London tops European cities for foreign direct investment

Nov 1, 2007

Foreign direct investment into London has risen significantly over the past year according to Think London, the capital’s official foreign direct investment agency. In the first half of the fiscal year 2007, from April to September, the agency saw a 12 per cent increase in companies locating to London from Europe, Asia Pacific and the Americas, compared to the same period of the previous year, creating a net 52 per cent increase in jobs*. A key growth area is the ICT sector, seeing a 13 per cent increase over the past year. Over the same period, Think London increased the number of established foreign companies it assisted to further grow in London by 61.5 percent, due to Think London’s new dedicated business growth team.

Furthermore, the latest European Cities Monitor 2007 has once again ranked London as the top European city in which to locate a business for the eighteenth consecutive year. London continued to increase its lead over Paris ranked second place.

Michael Charlton, Chief Executive Officer at Think London commented: “London is the city attracting the largest number of foreign direct investment projects in Europe and second only to Shanghai world-wide. Improving the city’s infrastructure, continuing to attract a good supply of high-quality talent, and ensuring an attractive fiscal and ‘business friendly’ environment are crucial to London’s continued success.”

The European Cities Monitor (ECM) is the annual location survey of Europe’s leading companies carried out by global real estate consultant Cushman & Wakefield. The survey, undertaken by market research firm Taylor Nelson Sofre, is based on interviews with senior managers and board directors in charge of location of 500 top European companies. It looks at factors regarded as important by companies when deciding where to locate, and then compares the performance of 33 of Europe’s leading business cities on each factor. The UK capital is the top-rated city for half of the 12 factors which are ranked to give the overall league table.

Companies from emerging economies also view London as the best city in Europe in which to locate. According to Ernst & Young’s European Investment Monitor, Indian FDI accounted for 14 per cent of all FDI projects into London during 2006/2007, up from 6 per cent over the same period in 2000/2001.