countries and regions that are benefiting from foreign direct investment.

“Two powerful forces are shaping the new era of Globalization 4.0 and disrupting the global economy in the process,” the report reads. “First, digital technologies are transforming industries and global value chains at an unprecedented rate. Often referred to as the Fourth Industrial Revolution, the emergence of new digital technologies is not only changing the internal operations of companies, but giving rise to a new data-driven global economy.

“Second, growing hesitation exists over the future trade agreements that have underpinned corporate internationalization efforts over the last several decades. Ongoing Brexit negotiations are creating uncertainty in Europe, and the US administration is placing the future of NAFTA and other trade agreements in doubt. As a result, the continued ability of companies to access international markets and operate globally is in question.”

Whilst London remains in the dominant position, Paris is quickly gaining ground, after showing considerable growth in 2017. Also in the top five are Singapore, Amsterdam and Chicago.

Other key findings include:

  • Global job creation through foreign investment decreased 5 per cent
  • The United States reclaimed the top spot in foreign investment attraction
  • China, India, Mexico and multiple other emerging markets experienced declines
  • Technology jobs continued to increase
  • Greater volatility in foreign direct investment, which is evident both overall and for individual countries as companies and countries adapt to Globalization 4.0.

And in separate findings, the UK has surpassed the rest of Europe in terms of fintech investment for the first half of the year, attracting $16.1 billion (£12.3 billion) out of the continent’s $26 billion total.

According to KPMG’s Pulse of Fintech report, the UK also outstripped the US, which scored $14.2 billion.

Four of Europe’s top 10 fintech deals happened in the UK, allaying fears that Brexit would hurt the UK’s startup scene.

Beavis Morgan – specialist advisers to the tech sector

Whilst we don’t yet know what the economic landscape will look like post Brexit, we do believe that London will continue to shine as one of the world’s leading technology hubs.

Being centrally located within walking distance of “silicon roundabout”, our business experts at Beavis Morgan specialise in working with entrepreneurial people in the tech sector, helping them set up and run their own businesses and guiding them through each stage of the process, whilst navigating the challenges and advising them in making the right decisions both now and for the future.

Whether you are a local or international investor, we are also able to review potential business targets on your behalf, as well as undertake due diligence, deal structuring, advise on efficient tax planning, and provide a comprehensive range of professional services to help you make the most of your investment.

To find out more about how we can assist, contact Steve Govey or your usual Beavis Morgan Partner.

* Global Location Trends – 2018 Annual Report: Getting ready for Globalization 4.0