The UK remains Europe’s most attractive location for foreign direct investment (FDI), but its lead has narrowed due to concerns about Brexit.
According to the latest survey of financial services’ attractiveness, the UK attracted 99 financial services FDI projects in 2016, up 5 per cent on 2015 and the highest level for more than a decade.
Germany is however catching up quickly, recording a year-on-year rise of 18 per cent (with 39 projects) and France 25 per cent (with 25 projects). London kept its place as the European capital for overseas financial services investment, recording 69 projects in 2016.
The US and China are the largest sources of foreign investment in the UK, with quality of life, culture and technology all being cited as key factors behind the UK’s continued appeal.
A spokesperson for the report says: “Despite last year’s referendum, UK financial services continued to attract record levels of investment. The UK remains a world-class place for financial services firms to do business. The talent, infrastructure, quality of life, plus deep capital markets and a robust regulatory system are hard to rival.”
Commenting on the UK’s impending departure from the European Union, he adds: “We can see from our study that investors have concerns about what Brexit may mean for the future and they want greater clarity on corporate taxation and incentives for foreign investors.
“It’s vital that the Government does all it can to articulate a clear strategy around skills, market access and future trading arrangements to ensure the UK continues to be Europe’s preeminent financial centre for many years to come.”
Beavis Morgan – Advisers to Chinese investors in the UK
Through our joint venture with Anglo Sino Consultancy LLP, Beavis Morgan is able to identify business opportunities for Chinese investors looking to enter the UK market. We are also able to provide a comprehensive range of professional services to help you make the most of your investment in the UK.